Annual Report
2023 | 2024
2
To Our Shareholders |
Annual Report 2023/2024 | KWS Group
KWS in Figures
The KWS Group (in € millions)
2023/2024
2022/2023
2021/2022
2020/2021
2019/2020
2018/2019
Net sales and income
Continuing operations
Net sales 1
1,678.1
1,500.3
1,275.8
1,158.6
1,138.3
982.1
EBITDA 1
388.1
278.8
230.0
205.6
199.8
184.9
EBIT 1
302.0
195.1
141.5
118.3
118.1
142.0
as a % of net sales (EBIT margin) 1
18.0
13.0
11.1
10.2
10.4
14.5
Net financial income/expense 1
–50.0
–23.8
–7.2
8.3
0.5
4.7
Net income for the year 1
184.1
126.1
106.4
99.9
83.8
110.1
Discontinued operations
Net income
–53.2
0.9
1.3
10.7
11.4
–6.1
Group
Net income
130.8
127.0
107.8
110.6
95.2
104.0
Other figures on earnings
R&D intensity in %
19.4
20.0
20.5
20.0
19.2
19.0
Financial position and assets
Capital expenditure 1
139.9
100.8
83.4
73.3
100.4
84.4
Depreciation and amortization 1
86.1
83.7
88.5
87.2
81.7
42.9
Equity
1,399.9
1,291.1
1,245.9
1,053.7
994.5
963.5
Equity ratio in %
47.4
47.0
47.0
44.3
44.5
45.5
Return on equity in %
14.6
10.3
10.4
10.3
8.9
12.8
Return on assets in %
7.3
5.1
4.7
4.7
4.3
7.5
Net debt 2
385.1
565.2
521.9
475.6
495.7
497.9
Total assets
2,956.1
2,749.6
2,651.8
2,376.7
2,235.5
2,115.0
Capital employed (avg.) 3
1,819.1
1,819.1
1,667.9
1,604.7
1,640.5
1,047.1
ROCE (avg.) in % 1,4
16.6
10.7
8.5
7.4
7.2
13.6
Cash flow from operating activities
157.2
151.6
150.5
185.3
111.1
99.3
Free cash flow
53.8
50.0
61.5
110.2
10.2
30.9
Employees
Number of employees (avg.) 5
4,673
4,391
4,222
3,977
3,995
4,126
Personnel expenses
397.1
371.4
327.9
308.9
291.5
280.7
Key figures for the share
Earnings per share from continuing
operations in €
5.58
3.82
3.23
3.03
2.54
3.34
Earnings per share in €
3.96
3.85
3.27
3.35
2.89
3.15
Dividend per share in € 6
1.00
0.90
0.80
0.80
0.70
0.67
1 The previous year’s figures have been adjusted as described in section “3.1. Consistency of accounting policies.”
2 Short-term + long-term borrowings – cash and cash equivalents – securities
3 Total capital employed at the end of the quarters (intangible assets + property, plant and equipment + inventories + trade receivables – trade payables) / 4
4 EBIT/Capital Employed (avg.)
5 FTE: Full time equivalents; previous years adjusted less trainees/interns
6 The dividend for 2023/2024 is subject to the consent of the Annual Shareholders’ Meeting in December 2024
39
19
738
865
350
253
276
247
8
9
–35
–127
–115
50
39
66
62
–12
2022/2023
2023/2024
EBIT
EBIT
EBIT
EBIT
EBIT
716
701
Net sales
Net sales
Net sales
Net sales
Net sales
Corn
Sugarbeet
Corporate
Vegetables
Cereals
Segments (in € millions)
– 5%
109%
10%
21%
38%
12%
28%
– 6%
– 195%
– 10%
1
| To Our Shareholders
KWS Group | Annual Report 2023/2024
Oilseed rape in bloom in a field in Pattensen in the Hanover region. With its sunny yellow
splendor, rapeseed is not only a real feast for the eyes at flowering time, but also an
important crop rotation element and an important crop – as oil for human consumption,
valuable protein for animal feed, biofuel and as a food source for insects. You can read more
about rapeseed breeding, its challenges and solutions from KWS in the article “At the heart
of rapeseed breeding” in the current issue of our KWS portrait at https://portrait.kws.com/
Contents
1. To Our Shareholders
2
Foreword of the Executive Board
2
Report of the Supervisory Board
6
KWS on the Capital Market
14
2. Combined Management Report
17
2.1 Fundamentals of the KWS Group
18
2.2 Research and Development Report
26
2.3 Economic Report
29
2.4 Sustainability Information
48
2.5 Opportunity and Risk Report
80
2.6 Forecast Report
94
2.7 Further Information
96
2.8 Report on KWS SAAT SE & Co. KGaA
(Declaration based on the German
Commercial Code (HGB))
100
3. Consolidated Financial Statements
for KWS SAAT SE & Co. KGaA 2023/2024
103
2
To Our Shareholders | Foreword of the Executive Board
Annual Report 2023/2024 | KWS Group
Executive Board
Nicolás Wielandt Corn Europe, Corn South America, Corn North America, Corn China/Asia
Peter Hofmann Sugarbeet, Vegetables, Cereals, Oilseed Rape/Special Crops & Organic Seeds, Global Marketing & Communications
Eva Kienle Finance & Procurement, Controlling, Global Transaction Center, Legal Services & IP, Information Technology,
Compliance Office, Governance & Risk Management
Felix Büchting (Spokesperson) Research, Breeding, Global Human Resources, Farming Group Strategy, Corporate Office & Services
3
Foreword of the Executive Board | To Our Shareholders
KWS Group | Annual Report 2023/2024
Foreword of the Executive Board
To Our
Share
holders
We wish to inform you in this Annual Report about what has been an eventful
and successful year. Of course, facts and figures are the measure of commercial
success and are the focus of every Annual Report – and they are once again
impressive! Significant growth in net sales, operating income and the dividend
as well as a record number of new variety approvals are convincing proof that
KWS is on the right track.
We at KWS are proud of what we have achieved, but we are well aware that our
current success is the result of good, far-sighted decisions in the past and a
constant willingness to embrace change. Foresight and openness to change are
therefore an important part of our corporate culture and determine our entrepre-
neurial activity.
I would like to give you two examples of how we have laid the long-term founda-
tions for KWS’ future.
Let’s first look at the changes in our corn business. In the fall of 2023, we divested
our shares in the Chinese joint venture KENFENG – KWS SEED CO., LTD. and the
Chinese corn portfolio with the related licenses, selling them to our long-standing
joint venture partner. The main reason behind this decision was the long-term
business prospects in the Chinese corn market, where the regulatory framework
restricts the ability of foreign companies to operate. That situation would have
led to competitive disadvantages in the long term. As a result of the divestment,
we generated significant non-recurring income of around €28 million in the year
under review.
4
To Our Shareholders | Foreword of the Executive Board
Annual Report 2023/2024 | KWS Group
In March 2024, we also concluded an agreement to sell our South American corn business
for an amount in the mid triple-digit million euro range. This move may have come as a
surprise to some, as we had built up a strong position in the South American corn market in
recent years with great breeding and sales successes. At the same time, our strong growth,
particularly in our main market Brazil, was impacted by challenging economic conditions
coupled with a constantly growing need for financing.
In order to pursue KWS’ strategic goals with all our energy and focus, we decided that
this was the right time and the right stage of development for our business to exit the corn
seed market in South America. This step strengthens our financial flexibility and long-term
profitability and thus also our future entrepreneurial independence.
We are delighted to have found a suitable new owner with complementary strengths and is a
“haven” for our South American colleagues: the Argentinian family-owned company GDM, a
global provider in the field of plant genetics, particularly for soybean.
In this context, it should be emphasized that our European corn business, with its strong
market position in both silage and grain corn, is not on the agenda and for any disposal.
KWS will remain a reliable partner for farmers here with our high-performance varieties and
digital services.
Another example of how we have laid long-term foundations is the establishment of our
future vegetable business. In the past year, we have made great progress in building our
new field of business in terms of personnel and expanding our breeding activities in Brazil,
Spain, Türkiye, Italy, the Netherlands and Mexico.
In June 2024, we inaugurated a new research and breeding station in Uberlândia, Brazil.
This hub will be important for our activities in the Brazilian and South American vegetable
market, where we are developing varieties of tomatoes, melons and watermelons that are
well adapted to tropical and subtropical conditions.
At our Andijk site in northeastern Netherlands – a center of global vegetable breeding – a
new R&D center will be built by spring 2025 to expand our research and breeding activities
there, particularly for outdoor crops such as spinach and beans.
5
Foreword of the Executive Board | To Our Shareholders
KWS Group | Annual Report 2023/2024
Our international vegetable breeding team has already grown to to over 300 employees at
ten locations. They are driving our breeding programs in different regions and with different
focuses – with the common goal of developing new and better varieties and putting them
successfully on the market.
Whether you are new to KWS or have been with us for a long time, I would like to take this
opportunity to thank all our colleagues who work for KWS worldwide every day with great
dedication and expertise for their commitment and the successes we’ve achieved in the
past fiscal year!
We are convinced that the satisfaction and motivation of our employees can best thrive in an
atmosphere of respect, personal responsibility and diversity. That is why I’m personally very
pleased that the clear majority of all participants in a recent employee survey expressed
their satisfaction with KWS as an employer. This result is a great incentive for us to continue
creating the best possible working conditions for our employees moving ahead.
Last but not least, I would like to take this opportunity to thank our many customers,
business partners and shareholders for their trust in KWS. I hope you find our
2023/2024 Annual Report both informative and interesting.
Dr. Felix Büchting
Spokesperson of the Executive Board
6
To Our Shareholders | Report of the Supervisory Board
Annual Report 2023/2024 | KWS Group
Report of the Supervisory Board
The Supervisory Boards of KWS SAAT SE &
Co. KGaA and its personally liable partner,
KWS SE, suffered a great loss with the death
of their Chairperson, Philip Freiherr von dem
Bussche, on April 8, 2024. Philip von dem Bussche
had informed the company’s shareholders of his
serious illness at the Annual Shareholders’ Meeting
on December 13, 2023, but was determined to
continue discharging his duties. He did so fully with
impressive discipline up to Easter 2024. A tribute to
him can be found following this report.
The Supervisory Board of KWS SAAT SE &
Co. KGaA convened on April 17, 2024, and elected
Dr. Marie Schnell as its Chairperson and Victor W.
Balli as its Deputy Chairperson. In view of the fact
that Dr. Hagen Duenbostel’s two-year cooling-off
period will end in December 2024 and he is to be
nominated for election to the Supervisory Board
at the upcoming Annual Shareholders’ Meeting, it
was neither sensible nor feasible to fill the vacant
seat for six months. The Supervisory Board elected
Marie Schnell to the Audit Committee as successor
to Philip von dem Bussche. It also elected Professor
Dr. Dr. h.c. mult. Stefan Hell to the Nominating
Committee and he took over as its Chairperson.
The Supervisory Board of KWS SE likewise
elected Dr. Marie Schnell as its Chairperson
and Victor W. Balli as its Deputy Chairperson on
April 17, 2024. Marie Schnell also took over as
Chairperson of the Committee for Executive Board
Affairs and Stefan Hell as Chairperson of the
Nominating Committee. The vacant seat on this
board is also to be filled by Hagen Duenbostel in
December 2024.
The Supervisory Bodies of KWS SAAT SE &
Co. KGaA and KWS SE still had the same share-
holder representatives serving on both of them. The
Supervisory Board of KWS SAAT SE & Co. KGaA
has two employee representatives in addition to the
shareholder representatives. Both boards hold some
meetings together, with the result that the employee
representatives are informed at an early stage about
upcoming decisions by the personally liable partner.
The Supervisory Board of KWS SAAT SE & Co. KGaA
discharged the duties incumbent on it in accordance
with the law, the company’s Articles of Association
and the bylaws, regularly advised and monitored the
personally liable partner, represented by its Executive
Board, in its activities and satisfied itself that the
company was run properly and in compliance with
the law and that it was organized efficiently and
cost-effectively. The Supervisory Board extensively
discussed all significant business transactions
and carefully accompanied the Executive Board
in all fundamental decisions of importance to the
company. As is customary, the Executive Board
involved the Supervisory Board in all key decisions.
The Supervisory Board was provided with the
necessary information in written and oral form
regularly, promptly and comprehensively. This
included all key information on relevant questions,
in particular relating to strategy, planning and the
business performance as well as on the company’s
and the KWS Group’s situation, including the risk
situation, risk management and compliance. In the
year under review, there were no transactions with
related parties which require the Supervisory Board’s
approval in accordance with Section 111b of the
German Stock Corporation Act (AktG).
7
Report of the Supervisory Board | To Our Shareholders
KWS Group | Annual Report 2023/2024
The company’s business policy, corporate and
financial planning, profitability and situation, market
trends and the competitive environment, research
and breeding and, along with important individual
projects, risk management at the KWS Group were
the subject of detailed discussions in the year
under review.
Philip von dem Bussche, and later Marie Schnell,
continued the direct discussions with the Spokes-
person of KWS SE’s Executive Board and individual
members of the Executive Board in regular talks
outside the meetings of the Supervisory Board
in the year under review. In addition, there were
monthly meetings with the Executive Board as
a whole, where the company’s current business
development and, in particular, its strategy,
occurrences of special importance and individual
aspects were dealt with. The Chairperson of the
Supervisory Board informed the Supervisory Board
of the results of these meetings. The Supervisory
Board did not make use of its right to conduct
an examination granted by Section 111 (2) of the
German Stock Corporation Act (AktG) since the
reporting by the Executive Board meant there was
no reason to do so.
Focal areas of deliberations
Four in-person meetings and one online meeting
of the Supervisory Board of KWS SAAT SE &
Co. KGaA were convened in fiscal 2023/2024. The
meetings were always attended by all its members,
apart from one meeting where Philip von dem
Bussche was not able to attend due to illness.
At the beginning of the year under review, the
Supervisory Board of KWS SAAT SE & Co. KGaA
convened its meeting to discuss the financial
statements on September 21, 2023. At this meeting,
the Supervisory Board first asked the auditors
to explain the results of the audit of the annual
financial statements of KWS SAAT SE & Co. KGaA
and the KWS Group. This discussion took place
without the Executive Board of KWS SE. With the
Executive Board in attendance, the Supervisory
Board then approved the financial statements
of KWS SAAT SE & Co. KGaA and approved
the consolidated financial statements of the
KWS Group as of June 30, 2023. Following this
meeting, both boards discussed the divestment
of the Chinese corn business to the joint venture
partner KENFENG and the further development
of business in Eastern Europe. The Supervisory
Board members of KWS SAAT SE & Co. KGaA
also revised the bylaws for its Audit Committee.
On December 12, 2023, the Supervisory Board
of KWS SAAT SE & Co. KGaA convened as usual
to inform itself about the status of KWS’ research
activities. A further focus of this meeting was on
succession planning for KWS’ senior management.
The sale of KWS’ corn business in Brazil and
Argentina to GDM, a leading provider of plant
genetics based in Argentina, was the focus of the
deliberations at the meeting on March 14, 2024. In
addition, the Supervisory Board requested and was
given a presentation on the performance status
of the breeding programs for all major crops. On
June 18, 2024, the Supervisory Board discussed
the budget and medium-term planning. The Super-
visory Board of KWS SE subsequently adopted
the budget and planning.
8
To Our Shareholders | Report of the Supervisory Board
Annual Report 2023/2024 | KWS Group
Corporate governance
The Supervisory Board discussed compliance with
the recommendations of the “German Commission
for the Corporate Governance Code” and issued
a new declaration of compliance with the German
Corporate Governance Code in the version dated
April 22, 2022, in accordance with Section 161 of
the German Stock Corporation Act (AktG) together
with the personally liable partner in September
2023. The Declaration of Compliance can be
obtained on the company’s website.
The Supervisory Board regularly addressed the
question of any conflicts of interest on the part of
its members and those of the Executive Board in
the year under review. In the year under review,
there were no such conflicts of interests that had to
be disclosed immediately to the Supervisory Board
and reported to the Annual Shareholders’ Meeting.
Supervisory Board committees
In the year under review, the Supervisory Board of
KWS SAAT SE & Co. KGaA had two committees:
the Audit Committee and the Nominating Committee.
Committees of the Supervisory Board of KWS SAAT SE & Co. KGaA
Committee
Chairperson
Members
Audit Committee
Victor W. Balli
Christine Coenen
Dr. Marie Schnell
Nominating Committee
Prof. Dr. Dr. h.c. mult.
Stefan W. Hell
Victor W. Balli
Dr. Marie Schnell
The Audit Committee convened for four joint
meetings in fiscal year 2023/2024, each of which
was attended by all members in person or online.
In its meeting on September 7, 2023, the Audit
Committee discussed the annual financial state-
ments and accounting of KWS SAAT SE & Co. KGaA
and the consolidated financial statements of the
KWS Group for the fiscal year 2022/2023, along
with the Combined Management Report and
the proposal on the appropriation of the profits.
The Compliance Report and the 1st Quarterly
Report for 2023/2024 and the results of the Audit
Committee’s self-assessment were discussed in
particular at the meeting on November 8, 2023.
The meeting on February 7, 2024, discussed and
preliminarily defined the focus of the audit for fiscal
year 2023/2024 in the presence of the appointed
independent auditor. It also discussed the situation
as regards the KWS Group’s financing and the
Semiannual Report 2023/2024 in detail. The 9M
Quarterly Report for 2023/2024 was discussed
on May 8, 2024. In addition, the report by Internal
Auditing for fiscal 2023/2024 was discussed, the
audit plan for the subsequent years was defined and
9
Report of the Supervisory Board | To Our Shareholders
KWS Group | Annual Report 2023/2024
adopted at the meeting on May 16, 2024. The risk
situation, sustainability reporting and tax-related
issues of the KWS Group were also discussed.
In addition, the Audit Committee obtained the
statement of independence from the auditor,
ascertained and monitored the auditor’s indepen-
dence and examined its qualifications. The Audit
Committee also satisfied itself that the regulations on
internal rotation were observed by the independent
auditor and dealt with the issue of any additional
services rendered by the independent auditor.
The Nominating Committee of KWS SAAT SE &
Co. KGaA did not convene in the year under review,
since a decision was made not to fill Philip von dem
Bussche’s seat for the time being and it had already
been decided to nominate Hagen Duenbostel for
election in December 2024.
The Supervisory Board of KWS SAAT SE &
Co. KGaA does not hold personnel responsibility
as regards management, in particular in relation
to the Executive Board of KWS SE. Nevertheless,
we would like to take this opportunity to inform
you about the personnel changes at the personally
liable partner. Recommendation B.3 of the
German Corporate Governance Code states that
the first-time appointment of Executive Board
members shall be for a period of not more than
three years. Nicolás Wielandt was appointed
to the Executive Board of KWS SE for the first
time for a period of three years with effect from
January 1, 2022. At the recommendation of its
Dr. Marie Schnell, Chairperson of the Supervisory Board
10
To Our Shareholders | Report of the Supervisory Board
Annual Report 2023/2024 | KWS Group
Committee for Executive Board Affairs, the
Supervisory Board of KWS SE resolved at its
meeting on March 7, 2024, to reappoint Nicolás
Wielandt to the Executive Board of KWS SE for the
period from July 1, 2024, to June 30, 2029. Nicolás
Wielandt is responsible for the Corn Segment on
the Executive Board.
Annual and consolidated financial statements
and auditing
EY GmbH & Co. KG, Wirtschaftsprüfungs-
gesellschaft, Stuttgart, the independent auditor
chosen at the Annual Shareholders’ Meeting
on December 13, 2023, and commissioned by
the Audit Committee, has audited the financial
statements of KWS SAAT SE & Co. KGaA that
were presented by the personally liable partner,
KWS SE, and prepared in accordance with the
provisions of the German Commercial Code
(HGB) for fiscal 2023/2024 and the financial
statements of the KWS Group (IFRS consolidated
financial statements), as well as the Combined
Management Report of KWS SAAT SE & Co. KGaA
and the KWS Group (Group Management Report),
including the accounting reports, and awarded
them its unqualified audit certificate. In addition,
the auditor concluded that the audit of the financial
statements did not reveal any facts that might
indicate a misstatement in the declaration of
compliance issued by the personally liable partner
and the Supervisory Board in accordance with
Section 161 of the German Stock Corporation
Act (AktG) with respect to the recommendations
of the Government Commission for the German
Corporate Governance Code. The Non-Financial
Declaration (Section 289b and Section 315b of the
German Commercial Code (HGB)) in the Combined
Management Report were likewise audited by the
independent auditor.
The Supervisory Board received and discussed the
financial statements of KWS SAAT SE & Co. KGaA
and the consolidated financial statements of the
KWS Group and Combined Management Report
of KWS SAAT SE & Co. KGaA and the KWS Group,
along with the report by the independent
auditor of KWS SAAT SE & Co. KGaA and the
KWS Group and the proposal on appropriation
of the net retained profit for the year made by
KWS SAAT SE & Co. KGaA, in due time. Compre-
hensive documents and drafts were submitted to
the members of the Supervisory Board as prepa-
ration. For example, all of them were provided
with the annual financial statements, consolidated
financial statements, Combined Management
Report, audit reports by the independent auditor,
and the proposal by the personally liable partner
on the appropriation of the profits. The Super-
visory Board likewise received and discussed
the Non-Financial Declaration (Section 289b
and Section 315b of the German Commercial
Code (HGB)), which is part of the Combined
Management Report and contains disclosures
on the KWS Group and the parent company
KWS SAAT SE & Co. KGaA, as well as the related
audit report by the independent auditor (Section
111 (2) Sentence 4 of the German Stock Corpo-
ration Act (AktG)) as part of a limited assurance
engagement.
The Audit Committee convened on Septem-
ber 10, 2024, to discuss the annual financial
statements of KWS SAAT SE & Co. KGaA
and the KWS Group’s consolidated financial
statements for the 2023/2024 fiscal year and
accounting, along with the Combined Manage-
ment Report. The independent auditor for fiscal
2023/2024 explained the results of its audit of
the annual financial statements and consolidated
financial statements. It pointed out that there
were no grounds for assuming a lack of impar-
tiality on the part of the independent auditor in
its audit. The Audit Committee also dealt with
the proposal by the personally liable partner on
the appropriation of the net retained profit of
KWS SAAT SE & Co. KGaA and recommended
that the Supervisory Board approve it.
The Supervisory Board also held detailed
discussions of questions on the agenda at its
meeting to discuss the financial statements on
September 25, 2024. The auditor took part in the
11
Report of the Supervisory Board | To Our Shareholders
KWS Group | Annual Report 2023/2024
meeting. It reported on the main results of the
audit and was also available to answer additional
questions and provide further information for the
Supervisory Board. According to the report of
the independent auditor, there were no material
weaknesses in the internal control and risk
management system in relation to the accounting
process. There were also no circumstances that
might raise concerns about a lack of impartiality
on the part of the independent auditor. The
independent auditor did not provide any additional
services.
In accordance with the final results of its own
examination, the Supervisory Board endorsed
the results of the audit and of the audit of the
Non-Financial Declaration, among other things as
a result of the preliminary examination by the Audit
Committee, and did not raise any objections. The
Supervisory Board gave its consent to the annual
financial statements of KWS SAAT SE & Co. KGaA
submitted by the personally liable partner, and
to the consolidated financial statements of the
KWS Group and the Combined Management
Report of KWS SAAT SE & Co. KGaA and the
KWS Group and recommended that the Annual
Shareholders’ Meeting on December 5, 2024,
approve the annual financial statements of
KWS SAAT SE & Co. KGaA prepared by the
personally liable partner. The Supervisory Board
also endorsed the proposal by the personally
liable partner to the Annual Shareholders’
Meeting on the appropriation of the net retained
profit of KWS SAAT SE & Co. KGaA after having
examined it.
We look back on KWS’ most successful fiscal
year with the utmost appreciation, respect and
gratitude for the work on our board by Philip
Freiherr von dem Bussche, who closely accom-
panied and supported the key strategic decisions
in the year under review. In these turbulent times,
the Supervisory Board would like to express its
particular thanks to the Executive Board and all
employees of the KWS Group for their vigorous
efforts, dedication and creativity.
Berlin, September 25, 2024
Berlin, September 25, 2024
Dr. Marie Schnell
Chairperson of the Supervisory Board
KWS SAAT SE & Co. KGaA
12
To Our Shareholders | Report of the Supervisory Board
Annual Report 2023/2024 | KWS Group
Tribute to Philip von dem Bussche
On April 8, 2024, the Chairperson of our two Super-
visory Boards, Philip Freiherr von dem Bussche,
passed away at the age of 75 after a serious illness.
It is with sadness and gratitude that we remember
him as an affable philanthropist and foresighted
shaper of the future.
Born at Ippenburg Castle in Lower Saxony and
raised in a family with a history dating back
800 years, Philip von dem Bussche studied
business administration in Bonn and Cologne
after completing his agricultural training in
Schleswig-Holstein. His first professional tasks from
1976 onward included expanding the family-run
farm in Ippenburg. In addition to the expansion
of agriculture and pig farming, preserving the
enormous neo-Gothic family seat for future
generations proved to be a major challenge.
Away from his ancestral home, the agricultural
entrepreneur, who ran a second farm in Krostitz
near Leipzig after 1989 and set up an innovative
rolled turf production enterprise there, also pursued
other callings: as an influential President of the
German Agricultural Society (DLG) and as an
active member of the Supervisory Board of various
companies in the agricultural sector (such as
K+S Aktiengesellschaft and the Krone Group).
His passion for agriculture and his inexhaustible
joy in interacting with people predestined
Philip von dem Bussche for further tasks. In
2000, Andreas J. Büchting managed to recruit his
longtime friend to the Supervisory Board of KWS.
After that, Philip von dem Bussche’s career took
a rather unconventional turn: In 2005, he moved
from the Supervisory Board to the Executive Board
Philip Freiherr von dem Bussche, former Chairperson of the Executive Board and the Supervisory Board
13
Report of the Supervisory Board | To Our Shareholders
KWS Group | Annual Report 2023/2024
of KWS (“(and not, as was usual, the other way
round)”). In 2008, he succeeded Andreas Büchting
as its Spokesperson.
In this role, he shaped the strategic direction
of KWS with his goal-oriented, grounded and
inspiring personality. “PB” enjoyed great trust
not only among our customers, but also within
KWS’ workforce, as his expertise extended from
agriculture to the know-how needed for his work
on the Supervisory Board’s Audit Committee.
Philip von dem Bussche stepped down from the
Executive Board as planned in 2014. However,
at the request of the Büchting and Arend
Oetker shareholder families, he made himself
available again in December 2022 to serve for
a limited term on the Supervisory Boards of
KWS SAAT SE & Co. KGaA and its personally
liable partner, KWS SE. Both bodies elected him
– again as successor to Andreas Büchting – as
their Chairperson. One year later, Philip von dem
Bussche informed our shareholders of his critical
state of health at the Annual Shareholders’ Meeting
on December 13, 2023. Despite his illness, he
admirably discharged all his duties on both bodies
until Easter 2024 and, together with the Executive
Board, drove the important strategic develop-
ments of the year under view, before his strength
deserted him.
As a highly respected doyen who exemplified what
our company with its tradition of family ownership
stands for, he will remain unforgotten and a role
model for all of us with his unique sense of humor,
outgoing warmth and confidence. With his death,
his family lost a devoted husband, father and grand-
father, KWS lost a magnificent entrepreneur, and
German agriculture lost an outstanding personality.
Dr. Marie Schnell
Chairperson of the Supervisory Board
14
To Our Shareholders | KWS on the Capital Market
Annual Report 2023/2024 | KWS Group
KWS on the Capital Market
Stock markets and share performance
Global stock indexes were volatile in fiscal
2023/2024. Fears that the Middle East conflict
would escalate weighed on share prices worldwide
in the fall of 2023. The DAX, Germany’s benchmark
index, fell sharply to around 14,800 points by the
end of October 2023. However, the conflict did not
intensify and that, coupled with the prospect that
the leading central banks would end their restrictive
monetary policy, meant that the DAX recovered to
close at 16,751 points at the end of 2023.
The DAX continued to soar in the first half of 2024,
reaching a new all-time high of 18,870 points on
May 15, 2024. Strong balance sheets and record
dividend payouts underpinned that. At the end of
June 2024, the DAX closed at 18,235 points – a
year-over-year increase of 9%.
The SDAX, on which the KWS share is
listed, followed this trend and closed at
14,317 (13,401) points on the balance sheet date, a
year-over-year increase of 7%.
KWS’ share closed at €59.60 at the end of June
2024 and thus around 5% above the level of the
previous year (€56.50).
The average trading volume per day on XETRA rose
from around 8,700 shares to approximately 9,900.
Employee Stock Purchase Plan
For more than 30 years KWS has offered its
employees the chance to become shareholders
in the company and thus share in its success.
516 (576) employees in 10 (10) European countries
utilized this year’s Employee Stock Purchase Plan
and purchased a total of 62,300 (71,023) shares.
The acquired shares are subject to a lock-up period
of four years. They cannot be sold, transferred or
pledged during this period. As in previous years, the
shares used for the Employee Stock Purchase Plan
were acquired in accordance with Section 71 (1)
No. 2 of the German Stock Corporation Act (AktG).
More details have been published in information
released for the capital market and can be viewed
on our website at www.kws.de/ir.
KWS
DAX
SDAX
The KWS share’s performance over ten years
July 1, 2014
June 30, 2024
50%
100%
150%
200%
250%
+93%
+84%
+16%
15
KWS on the Capital Market | To Our Shareholders
KWS Group | Annual Report 2023/2024
Planned appropriation of profits: Dividend
increase to €1.00 (0.90) per share
In view of the company’s positive performance, the
Executive and Supervisory Boards will propose a
dividend of €1.00 (0.90) per share for fiscal year
2023/2024 to the Annual Shareholders’ Meeting on
December 5, 2024. This means €33.0 (29.7) million
would be distributed to KWS SAAT SE & Co. KGaA’s
shareholders. This corresponds to a payout ratio of
25.2% (23.4%) at the upper end of the company’s
dividend policy, which is geared to the company’s
earnings strength, and a dividend payment of
around 20% to 25% of the KWS Group’s net income.
Key figures for the KWS share (Xetra®)
ISIN
DE0007074007
Share class
Non-par
Number of shares
33,000,000
Index
SDAX
Closing price
in €
June 28, 2024
59.60
June 30, 2023
56.30
High and low
in €
High (May 31, 2024)
63.00
Low (February 26, 2024)
45.70
Trading volume
in shares/day
Fiscal 2023/2024
9,911
Fiscal 2022/2023
8,681
Market capitalization
in € million
June 28, 2024
1,967
June 30, 2023
1,858
Earnings per share
in €
Fiscal 2023/2024
3.96
Fiscal 2022/2023
3.85
Shareholder structure at June 30, 2024
Family Büchting, Family Arend Oetker, Family Tessner 69.3%
(thereof 15.4% Tessner Beteiligungs GmbH)
Free float 30.7%
33,000,000
shares
16
To Our Shareholders | KWS on the Capital Market
Annual Report 2023/2024 | KWS Group
17
KWS on the Capital Market | To Our Shareholders
KWS Group | Annual Report 2023/2024
2. Combined Management Report
2023/2024 of the KWS Group
2.1 Fundamentals of the KWS Group
18
2.1.1 Business Model
18
2.1.2 Branches
20
2.1.3 Vision und Mission
20
2.1.4 Objectives and Strategy
20
2.1.5 Control System
23
2.1.6 Fundamentals of Research & Development
25
2.2 Research and Development Report
26
2.3 Economic Report
29
2.3.1 Business Performance
29
2.3.2 Earnings, Financial Position and Assets
32
2.3.3 Segment Reports
37
2.3.4 Employment Trends
47
2.4 Sustainability Information
48
2.4.1 General Information
48
2.4.2 Environmental Aspects
52
2.4.2.1 Climate Change
52
2.4.2.2 Water
55
2.4.2.3 Biodiversity and Ecosystems
56
2.4.2.4 Innovations for Agriculture
58
2.4.2.5 EU Taxonomy
60
2.4.3 Social Aspects
68
2.4.3.1 Social Engagement
68
2.4.3.2 Own Workforce
70
2.4.3.3 Labor in the value chain
75
2.4.4 Governance
77
2.4.4.1 Business Conduct
77
2.5 Opportunity and Risk Report
80
2.5.1 Opportunity Management
80
2.5.2 Risk Management
82
2.6 Forecast Report
94
2.6.1 Changes in the KWS Group’s Composition
that are Significant for the Forecast
94
2.6.2 Forecast for the KWS Group’s Statement of
Comprehensive Income
94
2.6.3 Forecast for the Segments
94
2.7 Further Information
96
2.7.1 Corporate Governance and Declaration
on Corporate Governance
96
2.7.2 Compliance declaration in
accordance with Section 161 AktG
(German Stock Corporation Act)
96
2.7.3 Remuneration Report
96
2.7.4 Explanatory Report of the Personally
Liable Partner (KWS SE) of
KWS SAAT SE & Co. KGaA in Accordance
with Section 176 (1) Sentence 1 AktG
(German Stock Corporation Act) on the
Disclosures in Accordance with Section
289a (1) and Section 315a (1) HGB
(German Commercial Code)
96
2.8 Report on KWS SAAT SE & Co. KGaA
(Declaration based on the German
Commercial Code (HGB))
100
18
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.1 Fundamentals of the KWS Group
2. Combined Management Report
The Combined Management Report comprises aspects of sustainability reporting in addition to content
related to financial reporting. Our objective is to illustrate the relationship between ecological, social and
financial factors and highlight their impact on our long-term commercial success. The reporting structure
of the Combined Non-financial Declaration (see page 48 onwards) has been aligned with the topics of the
European Sustainability Reporting Standards applicable from the financial year 2024/2025 and has already
been taken into account in individual report contents. In addition, reference is made to the report aspects
required pursuant to Sections 289b et seq. and Sections 315b et seq. of the German Commercial Code
(HGB). The contents of the Non-Financial Declaration were not audited as part of the audit of the annual
and consolidated financial statements, but underwent a voluntary external examination by an auditor.
The Combined Management Report also includes voluntary components that are not audited separately.
These are indicated by footnotes.
2.1 Fundamentals of the
KWS Group
2.1.1 Business Model
Since it was founded in 1856, KWS has specialized
in breeding, producing and distributing high-quality
seed for agriculture. From its beginnings in
sugarbeet breeding, KWS has evolved into
an innovative, international supplier with a
broad portfolio of crops. The company covers
the complete value chain of a modern seed
producer that focuses on sustainable agriculture
– from developing new varieties, propagation
and processing, to marketing of the seed and
consulting for farmers. KWS’ core competence lies
in breeding new, high-performance varieties that
are adapted to regional needs, such as climatic
and soil conditions, and use fewer resources,
such as water and fertilizer. Targeted breeding of
resistances against fungi or viruses, for example,
also enables a significant reduction in the use
of chemical pesticides in agriculture. Every new
variety delivers sustainable added value for our
customers. KWS’ business model is based on this
added value – which is ultimately attributable to
breeding progress, optimization of seed quality
and pinpointed consulting.
Organization and segments of the KWS Group
In the year under review, the KWS Group’s opera-
tional business consisted of five business units,
which were grouped into the four product segments
of Corn, Sugarbeet, Cereals and Vegetables.
The business units for Sugarbeet, Cereals and
Vegetables are identical to the corresponding
segments. There are two business units for the
Corn segment: Europe and the America.
The Corn Segment covers breeding, production
and distribution of seed for corn and sunflowers,
as well as production and distribution of soybeans.
Its operating performance depends largely on the
spring sowing season in the northern hemisphere.
That means the lion’s share of the segment’s
net sales is generated in the second half of the
fiscal year (January to June). According to its own
surveys, KWS is the market leader in the silage
corn in Europe.
The Sugarbeet Segment comprises sugarbeet
seed breeding, production and distribution, as well
as the development of diploid hybrid potatoes.
KWS’ high-quality sugarbeet varieties are consis-
tently some of the highest-yielding in the industry.
19
KWS Group | Annual Report 2023/2024
2.1 Fundamentals of the KWS Group | Combined Management Report
KWS is the world market leader in sugarbeet seed,
not least thanks to many innovations. Its main sales
markets are the European Union, Eastern Europe,
North America and Turkey. Sugarbeet is sown in the
spring, which means that net sales in this segment
are likewise largely generated in the second half of
the fiscal year (January to June).
The Cereals Segment includes the breeding,
production and distribution of seed for rye, wheat,
barley and oilseed rape. Rye accounts for the
largest share of revenue from cereals (around 38%),
followed by oilseed rape, wheat and barley. KWS
also generates revenue from other crops such as
peas, catch crops (e.g., mustard) and oats. Farmers
in KWS’ core markets (Germany, Poland, the UK,
France and Scandinavia) predominantly sow
cereals seed in the fall. Consequently, the segment
generates most of its revenue in the first half of the
fiscal year (July to December).
The Vegetables Segment comprises vegetable
seed breeding, production and distribution. KWS is
the world leader in spinach seed. Its portfolio also
includes seed for beans, Swiss chard, red beet and
tomatoes. The segment generates just about half
its revenue in the U.S. KWS’ strategic objective is
to build a significant position in the vegetable seed
market long-term. Our focus apart from spinach
is on the world’s five most important crops in this
segment: tomatoes, peppers, cucumbers, water-
melons and melons.
Apart from the operating segments, there is also
Corporate, a segment which by and large does
not conduct any operational activities. Its relatively
low net sales come from the revenue from our own
farms in Germany, France and Poland. Since the
KWS Group’s basic research expenditure and costs
for administrative functions are charged to the
Corporate Segment, its income is usually negative.
In the year under review, corn business in South
America and China was sold (see corn segment
report, p. 38 f.). There were no other significant
changes in the composition and organization of the
KWS Group. Further information on the segments’
share of net sales and income, including our joint
ventures, can be found in our segment reports
starting on page 37.
Main business processes
KWS’ breeding processes are geared toward
exploiting plants’ potential as much as possible
and leveraging that potential to tackle the major
challenges of modern sustainable agriculture.
Whether it is plants for producing food, fodder
or energy, conventional, organic or genetically
modified: KWS offers its customers a broad
portfolio of high-performance varieties. It takes
an average of eight to ten years to breed a new
variety. Thanks to its large network of breeding
and trial stations in all the world’s key markets, the
company can develop the individual candidates for
a wide range of climatic and local conditions and
test whether the varieties are suitable for cultivation.
In most markets, variety development ends in
an official approval process in which candidates
have to meet high quality standards, usually in
three-year field trials. Seed propagation in selected
cultivation regions also takes up to two years. Only
then can the varieties be marketed via the various
distribution channels.
20
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.1 Fundamentals of the KWS Group
1 Not an audited part of the Combined Management Report
2.1.2 Branches
KWS SAAT SE & Co. KGaA is the parent company
of the KWS Group. Strategic management of all of
KWS’ global activities is pooled under its roof. It is
headquartered in Einbeck, Germany, and controls
breeding of the KWS Group’s range of varieties.
There are also currently 84 subsidiaries and
associated companies in 35 countries. An overview
of our subsidiaries and associated companies can
be found in the Notes on pages 166 to 168.
2.1.3 Vision und Mission
Vision
“Seeding the future for generations.”
Our vision comprises all of KWS key values. With
foresight, we shape a sustainable future, staying
close to generations of farmers and serving as a
trusted, reliable partner to all our customers while
staying an independent company.
Mission
“Our passion for plants sustains
farming, food and planet.”
We are convinced that we can make a difference
with our specialization in plant breeding and
seed. We are passionate about breeding and
research – and we optimize the potential of plants
and varieties in order to contribute to increasing
sustainability in agriculture year after year.
Apart from continuous improvements in yield,
we provide solutions by delivering varieties with
relevant traits such as improved drought tolerance
and less need for pesticide and help agriculture
successfully tackle future challenges.
1
KWS’ seed is at the beginning of the food
chain – and therefore makes an important contri-
bution throughout the agricultural production
process. End consumers are also a growing focus:
What variety traits are important for processing and
the end product, and how can plant breeding help
improve them? Last but not least, our work also has
an impact on the environment as a whole: Reducing
inputs such as pesticide or water, innovations also
for areas such as alternative energies and of course
the efficient use of available land all make a contri-
bution to the agriculture of the future.
Our services (in the shape of consulting and by
means of digital tools) help farmers get the most out
of our seed on healthy soils. Our broad and growing
portfolio of crops and vegetables lay a foundation
for maintaining biodiversity on fields. In this way, our
work makes a key contribution every day to supplying
the world’s growing population with good food.
2.1.4 Objectives and Strategy
Our strategic planning is the foundation for the
KWS Group’s further development. It defines
strategic objectives, initiatives and core measures
for existing activities and for potential new fields
of business. The planning is based on a long-term
horizon (ten years) and includes an analysis and
assessment of market trends, competitors and the
KWS Group’s position. The strategic planning is
updated regularly.
As part of the strategic planning, we have honed
our fundamental business model and the strategic
contributions a seed company makes to these
future topics with regard to long-term megatrends
and classified them into fields of activity that are to
generate KWS’ future growth:
21
KWS Group | Annual Report 2023/2024
2.1 Fundamentals of the KWS Group | Combined Management Report
Sustainable Agricultural Practices: products,
processes and services that address climate
change and promote sustainability in agriculture
Connected Seeds: solutions that generate added
value for farmers by linking our seed with digital
offerings
Future Sales Models: more digital offerings to
expand distribution channels and enable person-
alized addressing of customers
Nutritional Food Ingredients: innovations for the
growing market of vegetable proteins as the basis
for sustainable food.
Corporate objectives of the KWS Group
Sustainable solutions for agriculture have always
been the foundation and driver of our business
model. We use them as the basis for deriving
our objectives, which form the framework for all
divisions and strategic decisions: profitable growth,
innovation, independence and sustainability. Our
business developed largely in line with our strategic
objectives in the year under review. We deal with
this and other details of achievement of our objec-
tives in the respective sections, which are referred
to in the table on the corporate objectives.
The KWS Group’s medium- and long-term objectives
Main strategic subject areas
Explanation
Profitable growth
An average increase in consolidated
net sales of at least 5% p.a. 1
Page 29 et seq.
EBIT margin
≥ 10%
Page 29 et seq.
A dividend payout ratio of 20% to 25%
of the KWS Group’s earnings after
taxes
Page 163 (Notes)
Innovation
R&D intensity of around 17% of
consolidated net sales
Page 26
Independence
Retention of a control structure shaped
by the family owners
Page 96 et seq.
Sustainability
Implementation of the
KWS Sustainability Ambition 2030
Page 48
1 On a comparable basis, excluding exchange rate and portfolio effects
22
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.1 Fundamentals of the KWS Group
Profitable growth
is vital for our future development. Long-term
profitable growth ensures we can retain our
commercial freedom of action. We strive to increase
consolidated net sales by an average of at least 5%
p.a. and achieve an EBIT margin (EBIT/net sales) of
at least 10%.
Innovation
drives our business model. The need for innovative
technology in plant breeding continues to increase.
Climate change, population growth and changes in
eating habits, where alternative protein sources are
growing in importance, pose challenges for us. In
addition, digitization is playing a greater and greater
role in agriculture. In the year under review, we once
again devoted a significant portion of our revenue,
namely 19.4%, to research and development. Taking
on these challenges, we see this as an investment
in future growth.
Independence
has always been a key corporate objective for KWS.
It is part of the shared values held by our customers
and employees. Our independence and long-term
orientation enable us in particular to invest in
research and breeding projects with an eye to
the future.
Sustainability
is and always will be both an obligation and
an opportunity for us. Agriculture faces huge
challenges globally. They include the world’s
growing population, increasingly severe conse-
quences of climate change, and the preservation
of biodiversity and natural resources. Innovations
in plant breeding play a key role in tackling these
challenges.
With our KWS Sustainability Ambition 2030, we
clearly define the framework for the focus of KWS’
sustainable development – economically, ecologi-
cally and socially – in the coming years.
Guided by the principle that “sustainability in
agriculture begins with seed” we pursue these
concrete goals:
23
KWS Group | Annual Report 2023/2024
2.1 Fundamentals of the KWS Group | Combined Management Report
We refer you to the Non-Financial Declaration
starting on page 48 and our homepage
www.kws.com for details of our sustainability
program.
2.1.5 Control System
Detailed annual and medium-term operational plans
are used to control the Group and our Business
Units. The medium-term plan covers the time frame
of the annual plan and the three subsequent fiscal
years. It is thus an anchor point for our strategic
planning, which covers a timescale of ten years.
The targets set in the annual planning (“top-down
target”) are arrived at on the basis of the strategic
planning, results achieved, regional economic and
legal situation, anticipated macroeconomic trends
and assessments of the company’s position in the
market and the potential product performance.
In a subsequent bottom-up process, which also
includes the development of our joint ventures,
we use these premises to plan figures for sales
volumes and net sales, breeding activities,
production capacities and quantities, the allocation
of resources (including capital spending and
personnel), the level of material costs and internal
charge allocation and the resultant balance sheet
data, along with the financial budget. In principle,
part of the planning documentation is also an
opportunity/risk assessment that every manager
must conduct for his or her unit.
Sustainability starts with the seed
Product impact
>40% of KWS varieties are
suitable for predominantly direct
use in human nutrition
Support sustainable diets
Increase number of crops with dedicated
breeding programs to 27
Enhance crop diversity
1.5% annual yield gain for farmers through
progress in plant breeding and
digital farming solutions on
>6 million hectares
Safeguard food production
Corporate responsibility
Reduce Scope 1 and 2 emissions by
50% by 2030 and to net zero by 2050
Establish score cards to provide
transparency on ecological footprint
of all seed production sites
Improve operational footprint
Foster social engagement
Min. 1% EBIT p.a. into social projects
Measurement and continuous
improvement of employee engagement
Continuous decline in the number of
occupational accidents/illness ratio
Enable >50% reduction of chemical
crop protection (in line with European
Farm to Fork Strategy)
Invest >30% p.a. of R&D budget
into reduction of inputs
>25% of KWS varieties are
suitable for low input cultivation
Minimize input required
1 Farm to Fork-Strategie
24
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.1 Fundamentals of the KWS Group
The planning is compared every quarter with the
company’s actual business performance and the
underlying general conditions. If necessary, we
initiate suitable countermeasures and make adjust-
ments. We update the forecast for the current fiscal
year at the end of every quarter. At the end of each
fiscal year, all the units conduct a detailed variance
analysis of the planned and actual results. It serves
to optimize the quality of our planning assumptions.
Controlling is responsible for coordinating and
documenting all planning processes and our current
expectations. It reports on compliance with adopted
budgets and analyzes the efficiency and cost-
effectiveness of business processes and measures.
Business Partner Controlling and Finance also
advise our decision makers on economic optimi-
zation measures. In particular, the heads of the
product segments, the regional directors and the
heads of research and breeding activities and the
central functions are responsible for the content of
the planning and current forecasts.
The Executive Board uses various indicators for
planning, controlling and monitoring the business
performance of the KWS Group and its operating
units. The main indicators for the KWS Group
are net sales, EBIT margin (operating income in
% of net sales) and R&D intensity 2. The focus in
controlling the development of net sales is exclu-
sively on key operating indicators for our business,
in particular the development of sales volumes and
prices of our product portfolio. Forecasts of our net
sales development are therefore based on these
key indicators, while exchange rate and portfolio
effects (significant acquisitions and divestments)
are not taken into account. Currency effects are the
difference between the sales of reporting period at
exchange rates of the reporting period minus the
sales of the reporting period at exchange rates of
the comparative period.
In addition to these financial indicators, KWS will
increasingly include non-financial KPIs (such as CO2
emissions) in planning and controlling its business
activities in the future. KWS’ product segments,
which are divided into Business Units, are in turn
geared toward the main indicators of net sales
and EBIT margin. All cross-segment costs for
the KWS Group’s central functions and research
expenditure are charged to the Corporate Segment;
the key performance indicator for controlling here
is EBIT (operating income).
Management and control
The company is a partnership limited by shares
(KGaA). The personally liable partner is respon-
sible for the tasks of running the business of a
partnership limited by shares. The company’s
sole personally liable partner is KWS SE, whose
Executive Board is therefore responsible for
management of the company’s business.
The rights and obligations of the Supervisory
Board at a partnership limited by shares differ from
those at a stock corporation (AG) or a European
Company (Societas Europaea or SE). In particular,
the Supervisory Board at a partnership limited by
shares does not hold personnel responsibility as
regards management; moreover, it cannot appoint
any further personally liable partners and define the
contractual terms and conditions for them, enact
bylaws for the Executive Board, or define business
transactions requiring its consent.
The Annual Shareholders’ Meeting of a partnership
limited by shares basically has the same rights
as the Annual Shareholders’ Meeting of a stock
corporation or SE. It also adopts resolutions on
whether to approve the company’s annual financial
statements and ratify the acts of the personally
liable partner. Certain resolutions adopted by the
Annual Shareholders’ Meeting of a partnership
limited by shares also require the approval of
the personally liable partner. The declaration on
corporate governance in accordance with Section
289f of the German Commercial Code (HGB)
contains detailed information on the extensive and
close cooperation between the Executive Board
and the Supervisory Board and has been published
at www.kws.com/corp/en/investors/corporate-
governance.
2 R&D expenditure as a % of net sales
25
KWS Group | Annual Report 2023/2024
2.1 Fundamentals of the KWS Group | Combined Management Report
KWS has a broad portfolio of high-performance varieties
2.1.6 Fundamentals of Research & Development
Innovation at KWS is driven by research and
development. KWS’ objective is to create high-
performance varieties that meet various environ-
mental and application requirements and deliver
continuous value added to farmers. Plant breeding
is a very research-intensive and long-term business.
It takes an average of eight to ten years to develop
a new, high-performance variety.
Using state-of-the-art breeding methods, KWS
has generated steady yield progress for decades
and supports agriculture with solutions to tackle
future challenges – for example, through varieties
that boast improved drought tolerance or need less
pesticide. The company also increases genetic
diversity, which is vital to improving crops, through
its breeding work on plants. We contribute to
sustainable agriculture by continuously improving
yields, minimizing the use of resources and
increasing varietal diversity and play a key role in
supplying people with food.
26
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.2 Research and Development Report
2.2 Research and Development Report1
Silage corn: New varieties undergoing approval
KWS was able to report breeding successes for
the northern European silage and biogas market,
among other things. The German Federal Office
of Plant Varieties approved two robust and
stress-resistant corn varieties: KWS LUPOLLINO
and KWS BERRO. They can also leverage their yield
potential to the full in different cultivation situations
and under challenging weather conditions. They
impressively demonstrated that in the 2022 and
2023 Value for Cultivation and Use tests conducted
by the Federal Office of Plant Varieties. In two
climatically very different years, they impressed
with a strong and stable performance at different
locations and ultimately proved to be the highest-
yielding varieties. Both varieties will be tested in
2024 in all state variety trials in the medium-early
and medium-late silage corn segments. In addition,
both varieties are also included in some state
variety trials for grain corn this year.
The important silage corn segment was further
strengthened by new approvals awarded
to the varieties HERCULIO, BALTUSO and
KWS PROFUSIO in France, all of which are among
the leading new approvals in this most important
maturity segment and will significantly improve
KWS’ silage corn portfolio in France. The approvals
also mean these varieties can be sold in other
European countries such as Germany.
Key research & development figures
2023/2024
2022/2023
+/–
R&D employees 1,2
ø
1,866
1,738
7.4%
Share of R&D employees relative to the total
workforce 2
in %
37.8
37.3
–
R&D expenditure 2
325.6
299.8
8.6%
R&D intensity 2,3
in %
19.4
20.0
–
Variety approvals
559
488
14.5%
1 Average headcount
2 The previous year’s figures have been adjusted due to the fact that the commercial corn and
sorghum business in South America is recognized as a discontinued operation.
3 As a % of net sales
Combination of innovations in sugarbeet
Following its successful launch, the CONVISO®
SMART system is now available to farmers in
30 markets, and the market segment continues to
grow. CONVISO® SMART enables improved weed
control, while reducing the amount of herbicide
that has to be applied, thereby contributing to
more sustainable sugarbeet cultivation. Demand
for Cercospora-tolerant sugarbeet varieties
marketed under the “CR+” label is developing just
as successfully. CR+ varieties exhibit the greatest
leaf health and the highest yields – whether infested
heavily or lightly with the fungal pathogen Cerco-
spora. The in-bred resistance stabilizes yields and
can help reduce the use of fungicides in sugarbeet
cultivation in certain situations.
In recent years, KWS has succeeded in combining
these traits in its breeding work. In fiscal 2023/2024,
varieties containing both traits were sold for the
first time in Austria, the Czech Republic, Italy and
Romania, while such a variety was also awarded
approval in Germany and will be available for
growing in 2025. Such types of varieties are also
undergoing Value for Cultivation and Use testing
in 16 other countries. KWS can thus provide
farmers with innovative sugarbeet seed offering an
attractive solution for weed control, while ensuring
excellent plant health and very high and stable
variety performance.
1 Not an audited part of the Combined Management Report
27
KWS Group | Annual Report 2023/2024
2.2 Research and Development Report | Combined Management Report
Dwarf rye – sustainable, yet storm-proof
Dwarf hybrids are a particular innovation in
KWS’ rye breeding. Dispensing with the use of
growth regulators, even on good soils with a
high nitrate content, makes rye cultivation even
more sustainable. Dwarf hybrids are shorter than
conventional rye hybrids, have a longer standing
upright ear and are characterized by uniform
stands. They boast strong standing ability, which
helps to safeguard yields even in extreme weather
conditions such as heavy rain and storms.
Dwarf hybrids deliver a comparable yield to the
common hybrid varieties. Because of the shorter
stalk, the leaves make a greater contribution
to yield formation. In dwarf rye, only the shoot
growth is reduced, but not the length of the ears
or root growth. The dwarf hybrids are broadly
equipped with resistance genes and, thanks to
the PollenPLUS® technology with increased pollen
production, have a low risk of being infected
by ergot.
The dwarf hybrids are particularly suitable for
better, heavier soils with high nitrate levels
in addition to the traditional rye locations. The
homogeneous stands they form make cultivating
them easier. In addition, dwarf hybrids can be
harvested faster and more cost-effectively, as
less straw is produced. In Germany, the first dwarf
hybrid varieties are currently in their second year of
Value for Cultivation and Use testing. KWS expects
one or two varieties to be approved at the EU level
in 2025 and for Germany in 2026.
Oilseed rape: Successes in approval
procedures in the core markets of Germany
and France
Winter oilseed rape from KWS is distinguished
by continuously increasing variety performance
and improved resistance, with the result that
sustainable, resource-conserving cultivation
delivers reliable yields even under conditions where
pests are spreading or there are more restrictive
requirements regarding the application of fertilizer
and pesticides. For example, given the growing
restrictions on the use of insecticides, KWS’
genetics provide improved protection against the
cabbage stem flea beetle, one of the main pests in
oilseed rape cultivation.
Our oilseed rape breeders notched up significant
successes in the past fiscal year: The German
Federal Office of Plant Varieties approved three
winter oilseed rape varieties from KWS that
exhibited the best variety performance compared
to competitors’ products. A variety with the new
resistance gene “LepR1” against Phoma to protect
the plants against stem canker or blackleg – one
of the major oilseed rape diseases – gained
approval in France. Products with this resistance
gene will soon be ready for the market in Germany,
too. Furthermore, ten varieties in France performed
excellently in the first year of the Value for Culti-
vation and Use tests.
KWS’ breeding material contains further resistance
genes that are waiting to be used. In this way,
KWS is helping to preserve oilseed rape as a
competitive crop long-term that supplies oil for the
food industry and biofuels and provides a domestic
source of protein for processing in compound feed
production.
Vegetables: Expansion of breeding and
research capacities
Establishing and expanding breeding and research
locations is vital in ensuring that KWS attains its
strategic position in the market for vegetable seed
in the long term.
In March 2024, KWS opened its first breeding
station in Mexico to drive the development of
tomato and pepper varieties for the Mexican
market and to conduct screening activities for
cucumbers, melons and watermelons. The new
breeding station in Navolato in the state of Sinaloa
covers 10 hectares and comprises warehouses,
offices, a large section for open-air cultivation and
greenhouses with a total area of 4,500 m2, which
is set to grow by a further 5,000 m2 in the coming
years. The team consists of around 45 breeders,
agricultural experts and seasonal workers.
28
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.2 Research and Development Report
A new research and breeding station was inaugu-
rated in Brazil in June 2024. The site in Uberlândia
in the western part of the state of Minas Gerais is
13 hectares in size and comprises warehouses,
offices, 3,800 m2 of greenhouses and 7 hectares
of outdoor areas. Around 60 researchers, breeders
and agricultural experts focus on developing
tomato, melon and watermelon varieties.
A greenhouse, a research area for outdoor crops
and an office and laboratory building will be
established over 10,000 m2 at the Andijk site in the
Netherlands by spring 2025. The new greenhouse
will be used for research into the outdoor crops
spinach, beans, red beet and Swiss chard, among
other things. A further section is intended for
cucumbers and peppers. The focus here is on
trials with and the reproduction of doubled haploid
plants developed at KWS’ research location in
Wageningen.
Use of artificial intelligence in research
and product development
Artificial intelligence (AI) is vital in research as it
supports the automation of tasks and the analysis
of big data and can improve decision-making by
delivering insights and recommendations.
KWS has been using artificial intelligence for
several years to quantitatively record and analyze
the external appearance (phenotype) of plants. This
digital phenotyping involves automatic analysis
of images from drones, mobile phones and, more
recently, satellites. The use of deep learning
techniques makes it easier to identify plant diseases
and assess plant traits such as drought tolerance.
By rolling out digital phenotyping workflows, KWS
has been able to replace some labor-intensive
field activities and achieve greater accuracy in
data capture.
KWS uses machine learning algorithms to assist
in the comparison and selection of varieties during
product development. The selection models incor-
porate various variables from environmental and
genomic information to support breeders’ decisions
and shorten the time to market for new varieties.
As part of its strategic “Connected Seeds” initiative,
KWS uses the data collected during product
development to create predictive models that are
tailored to its varieties. That provides farmers with
precise cultivation recommendations that result in
better yields and more efficient use of resources.
Construction of a new elite storehouse
in Einbeck
Construction of the new elite storehouse
at headquarters in Einbeck at a cost of
around €50 million is the largest single research
and development investment in KWS’ history.
The newly constructed building offers 13,000 m2
of space to securely store up to 1.3 million
batches of sugarbeet, fodder beet, oilseed rape,
catch crop and pea seed.
The new elite storehouse means far more seed
samples can be processed and kept for breeding.
The optimized climatic conditions in the elite
storage facility – a temperature of 6 to 8 degrees
Celsius and a humidity of 30%– ensure the seed
is protected and retains its germination capacity
for a long time.
By preserving this enormous diversity of breeding
material that has been built up over many decades
and is constantly growing – and thereby ensuring
our long-term innovativeness – the new building
supports the increasingly demanding work
involved in developing new high-performance
varieties that, in addition to a high yield, have
other traits such as drought tolerance, resistance
to pests and resource efficiency.
Waste heat from a sewage treatment plant is
used to heat the new building and photovoltaic
modules supply electricity. These measures will
help KWS achieve its climate targets of reducing
Scope 1 and Scope 2 emissions by half by
2030 and becoming net zero by 2050.
29
KWS Group | Annual Report 2023/2024
2.3 Economic Report | Combined Management Report
2.3 Economic Report
2.3.1 Business Performance
General macroeconomic conditions
Economic momentum in the eurozone slowed
significantly in 2023, with real gross domestic
product (GDP) growing at 0.4% (3.5%). Economic
output in Germany, the largest economy in the
eurozone, declined by 0.3%. Against the backdrop
of low growth and receding inflation in the
eurozone, the European Central Bank lowered its
key interest rate to 4.25% in June 2024.
In contrast, the U.S. economy performed far more
robustly in the period under review: GDP grew by
2.5% in 2023 and is expected to increase by around
2.7% in 2024. As a result of the U.S. economy’s
strength and unchanged key interest rates, the
U.S. dollar appreciated significantly against the
euro in the first half of 2024.
KWS’ international orientation means that changes
in exchange rates impact our key economic figures.
The following overview shows the changes in the
most important currencies for KWS relative to
the euro:
Exchange rates for main currencies
Rate on balance sheet date
06/30/2024
06/30/2023
Argentina
976.67
280.14
Brazil
5.99
5.22
UK
0.85
0.86
Russia
92.42
95.11
Türkiye
35.13
28.15
Ukraine
43.35
40.00
U.S.
1.07
1.09
General conditions in the agricultural sector
The agricultural sector once again faced numerous
challenges in the year under review. In Europe,
prices for key agricultural raw materials such as
corn, oilseed rape and wheat dropped sharply. After
their prices hit multi-year lows in the first quarter
of 2024, they recovered slightly by the end of the
period under review. This was due in particular to
falling yield prospects for winter crops in Western
Europe as a result of high levels of precipitation
and increased disease and pest pressure. In
some regions of Eastern Europe and in Spain,
however, persistent water scarcity weighed on
yield forecasts.
The international market prices for sugar, which
were well above the long-term average, continued
to offer attractive conditions for sugarbeet culti-
vation, resulting in a slight increase in the global
cultivation area for sugarbeet.
In the U.S., the area under cultivation for soybeans
increased by 3% against the backdrop of favorable
purchase prices, while the cultivation of corn, the
most important agricultural crop in the U.S. market,
fell by the same amount. Low wheat prices as a
result of high supply volumes, particularly from
Europe and the Black Sea region, meant cultivation
area in the U.S. fell by 5%.
In Brazil, one of the world’s largest agricultural
producers, the climate phenomenon El Niño had
a significant impact on wheat and corn cultivation.
Long periods of drought followed by rainfall and
flooding led to a significant decline in area under
cultivation and harvests.
30
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.3 Economic Report
Guidance versus actual business performance of the KWS Group
Results in
2022/2023
Guidance for
2023/2024
Adjustments to the
guidance during the year
Results in
2023/2024
2022/2023
Annual Report
Ad-hoc notification dated
April 30, 2024
Net sales
growth 1
€1,500 million
3–5% 1
11–13% 1
€1,678 million;
16.5% 1
R&D intensity
20.0%
18–19%
~20%
19.4%
EBIT margin
13.0%
11–13%
15–17%
18.0%
1 Net sales growth on a comparable basis (excluding exchange rate and portfolio effects)
Guidance versus actual business
performance of the KWS Group
Following the agreements reached at the end of
March 2024 on the sale of the South American
corn and sorghum business, the key indicators and
statements used to present the actual business
performance relate to KWS’ continuing operations.
Given the pleasing and better-than-expected
business performance, particularly during the
important spring sowing season, there were signi
ficant changes to our estimates for 2023/2024 as a
whole in the course of the year. They can be seen
in the table below.
The Executive Board raised the forecasts for fiscal
year 2023/2024 and published inside information to
this effect pursuant to Article 17 of Regulation (EU)
No. 596/2014 on April 30, 2024. These forecasts
related to KWS’ continuing operations following the
agreements reached at the end of March 2024 on
the sale of the South American corn and sorghum
business.
The KWS Group’s net sales rose sharply by 11.9%
to €1,678.1 (1,500.3) million. Consolidated net
sales increased by 16.5% on a comparable basis
(excluding exchange rate and portfolio effects),
surpassing the revised guidance we had issued
during the year. The R&D intensity was 19.4% and
was below the guidance of approximately 20% that
we revised during the year, mainly due to the sharp
increase in net sales.
The EBIT margin was 18.0% and thus above the
forecast range we revised during the year. The
positive variance is mainly due to higher net sales
growth compared to our original assumptions.
All in all, the Executive Board believes that the
KWS Group’s business performed favorably in the
year under review.
Summary of the segments’ course of business
and comparison with the guidance 2
The composition of the Corn Segment underwent
significant changes in the period under review due
to the sale of the South American and Chinese
corn business. The South American corn business
is classified as a discontinued operation in the
2023/2024 Consolidated financial statements and
is therefore not included in the report for the Corn
Segment; the guidance we updated during the year
relates to continuing operations.
On a comparable basis (excluding exchange rate
and portfolio effects), net sales from continuing
operations in the Corn Segment fell by 0.6% and
were therefore above the guidance we updated
during the year (“sharp decline”).
2 Including equity-accounted companies. Details on the segments’
business performance and their economic environment can be found
in the segment reports.
31
KWS Group | Annual Report 2023/2024
2.3 Economic Report | Combined Management Report
The increase in the segment’s income
to €39.1 (18.7) million is attributable to the positive
contribution to earnings of approximately €28 million
from the divestment of the Chinese corn business.
Including this non-recurring effect, the segment’s
EBIT margin rose from 2.5% to 5.6% and was
therefore in line with the guidance we revised during
the year (“slight increase”).
Net sales at the Sugarbeet Segment rose by
20.7% to €864.9 (716.3) million. Net sales increased
by 27.5% on a comparable basis (excluding
exchange rate and portfolio effects) and were thus
in line with the guidance we updated during the
year (“sharp increase”). The significant expansion
of business is once again attributable to the market
success of innovative CONVISO® SMART and CR+
varieties. The Sugarbeet Segment’s EBIT margin
rose sharply to 40.5% (35.4%) and was thus above
the guidance we revised during the year (“slight
increase”).
Net sales in the Cereals Segment rose sharply
to €275.9 (247.1) million, mainly due to buoyant
growth in oilseed rape, rye and wheat seed. That
equates to an increase of 11.7%. Net sales growth
on a comparable basis (excluding exchange rate
and portfolio effects) was 14.5% and thus matched
our guidance (“sharp increase”). The segment’s
EBIT margin rose to 18.3% (15.6%) and was thus
above our guidance (“at the level of the previous
year”).
Net sales in the Vegetables Segment fell by 5.9%
to €62.1 (66.0) million in the year under review. Net
sales fell by 5.6% on a comparable basis (excluding
exchange rate and portfolio effects) and thus in line
with our guidance (“slight decline”).
The segment’s income fell sharply
to € –34.7 (–11.8) million as a result of the
operating performance, the planned increase
in expenditure on establishing our vegetable
breeding activities and higher amortization of
intangible assets from the acquisition of Pop
Vriend Seeds. The EBIT margin was –55.9% and
thus well below the figure for the previous year
(–17.8%) (guidance: “sharp decline”).
In light of the gradual switch to the “KWS” brand,
the useful life of the “Pop Vriend” brand was
adjusted in the year under review and the corre-
sponding intangible assets were amortized to an
amount of €10.4 million. In the future, marketing for
the vegetable business is to be conducted entirely
under the KWS brand.
Including further effects from the purchase
price allocation as part of company acquisitions
amounting to €8.8 (11.2) million, the segment’s
income was reduced by a total of €19.2 (11.2) million
as a result of amortization of intangible assets.
Revenue from our farms in Germany, France and
Poland is grouped in the Corporate Segment.
Since all cross-segment costs for the KWS Group’s
central functions and research expenditure are
still charged to the Corporate Segment, its income
is usually negative. The segment’s income fell
to € –127.1 (–115.3) million due to general cost
increases and planned higher expenditure on
research and was thus in line with our guidance
(“around € –125 million”).
32
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.3 Economic Report
2.3.2 Earnings, Financial Position and Assets
Earnings
Condensed income statement
in € millions
2023/2024
2022/2023
+/–
Continuing operations
Net sales 1
1,678.1
1,500.3
11.9%
EBITDA 1
388.1
278.8
39.2%
EBIT 1
302.0
195.1
54.8%
Net financial income/expenses 1
–50.0
–23.8
>100.0%
Earnings before taxes 1
252.0
171.3
47.1%
Taxes 1
67.9
45.2
50.2%
Earnings after taxes 1
184.1
126.1
46.0%
Discontinued operation
Earnings after taxes
–53.2
0.9
>–100.0%
Group
Earnings after taxes
130.8
127.0
3.0%
Earnings per share from continuing
operations
in €
5.58
3.82
46.0%
Earnings per share
in €
3.96
3.85
3.0%
EBIT margin
(continuing operations)
in %
18.0
13.0
–
KWS Group posts double-digit
growth in net sales
The following key indicators relate to KWS’
continuing operations following the agreements
reached at the end of March 2024 on the sale of the
South American corn and sorghum business; the
figures for the previous year have been adjusted
accordingly. The South American corn and sorghum
business is recognized as a discontinued operation
in the 2023/2024 consolidated financial statements.
The KWS Group increased its net sales sharply in
the year under review to €1,678.1 (€1,500.3) million
or by 11.9% compared with the previous year.
Consolidated net sales increased by 16.5% on a
comparable basis (excluding exchange rate and
portfolio effects).
The sharp growth was driven by double-digit
increases in the product segments Sugarbeet and
Cereals. Exchange rate effects reduced net sales
by –4.7%, mainly due to the strong depreciation in
the Russian ruble and the Turkish lira against the
euro. Portfolio effects had no significant impact
on the KWS Group’s net sales (of the continuing
operations) in the year under review.
The Sugarbeet and Corn Segments (excluding
sales of companies accounted for using the equity
method) accounted for a major share of total net
sales, namely 51.5% (47.7%) and 27.8% (30.8%)
respectively. The share of the Cereals Segment
in the year under review was virtually constant at
16.4% (16.5%). The Vegetables Segment accounted
for 3.7% (4.4%) of total net sales.
The region where we generated most of our
business was Europe, which accounted for 73.6%
(73.7%) of net sales (Germany: 18.3% (18.7%)).
The share of net sales in North and South America
accounted for 17.6% (18.3%) of our total net sales.
Revenues from our North American and (on a pro
33
KWS Group | Annual Report 2023/2024
2.3 Economic Report | Combined Management Report
Research and development expenditure
rose by 8.6% in the period under review
to €325.6 (299.8) million; the R&D intensity was
19.4% and thus below the level of the previous year
(20.0%) due to the strong growth in net sales.
Administrative expenses rose by 6.7% to €149.6
(140.1) million, among other things due to higher
personnel costs. The administrative expense ratio
improved to 8.9% (9.3%).
The balance of other operating income and other
operating expenses rose to €5.7 (–17.4) million, in
particular due to the positive non-recurring contri-
bution of €28.1 million from the divestment of the
Chinese corn business. The related individual items
are explained in detail in the Notes on page 125.
Net financial income/expenses falls sharply
Our net financial income/expenses is made up
of the net income from equity investments and
the interest result. In addition, we report realized
and unrealized foreign exchange differences from
financing activities within net financial income/
expenses.
Net income from equity investments includes
the earnings from equity-accounted joint ventures,
which decreased to € –24.3 (–12.3) million, in
particular due to the higher loss made by our North
American joint venture AgReliant.
rata temporis basis) Chinese equity-accounted
companies are only included at the segment level
(see our segment reporting starting on page 37).
Sharp improvement in key indicators
for operating income
The KWS Group’s operating income before
depreciation and amortization (EBITDA), including
effects from leases and hyperinflation, increased in
fiscal 2023/2024 by 39.2% to €388.1 (278.8) million,
while operating income (EBIT) rose by 54.8%
to €302.0 (195.1) million. The EBIT margin likewise
improved sharply to 18.0% (13.0%).
The strong rise in the key indicators for operating
income was mainly due to higher sales prices
and an improved product mix, as well as a below-
proportionate increase in the cost of sales and
function costs.
The KWS Group’s cost of sales rose by 5.5%
to €622.4 (589.9) million against the backdrop of
the expansion of business and higher destruction
and write-downs of inventories. The cost of sales
ratio improved to 37.1% (39.3%) in particular due
to price and product mix effects that impacted
net sales. The gross profit on sales rose by 16.0%
to €1,055.7 (910.4) million.
Selling expenses rose by 10.2% to €284.3
(258.0) million and thus less strongly than net
sales. The selling expense ratio thus improved
to 16.9% (17.2%).
Net sales by region
Germany 18.3%
North and South America
17.6%
Europe (excluding Germany)
55.3%
Rest of world 8.7%
Total net sales
€1,678.1 million ¹
1 Without sales of our at-equity-accounted consolidated companies
Net sales by segment
Corn 27.8%
Cereals 16.4%
Corporate 0.5%
Sugarbeet 51.5%
Vegetables 3.7%
Total net sales
€1,678.1 million ¹
1 Without sales of our at-equity-accounted consolidated companies
34
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.3 Economic Report
The balance of financial expenses and financial
income likewise fell sharply to € –25.6 (–11.5) million.
This was mainly due to higher interest expenses,
particularly in Germany and Türkiye. The other
net financial income/expenses decreased
mainly due to exchange rate effects amounting
to € –4.6 (1.9) million. The above-mentioned
changes led to a significant overall decline in net
financial income/expenses to € –50.0 (–23.8) million.
Sharp increase in earnings after taxes
from continuing operations
Earnings before taxes from continuing operations
rose sharply by 47.1% to €252.0 (171.3) million.
Income taxes increased to €67.9 (45.2) million,
in particular due to the growth in earnings and
change in the country mix, while the tax rate rose
slightly to 27.0% (26.4%).
Earnings after taxes from continuing opera-
tions rose sharply by to €184.1 (126.1) million.
Given that the number of shares is 33,000,000,
earnings per share from continuing operations
were €5.58 (3.82).
Earnings after taxes including the earnings
from discontinued operations were
€130.8 (127.0) million and thus slightly higher
than in the previous year.
Financial situation
Selected key figures on the financial situation
in € millions
2023/2024
2022/2023
+/–
Cash and cash equivalents
222.4
173.0
28.6%
Net cash from operating activities
157.2
144.7
8.6%
Net cash from investing activities
–103.4
–100.1
3.3%
Free cash flow
53.8
44.5
20.9%
Net cash from financing activities
24.8
–59.3
>100.0%
Securing the KWS Group’s financial flexibility,
enabling its profitable growth and preserving its
independence are the core tasks of our financial
management. Among other things, we ensure that
by extensive liquidity planning, monitoring of cash
flows, and hedging the risk of interest rate changes
and currency risks. The main financial instruments
used by the Group in the fiscal year, apart from a
syndicated credit line and a loan from the European
Investment Bank (EIB) to fund research and
development, were in particular borrower’s notes
and commercial papers with different loan periods
and terms (see page section 7.11 in the Notes for
the KWS Group on page 146 for the presentation
of the main terms and conditions of our financing
instruments).
At June 30, 2023, the KWS Group had firmly
promised, loans it had not used totaling
€398.2 (381.3) million.
The maturity profile of the Group’s borrowings has
a broad spread, with a high proportion of medium-
and long-term financing.
In order to secure KWS’ growth, we also consider
the option of a capital increase in exceptional
cases, for example to fund a further large
acquisition.
The net cash from operating activities increased
in the period under review to €157.2 (144.7) million,
while working capital (in particular inventories)
also increased.
35
KWS Group | Annual Report 2023/2024
2.3 Economic Report | Combined Management Report
Depreciation and amortization increased in the year
under review to €119.1 (95.4) million, in particular
due to higher amortization of intangible assets in
the Vegetables Segment and an allowance for an
equity interest in Research & Development.
The free cash flow was €53.8 million and
thus above the figure for the previous year
(€44.5 million). The net cash from financing activ-
ities was €24.8 (–59.3) million. The main reason for
the increase was higher borrowing to finance the
company’s operations. Cash and cash equivalents
rose sharply to €222.4 million at the end of the
period under review (previous year: €173.0 million).
For the discontinued operation, net cash from
operating activities was € –0.7 (–6.9) million, net
cash from investing activities was € –2.3 (1.5) million
and net cash from financing activities
was € –30.4 (0.3) million.
The net cash from investing activities totaled
€ –103.4 (–100.1) million. The main focus of the
KWS Group’s capital spending in the year under
review was on erecting and expanding production
and research and development capacities.
Construction of the new elite storehouse for
processing and storing breeding material for
sugarbeet was continued at the Einbeck location.
Its investment volume is more than €50 million and
it is scheduled to be completed in fiscal 2024/2025.
In Ukraine, the focus was on expanding and
modernizing production and processing plants for
corn seed. In the Cereals Segment, we modernized
and expanded our production plants in Germany,
France and Poland, among other things. We
expanded our breeding capacities in the Vegetables
Segment. Across all segments, investments were
made in office and laboratory equipment and
in IT systems, among other things. Total capital
spending in fiscal 2023/2024 (for continuing opera-
tions) totaled €139.9 (109.1) million. However, there
were proceeds from disposal of non-current assets
totaling €43.2 (3.5) million, in particular from the
divestment of the Chinese corn business.
Capital expenditure by region
Germany 49.5%
North and South America 9.9%
Europe (excluding Germany)
36.6%
Rest of world 3.9%
Total capital expenditure
€139.9 million ¹
1 Without capital expenditures of our at-equity-accounted consolidated companies
Capital expenditure by segment
Corn 15.8%
Cereals 12.5%
Corporate 18.2%
Sugarbeet 41,8%
Vegetables 11.8%
Total capital expenditure
€139.9 million ¹
1 Without capital expenditures of our at-equity-accounted consolidated companies
36
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.3 Economic Report
Assets
The KWS Group’s balance sheet is impacted by the
seasonal nature of our business. In the course of
the year, there are usually balance sheet items that
differ significantly from the corresponding figures
at the balance sheet date, in particular in relation to
working capital.
Due to the sale of the South American corn
and sorghum business, it was classified as
a discontinued operation. The associated
assets and liabilities are reported accordingly
as separate items (“Assets held for sale” and
“Liabilities in connection with assets held for
sale”) in the consolidated balance sheet as of
June 30, 2024 (see the disclosures in the Notes
on page 105 for further details).
Unlike in the consolidated income statement, the
International Financial Reporting Standards (IFRS)
do not provide for any adjustment of the previous
year’s figures in the consolidated balance sheet as
of June 30, 2023.
In view of that, the informational value of any
direct comparison of the consolidated balance
sheet figures as of June 30, 2024, with those at
June 30, 2023, is limited.
Total assets at June 30, 2024, were
€2,956.1 (2,749.6) million. Noncurrent assets
totaled €1,220.1 (1,326.8) million and current
assets totaled €1,301.5 (1,420.7) million. The
decrease in noncurrent and current assets is
mainly due to the separate disclosure of assets
held for sale totaling €434.5 (2.1) million.
Equity increased to €1,399.9 (1,291.1) million,
mainly due to the net income for the year. The
equity ratio was €47.4% and thus on a par with
the previous year’s figure (47.0%).
The fall in noncurrent liabilities
to €610.0 (762.0) million is attributable in
particular to changes in the maturities of
long-term financial liabilities. Current liabilities
fell to €655.2 (696.5) million, in particular
due to the separate disclosure of liabilities in
connection with assets held for sale. Liabil-
ities in connection with assets held for sale
amounted to €291.0 (0.0) million.
Net debt (long-term and short-term borrowings
from banks less cash and cash equivalents)
improved to €385.1 (565.2) million, in particular
due to the separate disclosure of liabilities in
connection with assets held for sale.
Condensed balance sheet
in € millions
06/30/2024
06/30/2023
+/–
Assets
Noncurrent assets
1,220.1
1,326.8
–8.0%
Current assets
1,301.5
1,420.7
–8.4%
Assets held for sale
434.5
2.1
>100.0%
Equity and liabilities
Equity
1,399.9
1,291.1
8.4%
Noncurrent liabilities
610.0
762.0
–19.9%
Current liabilities
655.2
696.5
–5.9%
Liabilities in connection with assets held for sale
291.0
0.0
–
Total assets
2,956.1
2,749.6
7.5%
37
KWS Group | Annual Report 2023/2024
2.3 Economic Report | Combined Management Report
2.3.3 Segment Reports
Reconciliation with the KWS Group
The KWS Group’s consolidated financial statements
are prepared in accordance with the International
Financial Reporting Standards (IFRS). The segments
are presented in the Management Report in line
with our internal corporate controlling structure in
accordance with GAS 20. The main difference is
that we do not carry the revenues and costs of our
equity-accounted companies in the statement of
comprehensive income (in accordance with IFRS 11).
The KWS Group’s net sales and EBIT are therefore
lower than the total for the segments. The earnings
contributed by the equity-accounted companies
are instead included under net financial income/
expenses. Our equity-accounted companies are
included proportionately in the segment reports in
line with our internal corporate controlling structure.
The difference from the KWS Group’s statement of
comprehensive income is summarized for a number
of key indicators – relating to continuing opera-
tions – in the reconciliation table:
Reconciliation table (all key indicators relate to continuing operations)
in € millions
Segments
Reconciliation
KWS Group
Net sales
1,913.4
–235.3
1,678.1
EBIT
277.7
24.3
302.0
Number of employees (avg. FTE)
5,004
–331
4,673
Capital expenditure
145.7
–5.8
139.9
Total equity and liabilities
3,064.6
–108.5
2,956.1
The reconciliation between the KWS Group’s
statement of comprehensive income and the
reporting by segments in fiscal 2023/2024 is
impacted by our equity-accounted companies
in North America and China (on a pro rata
temporis basis).
38
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.3 Economic Report
Corn Segment
General industry-specific conditions: Decline in
land under cultivation in all main corn regions
The general conditions for corn cultivation were
challenging in all key agricultural regions in the year
under review. The area under cultivation in the U.S.,
the world’s largest corn producer, fell by around 3%
as a result of low purchase prices.
In the European grain corn markets, adverse
economic conditions for cultivation also dampened
demand. However, the European market for silage
corn, in which KWS is the leader, recorded stable
growth in cultivation area.
In Brazil, one of the world’s largest agricultural
producers, the climate phenomenon El Niño had a
significant impact on corn cultivation. Long periods
of drought followed by rainfall and flooding led to
a significant decline in area under cultivation and
harvests.
The segment’s performance: Sale of the corn
business in South America and China
The composition of the Corn Segment underwent
significant changes in the period under review.
In October 2023, we divested the Chinese corn
business (including licenses) to our joint venture
partner there. In March 2024, we also concluded
an agreement to sell our corn business in South
America. The transaction, which comprises all
breeding and sales activities for corn in South
America (Brazil, Argentina, Paraguay and Uruguay)
and all production sites for corn seed in Argentina
and Brazil, was closed after the end of the period
under review (see also “Report on events after the
balance sheet date” on page 165) and will have a
significant positive impact on KWS’ key financial
indicators such as net debt and the equity ratio.
The South American corn business is classified as
a discontinued operation in the 2023/2024 annual
financial statements and is therefore not included
Corn
39
KWS Group | Annual Report 2023/2024
2.3 Economic Report | Combined Management Report
in the report for the Corn Segment. Compar-
ative segment information has been adjusted
retroactively.
The net sales from continuing operations in the Corn
Segment fell by 5.0% to €701.5 (738.1) million in the
year under review. Net sales declined by 0.6% on
a comparable basis (excluding exchange rate and
portfolio effects). There were negative exchange
rate effects mainly from the depreciation of the
Russian ruble and the Turkish lira against the euro.
We grew net sales in Europe on a comparable
basis by around 4% despite a fall in land under
cultivation. That increase is mainly attributable to
higher sales prices. According to our own surveys,
we again defended our leading position in the silage
corn market in the year under review.
Net sales at our North American joint venture
AgReliant declined by around 12%. In addition
to negative exchange rate effects, our business
recorded a decline in volumes in a fiercely compet-
itive environment.
The increase in the segment’s income
to €39,1 (18.7) million is attributable to the
positive contribution to earnings of approxi-
mately €28 million from the divestment of the
Chinese corn business.
While our European corn business continued to
show robust earnings strength with an EBIT margin
of around 13% (14%) despite a decline in earnings,
the EBIT of our U.S. joint venture AgReliant
remained negative due to a lower than expected
operating performance and adverse special effects.
Including the positive earnings contribution from
the divestment of the Chinese corn business, the
segment’s EBIT margin rose from 2.5% to 5.6%.
Expansion of production plants in Europe
The segment’s capital spending
was €27.8 (25.9) million in the year under review.
Apart from routine maintenance measures, we
expanded our drying capacities in Türkiye, among
other things, thereby significantly reducing our
dependence on third-party providers. Alongside
that, we increased our storage capacities in
Buzet, France. We also modernized parts of our
production plants in Romania so that we can
keep meeting our high standards of quality, safety
and environmental protection. We completed our
extensive expansion of the seed processing plant
in Ukraine. The aim is to ensure the availability of
high-quality seed and to provide long-term support
for reconstruction of the agricultural industry in
Ukraine.
Key figures
in € millions
2023/2024
2022/2023
+/–
Net sales 1
701.5
738.1
–5.0%
EBITDA 1,2
77.8
51.7
50.5%
EBIT 1
39.1
18.7
>100.0%
EBIT margin 1
in %
5.6
2.5
–
Capital expenditure 1
27.8
25.9
7.3%
Capital employed (avg.) 3
767.1
923.1
–16.9%
ROCE (avg.) 1,4
in %
5.1
2.0
–
1 The previous year’s figures have been adjusted due to the fact that the commercial corn and
sorghum business in South America is recognized as a discontinued operation
2 EBITDA = EBIT (incl. IAS 29 Hyperinflation) + Depreciation (incl. IAS 29 Hyperinflation) + Amortization (incl. IAS 29 Hyperinflation)
3 Capital employed (average capital employed) = (quarterly figures at the reporting date for intangible assets +
property, plant and equipment + inventories + trade receivables – trade payables)/4
4 ROCE = EBIT/capital employed (avg.)
40
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.3 Economic Report
Sugarbeet Segment
General industry-specific conditions: Sugar
prices at a high level, slight increase in land
under cultivation
As a result of limited supply volumes, global
sugar prices reached long-term highs in the fall of
2023. Against this backdrop, purchase prices for
sugarbeet were at a high level, offering farmers
attractive conditions for growing sugarbeet. Global
cultivation area grew by around 2% to 4.6 million
hectares. In the course of the period under review,
the supply situation on global markets eased,
particularly due to higher sugar production in
Europe and Brazil, with the result that sugar prices
fell again significantly.
According to estimates by the Food and Agriculture
Organization (FAO) of the United Nations, global
sugar consumption continued to rise in the year
under review, especially in Africa and Asia.
The segment’s performance: Product innova-
tions drive strong growth in net sales and EBIT
Net sales at the Sugarbeet Segment again
rose sharply in the year under review to €864.9
(716.3) million, an increase of 20.7%. The growth
was 27.5% on a comparable basis (excluding
exchange rate and portfolio effects). There were
negative exchange rate effects on net sales mainly
from the depreciation of the Russian ruble, the
Turkish lira and the US dollar against the euro.
Europe is the segment’s most important market,
accounting for 60.4% (59.6%) of total net sales,
followed by North America with 26.5% (29.9%).
The segment’s sharp increase in net sales resulted
from a significant expansion of business in all key
regions for global sugarbeet cultivation and once
again underscores KWS’ leading position in the
market for sugarbeet seed.
Sugarbeet
41
KWS Group | Annual Report 2023/2024
2.3 Economic Report | Combined Management Report
Our sustainable product innovations CONVISO®
SMART and CR+ played a substantial part in
this and once again recorded high demand in
the 2024 growing season. The combined share
contributed by these innovations to total net
sales increased to around 56% (49%). Against the
backdrop of increasing regulation of pesticides
and rising disease pressure as a result of climate
change, these innovations make an important
contribution to achieving stable beet yields with
less use of pesticides.
The segment’s income was €350.1 million thanks
to the buoyant net sales trend and was significantly
above the previous year’s figure (€253.4 million).
While gross profit on sales was significantly higher
(+21%), there were moderately higher selling
expenses (+6%) and research and development
expenditure (+6%). The EBIT margin improved
sharply to 40.5% (35.4%).
We are continuing to invest strongly in expanding
our sugarbeet breeding programs so that we can
Key figures
in € millions
2023/2024
2022/2023
+/–
Net sales 1
864.9
716.3
20.7%
EBITDA 1
373.6
275.6
35.6%
EBIT 1
350.1
253.4
38.2%
EBIT margin 1
in %
40.5
35.4
–
Capital expenditure 1
58.5
37.0
58.1%
Capital employed (avg.) 2
519.1
449.9
15.4%
ROCE (avg.) 3
in %
67.4
56.3
–
1 EBITDA = EBIT (incl. IAS 29 Hyperinflation) + Depreciation (incl. IAS 29 Hyperinflation) + Amortization (incl. IAS 29 Hyperinflation)
2 Capital employed (average capital employed) = (quarterly figures at the reporting date for intangible assets + property, plant and equipment + inventories + trade
receivables – trade payables)/4
3 ROCE = EBIT/capital employed (avg.)
continue to provide our farmers with innovative
seed in the future. The focus is on solutions to
combat increasing disease or insect infestation as
a consequence of climate change and to enable
effective weed control. In addition, development of
diploid hybrid potatoes was continued in the year
under review.
Important capital spending projects
As planned, we continued construction of our new
elite storehouse for processing and storing breeding
material for sugarbeet at our Einbeck location in
fiscal 2023/2024. At a cost of more than €50 million,
the new building is the largest single investment in
KWS’ history. The new elite storehouse is expected
to be put into operation in fiscal 2024/2025.
Among other things, we also invested in expanding
our production plants in Türkiye and France and in
constructing new greenhouses and offices in the U.S.
The segment’s capital spending in the year under
review was €58.5 (37.0) million and thus well above
the figure for the previous year.
42
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.3 Economic Report
Cereals Segment
General industry-specific conditions: Prices for
agricultural raw materials continue to decline
International prices for key agricultural raw
materials such as wheat, oilseed rape and rye fell,
in some cases significantly, in the course of the year
under review. After their prices hit multi-year lows
in the first quarter of 2024, they recovered slightly
by the end of the period under review. This was
due in particular to falling yield prospects for winter
crops in Western Europe as a result of high levels
of precipitation and increased disease and pest
pressure. In some regions of Eastern Europe and in
Spain, however, persistent water scarcity weighed
on yield forecasts. In Russia, one of the world’s
largest cereal producers, the harvest forecasts for
wheat also fell due to drought and late frost.
According to estimates by the Food and Agriculture
Organization (FAO) of the United Nations, the
level of supply on the global cereals markets was
sufficient during the period under review.
The segment’s performance: Double-digit
growth in net sales and earnings
Net sales in the Cereals Segment in fiscal
2023/2024 rose sharply to €275.9 (247.1) million,
mainly due to buoyant growth in oilseed rape, rye
and wheat seed. That equates to an increase of
11.7%. Net sales grew by 14.5% on a comparable
basis (excluding exchange rate and portfolio
effects). There were negative exchange rate effects
on net sales mainly from the depreciation of the
Russian ruble against the euro.
Cereals
43
KWS Group | Annual Report 2023/2024
2.3 Economic Report | Combined Management Report
As regards oilseed rape, favorable market
conditions and robust demand for our portfolio of
high-performance varieties in particular resulted in
a significant expansion of business, with net sales
rising by around 16%. We posted the largest growth
in Germany, France and Eastern Europe. Oilseed
rape business has become considerably more
important for the Cereals Segment in recent years
and in the period under review accounted for 31%
of net sales (previous year: 30%).
Rye seed business also performed very well in
the year under review, posting net sales growth
of around 13%, in particular on the back of strong
demand in Germany (+18%). Our business benefited
in particular from the increasing use of rye in fodder
and is underpinned by its excellent carbon footprint
and high yield stability under dry conditions. Rye
seed business accounts for around 38% (38%) and
thus a significant share of the segment’s net sales.
Net sales from wheat seed business increased by
around 8%, mainly due to higher royalties, with the
biggest growth being recorded in the UK.
Our sorghum activities in Brazil were also sold
as part of the divestment of our corn business in
South America. As a discontinued operation, they
are no longer included in the Cereals Segment
report. Comparative segment information has been
adjusted retroactively.
The segment’s income rose sharply by 28.6%
to €50.4 (39.2) million thanks to the positive net
sales trend. The EBIT margin increased to 18.3%
and was thus also well above the level of the
previous year (15.9%).
While gross profit increased (+21%), there were
higher selling expenses (+9%). In addition, we
further increased our research and development
expenditure (+8%).
As part of our strategic orientation, the focus of our
research and development is on breeding hybrid
seed, including for wheat and barley. Another focus
is on breeding high-performance varieties as well as
on their resource efficiency and improved traits to
promote sustainable agriculture.
Investment in breeding and
production continued
The segment’s capital spending in the year under
review was €17.5 (12.8) million and thus above that
of the previous year. The main focus of investment
activity was again on expanding and modernizing
production plants in Germany, France and Poland,
such as the seed processing plant at Wohlde, and
modernizing breeding stations.
Key figures
in € millions
2023/2024
2022/2023
+/–
Net sales 1
275.9
247.1
11.7%
EBITDA 1,2
57.5
47.0
22.3%
EBIT 1
50.4
39.2
28.6%
EBIT margin 1
in %
18.3
15.9
–
Capital expenditure 1
17.5
12.8
36.7%
Capital employed (avg.) 3
170.0
172.4
–1.4%
ROCE (avg.) 1,4
in %
29.6
22.8
–
1 The previous year’s figures have been adjusted due to the fact that the commercial corn and
sorghum business in South America is recognized as a discontinued operation
2 EBITDA = EBIT (incl. IAS 29 Hyperinflation) + Depreciation (incl. IAS 29 Hyperinflation) + Amortization (incl. IAS 29 Hyperinflation)
3 Capital employed (average capital employed) = (quarterly figures at the reporting date for intangible assets +
property, plant and equipment + inventories + trade receivables – trade payables)/4
4 ROCE = EBIT/capital employed (avg.)
44
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.3 Economic Report
Vegetables Segment
General industry-specific conditions:
Vegetable market expected to grow
Experts estimate that the global vegetable market
will be worth one trillion euros by 2024 – and rising.
Average growth is expected to be 7% p.a. over
the next five years. We expect global demand
for vegetable seed to increase at a similarly
buoyant rate.
Demand for vegetables is likely to be further
boosted in the future by the growing number
of vegans, health and wellness trends and the
increasing popularity of vegetables as a source
of protein. There is also a growing trend toward
higher-priced organic vegetables.
The specific general conditions for spinach seed,
our main sales driver in the Vegetables Segment,
were largely unchanged in the period under review.
Demand for high-quality spinach for the food service
sector remained below pre-coronavirus levels.
The segment’s performance: Decline in net
sales and earnings, expansion of breeding
activities as planned
Net sales at the Vegetables Segment fell year over
year by 5.9% to €62.1 (66.0) million in the year under
review. Net sales declined similarly by 5.6% on
a comparable basis (excluding exchange rate and
portfolio effects).
Spinach seed accounted for around two-thirds of
the segment’s net sales. While business in our main
market, the U.S., remained stable, we recorded
a year-on-year decline in demand in China, among
other countries.
Despite an overall fall in net sales of around 12% in
the period under review, we were able to maintain
our leading position in spinach seed. We expect
business to pick up and net sales to increase in
fiscal 2024/2025 (see also the Forecast Report
on page 94).
Vegetables
45
KWS Group | Annual Report 2023/2024
2.3 Economic Report | Combined Management Report
However, bean seed business, which accounts for
around 29% of net sales and is the second-largest
product group in the segment, grew by 11%,
particularly in our main market, the U.S.
The segment’s income fell sharply
to € –34.7 (–11.8) million as a result of the operating
performance, the planned increase in expenditure
on establishing our vegetable breeding activities
and higher amortization of intangible assets from
the acquisition of Pop Vriend Seeds.
In light of the gradual switch to the “KWS” brand,
the useful life of the “Pop Vriend” brand was
adjusted in the year under review and the corre-
sponding intangible assets were amortized to an
amount of €10.4 million. In the future, marketing for
the vegetable business will be conducted entirely
under the KWS brand.
Including further effects from the purchase
price allocation as part of company acquisitions
amounting to €8.8 (11.2) million, the segment’s
income was reduced by a total of €19.2 (11.2) million
as a result of amortization of intangible assets.
Expansion of vegetable breeding continued
KWS’ strategic objective is to build a significant
position in the vegetable seed market long-term.
Our focus apart from spinach and beans is on the
world’s five most important crops in this segment:
tomatoes, peppers, cucumbers, watermelons and
melons. We are laying the foundations for this with
the planned expansion of our vegetable breeding.
In March 2024, we officially opened our first breeding
station in Mexico to drive the development of tomato
and pepper varieties for the Mexican market and to
conduct screening activities for cucumbers, melons
and watermelons. The new breeding station in
Navolato in the state of Sinaloa covers 10 hectares
and comprises warehouses, offices, a large section
for open-air cultivation and greenhouses with a total
area of 4,500 m2, which is set to grow by a further
5,000 m2 in the coming years.
A new research and breeding station for devel-
oping tomato, melon and watermelon varieties
was inaugurated in Brazil in June 2024. The site
in Uberlândia in the western part of the state of
Minas Gerais is 13 hectares in size and comprises
warehouses, offices, 3,800 m2 of greenhouses
and 7 hectares of outdoor areas.
KWS is also expanding research and development
capacities at its Andijk location in the Netherlands.
A greenhouse, a research area for outdoor crops
and an office and laboratory building will be
established over 10,000 m2 by spring 2025. The
new greenhouse will be used for research into
the outdoor crops spinach, beans, red beet and
Swiss chard, among other things.
KWS now has vegetable breeding stations in Spain,
Italy, the Netherlands, Türkiye, Brazil and Mexico.
Capital spending in the Vegetables Segment
increased from €14.3 million in the previous year
to €16.5 million.
Key figures
in € millions
2023/2024
2022/2023
+/–
Net sales
62.1
66.0
–5.9%
EBITDA 1
–11.2
2.3
>100.0%
EBIT
–34.7
–11.8
>100.0%
EBIT margin
in %
–55.9
–17.8
–
Capital expenditure
16.5
14.3
15.4%
Capital employed (avg.) 2
430.9
427.1
0.9%
ROCE (avg.) 3
in %
–8.1
–2.8
–
1 EBITDA = EBIT (incl. IAS 29 Hyperinflation) + Depreciation (incl. IAS 29 Hyperinflation) + Amortization (incl. IAS 29 Hyperinflation)
2 Capital employed (average capital employed) = (quarterly figures at the reporting date for intangible assets + property, plant and equipment + inventories + trade
receivables – trade payables)/4
3 ROCE = EBIT/capital employed (avg.)
46
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.3 Economic Report
Corporate Segment
Key figures
in € millions
2023/2024
2022/2023
+/–
Net sales 1
9.2
8.3
10.2%
EBITDA 1,2
–101.2
–94.1
7.6%
EBIT 1
–127.1
–115.0
10.5%
Capital expenditure
25.4
17.9
41.7%
1 The previous year’s figures have been adjusted due to the fact that the commercial corn and
sorghum business in South America is recognized as a discontinued operation
2 EBITDA = EBIT (incl. IAS 29 Hyperinflation) + Depreciation (incl. IAS 29 Hyperinflation) + Amortization (incl. IAS 29 Hyperinflation)
Net sales in the Corporate Segment are mainly
generated from our farms in Germany, France and
Poland and increased to €9.2 (8.3) million in the
period under review.
At the same time, since cross-segment costs for
the KWS Group’s central functions and research
expenditure are charged to the Corporate Segment,
its income is usually negative.
The segment’s income fell to € –127.1 (–115.0) million,
mainly due to general cost increases, especially
for personnel, and planned higher expenses for
research. Capital spending was €25.4 (17.9) million
and thus above that of the previous year.
Alongside general spending on office and
laboratory equipment and IT systems, the focus of
our investment activity was on implementation of
new ERP software and an efficiency project aimed
at using heat from effluents.
Corporate
47
KWS Group | Annual Report 2023/2024
2.3 Economic Report | Combined Management Report
2.3.4 Employment Trends
The KWS Group employed an average of
4,937 (4,653) people (excluding seasonal workers
and employees from the discontinued operation) in
the year under review, a year-on-year increase of
around 6%.
2,558 (2,417), or around 52.0% (52.0%) of the
workforce, were employed in Germany. Once again,
the area that accounted for the most employees
was research and development, which made up
37.8% (37.3%) of the total workforce.
Employees by region
Germany 2,558
North and South America 408
Europe (excluding Germany)
1,780
Rest of world 191
Number of employees
4,937
Employees by function
Research & Development 1,866
Distribution 1,322
Production 868
Administration 881
Number of employees
4,937
48
Annual Report 2023/2024 | KWS Group
Combined Management Report | 2.4 Sustainability Information
2.4.1 General Information1
2.4 Sustainability Information
(Combined Non-Financial Declaration)
Overview of the status of implementation of key sustainability goals
Environmental objectives
Target in 2030
Section
2023/2024
2022/2023
Climate Change
2.4.2
Emissions Scopes 1 and 2 4
50% reduction (2050: net zero)
compared with the baseline
year 2020/2021 (47,587 t CO2e)
48,379 t CO2e
50,940 t CO2e
Use of scorecards to measure local
environmental performance
Use of scorecards at all
production sites, including at
processing plants and our own
seed propagation areas
58 out of
71 locations
56 out of
71 locations
Water
2.4.2
KWS Group’s water consumption
Will be defined in fiscal
year 2024/2025
498,732 m3
n/a
Biodiversity and ecosystems
2.4.2
Crops in breeding programs
27
23
23
Budget for resource-conserving
research
>30% of the annual R&D
budget on reducing the use of
resources
21.9%
20.2%
Ratio of low-input varieties
Suitability of >25% of KWS’
varieties for low-input farming
18.9% 1
9.1% 2
Innovations for Agriculture
2.4.2
Annual yield gain
1.5% on average
1.1% 1
1.3% 2
Use of digital solutions on
customers’ fields
Use of digital solutions on
>6 million hectares
2.9 million
hectares
2.5 million
hectares
Ratio of varieties for direct
human nutrition
>40% of KWS’ varieties can
be used directly in human
nutrition
35.9% 1
63.0% 2
Social objectives
Target in 2030
Section
2023/2024
2022/2023
Social engagement
2.4.3
Ratio of expenditures as part of our
social engagement
1% of operating income (EBIT)
p.a.
0.7%
0.6%
Own Workforce
2.4.3
OSHA incident rate at the KWS Group 3
<5.0 5
8.04 5
8.16 5
Employee engagement
The employee engagement
target will be defined in
2024/2025; baseline year
2023/2024
2.4.3
74%
n/a
Governance objectives
Target in 2030
Section
2023/2024
2022/2023
Business Conduct
2.4.4
Access to the Compliance Portal
95%
92%
80%
1 Recorded for the German and UK markets; the definition was adjusted in 2023/2024
2 Recorded for the German market
3 Rate of lost-time occupational accidents relative to hours worked (per 1 million working hours); OSHA = Occupational Safety and Health Administration
4 Emissions excluding the units to be sold in South America. There is a reconciliation with the emissions before the sale in section ’Climate Change’
5 The calculation logic was adjusted to 1 million working hours in 2023/2024 and the target figure was also adjusted accordingly
1 Not an audited part of the Combined Management Report
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Our understanding of sustainability
It is our understanding of sustainability that
sustainable commercial success requires – in
addition to stringent implementation of our
commercial goals – a socially, ecologically and
economically balanced business culture. Our
corporate vision, mission and values form the basis
for this and are a key component in our activity and
in ensuring KWS’ long-term economic success.
“Our passion for plants sustains
farming, food and planet”
The KWS Group’s mission
We set ourselves long-term and concrete objectives
under our sustainability strategy, for which the
Executive Board is jointly responsible. In our global
strategic planning process, their appropriateness
is regularly reviewed, with the aim of orienting
our business activities toward social, ecological
and economical aspects. In this spirit, KWS
adopted sustainability goals in 2021 as part of the
Sustainability Ambition 2030, and the status of their
implementation is reported on in the Non-Financial
Declaration. A central Sustainability Team operates
as a staff unit under the responsibility of our Chief
Financial Officer and coordinates the main sustain-
ability activities within the KWS Group.
Sustainability issues of moderate
to high materiality
We derive the issues we report on in the
Non-Financial Declaration from a materiality
analysis based on the Corporate Sustainability
Reporting Directive (CSRD). It was repeated
in 2023/2024 and now follows the concept of
double materiality. The relevant stakeholder
groups were involved in that. The key stakeholder
groups include not only our direct customers, i.e.
farmers, but also our shareholders, suppliers and
employees. We also include various stakeholders
throughout the agricultural value chain in our
analysis, such as policymakers, public author-
ities, non-governmental organizations, science,
academia and the media. In order to identify issues
that might be relevant to the updated materiality
analysis, issues were also derived from the
company’s context in connection with our strategy
and business model. The issues were evaluated as
part of a value chain analysis and their materiality
was analyzed in terms of their financial effect
and impact.
The following issues of high materiality for the
KWS Group were identified:
Environmental Aspects
Climate Change
Water
Biodiversity and Ecosystems
Innovations for Agriculture
Social Aspects
Own Workforce
Labor in the Value Chain
Governance
Business Conduct
Sustainability-related issues that were categorized
as being of high materiality are presented in the
Non-Financial Declaration.
Legal disclosures
In accordance with Sections 289b et seq. and
Sections 315b et seq. of the German Commercial
Code (HGB), KWS is obliged to prepare a
Non-Financial Declaration for the parent company
KWS SAAT SE & Co. KGaA and the KWS Group
disclosing details of the business model and
related material corporate social responsibility
(CSR) aspects (environmental issues, social
issues, employee issues, human rights, and
prevention of corruption and bribery), where these
are necessary for an understanding of the course
of business, business results, the situation of
KWS SAAT SE & Co. KGaA and the KWS Group,
and the effects on said aspects. The disclosures
in the Combined Non-Financial Declaration
relate to both KWS SAAT SE & Co. KGaA and the
KWS Group, unless otherwise specified, but not to
our joint ventures or associated companies.
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The table below gives an overview of the CSR
report aspects stipulated by law in accordance
with Section 289c of the German Commercial Code
(HGB) and other associated issues that require
reporting, as well as references to the sections in
which the required disclosures on concepts, results,
risks and key performance indicators are made.
Index for the Non-Financial Declaration
Required HGB disclosures
Issues of high materiality
Reference to sections
Business model
2.4.1 General Information
Environmental issues
Climate Change
Water
Biodiversity and Ecosystems
Innovations for Agriculture
2.4.2 Environmental Aspects
2.4.2 Environmental Aspects
2.4.2 Environmental Aspects
2.4.2 Environmental Aspects
Employee issues
Own Workforce
2.4.3 Social Aspects
Corruption and bribery
Business Conduct
2.4.4 Governance
Human rights
Own Workforce
2.4.3 Social Aspects
Social issues
Own Workforce
Labor in the Value Chain
2.4.3 Social Aspects
2.4.3 Social Aspects
EU Taxonomy
2.4.2 Environmental Aspects
We did not identify any risks that exceeded the
statutory materiality threshold defined in Section
289c (3) of the German Commercial Code (HGB).
In addition, the KWS Group has not defined any
non-financial performance indicators relating to
controlling at present.
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KWS’ focal issues from the 17 Sustainable Development Goals (SDGs)
Ecological
Economical
Social
Sustainable Development Goals
KWS supports achievement of the Sustainable
Development Goals (SDGs) under the UN’s Agenda
2030 (www.un.org/sustainabledevelopment/
sustainable-development-goals/). KWS feels it has
a commitment in this regard and makes concrete
contributions to the following SDGs through its
business activities:
We will be guided by the SDGs in the future devel-
opment of our company and intend to continue
integrating them in the Group.
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2.4.2 Environmental Aspects
2.4.2.1 Climate Change
Improve operational footprint (Sustainability Ambition 2030)
Objective
Target in 2030
2023/2024
2022/2023
Scope 1 and Scope 2
emissions globally 1
50% reduction
(2050: net zero) compared with the
baseline year 2020/2021
48,379 t CO2e
50,940 t CO2e
Rollout of scorecards to measure
environmental performance
Use of scorecards at all production
sites, including at processing plants
and our own seed propagation areas
58 out of
71 locations
56 out of
71 locations
1 In this section, we comment on the development of energy and Scope 1 and Scope 2 emissions (calendar year) following the sale of our locations in South America.
The tables include a reconciliation with the figures before their sale.
Energie und Emissionen
KWS has set itself the goal of reducing Scope 1
and Scope 2 emissions by 50% by 2030 compared
with the baseline year 2020/2021 (47,587 3 tons of
CO2e). KWS therefore surpasses the 42% reduction
required by the Science Based Targets Initiative
(SBTi) for this period. Our aim is to reduce our
emissions to net zero in 2050. Both objectives
are geared toward meeting the 1.5 degree target
defined in the Paris Agreement. In this section, we
comment on the changes in energy and emissions
excluding our locations in South America that
were being sold as of June 30, 2024. We present a
reconciliation table disclosing energy and emissions
before the sale of the South American locations.
Energy
As a plant breeding company, KWS is part of the
agricultural value chain. We mainly require heat
for drying seed, and cold and heat for breeding
work in greenhouses or climatic chambers, and
for operating agricultural machinery. We currently
cover these energy requirements predominantly
with natural gas, by purchasing electricity from
national power grids, and with diesel, but also by
using energy obtained from biomass (biomethane,
wood chips and corn cobs). The company also has
its own photovoltaic systems at various locations
2
2 Not an audited part of the Combined Management Report
3 Baseline year excluding the South American locations that are to be sold (before
their sale: 56,463 tons of CO2e)
4 We use the relevant physical conversion variables to calculate energy
consumption. In the year under review, we changed our energy accounting and
now disclose our energy consumption before energy losses from gasoline and
diesel engines.
and they help reduce the amount of energy that
has to be purchased externally. Our global energy
requirements totaled 777 (851) terajoules (TJ) 4 in
calendar year 2023, of which 13% (15%) was
covered by renewable energies 5. The decrease
in energy requirements was caused by lower
consumption of natural gas, as well as a decline in
combustion of corn cobs and purchased electricity.
The energy intensity was 0.46 (0.57 6) gigajoules (GJ)
per €1,000 of net sales.
5 This includes energy obtained from the combustion of biomethane, corn cobs
and wood chips and from in-house power generation. We do not have any
information to enable the data on electricity we buy in to be broken down by
renewable energies.
6 The previous year’s figure is 0.57 GJ per €1,000 of net sales both including and
excluding the locations affected by the sale.
Energy consumption by energy type
in % of total
Natural gas 37%
Diesel 16%
Purchased electricity 24%
Petrol 7%
Biomethane combustion 10%
Others 6%
Total
777 TJ
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7 The previous year’s figure was 35.9 kg CO2e per €1,000 of net sales
(before sale of the South American locations).
Energy consumption at the KWS Group
in GJ
2023
2022
Natural gas
288
316
Purchased electricity
184
199
Biomethane
combustion
81
89
Diesel
125
131
Petrol
53
40
Others
47
75
Total
777
851
Total before sale
1,048
1,193
Emissions
In order to achieve our emissions targets, we
adjust our use of energy. We examine among other
things increasing the use of biomass-based energy
generation, expanding our own photovoltaic plants
and purchasing green electricity under power
purchase agreements, as well as energy efficiency
measures. As part of that, we take into account both
the potential of such projects to reduce emissions
and their cost-effectiveness. In fiscal 2023/2024,
the Executive Board decided to replace our use
of natural gas in Germany with biomethane by
2027, and a supply agreement to this effect was
concluded. A heat exchange concept with the
municipal water treatment plant in Einbeck and the
installation of photovoltaics to generate our own
electricity in-house are also being implemented at
present. Further measures for German locations are
currently being examined or planned (including the
use of wind power, district heating, the purchase of
low-emission electricity, the use of heat pumps and
heat exchangers, or other technical energy efficiency
measures to reduce our energy requirements). The
carbon policy described in the previous year was
adopted in fiscal 2023/2024. In addition to technical
and organizational regulations, it includes the
introduction of an internal carbon price starting in
fiscal 2024/2025 and the establishment of a 30%
share of low-emission electricity generation by the
company in-house. The policy applies worldwide. In
the coming years, the focus of further cost-cutting
measures will be on our foreign locations.
In fiscal 2023/2024, the KWS Group’s Scope 1
and Scope 2 emissions were 48,379 (50,940) tons
of CO2e. The 5.0% reduction is due in particular
to lower emissions from natural gas, purchased
electricity and LPG. That gives an emission
intensity of 28.8 (34.0 7) kg of CO2e per €1,000 of
net sales. The Scope 1 and Scope 2 footprint of the
parent company KWS SAAT SE & Co. KGaA was
12,387 (15,503) tons of CO2e.
Emissions resulting from the use of biomass (biogas,
corn cobs, wood chips, bioethanol and organic
fertilizer) are mainly reported outside the GHG
Scopes in accordance with the Greenhouse Gas
Protocol (GHG Protocol).
These out-of-scope emissions in calendar year
2023 were 7,793 (10,897) tons of CO2e for the
KWS Group and 4,483 (4,930) tons of CO2e for
KWS SAAT SE & Co. KGaA.
Scope 1 and Scope 2 emissions
by source
Purchased electricity 35%
Inorganic Fertilizer 7%
Natural gas 20%
Petrol 7%
Diesel 17%
Others 4%
Total
48,379 t CO²e
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Scope 1 and Scope 2 emissions by
energy source
tons of CO2e
2023
2022
Purchased electricity
17,074
18,293
Natural gas
14,628
16,038
Diesel
8,295
8,853
Inorganic Fertilizer
3,382
2,942
Petrol
3,258
2,568
Others
1,742
2,246
Total
48,379
50,940
Total before sale
60,667
65,278
The KWS Group’s greenhouse gas emissions
in accordance with the GHG Scopes and
reconciliation with the figures before sale of
the South American locations
Type of
emissions
2023 1
(tons of
CO2e)
2022
(tons of
CO2e)
Delta
(%)
Direct
emissions
(Scope 1)
31,210
32,538
–4.1
Indirect
emissions
(Scope 2)
17,169
18,402
–6.7
Total
48,379
50,940
–5.0
Total before
the sale
60,667
65,278
–7.1
Biomass
emissions
(out of scope)
7,793
10,897
–28.5
Biomass
emissions
before the sale
15,685
22,100
–29.0
1 The measurement period for CO2 is the calendar year
Methodology
We are guided by the requirements of the GHG
Protocol in determining our greenhouse gas
emissions. As part of that, our energy and fertilizer
consumption is recorded worldwide, consolidated
centrally and converted into CO2 equivalents
using emissions factors. We use factors from the
Department for Environment, Food and Rural Affairs
(DEFRA) for Scope 1 and factors from the Inter-
national Energy Agency (IEA) for Scope 2 as part
of that. Since the year under review, we have only
included final data from the International Energy
Agency (IEA) in the calculation; in the previous year,
we used provisional data. Emissions from fertilizers
are calculated using the “Metodologia do GHG
Protocol da agricultura 8.” Our Scope 2 footprint is
reported in accordance with the location-based
method. In addition to Scope 1 and Scope 2
emissions, we report our emissions resulting from
the use of biomass mainly outside the GHG Scopes,
as they are not to be attributed to any scope
according to the GHG Protocol. The consolidated
group for the reported energy and emissions data
in this section is the same as that for our financial
reporting. The measurement period for energy and
fertilizer data is January 1 to December 31, since we
achieved the greatest data availability in this time
period.
Scope 3 emissions
We recorded our Scope 3 emissions for the
first time in fiscal 2023/2024 for the period from
January 1, 2022, to December 31, 2022, as part
of a pilot project. Our Scope 3 emissions 9 were
2,379,056 tons of CO2e, with most of them
being attributable to the GHG categories
3.10 10 “Processing of sold products” and
3.1 “Purchased goods and services.” In fiscal
2024/2025, we plan to measure the emissions
for the baseline year 2023 and the following year
2024 and to define and publish a target for them.
Rollout of environmental scorecards
In order to minimize the ecological impacts of its
locations and operations, KWS strives to continu-
ously improve internal processes, the technologies
it uses and internal company standards. The
locations themselves are responsible for the
concrete application and operational implemen-
tation of resource-conserving measures. Concrete
8 See https://ghgprotocol.org/sites/default/files/standards_supporting/
Metodologia.pdf.
9 Including the companies being sold in South America.
10 The data for cereals has been calculated on the basis of fiscal year 2018/2019.
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minimum requirements in our global HSE (health,
safety and environment) management activities
ensure that all KWS locations are governed by
comparable regulations.
We are continuing to work on establishing
scorecards within the KWS Group as a means of
evaluating the environmental performance of KWS
locations worldwide. All production sites, including
the processing plants and our own seed propa-
gation areas, will thus be evaluated individually. The
scorecard system will record data for criteria such
as biodiversity, water protection and emissions.
That will allow us to show the ecological footprint
of our activities internally and tap potential for
improvement at our locations. In fiscal 2023/2024,
we obtained data for 58 (56) out of 71 production
and propagation sites and used it as the basis for
our scorecards. We plan to align the scorecards
with the requirements of the Corporate Sustain-
ability Reporting Directive (CSRD) in 2024/2025 in
order to leverage any synergies.
2.4.2.2 Water
Water is an important business resource for KWS
as a breeding company. As part of our seed
production and breeding processes, a water
supply suitable for the needs of our plants is vital
so that we can harvest healthy seed and ensure a
high yield from propagation. As part of its global
HSE management, KWS has committed itself to
resource-conserving operation of its processes.
KWS strives to reduce water consumption and use
the resource of water as efficiently as possible.
To enable that, we record and monitor our global
water consumption and have implemented internal
stipulations on using water and handling effluents
in order to promote resource conservation.
Water type
Consumption
in 2023 1 in m3
Tap water
90,577
Water from wells/groundwater
394,272
Surface water
11,622
Cistern water/rainwater
2,260
Total
498,732
1 Water consumption excluding the locations being sold in South America. Data
collected for calendar year 2023.
Use of fresh water and water stress
Our internal HSE management system defines a
globally applicable standard specifying that we aim
to work in a way that conserves resources and to
avoid process-related effluents as far as possible.
Alongside water consumption in offices and
research buildings, the highest levels of fresh
water are used in watering the plants at our trial
and in-house propagation locations. “Smart” drip
irrigation that controls watering based on the plants’
needs is used in some of our greenhouses. We
prescribe that the use of regenerative resources
must be examined for new construction projects so
that the use of groundwater can be reduced further.
Our scorecards include questions on the subject of
water stress. This captures qualitative data about
whether production sites rely on renewable water
sources (currently nine out of 58 production sites for
which data is recorded) and whether locations are
situated at or within areas of water stress (currently
22 out of 58 locations for which data is recorded).
In fiscal 2024/2025, we plan to review the method-
ology for recording water consumption and the
targets for it and to adjust them if necessary.
We do not currently see an absolute reduction in
water consumption as expedient due to the impact
of the weather on our business model and the
associated fluctuations in water consumption.
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2.4.2.3 Biodiversity and Ecosystems
Enhance crop diversity (Sustainability Ambition 2030)
Objective
Target
in 2030
2023/2024
2022/2023
Crops in breeding
programs
27
23
23
Flexible and sustainable crop rotation in agriculture
is part of our sustainable product strategy. We
therefore offer our customers a broad portfolio of
varieties for different crops. We plan to increase
the number of our breeding programs from 23 (23)
at present to 27 by 2030. A plant breeding program
for agricultural crops is a systematic and science-
based method of developing plants with improved
traits and properties. It comprises the pinpointed
crossing of plants to enhance desirable traits such
as yield, resistance to diseases and pests, drought
tolerance, nutrient efficiency and adaptability to
different environmental conditions. A breeding
program involves the selection of parent plants with
the desired traits and the systematic implemen-
tation of crossing and selection processes over
several generations. The goal is to develop varieties
that meet farmers’ needs, increase yields, improve
food security and promote sustainable agricultural
practices. Modern plant breeding programs also
use advanced technologies such as genomics,
marker-assisted selection and genetic engineering
to speed up the breeding process and make it more
efficient. Crop-specific development objectives are
agreed annually between Research, the breeding
departments, Production and Sales, submitted for
the Executive Board to decide on and reported to
the Supervisory Board. The number of breeding
programs remained unchanged in fiscal 2023/2024.
We support both conventional and organic farming
with our varieties, catch crops and mixed cropping
solutions from breeding programs. Compared
to traditional agriculture, organic farming has a
more positive influence on biodiversity, since no
chemical pesticides are used in it and near-natural
areas are fostered to a greater extent. We already
have one of the most diverse product portfolios in
plant breeding, enabling us to provide extensive
support for multiyear crop rotation strategies and
conventional and organic market segments with
our own products.
Another indicator of the success of our breeding
programs is the number of official variety approvals
awarded per year. Only varieties of agricultural plant
species that offer a clear improvement in cultivation
or further processing (what is termed “value for
cultivation and use”) over already approved ones
can be marketed in the EU. We obtained 559 variety
approvals worldwide in fiscal 2023/2024 compared
to 488 in the previous year.
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Minimize required inputs (Sustainability Ambition 2030)
Objective
Target in 2030
2023/2024
2022/2023
Expenditures on reducing the use
of resources
>30% of the annual R&D budget
21.9%
20.2%
Ratio of varieties for
resource-conserving agriculture
Suitability of >25% of KWS’ varieties
for low-input farming
18.9% 1
9.1% 2
1 Recorded for the German and UK markets, excluding vegetable varieties
2 Recorded for the German market, excluding vegetable varieties
KWS has set itself the goal of minimizing the use of
natural and chemical resources in agriculture. To
achieve this, we have formulated two targets in our
Sustainability Ambition 2030:
More than 30% of our annual R&D budget is to
be spent on reducing the use of resources
In the future, we intend to spend more than 30% of
our annual R&D budget specifically on reducing the
use of resources (water, fertilizer and pesticides) in
arable farming. To enable this, we are planning to
develop varieties that, for example, are resistant to
diseases or pathogens or have greater tolerance
to climatic stress factors and therefore require
less pesticide and work by the farmer. In fiscal
2023/2024, we spent 21.9% (20.2%) of the R&D
budget 11 on breeding and developing resource-
conserving varieties.
More than 25% of our portfolio of varieties are
to be suitable for low-input farming
We develop resource-saving traits as part of our
breeding activities. They include varieties that
deliver yields that are customary for the market
with little use of fertilizer, limited water availability
or reduced use of chemical pesticides. At least one
trait of a variety must enable lower resource use
in cultivation and, at the same time, offer a yield
potential that is customary for the market, in which
case the variety is classified as resource-efficient.
Very high yields may also result in varieties being
awarded this classification, as they can achieve the
same yield level as customary varieties with fewer
resources. These “low-input varieties” must prove
their performance under cultivation conditions,
either in our internal trials or as part of official
approval processes. We intend to further expand
breeding of low-input varieties in the future so as
to selectively add them to our portfolio.
Resource-conserving traits in sugarbeet are, for
example, disease resistance, which may entail the
use of less pesticide and reduce the number of
times machines have to run over the field; in the
case of oilseed rape, they are traits where there
is demonstrably lower infestation by pests. In
fiscal 2023/2024, we analyzed our variety portfolio
in the UK for the first time and are reporting its
aggregated share together with that for Germany.
We currently provide our customers with a total
of 312 (209) varieties 12 for sugarbeet, silage
corn, winter oilseed rape, wheat, barley and rye
in Germany and the UK, of which 59 (19) – or
18.9% (9.1%) – were classified by us as resource-
efficient in fiscal 2023/2024. Recording of the
portfolio is to be extended to other markets in the
following years.
11 In R&D controlling, not all research and breeding activities that contribute to
reducing the use of resources can be clearly separated from other breeding
activities such as increasing yield. Consequently, the key figure includes the
actual costs for individual R&D projects and a pro-rata share of the total costs
for the breeding programs for corn, cereals and vegetables. This share is based
on the ratio reported for sugarbeet, which was approximately 21% (19%) for
fiscal 2023/2024.
12 Varieties that generated net sales in fiscal 2023/2024. In the previous year, only
varieties in Germany were recorded; varieties in the UK were included in the
analysis for the first time in the year under review.
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2.4.2.4 Innovations for Agriculture
Objective
Target in 2030
2023/2024
2022/2023
Annual yield gain
1.5% on average
1.1% 1
1.3% 2
Use of digital solutions on
customers’ fields
Use of digital solutions on
>6 million hectares
2.9 million
hectares
2.5 million
hectares
Ratio of varieties for human
nutrition
>40% of KWS’ varieties can be used
directly in human nutrition
35.9% 1
63.0% 2
1 Recorded for the German and UK markets; the definitions have been reviewed and adjusted compared to the previous year
2 Recorded for the German market
KWS keeps on developing innovative plant varieties
that have to meet the differing requirements of
farmers and consumers. We breed sugarbeet,
corn, various cereals and vegetables, oilseed rape
and catch crops and thus offer a broad range of
products for conventional and organic farming.
Innovation through plant breeding can help reduce
the consumption of limited resources such as
water, land and energy while increasing resource
efficiency. Plant breeding is therefore an important
factor in making agricultural cultivation more
resource-efficient.
Product innovation made by KWS
We continuously develop varieties for agriculture
further in our breeding programs. A particular focus
of that – apart from the development of resistances,
tolerances as well as nutrient efficiencies – is to
increase yields. Among other things, high-yielding
varieties help to alleviate pressures on land use
in food production resulting from the rising world
population.
Based on the test results of all varieties in official
trials in Germany and the UK over the past ten
years, corn, wheat, barley, oilseed rape, rye and
sugarbeet achieved an average yield gain of 1.1%
(1.3%) p.a. for the German and UK markets. This
key indicator is to be expanded to further countries
in fiscal 2024/2025. The results were derived from
data from official approval authorities.
In addition to the genetic makeup of the plant
varieties, digital services also contribute to
yield gain. KWS supported farmers on around
2.9 (2.5) million hectares with digital solutions by
the end of fiscal 2023/2024. These solutions can
be used to calculate the seed rate for specific
subplots or to determine when to harvest plants,
for example. As part of our Sustainability Ambition
2030, we aim to expand that figure to more than
six million hectares.
In addition, our goal is for more than 40% of KWS’
varieties to be suitable and intended for direct
human consumption or use in a plant-based diet.
Since more and more people are adopting a mainly
vegetarian diet, we intend to cater for this growing
demand for plant-based foods. In addition to our
existing vegetable portfolio, our goal is to develop
nutrient-rich varieties for the global market that,
when harvested, can be used in food directly
or with little processing. The share of varieties
intended by KWS for direct use in human nutrition
in fiscal 2023/2024 was 35.9% (63)% 13 for the
German and UK markets.
13 The deviation from the previous year is due to the inclusion of the UK market
and a correction to our KPI definition.
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As part of its strategy for sustainable agriculture,
KWS develops plant traits that are associated with
lower yields but make plants more resistant to
external influences or increase resource efficiency.
Yield gain alone is not sufficient to measure
advances by plant breeding. Further examples of
our innovativeness are breeding successes in the
crops sugarbeet and barley, which we describe
in more detail in the Research and Development
Report (see the Group Management Report).
KWS Fit4NEXT catch crop mixtures offer
European farmers solutions that support typical
crop rotations. As an important component in
sustainable arable farming, they contribute in
diverse ways to successful cultivation of the main
crop. They protect the climate and soil, promote
biodiversity and also help limit unwanted accom-
panying plants and harmful nematodes. They are
also important in maintaining and creating humus
in arable land. Catch crop mixtures containing
legumes also enable CO2 to be bound in the soil
by fixing atmospheric nitrogen and also reduce
the use of fertilizer. The Fit4NEXT Field Check is a
new digital tool for the German market that makes
the specific performance of catch crop mixtures
tangible. This applies both to nitrogen fixation and
to the long-term binding of CO2 and the formation
of humus in the soil. The tool is available in the
“myKWS” range of digital consulting services and
has been developed for KWS’ most important
catch crop mixtures.
In addition, we have worked for years on developing
biologicals as an alternative or complement to
chemical means of seed treatment. They comprise
microorganisms such as fungi and bacteria, as
well as substances obtained from plants or micro-
organisms. We have treated sugarbeet, oilseed
rape, corn and rye seed with biologicals since fiscal
2019/2020. Biological applications for further crops,
such as sorghum, barley, spinach and beans, are
being developed. In fiscal 2023/2024, we submitted
further applications for approval so that biological
seed treatments developed by us can be offered
in further countries in the future, such as Slovakia,
Belarus, Serbia and Moldova. Moreover, we are also
continuing to establish biologicals as part of seed
treatments in international markets such as North
America (sugarbeet).
We are working to expand our portfolio of
varieties for organic farming. As part of that, we
have hired new personnel with specific expertise in
organic farming for our breeding activities and for
our trial technology in the past years. In addition,
our trial areas were expanded and the quality
of trials was improved by means of statistical
analyses. In March 2024, the first rye variety KWS
CREOR was also approved for organic farming by
the German Federal Office of Plant Varieties. KWS
has had its own location for organic farming in
Germany, the Wiebrechtshausen monastery estate,
for 20 years.
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Combined Management Report | 2.4 Sustainability Information
2.4.2.5 EU Taxonomy
The disclosures on the EU Taxonomy are made on
the basis of Delegated Regulation (EU) 2021/2178
of the European Commission in conjunction with
the International Financial Reporting Standards
(IFRS) to be applied in the consolidated financial
statements. Under Article 8 of the EU Taxonomy
Regulation (EU) 2020/852 and the supplementary
delegated acts, KWS is required to disclose the
proportion of taxonomy-eligible net sales, capital
expenditures (CapEx) and operating expenditures
(OpEx) in relation to the following environmental
objectives for fiscal 2023/2024:
Climate change mitigation
Climate change adaptation
Sustainable use and protection of water
resources
Transition to a circular economy
Pollution prevention and control
Protection and restoration of biodiversity
and ecosystems.
Taxonomy-eligible economic activities within the
meaning of Article 1 No. 5 of the Delegated Act
of July 6, 2021, to Article 8 of Regulation (EU)
2020/852 are those economic activities defined
in the Delegated Act of June 4, 2021. Business
activities that are not listed in the related annexes
or that do not match the descriptions of business
activities given there are not deemed to be
taxonomy-eligible. The environmental objectives
1 to 2 already assessed in previous years were
taken into account and the new economic
activities defined in Delegated Regulation (EU)
2023/2486 of June 27, 2023, were assessed in
relation to environmental objectives 3 to 6.
In fiscal 2023/2024, the taxonomy-eligible economic
activities were examined for their environmental
sustainability (taxonomy alignment) in relation to
the environmental objectives of climate change
mitigation and climate change adaptation. Environ-
mental objectives 3 to 6 did not have to undergo
a mandatory alignment examination in fiscal
2023/2024.
An economic activity is considered taxono-
my-aligned if it meets the following technical
screening criteria:
it contributes substantially to the environmental
objective in question;
it does not significantly harm the other environ-
mental objectives (DNSH = do no significant
harm); and
it is carried out in compliance with the minimum
safeguards, such as observance of human rights
(minimum safeguard criterion).
To determine whether activities meet the require-
ments for taxonomy eligibility, KWS’ business
activities were compared with those defined by
the taxonomy in the Annexes to the Delegated
Act of June 4, 2021, for environmental objectives
1 to 6 and relevant activities were assessed.
The analysis revealed that no net sales could be
allocated to the activities under the EU Taxonomy.
Capital expenditures (CapEx) and operating
expenditures (OpEx) assigned to taxonomy-eligible
activities are aggregated at the level of the relevant
asset items and income statement accounts.
To avoid double counting, the activities were
assigned to only one environmental objective
in terms of their impact on the environmental
objectives. As part of this, taxonomy-eligible
activities that account for less than one percent
(<1%) of KWS’ capital expenditures (CapEx) or
operating expenditures (OpEx) as defined by the
EU Taxonomy are not considered material and
are therefore classified as taxonomy-non-eligible.
The taxonomy-eligible activities classified as
non-material total less than 3% (2%) of capital
expenditures (CapEx) and less than 1% (1%) of
operating expenditures (OpEx) in fiscal 2023/2024.
Taxonomy alignment is examined on the basis of
the technical screening criteria for each economic
activity.
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Fulfillment of the criteria relating to a substantial
contribution and DNSH was verified by means of
appropriate analyses. That included screening of
relevant locations for potential physical climate risks
relating to the DNSH criterion of “climate change
adaptation.”
The minimum safeguard criterion was also analyzed
for the KWS Group. Existing company guide-
lines, such as the Human Rights Policy, and risk
management processes relating to compliance and
anti-corruption, among other things, were used in
the examination.
As a result of the alignment examination, only
criteria for activity “7.1. Construction of new
buildings” could currently be fulfilled.
Net sales
As a plant breeding company, our core business
activities are not currently included in Delegated
Regulation (EU) 2023/2486 of June 27, 2023.
Consequently, our revenue-generating activities
for the fiscal year 2023/2024 are not taxon-
omy-eligible. The taxonomy-non-eligible net
sales totaled €1,678.1 (1,500.3) million in fiscal
2023/2024 (see the Notes for the KWS Group,
number 6.1).
Operating expenditures (OpEx)
No material taxonomy-eligible operating expendi-
tures (OpEx) were identified. The taxonomy-non-
eligible operating expenditures (OpEx) in fiscal
2023/2024 totaled €348.5 (337.3) million and mainly
comprise R&D spending and expenditures on
repairs and maintenance.
Capital expenditures (CapEx)
There are capital expenditures (CapEx) that were
able to be assigned to taxonomy-eligible activities.
These activities are assigned to the environmental
objective of climate change mitigation.
In fiscal 2023/2024, there were taxonomy-eligible,
but not taxonomy-aligned, capital expenditures
(CapEx) totaling €10.5 (30.6) million, or 6.7%
(24.7%) of the KWS Group’s total capital expen-
ditures of €156.4 (124.0) million (see the Notes
for the KWS Group, number 5 and 7.15). In fiscal
2023/2024, there were also taxonomy-aligned
capital expenditures (CapEx) for the first time.
They amounted to €26.7 million, or 17.1% of the
KWS Group’s total capital expenditures. There were
thus taxonomy-non-eligible capital expenditures
(CapEx) of €119,3 (93.4) million, or a share of
76.2% (75.3%).
The taxonomy-eligible activities relate to
“7.1 Construction of new buildings” and
“7.2 Renovation of existing buildings.”
Taxonomy-aligned economic activities were
identified in fiscal 2023/2024 in connection with
the activity “7.1 Construction of new buildings”
in relation to environmental objective 1. The new
construction project “Elitespeicher,” which includes
a new building complex for seed production, is
currently in the completion phase. It had not been
finished by the balance sheet date (June 30, 2024)
and is expected to be completed in 2024/2025.
The new building was designed to meet high
environmental standards, which were already taken
into account during construction and had been
approved by our Executive Board. The relevant
criteria were analyzed on the basis of the taxonomy
alignment examination. As a result, part of the
CapEx (€26.7 million or 17.1% of the KWS Group’s
total capital expenditures) is already disclosed as
a taxonomy-aligned activity in fiscal 2023/2024.
The capital expenditures on construction of the
Elitespeicher to date total €43.1 million. Other
taxonomy-aligned activities were not identified.
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Combined Management Report | 2.4 Sustainability Information
Taxonomy reporting turnover
Fiscal year 2023/2024
2023/2024
Substantial contribution criteria
Economic activities
Code
Turnover
Propor-
tion of
turnover
2023/2024
Climate
change
mitigation
Climate
change
adaption
Water
Pollution
Circular
economy
in T€
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (taxonomy-aligned)
Turnover of environmentally sustainable
activities (taxonomy-aligned) (A.1)
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
Of which enabling
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
Of which transitional
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Turnover of taxonomy-eligible but not
environmentally sustainable activities
(not taxonomyaligned activities) (A.2)
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
A. Turnover of taxonomy-eligible
activities (A.1 + A.2)
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
B. Taxonomy-non-eligible activities
Turnover of taxonomy-non-eligible
activities
1,678,118
100
Total
1,678,118
100
Y – Yes, activity is taxonomy-eligible and taxonomy-aligned with the relevant environmental objective;
N – No, activity is taxonomy-eligible but not taxonomy-aligned with the relevant environmental objective;
EL – ‘eligible’: activity is taxonomy-eligible for the respective environmental objective;
N/EL – ‘not eligible’: activity is not taxonomy-eligible for the respective environmental objective.
Proportion of Turnover per Environmental Objective
Proportion of turnover/total turnover
in %
Aligned per objective
Eligible per objective
Climate change mitigation (CCM)
0
0
Climate change adaption (CCA)
0
0
Water and marine resources (WTR)
0
0
Circular economy (CE)
0
0
Pollution prevention and control(PPC)
0
0
Biodiversity and ecosystems (BIO)
0
0
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DNSH- criteria (‘Does Not Significantly Harm’)
Minimum
safe
gurards
Proportion
of taxono-
my-aligned
(A.1.) or -eligible
(A.2.) turnover
2022/2023
Category
enabling
activity
Category
transitional
activity
Bio
diversity
Climate
change
mitigation
Climate
change
adaption
Water
Pollution
Kreislauf-
wirtschaft
Bio
diversity
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
N/EL
N
N
N
N
N
N
N
0
N/EL
N
N
N
N
N
N
N
0
E
N/EL
N
N
N
N
N
N
N
0
T
EL; N/EL
N/EL
0
N/EL
0
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Taxonomy reporting operating expenses (OpEx)
Fiscal year 2023/2024
2023/2024
Substantial contribution criteria
Economic activities
Code
OpEx
Propor-
tion of
OpEx
2023/2024
Climate
change
mitigation
Climate
change
adaption
Water
Pollution
Circular
economy
in T€
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (taxonomy-aligned)
OpEx of environmentally sustainable
activities (taxonomy-aligned) (A.1)
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
Of which enabling
N/EL
N/EL
N/EL
N/EL
N/EL
Of which transitional
N/EL
N/EL
N/EL
N/EL
N/EL
A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
OpEx of taxonomy-eligible but not
environmentally sustainable activities
(not taxonomyaligned activities) (A.2)
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
A. OpEx taxonomy-eligible activities
(A.1 + A.2)
0
0
N/EL
N/EL
N/EL
N/EL
N/EL
B. Taxonomy-non-eligible activities
OpEx of taxonomy-non-eligible
activities
348,550
100
Total
348,550
100
Y – Yes, activity is taxonomy-eligible and taxonomy-aligned with the relevant environmental objective;
N – No, activity is taxonomy-eligible but not taxonomy-aligned with the relevant environmental objective;
EL – ‘eligible’: activity is taxonomy-eligible for the respective environmental objective;
N/EL – ‘not eligible’: activity is not taxonomy-eligible for the respective environmental objective.
Proportion of OpEx per Environmental Objective
Proportion of OpEx/total OpEx
in %
Aligned per objective
Eligible per objective
Climate change mitigation (CCM)
0
0
Climate change adaption (CCA)
0
0
Water and marine resources (WTR)
0
0
Circular economy (CE)
0
0
Pollution prevention and control(PPC)
0
0
Biodiversity and ecosystems (BIO)
0
0
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DNSH- criteria (‘Does Not Significantly Harm’)
Minimum
safe
gurards
Proportion
of taxono-
my-aligned
(A.1.) or -eligible
(A.2.) OpEx
2022/2023
Category
enabling
activity
Category
transitional
activity
Bio
diversity
Climate
change
mitigation
Climate
change
adaption
Water
Pollution
Kreislauf-
wirtschaft
Bio
diversity
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
N/EL
N
N
N
N
N
N
N
0
N/EL
N
N
N
N
N
N
N
0
E
N/EL
N
N
N
N
N
N
N
0
T
EL; N/EL
N/EL
0
N/EL
0
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Taxonomy reporting capital expenditure (CapEx)
Fiscal year 2023/2024
2023/2024
Substantial contribution criteria
Economic activities
Code
CapEx
Propor-
tion of
CapEx
2023/2024
Climate
change
mitigation
Climate
change
adaption
Water
Pollution
Circular
economy
in T€
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (taxonomy-aligned)
Construction of new buildings
CCM 7.1
26,706
17.1
J
N
N/EL
N/EL
N/EL
CapEx of environmentally sustainable
activities (taxonomy-aligned) (A.1)
26,706
17.1
100.0%
0.0%
0.0%
0.0%
0.0%
Of which enabling
Of which transitional
A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Construction of new buildings
CCM 7.1
7,929
5.1
EL
N/EL
N/EL
N/EL
N/EL
Renovation of existing buildings
CCM 7.2
2,562
1.6
EL
N/EL
N/EL
N/EL
N/EL
CapEx of taxonomy-eligible but not
environmentally sustainable activities
(not taxonomyaligned activities) (A.2)
10,491
6.7
100.0%
0.0%
0.0%
0.0%
0.0%
A. CapEx taxonomy-eligible activities
(A.1 + A.2)
37,198
23.8
100.0%
0.0%
0.0%
0.0%
0.0%
B. Taxonomy-non-eligible activities
CapEx of taxonomy-non-eligible
activities
119,250
100
Total
156,448
100
Y – Yes, activity is taxonomy-eligible and taxonomy-aligned with the relevant environmental objective;
N – No, activity is taxonomy-eligible but not taxonomy-aligned with the relevant environmental objective;
EL – ‘eligible’: activity is taxonomy-eligible for the respective environmental objective;
N/EL – ‘not eligible’: activity is not taxonomy-eligible for the respective environmental objective.
Proportion of CapEx per Environmental Objective
Proportion of CapEx/total CapEx
in %
Aligned per objective
Eligible per objective
Climate change mitigation (CCM)
17.1
23.8
Climate change adaption (CCA)
0
0
Water and marine resources (WTR)
0
0
Circular economy (CE)
0
0
Pollution prevention and control(PPC)
0
0
Biodiversity and ecosystems (BIO)
0
0
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DNSH- criteria (‘Does Not Significantly Harm’)
Minimum
safe
gurards
Proportion
of taxono-
my-aligned
(A.1.) or -eligible
(A.2.) CapEx
2022/2023
Category
enabling
activity
Category
transitional
activity
Bio
diversity
Climate
change
mitigation
Climate
change
adaption
Water
Pollution
Kreislauf-
wirtschaft
Bio
diversity
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
N/EL
J
J
J
J
J
J
J
0.0%
J
J
J
J
J
J
J
0
E
T
EL; N/EL
N/EL
N/EL
0.0%
24.7
0.0%
24.7
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Combined Management Report | 2.4 Sustainability Information
2.4.3 Social Aspects
2.4.3.1 Social Engagement
Foster social engagement
Objective
Target in 2030
2023/2024
2022/2023
Ratio of expenditures as part of our
social engagement
1% of operating income (EBIT)
p.a.
0.7%
0.6%
KWS sees itself as an active member of society
and thus wants to translate its corporate values
into active engagement outside the company.
As a forward-looking company, KWS therefore
assumes responsibility toward society. In general,
our social engagement is organized locally. Our
internal “Social Engagement” policy provides the
framework for that. The content of our activity in
this area is also geared toward the United Nations’
Sustainable Development Goals. 16 KWS focuses
its supraregional social engagement on promoting
education in the field of natural and agricultural
sciences. KWS’ regional social engagement at its
locations, both national and international, focuses
on cultural, social and socioeconomic development
in its – mostly rural – surrounding areas in order to
increase the locations’ attractiveness as a whole.
The development partnerships in Africa focused
on the SeZIL (Seeds for Zambian Incomes and
Livelihoods) project in Zambia, which benefits
more than 1,000 smallholders and supplies them
with new corn, bean, sorghum and sunflower
varieties. The objective is to identify those best
suited to their local contexts. Through our local
partner, Good Nature Agro, we also trained farmers
in seed production and enabled them to gain
access to agricultural resources and forge market
connections.
In Kenya, we are also working with a local
cooperative to help diversify cultivation systems
and improve farmers’ access to high-yielding,
more robust varieties. The focus here is on corn,
sorghum, sunflower, oilseed rape and peas.
KWS supports diverse long-term scholarship
programs supraregionally in cooperation with
various universities to encourage young scien-
tists. In fiscal 2023/2024, we awarded university
scholarships in the field of research and devel-
opment, Germany Scholarships in the field of
human resources, and the Ferdinand von Lochow
Scholarship to particularly committed students of
agricultural sciences.
In addition, we support various formats to
encourage young scientists and foster dialogue
in the field of agricultural sciences. In addition,
KWS is a long-standing sponsor of the “Jugend
forscht – Schüler experimentieren” (“Youth
Researches – School Students Experiment”) state
contest, with the goal of lastingly inspiring children
and young people for STEM subjects (science,
technology, engineering and mathematics). Several
international collaborations with schools in fiscal
2023/2024 should be singled out. The project
established in Brazil in the previous year was
continued and further developed in the fiscal year.
It aims to promote access to and the use of healthy
food. In the Netherlands, a project was funded in
collaboration with a seed breeding adventure center
with the common goal of awakening young people’s
interest in and enthusiasm for vegetable breeding.
14 Not an audited part of the Combined Management Report
15 In this section, the South American companies currently being sold are included
in the analysis.
16 No. 2 “Zero Hunger” and no. 17 “Partnerships for the Goals“
14
15
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We continued our engagement in Ukraine in fiscal
2023/2024. We help alleviate various current social
needs by means of donations. In addition, a contri-
bution was made to maintaining scientific operation
of an institute for agricultural microbiology.
The importance of social engagement is under-
scored by our target of spending around 1% of
our annual operating income (EBIT) on social
engagement and social projects.
Expenditures as part of our social engagement
in € millions
2023/2024
2022/2023
Expenditures as
part of our social
engagement 1
1.9
1.4
of which for donations
and development
programs in Kenya
and Zambia
1.3
0.9
of which for
sponsorship activities
0.6
0.5
As a % of operating
income (EBIT)
0.7
0.6
KWS SAAT SE &
Co. KGaA’s
percentage share of
expenditures relative
to the KWS Group’s
operating income
(EBIT)
0.6
0.5
1 Does not include KWS Maroc SARLAU, KWS Mexico, KWS Vegetables
Italia S.R.L., KWS Paraguay S.R.L., Kant-Hartwig & Vogel GmbH and all
joint ventures
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2.4.3.2 Own Workforce
Foster social engagement
Objective
Target in 2030
2023/2024
2022/2023
OSHA incident rate at the
KWS Group 1
<5.0 2
8.04
8.16 2
Employee engagement
The employee engagement target will
be defined in 2024/2025; baseline year
2023/2024
74%
n/a
1 Per 1 million working hours
2 Adjustment due to the new calculation logic in 2023/2024 based on 1 million working hours
Labor and Social Standards
KWS regards compliance with acknowledged
human rights, labor and social standards and
responsible conduct toward one another as a
fundamental element of its commercial activity. We
therefore aim to ensure good working conditions
and to establish and maintain labor and social
standards.
The basis for that is the respective labor and social
standards specified by law and, where applicable,
by collective bargaining agreement.
KWS’ main labor standards are:
KWS ensures that regulations under labor
and social insurance law are observed in all
employment relationships.
Worldwide, KWS implements the local statutory
regulations in relation to the principle of “equal
pay for equal work, taking into account individual
expertise, professional experience and local
market conditions.”
Our labor standards also include technical,
organizational and occupational health measures
to prevent accidents and diseases at work.
In order to ensure we observe human rights
when recruiting, hiring and employing staff, we
are guided by prevailing anti-discrimination laws
and the standards of the International Labour
Organization (ILO) relating to child, forced and
compulsory labor.
Our labor and social standards apply to all the
KWS Group’s employees.
Human rights
KWS is committed to internationally recognized
human rights standards, such as those of the UN’s
Universal Declaration of Human Rights and the
International Labour Organization (ILO) proscribing
child, forced and compulsory labor. We have
enshrined the principles of the Universal Declaration
of Human Rights in our Human Rights Policy.
Labor standards
The working conditions of employees of the
KWS Group are governed by country-specific legis-
lation and defined contractually. Our compensation
structure is in line with standard market practices.
Depending on the country and company, a KWS
employee’s compensation package consists of a
basic salary and various social benefits.
In addition, again depending on the country and
company, we offer employees the opportunity
to share in the company’s success, for example
through performance-related and variable compen-
sation models and an Employee Stock Purchase
Plan. Benefits for full-time employees are also
provided accordingly to part-time staff.
A key objective of our compensation policy is to
ensure that employees are paid appropriately for
their work, taking into account their individual
expertise, professional experience and, where
applicable, their individual performance and the
local market situation. This principle is intended
to make sure that employees with comparable
qualifications and experience are paid the same
for the same work at the respective locations.
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The principle of equal pay is reflected in company
regulations and collective bargaining agreements,
where they exist. The same applies, for example, to
regulations on working hours, vacation, business
travel and semi-retirement.
Over half of our employees 17 worldwide are covered
by regulations under collective bargaining agree-
ments. The figure in Germany is more than 97% 18.
Employment relationships of
our own workforce 19
95% (93%) (Germany: 94% (89%) of our employees
throughout the Group had a permanent employment
contract in fiscal 2023/2024. 20 KWS also employed
920 (2,035) seasonal workers in harvesting in fiscal
2023/2024.
Employees 1 by type of contract
Ratio of
women/
men/
non-binary
persons
(in %)
2023/
2024
Perma-
nent
2023/
2024
Tempo-
rary
2022/
2023
Perma-
nent
2022/
2023
Tempo-
rary
Full-time
33/67/0
45/55/0
31/69/0
46/54/0
Part-time
79/21/0
52/48/0
80/20/0
59/41/0
Seasonal
workers 2
50/50/0
37/63/0
1 Including trainees and interns
2 No distinction is made between permanent and temporary seasonal workers.
Occupational Health and Safety 21
The health and safety of our employees at all
locations has top priority for us. The organization
of occupational health and safety is a core
management task. KWS has therefore set itself the
goal of recording occupational accidents globally
and reducing them in the long term. As part of
that an OSHA (Occupational Safety and Health
Administration) incident rate was determined and
published for the first time in fiscal 2021/2022. This
is a method of calculating the frequency of lost-time
occupational accidents and is used to compare
the accident frequency rate of individual industries
and locations.
KWS has a globally oriented HSE (health, safety
and environment) management system and
cross-functional crisis management system. Our
internal occupational safety standards comprise
technical, organizational and occupational health
measures to prevent accidents and diseases at
work. We review our local and international safety
standards annually by means of internal audits. The
Health, Safety & Environment (HSE) Guideline is a
key tool in this regard and defines global framework
conditions. Among other things, it states that the
respective manager must ensure occupational
accidents are recorded.
To date, worldwide accident figures have been
recorded on a consolidated basis in three fiscal
years, which is why a reliable assessment of
the accident frequency rate over time is only
possible to a limited extent. A direct comparison
with other industries indicates that KWS has a
relatively low accident rate. Most accidents occur
at our breeding and production sites. The OSHA
incident rate for the KWS Group is 8.04 (8.16) and
for KWS SAAT SE & Co. KGaA 11.13 (13.14 22) per
1 million working hours.
Achieving the goal under the Sustainability Ambition
2030 of reducing occupational accidents by
2030 should, from today’s perspective, be reflected
in an accident frequency rate of <5.0. To achieve
that, the focal areas of accidents are assessed,
after which targeted measures are taken in the form
of training or, if necessary, decisions to change
work processes.
17 Including trainees and interns, but excluding non-integrated companies
18 Including trainees and interns, but excluding non-integrated companies
19 The previous year’s figures in this section have been taken unaudited from the
2022/2023 Sustainability Report
20 Excluding all seasonal workers, apprentices, and interns
21 The previous year’s figures in this section have been taken unaudited from the
2022/2023 Sustainability Report.
22 The previous year’s figure has been adjusted due to the new calculation logic
based on 1 million working hours.
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Work safety incidents and days lost at the
KWS Group were as follows in 2023/2024:
Work safety incidents and days lost 1
2023/2024 2
2022/2023 3
Work safety incidents
191
204
of which lost time
incidents
79
95
of which fatalities
0
0
Total days lost
1,318
1,310
Average number of
days lost per incident
17
14
Countries where
accidents are
documented
11
8
1 Excluding all employment relationships with seasonal workers.
2 Excluding the South American companies currently being sold
3 The previous year’s figures in this section have been taken unaudited from the
2022/2023 Sustainability Report.
Internal dialogue and collective
representation of interests
We are committed to upholding ILO 87 “Freedom
of Association and Protection of the Right to
Organise Convention” and ILO 98 “Right to
Organise and Collective Bargaining Convention.”
Employees’ interests are represented collectively
to their respective management by the locally
elected Works Councils and the persons entrusted
with representing young people and trainees and
disabled employees.
There are codetermination bodies representing
employees in Germany, France and the Nether-
lands, among other countries. They work
closely and in a spirit of trust with the respective
management and nurture open and constructive
dialogue.
In countries where there is no collective employee
representative body, we also nurture a spirit of
mutual respect and open dialogue with employees.
If the workforce wishes to have a collective repre-
sentative body or such a body is prescribed by law,
we support our employees in establishing it.
The European Employees’ Committee (EEC) has
been in existence as a European employee repre-
sentative body since 2015 and has worked success-
fully and in a spirit of trust with the company’s
management on cross-border matters in the EU in
all that time.
Diversity in the workforce
Demographic data 23
The KWS Group employed an average of 4,937
(4,653) people (excluding seasonal workers and
employees in South America affected by the sale)
in the fiscal year.
2,558 (2,417) or around 52% (52%) of the workforce
(excluding seasonal workers) were employed in
Germany. The average age of our workforce 24 in
the period under review was approximately
41 (40) years. 61% of employees were male,
39% female and 0% non-binary.
Employees by age group in % 1
KWS Group
2023/2024
2022/2023
< 30
18
19
30 – 50
60
60
> 50
22
21
Germany
2023/2024
2022/2023
< 30
17
18
30 – 50
59
58
> 50
23
24
1 Average headcount including trainees and interns
Non-discrimination
KWS strongly opposes any form of discrimination
and is committed to equal opportunities and rights
for all its employees, regardless of religion or belief,
ethnic origin, age, handicap, skin color, language
or sexual orientation. We have enshrined this in
our Code of Business Ethics, which is binding on
all employees.
23 The previous year’s figures in this section have been taken unaudited from the
2022/2023 Sustainability Report.
24 Including trainees and interns
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Diversity
We believe that diversity of our employees,
as displayed in their individual educational
background, training, skills, knowledge, experience,
convictions and personalities, for instance, is a key
value and a competitive advantage.
In fiscal 2022/2023, a five-year diversity concept
was developed with the aim of promoting diversity
among employees and managers and thus fostering
an inclusive corporate culture. The resultant
measures are intended to support all diversity
dimensions, with a particular focus on age, gender
and nationality.
An integrative leadership culture plays a vital role
here, as is reflected in our management training
courses and in our newly introduced Leadership
Capability Model, in which “promoting diversity and
developing talents” is one of six key competencies.
This model has already been integrated into our
Assessment and Orientation Centers and will form
a firm part of the annual performance and career
development reviews starting in fiscal 2024/2025.
KWS aims to increase the ratio of female managers,
among other things.
Ratio of female managers at the KWS Group
Objective
Target
in 2030
2023/2024
2022/2023
First manage-
ment tier
25% 1
15%
19%
Second man-
agement tier
30% 1
28%
27%
1 The targets apply up to fiscal 2026/2027
At KWS SAAT SE & Co. KGaA, the ratio of
women in the first management tier is 17% (24%)
and the target is 25% 1, while the ratio in the
second management tier is 30% (29%) and the
target 30% 25.
Family-friendly spirit
KWS is committed to family-friendly work. The life
situations of our employees differ greatly and are
highly individual – and so they also have different
needs regarding when and where they work.
One of the factors that helps our employees achieve
a good work-life balance is our wide range of
working time models. Flextime models are available
to almost all employees. We have developed a
global policy that generally permits mobile working
for our employees, where that is compatible with
their specific activity and in compliance with local
legislation.
At our Berlin location, which is home to employees
from more than 60 nations, we are currently piloting
the option of temporary remote working from
abroad. In this way, we enable our employees to
spend additional time with their families abroad.
Apart from working models that are highly flexible
in terms of where and when employees can work,
various part-time models are also used. Around
13% (10%) of our employees 26 worldwide (Germany:
20% (19%)) worked part-time in fiscal 2023/2024.
Recruitment and employee loyalty 27
In view of the KWS Group’s growth plans,
demographic change and the growing shortage
of skilled workers, our efforts to win the right
employees and retain them is gaining greatly in
importance.
To keep on enhancing recruitment at KWS, we
launched a multiyear project in fiscal 2022/2023 to
analyze the steps taken by an applicant from his
or her first contact with KWS to becoming an
employee. A particular focus here is on improving
the application and selection processes in order to
provide candidates with a faster, more transparent
and more appealing solution in the future.
25 The targets apply up to fiscal 2026/2027
26 Including trainees and interns
27 The previous year’s figures in this section have been taken unaudited from the
2022/2023 Sustainability Report.
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KWS is particularly committed to encouraging
young talents. That is the reason we award
scholarships to universities and offer a global
program for university graduates who mainly come
from the fields of agricultural sciences and inter-
disciplinary courses such as international business
administration with an agricultural interest. In fiscal
2023/2024, our graduate program was named the
best of the top 20 graduate programs in Germany
by the Graduateships organization.
We also believe it is important to offer good training
opportunities. That is reflected in the quality of our
training. For example, KWS SAAT SE & Co. KgaA
has been awarded the “TOP TRAINING” seal
of quality from Hanover Chamber of Industry and
Commerce.
In Germany, we employed an average of 95 trainees
and students on dual study courses and 24 interns
in the year under review, once again successfully
supporting many young people on their way to
gaining their professional qualifications and starting
their careers.
Participants in training programs in Germany
Annual average
across all quarters
2023/2024
2022/2023
Trainees and students
on dual study courses
95
107
Interns
24
42
The average length of service of employees at the
Group level is more than 9 (9) years.
Employment details for our workforce 1
Average for
the year
2023/2024
2022/2023
Rate of new
employee
hires (in %) 2
Global
15,5
15,4
Rate of
employee
turnover
(in %) 3
Globally
(Germany)
9,5
(7,0)
10,8
(6,5)
Length of
service 4
(in years)
Globally
(Germany)
(10,9)
8,8
(10,9)
1 Excluding seasonal workers and non-integrated companies
2 Ratio to the average total workforce, including trainees and interns
3 Ratio of employees leaving the company within the period under review relative to
the average total workforce
4 Average length of service since joining the KWS Group as a percentage of aver-
age total employment, excluding fixed-term contracts, trainees and interns
Our employees have been the key to our success
for generations. The strong commitment of each
individual and the will to give their best every day
make the difference and are an expression of our
unique culture.
In order to understand the needs of our employees
even better and create a future-oriented working
environment in which everyone continues to feel at
home and respected, has a sense of belonging and
can grow successfully together with KWS, we will
continuously obtain feedback from our employees,
also as part of the Sustainability Ambition 2030.
We therefore conducted the first Employee
Engagement Survey in June 2024. Two-thirds 28 of
our employees took part in the global survey. From
the average of the positive responses (“fully agree”
and “agree”) to three key questions, we calculated
an index for the first time. The result was 74%,
a figure that expresses a high level of employee
engagement and a positive attitude towards KWS. In
fiscal 2024/2025, we will analyze the results, identify
action areas and take appropriate measures.
28 Including Brazilian entities
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Qualification, further training and development
Individual performance and career development
reviews between employees and their managers
are held once a year with the aim of helping
our employees advance further. KWS has also
implemented an annual talent and successor
management process covering the critical positions
for the company up to at least the third tier and
all employees up to at least the fourth tier below
the Executive Board. In this way, we aim to ensure
qualified staffing of these key positions at KWS
in the medium and long term, while offering our
employees good development opportunities at the
company. The Orientation Center (OC), a concept
involving an intensive evaluation of potential talents
to take over senior management posts, was staged
twice in fiscal 2023/2024 and will also be held in the
future at least twice a year with six high potentials
each time.
We are particularly committed to having our
employees receive qualified and values-based
leadership, encouragement and support in their
development from their managers. The new
core competency model “Leadership Capability
Model” (LCM) for managers was rolled out in
fiscal 2023/2024. The new model has also been
integrated into the ongoing development offerings
under our management development program, the
annual performance and career development review
and other HR processes.
Our international management development
program was also continuously expanded and
continued in fiscal 2023/2024. In addition to the
modules “Leading Self,” “Leading Individuals”
and “Leading Leaders” that have been succes-
sively implemented in recent years, two further
modules were added in fiscal 2023/2024:
“Emerging Leaders” and “Leadership Essentials.”
227 employees from various KWS locations
started or completed one or more modules of
the management development program in fiscal
2023/2024.
A new comprehensive 15-month development
program was designed for our high potentials
in the early stages of their management careers
and launched with the first group of 16 partici-
pants. The aim of the “Seed2Lead” program is to
familiarize these high potentials with the basics
of self-management, managing others and KWS’
business processes in a compact form and across
all functions and countries.
A special program for two different expert levels
was developed in fiscal 2023/2024 to provide our
specialists with even more intensive support in
honing their soft skills. The first pilot group will
embark on it in the fall of fiscal 2024/2025.
KWS’ learning management system makes our
international training and development offerings
transparent and easy to access for our employees
worldwide. This also comprises our internal
subject-specific academies, such as the Interna-
tional Sugarbeet Academy, the Sales and Farming
Academy, and the various self-learning offerings
that extend beyond specialist training, such as
LinkedIn Learning and Bookboon.
True to KWS’ brand essence “Make yourself
grow,” we also intend to focus on encouraging
and developing our employees and managers in
the future and are continuously expanding our
training portfolio nationally and internationally to
achieve that.
2.4.3.3 Labor in the value chain
KWS expects its suppliers and service providers
(hereinafter referred to as “suppliers”) to comply
with all internationally recognized standards
relating to human rights, working conditions, ethical
business practices and other relevant social and
environmental requirements 29. The framework for
this is our Code of Business Ethics for Suppliers
(hereinafter referred to as the “Supplier Code”). The
Supplier Code reflects the underlying principles of
the KWS Group’s Code of Conduct and our Human
29 In this section, we use the term “value chain” as a synonym for our supply
chains, which we define in accordance with Section 2 (5) of the German Supply
Chain Due Diligence Act (LkSG), which exclusively comprises the upstream
value chain.
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Rights policy. The Supplier Code was updated in
2024 in line with the requirements of the German
Supply Chain Due Diligence Act (LkSG) and will be
published on our website in various languages in
fiscal 2024/2025.
The Code includes requirements for our suppliers,
such as combating child and forced labor, which
are considered particularly relevant in our industry.
Suppliers are also to comply with the provisions
on safety at work, product safety, protection of the
environment and avoidance of corruption, as well
as on the requirement to ensure fair competition
and protection of personal data and third-party
know-how. We have also been a member of the
United Nations Global Compact (UNGC) network
since fiscal 2023/2024 and have thus officially
committed to complying with the UN Guiding
Principles on Business and Human Rights.
The central sourcing concept aims to support
standardized and cost-effective cooperation with
external partners and observance of specific social
or environmental standards. We will also include
requirements from the German Supply Chain Due
Diligence Act (LkSG), which will be binding on
KWS from January 1, 2024, or the expansion of our
emissions management to cover Scope 3 emissions
in our sourcing concept and related purchasing
processes in the future.
Our goal is to strengthen sustainability in the
supply chain by means of a centralized system that
increases efficiency and productivity and minimizes
the ecological footprint of our supply chain. Our
Sourcing Policy, which defines the fundamental
principles in the procurement process, and a largely
centralized process landscape are the basis for
making sure that our purchasing transactions
worldwide can be conducted in accordance with
consistent regulations. Purchase agreements relating
to the supply of goods and services are concluded
on the basis of standardized templates and specify
the general conditions, including application of the
Code of Business Ethics for Suppliers. A central
Seed Purchasing Policy stipulates that these
standards are also to be applied in agreements
concluded with external seed propagation partners.
KWS has centralized its supplier data management
over the past years. In fiscal 2023/2024, we audited
compliance with LkSG-related issues for the first
time as part of 13 visits to the premises of strategic
suppliers. Audits of suppliers in risk regions and
risk industries are planned in fiscal 2024/2025.
Management of sourcing risks will be further
automated in fiscal 2024/2025. Implementation
of this commenced in fiscal 2023/2024.
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2.4.4 Governance
2.4.4.1 Business Conduct
Compliance with basic principles of business
ethics is vital to our license to operate. Accordingly,
the compliance rules apply to all employees in
the KWS Group. That is the foundation for KWS’
vision and mission of compliance, namely to
gain and retain customers’ trust through ethical
conduct and to protect the company’s employees,
reputation and assets. Information, training
and continuous intensive consulting help integrate
compliance in business processes and support
management in making business decisions rooted
in, and consistent with, our corporate culture.
Code of Business Ethics
Our Code of Business Ethics, with its accompa-
nying guidelines defining the basic regulations
relating to compliance with the law, fair competition,
prevention of corruption and money laundering,
safety at work, protection of the environment, and
the need to treat each other, customers, business
partners, other third parties and public authorities
with respect, gives our employees crucial guidance
in their day-to-day work. All employees undertake
to comply with the code by signing a commitment
to do so when they are hired and are provided with
generally applicable information on compliance, as
well as related information specific to their function.
Our Code of Business Ethics also covers the issue
of international anti-corruption management as
an integral part of our compliance system. On the
basis of the regulations in the code, there is a policy
of zero tolerance toward any form of corruption
at the KWS Group, and this principle is stipulated
as a Group-wide standard in the Anti-Corruption
Policy. This standard applies regardless of whether
bribery is prohibited by law, tolerated or permitted
in the country in question. The Group-wide
Anti-Corruption Policy defines the responsibilities,
processes and regulations in relation to preventing
corruption and bribery at the KWS Group.
30
Compliance training
Access to the Compliance Portal
Objective
Target
in 2030
2023/
2024
2022/
2023
Access to the
Compliance Portal
95%
92% 1
80%
1 Excluding the locations being sold in South America
The Compliance Officers regularly provide
information about the compliance system and
its principles, as well as about frequently asked
questions and the latest developments, in training
courses, information events and workshops. Apart
from this information, a broad range of aids is also
available to our employees. Checklists, toolkits,
instructional leaflets and other guides provide
practical tips on observing compliance rules in
everyday work. All compliance information and
rules of conduct can be accessed by employees
worldwide in the Compliance Portal on KWS’
intranet. 92% (80%) of the total workforce has
access to the Compliance Portal. In addition, all
supervisors are obliged to inform their employees
about compliance issues.
The e-learning courses we offer continued to be
used in fiscal 2023/2024. Of the invited employees,
60% (56%) completed the training tool on
anti-corruption and antitrust law,
61% (46%) the data protection training and
60% (66%) the training in prevention of money
laundering.
Reporting of violations/whistleblower hotline
If an examination or report reveals indications
of a compliance violation, the investigation is
conducted in accordance with KWS’ regulations
“Procedures of Internal Compliance Notification.”
KWS’ employees are obligated to report suspected
violations; the open door principle applies to this.
Employees can supply information on suspected
violations to their supervisor, to the Compliance
30 Not an audited part of the Combined Management Report
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department or to the Compliance Reporting
Platform. The Compliance Reporting Platform also
acts as a whistleblower hotline and can be called
by employees and external third parties from our
homepage in more than 50 languages 24/7. Reports
of suspected violations can also be submitted
anonymously. The reported cases are investigated
by KWS. The most important information for
KWS employees and external third parties alike,
such as how violations can be reported and
what happens to the reports, is summarized in a
document on our homepage. Whistleblowers do
not suffer any disadvantages unless they have
obviously abused their right to report violations.
They receive confirmation that their report has
been received and may be contacted via the portal
and asked to provide further information. Finally,
whistleblowers are informed when the investigation
has been completed.
If suspected cases prove to be violations, the
system of sanctions is applied. In general, it can
be applied to all types of compliance violations.
The system of sanctions defines various criteria
governing the measures to be taken, such as the
gravity of the violations, the degree of the person’s
breach of duty, the functional level, behavior after
the violation – help in investigating it or attempts
to cover it up – as well as consequences of the
violation, such as the threat of damage or actually
incurred damage. The sanctions range from
cautions or warnings to immediate dismissal and
filing of charges.
Violations in fiscal 2023/2024
No significant violations of the international
Anti-Corruption Policy or antitrust or money
laundering regulations resulting in disciplinary
consequences or official measures such as fines
were reported to the compliance function in
fiscal 2023/2024. There were no reportable data
protection violations.
Adequacy of the Compliance
Management System
Implementation and observance of individual
compliance aspects are reviewed as part of audits.
The Executive Board and the Supervisory Board’s
Audit Committee are informed once a year about
the current status and latest developments of the
Compliance Management System.
Diversity of the Executive Board
and the Supervisory Board
The Executive Board of KWS SE, the personally
liable partner of KWS SAAT SE & Co. KGaA,
had one woman and three men serving on it at
June 30, 2024. Although there is no legal obligation
to set targets for the ratio of women and men on
the Executive Board of KWS SE, the Supervisory
Board of KWS SE stipulates that the ratio of women
to men on the Executive Board should not be less
than 20%. As of June 30, 2024, the ratio of female
members on the Executive Board was 25%.
The six-member Supervisory Board of
KWS SAAT SE & Co. KGaA temporarily consisted
of two women and three men as of June 30, 2024,
following the death of one member. In accordance
with Section 111 (5) of the German Stock Corpo-
ration Act (AktG), the Supervisory Board has to
define a target for the ratio of women to men on
the Supervisory Board and the date by which that
target is to be achieved. Accordingly, the Super-
visory Board of KWS SAAT SE & Co. KGaA decided
at its meeting on June 23, 2022, that the ratio of
women to men among the shareholder representa-
tives on the Supervisory Board should not be less
than 25% by June 30, 2027. As of June 30, 2024,
the ratio of female and male shareholder repre-
sentatives on the Supervisory Board was 60%, of
whom 33% were female.
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Dr. Felix Büchting
Dr. Peter Hofmann
Eva Kienle
Nicolás Wielandt
Research
Breeding
Global Human
Resources
Farming
Group Strategy
Corporate
Office & Services
Sugarbeet
Vegetables
Cereals
Oilseed Rape/Special
Crops
Organic Seeds
Global Marketing &
Communications
Global Finance &
Procurement
Global Controlling
Global Transaction
Center
Global Legal
Services & IP
Global Information
Technology
Group Compliance
Office
Group Governance &
Risk Management
Corn Europe
Corn South America
Corn North America
Corn China/Asia
Executive Board and Supervisory Board
by gender
Ratio on the
Executive
Board
Ratio on the
Supervisory
Board
Female
25 %
40 %
Male
75 %
60 %
Executive Board and Supervisory Board
members by age group
Ratio on the
Executive
Board
Ratio on the
Supervisory
Board
Younger than 30
0 %
0 %
Between 30 and
50 years
50 %
20 %
Aged 50 and
above
50 %
80 %
Compensation of the Executive Board and
the Supervisory Board
The compensation system for members of the
Executive Board aims to promote the company’s
sustainable development and comply with the
objectives of the German Act Implementing the
Second Shareholder Rights Directive (SRD II) and
the German Corporate Governance Code. Their
total compensation includes not only a basic
salary, but also performance-based components
that are linked to the company’s success, and
fringe benefits. The compensation of the Executive
Board is set by the company’s general partner and
approved by the Annual Shareholders’ Meeting.
The compensation for members of the Supervisory
Board is governed by the Articles of Association
and is based on the size of the company and their
responsibilities. The company believes that a fixed
compensation structure means that the Supervisory
Board can better exercise its control function. The
composition and level of the total compensation
are disclosed in the Compensation Report for
2023/2024.
Manager to worker pay ratio
The manager to worker pay ratio, which denotes
under the GRI (Global Reporting Initiative) the total
compensation of the highest-paid employee relative
to the average total compensation of all employees
(with the exception of the highest-paid employee),
was 19.8 (17.4) for all German companies in fiscal
2023/2024.
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2.5 Opportunity and Risk Report
The opportunities and risks as part of our business
activity as an international plant breeding company,
as well as the processes for identifying them, are
described in the following section.
2.5.1 Opportunity Management
Strategic opportunities
We define strategic opportunities as being devel-
opments that are of significant importance for the
KWS Group and have a lasting positive impact on
our commercial success. We can leverage these
opportunities successfully only if we always keep
on improving our company in terms of economics,
ecology, social engagement and governance. We
set ourselves challenging and long-term objectives
for that, such as the KWS Sustainability Ambition
2030. These objectives are developed on the basis
of extensive analyses that include the identifi-
cation and evaluation of future trends. We turn
the objectives into strategic initiatives, the results
of which are further translated into innovative
corporate processes.
Our objectives and initiatives are regularly
reviewed as part of our strategic planning. This
planning covers the ten-year period ahead of us
and is conducted at regular intervals. It is jointly
formulated in multiple units, discussed and finally
adopted by the Executive Board. The company’s
objectives can be retained, adapted or expanded as
a result of the insights gained in strategic planning.
For example, new fields of business can be tapped
or administrative processes adjusted and improved.
We see a particular strategic opportunity in the
growing importance of sustainability in agricultural
practice. Our breeding objectives are geared toward
increasing yields while improving plant health and
nutrient use efficiencyto potentially reduce the need
for pesticides and fertilizer. Apart from the possi-
bility of cutting costs, these variety traits also give
our customers a means to reduce their emission
footprint and operate in a more climate-friendly
manner. Our diverse portfolio of crops also enables
crop rotation that conserves the soil’s fertility and
binds emissions by fostering humus formation.
Thanks to this broad offering, we can supply both
conventional and organic farms with varieties
and services.
There are further opportunities for the KWS Group
to expand or adapt its field of business. The
individual areas of opportunity are listed and
explained in the following section.
Innovative varieties and product performance
To succeed in achieving sustainable growth in the
future as well, our prime goal must be to retain and
increase our innovativeness. That is particularly
important, especially in times of climate change,
when resilient varieties that deliver reliable yields
have to ensure that the population has enough food.
It is vital for us to increase plants’ yield potential,
enhance resource efficiency or develop their
resistance and tolerance to detrimental influences,
of whatever type. That requires continuous and
intensive research work, since it takes up to ten
years for a new variety to gain approval and be
put on the market. We therefore invest a double-
digit percentage of our net sales in research and
development projects every year in order to achieve
our goal of an average yield progress of 1.5%
per annum. However, our complex research and
breeding processes are also subject to risks that
may result in regional weaknesses in our portfolio.
They include external factors such as changing
disease patterns as a result of climate change or
new statutory regulations on reducing the use of
operating resources, as well as internal factors
such as technical problems and process delays.
The varieties we develop must meet high quality
requirements. The performance of our varieties is
reassessed every year by management and the
Supervisory Board so that we can respond immedi-
ately to weaknesses in our portfolio if necessary.
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Our product – seed – stands right at the beginning
of the agricultural value chain. Continuous and
forward-looking breeding work can make the
agricultural process chain more sustainable. The
introduction and use of new cultivation systems,
resistances and tolerances or nutrient efficiencies
can help increase and stabilize yields, reduce
the use of resources such as fertilizer, pesticide
or water, and promote biodiversity. Varieties with
improved resource utilization mean the carbon
footprint per unit yield can be reduced. At the same
time, higher yields per unit area can also result in
less cultivation area being required. KWS is working
to develop such products and cultivation systems to
leverage this potential.
Modern breeding technology
Plant breeders are developing new varieties to meet
all of the challenges caused by the consequences
of climate change, new pests, reduced fertilizer
use and the need to deliver high-quality agricultural
products. KWS uses the most suitable breeding
methods for that. Increasing complexity and the
growing pace of change also mean we have to
use state-of-the-art technologies and analysis
methods so as to speed up our variety development
and improve its precision. These new methods
complement our plant breeders’ toolset and offer
additional opportunities to improve plants in a
targeted way through breeding. KWS is working
on the hybridization of potatoes, wheat and barley
using a combination of new methods and conven-
tional breeding, as well as exploiting the natural
resilience offered by hybrid breeding, with market
launches planned in the coming years. High-yielding
hybrid potato, wheat and barley varieties can
make an important contribution to increasing land
efficiency in agriculture.
New data analysis methods also increase efficiency
in plant breeding and agriculture. Agricultural
areas can be farmed in a tailored way thanks to
automated data capture and transmission, big
data analytics, robotics or artificial intelligence. For
example, drone or satellite technology can quickly
detect incidences of infestation or disease in the
field so that they can be combated in a targeted and
pinpointed manner. That helps reduce the use of
pesticides and the number of times machines have
to run over the field. We already use these technol-
ogies in our research and breeding processes. They
are becoming increasingly relevant in agricultural
practice and vegetable cultivation.
We need to develop our own or scout for further
new, highly promising methods and technologies
and then establish them in our processes in order to
avoid risks such as competitive disadvantages.
Changes in demand
New, permanent customer needs – varying from
region to region – are emerging, and that entails
long-term opportunities and risks. While meat
consumption in countries such as Germany, France
or Italy has declined continuously in recent years,
for example, it continues to grow in other countries
such as China and Portugal or remains relatively
high elsewhere, such as in the U.S. We take into
account relevant long-term trends by establishing
and expanding new product lines and by including
new crops in our portfolio. We thus have a broad
product portfolio so as to enable our company
to respond to these long-term developments and
the opportunities that arise. At the same time,
one-sided dependencies can be reduced as a
result. We want to provide new varieties long term
in order to further expand the range of products for
direct and balanced human nutrition.
We nurture direct contact with our customers
so that we can keep on marketing our products
successfully in the future. As part of that, we contin-
uously strive to expand and optimize our sales
channels. That also allows us to identify trends or
changes in demand directly and immediately.
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Operational opportunities
By an operational opportunity, we understand a
development that is consistent with our strategic
planning and might have a positive short-term
impact on our earnings, financial position and
assets and has not yet been reflected fully or at all
in the company’s financial planning. Operational
opportunities are identified and assessed by our
Business Units. We leverage them by pinpointed
investment in production capacities, research and
development activities and by further enhancing
distribution and central purchasing, for example.
Market opportunities arise from our fledgling
activities in the vegetable market, with which we are
tapping a new field of business and new customer
segments. We see a further opportunity in restruc-
turing our country organizations and the associated
sales units in the most important core markets for
our crops. With our holistic approach of providing
customers with a single point of contact for KWS’
entire portfolio of crops, we strive to forge an even
better relationship with our customers. At the same
time, we adapt and optimize background processes
so that customers are supplied with KWS’ varieties
and services from a single source in the future.
In summary, investing in expansion of our
production capacities and modernization of our
seed processing offers opportunities in existing
and adjacent markets. Further development of
our variety portfolio and expansion of production
capacities are accompanied by steps to enhance
our international distribution structures. In addition,
continuous optimization of processes offers the
KWS Group opportunities to increase productivity
and digitalization and improve cost structures.
Recording of operational opportunities is part of
risk management.
2.5.2 Risk Management
Risk management strategy and objectives
The objective of the KWS Group’s central risk
management is to identify relevant risks at an
early stage, mitigate financial, reputational,
environmental, legal, strategic or health-related
damage, and ensure compliance with key corporate
principles and social standards. We consequently
understand the term “risks” as denoting events and
potential developments, both inside and outside
the KWS Group, that have a negative impact
on achievement of our corporate objectives or
principles. That also includes events that impair
our value chain and harm the environment and
which we can influence (outside-in and inside-out
perspective).
We strive to address risks openly. A proactive
and open risk culture is part of that. Speaking
about risks should be established practice in
our daily work. KWS applies an entrepreneurial
attitude to risk, i.e. deliberate risks can be taken if
that offers opportunities that are consistent with
the KWS Group’s strategic planning, corporate
objectives and internal standards. If a risk does
not entail any relevant opportunities, or if risks
jeopardize achievement of the Group’s key financial
targets (10% EBIT margin, at least 5% net sales
growth), they are to be avoided or their impact must
be reduced as far as possible, taking cost-benefit
considerations into account. Violations of the law
and important corporate principles, such as respect
for human rights, are totally unacceptable. To
assess our risk-bearing capacity, we compare our
equity and liquidity with the aggregate risk situation
and also look at strategic key financial indicators
such as the anticipated EBIT margin. As part of
that, we also consider anticipated developments
for the coming fiscal year. The results are included
in the Executive Board’s overall assessment of the
risk situation.
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Responsibility
The Executive Board is responsible for Group-wide
risk management. The Supervisory Board or the
Audit Committee reviews the risk management
system at least once a year to assess its suitability
and effectiveness. It is assisted by the independent
auditor of the financial statements as part of its
statutory audit assignment and periodically – as
mandated by the Supervisory Board – by Internal
Auditing. In addition, a Risk Committee consisting
of representatives from all divisions who have a
good knowledge of the issue of risks has been
established. It usually convenes twice a year,
discusses and reviews the risks maintained in the
risk management system and measures to control
them, and formulates recommendations for the
Executive Board, if necessary. Responsibility for
identifying, assessing and controlling risks lies
with the divisions, while central risk management
coordinates the processes and ensures reporting
to company management. Other roles in our risk
management are specified in the chart “Players and
systems in managing risks at KWS.”
Players and systems in managing risks at KWS based on the Three Lines of Defense model
Supervisory Board
Executive Board
Risk Committee
Central Risk Management
Divisions
(1st line)
Control and
monitoring systems
(2nd line)
Process-independent
controls
(3rd line)
Business Units
Controlling (incl. early detection)
Internal Auditing
Research & Development
Internal control system,
accounting processes
Global functions
Compliance Management
Risk Management
Other systems (such as Quality
Management, Stewardship,
etc.)
KWS Governance (Group and process standards, corporate culture, training)
Central risk management process
Our central risk management process consists
of the phases of identification, assessment,
control, documentation, monitoring of risks and
risk reporting. It is conducted regularly, usually
twice a year. As part of risk identification, we
record individual risks on an electronic platform
and assess them qualitatively or quantitatively
on the basis of Group-wide standards, in each
case before (gross risk) and after (net risk) any
countermeasures. As part of that, we calculate
expected monetary values for all risks and classify
the risks as “moderate,” “medium” and “high.” This
enables end-to-end comparability of all recorded
risks, which in turn forms the basis for prioritizing
risk control measures. We query linkages between
risks as part of risk identification, document them
and take them into account in risk assessment in
evaluating the likelihood of their occurrence. We
record risks that impact our short-term (one-year),
medium-term (four-year) and long-term (ten-year)
planning horizon. The individual risks are classified
as follows:
We decide systematically on what appropriate
countermeasures to take to manage risks, in
particular high risks. They may be measures to
reduce risks, constant monitoring of them or taking
out insurance, or the acceptance of risks (where
no measures are possible or make economic
sense), for example. The KWS Group’s current risk
situation is aggregated by central risk management
into risk categories and reported first to the Risk
Committee. On that basis, the Risk Committee
discusses how to deal with the risks and submits
recommendations to company management if
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1 Not part of the audited Management Report
required. Central risk management coordinates the
entire risk management process and supports the
departments in their tasks. In designing the system,
we are guided by applicable standards such as the
COSO II Framework.
We meet the statutory requirements for early
detection of risks with our financial controlling
and risk management processes. To supplement
the central risk management process, we carried
out seven standardized early risk identification
processes with the product segments and
Research & Development and reported their results
in writing to KWS’ top two management tiers.
Control and monitoring systems 1
We structure the internal control system at KWS on
the basis of the “Three Lines of Defense” model.
It enables a systematic approach to monitoring
and managing risks. We make a distinction here
between three different levels (see also the chart
“Players and systems in managing risks at KWS
based on the Three Lines of Defense model”):
1st line: Decentralized risk management by the
divisions, such as transaction controls, quality
controls, certification, contract management or
IP due diligence
2nd line: Global controls by means of higher-
level systems, such as our risk management and
compliance management or controlling systems
3rd line: Independent audits by Internal Auditing
The various levels are supported, among other
things, by Group-wide internal guidelines as
well as centralized and standardized process
definitions that enable variance analyses. The
principle of separation of functions is also laid down
in our guidelines, as is a system of information
classification.
Comprehensive manual and automated controls
have been established at the various levels and
are subject to regular reviews by the company.
Identified control weaknesses are discussed and
Risk classification for single risks
Risk level
Risk score
Moderate
Smaller than 1
Medium
Between 1 and 5
High
Above 5
Formula assessment of single risks
Risk scoring
Net financial damage (in € million) × net likelihood
= risk score for an individual risk
Scheme for assessing individual risks
Likelihood of occurrence
Unlikely
< 10%
Possible
10% – 50%
Likely
50% – 90%
Almost
certain
≥ 90%
Financial
impact (EBT)
Very low
€0.1 million – €3.0 million
Low
≥ €3 million – €7.5 million
Medium
≥ €7.5 million – €15.0 million
High
≥ €15 million
In the risk situation section, we report risks in the area framed in black.
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measures are initiated to eliminate them. Two
control weaknesses were identified in the past
financial year, for which mitigating measures
were taken.
In addition, the Executive Board and Supervisory
Board had no information to indicate any material
weaknesses in the effectiveness or any inadequacy
of the internal control system. In principle, however,
it should be borne in mind that an internal control
system, regardless of its design, does not provide
absolute certainty that errors in our business
processes will be detected.
In the following, we deal with the internal control
system for accounting in more detail.
The internal control and risk management
system in relation to the accounting process
(Section 315 (4) of the German Commercial
Code (HGB))
This is the responsibility of Global Finance and
comprises structures and processes that enable
proper and effective accounting and financial
reporting. They include:
Process-integrated controls, such as validation
of reported data, separation of functions and the
four-eyes principle, as well as regular analytical
controls by Business Partner Finance and
Controlling.
Standardized financial accounting processes at
the Global Transaction Center, in which almost
all Group companies are integrated, and appro-
priate assurance that business transactions are
included in accounting consistently, promptly
and correctly and that all applicable statutory
accounting regulations, standards and internal
guidelines are implemented throughout the
Group.
Ensuring that the consolidated financial state-
ments (including the Management Report)
comply with the rules by means of Group-wide
specifications relating to accounting guidelines,
charts of accounts and uniform reporting
processes.
Central preparation of the consolidated financial
statements using the uniform reporting process
as well as system and manual controls with
regard to accounting-specific interconnections.
Notification of employees in the Global Trans-
action Center, Business Partner Finance and
Controlling, as well as other relevant contact
persons at subsidiaries, about changes in the
financial statement preparation process on a
quarterly basis.
Protection of accounting-related IT systems
against unapproved access by means of
authorization and access regulations for the IT
accounting systems.
Ensuring the professional aptitude of employees
involved in the accounting and financial reporting
process by means of selection processes and
training.
Description of the KWS Group’s
current risk situation
Here we report in summarized form on known
medium or high individual risks with a net impact
of at least €7.5 million and an event horizon of
up to ten years. All individual risks are assigned
to predefined risk categories and then reported
in summary form under these categories. We
summarize the aggregated risk situation in these
risk categories using four-level risk classes ranging
from “Low” to “Substantial”. If the risk classes
of the categories have changed compared to the
previous year, we explain this in the respective
paragraphs. Our strategic risks arise primarily
from lost long-term opportunities. We therefore
explain these separately in the Opportunity
management section.
There are currently no non-financial risks that are
very likely to occur and have a serious impact on
the reportable aspects in accordance with Section
289c HGB.
The development of the overall risk situation is
discussed addressed in the overall statement on
the risk situation by the Executive Board.
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Strategic risk categories with an horizon up to ten years
Risk Type
Risk Category
Risk
classification
23/24
Risk
classification
22/23
Risk Trend
Strategic
Structural change of demand
Structural underperformance
of products
Limited access to technology
Substantial
Substantial
Noticeable
Substantial
Substantial
Noticeable
Risk categories with a horizon of up to four years
Risk Type
Risk Category
Risk
classification
23/24
Risk
classification
22/23
Risk Trend
Operational
Communication
Medium
Medium
Health, Safety and
Environment
Substantial
Substantial
Human Resources
Noticeable
Noticeable
Information Technology
Substantial
Substantial
Product Quality
Medium
Noticeable
Production and Business
Interruption
Noticeable
Substantial
Projects, Corporate
Organization and Process
Management
Noticeable
Substantial
Political and legal
Compliance risks
Substantial
Substantial
General legal risks
Low
Low
Intellectual Property (IP)
Medium
Medium
Political Instability
Substantial
Substantial
Regulatory risks
Medium
Noticeable
Social risks
Medium
–
Markets and
competition
Climate change & natural
disasters
Medium
Medium
Competition and business
partners
Substantial
Noticeable
Price developments & supply
Substantial
Substantial
Market trends
Medium
Medium
Finance and
capital markets
Capital markets
Medium
Medium
FX risks
Noticeable
Noticeable
Liquidity risks
Low
Low
Receivable risks
Low
Low
Tax risks
Medium
Medium
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Risk classification for aggregated
risk categories
Risk class
New threshold
values
(Risk score)
Threshold
values
(Risk score)
Low
smaller than 10
smaller than 3
Medium
between
10 and 20
between
3 and 8
Noticeable
between
20 and 30
between
8 and 15
Substantial
above 30
above 15
Formulas aggregated view
Formula
1: Net impact (in € million) ×
Net-likelihood =
Risk Scoring of a single risk
2: ∑ of reported risk scores within a category =
Risk scoring of a category
Operational risks
IT
The KWS Group’s business and production
processes, as well as its internal and external
communications, are run on globally networked
IT systems. Attacks or outages can lead to a
loss of confidentiality, availability, integrity and/
or authenticity of data, information and systems.
That harbors risks, such as loss of know-how,
data manipulation, loss of personal data and loss
of image, and may result in large financial losses.
We reduce these risks by means of organizational
and technical measures. IT service providers
constantly examine our IT security so as to issue
recommendations for optimization measures on
the basis of their risk assessment. Uncontrolled
and/or undetected loss and damage as a result
of hacking and malware are still possible even if
very good precautionary measures are in place. In
the year under review, we provided our employees
worldwide with a new global interactive online
training course on the subject of fraudulent attacks.
Product quality
We have established detailed checks and tests
to determine the performance and quality of our
seed. Quality controls, such as germination and
sprouting strength tests, are conducted at all
stages of production. These checks and tests are
also intended to reduce risks such as claims for
damages due to product liability, which may be
significant, especially in Anglo-American juris-
dictions. We also have product liability insurance
to defend against unjustified claims and to settle
justified claims. Very strict requirements must be
met regarding management of genetically modified
products, in particular, to prevent GMOs becoming
mixed with conventional seed. KWS is still a
member of the “Excellence Through Stewardship”
(ETS) initiative, an internationally standardized
quality management program. We see fewer
product-related risks in this category in the medium
term, which is why the risk situation fell in the year
under review.
Production and business interruption
KWS uses technically complex seed processing
plants. Interruptions to business operations may
have a negative impact on the volumes that are
available for sale and represent significant risks,
especially if they occur in our sales season. In
order to reduce these risks, we conduct regular risk
inspections, carry out preventive maintenance, and
have property and business interruption insurance.
Seed propagation is dependent on the weather.
We reduce the risk of crop failures by propagating
seed – depending on the crop – in separate
locations and regions in Europe, North and South
America and Asia. We can carry out contra-
seasonal propagation in the winter half-year in
the southern hemisphere if there are bottlenecks
in the volume of seed produced.
There are still risks of potential restrictions or
interruptions to business operations. We continue
to work on switching in the medium to long term to
a low-emission energy supply based on renewable
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energies. The spread of hostilities in Ukraine may
result in interruptions to business operations (corn
seed production). Our seed production in Russia is
subject to high political risks. The Russian Ministry
of Agriculture is still making efforts to increase
localization and control of the local seed market.
We regularly monitor and evaluate the situation.
The category’s risk situation fell in the year under
review. We see fewer production risks in relation
to corn.
Projects, corporate organization and
process management
So that we can continue to grow profitably and
sustainably with the support of an efficient organi-
zation and harmonized processes that also reflect
the increasing complexity of the requirements
demanded of our workforce, we regularly review
their adequacy and realign them where necessary.
Without appropriate realignment, there may be
organizational risks, such as an excessive workload
on individual departments. In turn, a realignment
may entail integration risks (as part of M & As,
for example), among other things, or temporarily
result in process inefficiencies or unplanned costs.
Our measures to counter these risks include the
establishment of specialized functions (such as
M & A experts), rollout of a new standard process
model and automation, complemented by our
globally applicable company standards. Thanks
to a new project we launched in the year under
review in order to improve our internal guideline
system, we see lower risks in the medium term,
which means that the category’s risk situation fell.
Health, safety and environment
Accidents, technical problems or misconduct in our
business processes may result in injury to persons
and environmental damage and are high risks. One
measure we have taken to reduce these risks is to
implement a global health, safety and environment
standard, which the central HSE Manager function
will keep on developing.
In Ukraine, we are continuing our crisis management
activities, the prime goal of which is to protect all
local employees and their families. Our business
activities are not in close proximity to the fighting;
however, we see a high risk to the health of our
local colleagues due to the continuing air raids
throughout the country and the ongoing war, factors
that continue to determine this category’s risk
classification.
We still consider the risk of technical accidents at
our seed production plants and the resulting danger
to life and limb and the threat to the environment to
be low – also pursuant to our annual internal audits
at various business establishments.
Human resources
Recruiting the right employees for KWS, offering
them diverse development opportunities and
striving for a long-term working relationship with
them are factors that are crucial to our business
success. In order to counter potential risks such
as the loss of employees or lengthy vacancies, we
regularly review our attractiveness and positioning
as an employer. In this way, we prevent any future
staffing risks through structured succession
planning, continuously expand our employer
brand on the external market, and strengthen our
employees’ loyalty through attractive development
programs and compensation at a fair market
level. The battle for talents and experts on the
labor market remained intense and so there was
an associated rise in internal requirements in
relation to retaining employees. We rolled out a
new employee satisfaction survey in the year under
review and to be carried out regularly in future, in
order to gain a better understanding of and address
our employees’ needs.
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Communication
In the course of our business activities, we are
exposed to various reputational risks worldwide.
These may result from inadequate or misleading
communication regarding our business strategies,
our innovation processes or environmental and
social responsibility, our continued presence in
the Russian seed market and our position on
patents and may be reflected in negative reporting
about KWS. To counteract these risks, we nurture
continuous and open communication with
various target groups. They include shareholders,
customers, employees, NGOs and the general
public.
Finance and capital markets
Tax risks
KWS operates in about 70 countries and is
therefore subject to an array of complex national
tax requirements and laws. Changes that are not
detected in time and/or incomplete implementation
of tax law, court rulings and interpretations by the
fiscal authorities may have an effect on tax assets
and liabilities, as well as on deferred tax assets and
deferred tax liabilities. That can result in significant
risks, which we counter by continuously identifying
and assessing the tax frameworks and by central
coordination through our Finance department and
advice from external experts. If necessary, tax
provisions are formed on the basis of estimates.
Currency risks
Currency risks arise, in particular, from receivables
and liabilities denominated in foreign currency.
Where it appears economically appropriate, we
address currency risks through the usual hedging
instruments and internal standards in order to
reduce the influence on the KWS Group’s earnings
and assets situation. We also reduce our trans-
action risks by means of natural hedging, when
expenses are incurred in the same currency in
which we generate revenue. In fiscal 2023/2024,
we hedged our intra-Group loans to a large part
by using standard currency derivatives in order to
reduce currency risks.
Liquidity risks
The overriding goal of our liquidity management is
to ensure we meet our payment obligations on time.
External factors, such as global crises, may restrict
the availability of credit lines and/or mean we can
only obtain economically disadvantageous terms
and conditions. Our central Treasury department
determines what funding we require in its liquidity
planning and covers those needs by providing
cash, promised credit lines and other financial
instruments. We have agreed customary financial
covenants for part of these promised credit lines. If
these covenants are breached, the lender has the
right to terminate the agreement.
Receivable risks
We nurture extensive business relationships with
various customer groups – from the sugar industry
and agricultural wholesalers to individual farmers.
If, in particular, large customers are not able to
meet their contractual payment obligations to us,
we could suffer losses. We reduce such credit
risks through our receivables management and,
where possible and expedient, by means of credit
insurance. The risks of counterparty defaults in
Ukraine and Russia are largely manageable due to
the use of advance payments.
Capital markets
In view of the diverse and increasing demands
placed on business by the capital market, inade-
quate data and processes, especially non-financial
ones, can lead in the medium term to poorer condi-
tions on the capital market. In the year under review,
we made further changes to our non-financial
reporting to comply with the upcoming Corporate
Sustainability Reporting Directive (CSRD), including
conducting a new materiality analysis with the
Executive Board. An internal project to enable
first-time reporting in accordance with the CSRD
was launched.
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Combined Management Report | 2.5 Opportunity and Risk Report
Politics and the law
Compliance
Our company is exposed to potential compliance
risks that may result from violations of antitrust,
competition, anti-corruption and money laundering
law, sanctions and data protection requirements.
Violations may result in serious consequences
under criminal and civil law, including financial
penalties and the possible loss of our business
license.
Under our compliance policy, the Code of Business
Ethics and our Group Standards, we sensitize and
obligate our managers and employees to undertake
to act in accordance with laws, contracts, internal
guidelines and our corporate values and raise their
awareness in this regard. Regular communication,
instruction and training and advice are intended
to ensure compliance. We rigorously investigate
reports of compliance violations. Nevertheless,
violations due to unawareness or legal unclarity, for
example, cannot be ruled out categorically. As is
expressly pointed out, sanctions are imposed if our
compliance regulations are violated.
Intellectual property (IP)
Protecting intellectual property is vital to companies
that conduct research if they wish to preserve
their freedom of action and keep on generating
value. The seed-specific property rights under
“variety protection” ensure they are compensated
for the years-long process of research, breeding
and development of new varieties and that third
parties cannot market the same variety at no
costs to themselves. KWS uses patents to protect
certain plant traits, in particular if they have been
developed or produced by means of technical
methods. In order to secure its freedom of action
and avoid infringing third-party proprietary rights,
KWS has implemented far-reaching due diligence
processes throughout the company.
Regulatory risks
As part of modern agriculture and as an innovative
plant breeding company, KWS also uses state-of
the-art breeding technologies to develop new,
resource-conserving varieties. There is still a
negative perception of new breeding technol-
ogies among the general public, despite the
high standards in force and scientific facts to
the contrary. New breeding technologies could
speed up our variety development and improve
its precision. The statutory restrictions on the use
of pesticides also led to risks for KWS in the past.
Some pesticides cannot be adequately replaced in
our breeding processes, which may result in higher
disease incidence, weed pressure, and rising seed
production and breeding costs. We conduct an
intensive dialogue with relevant stakeholders on this
issue and are increasing the internationalization of
our research – without reducing our commitment
in the EU. In the year under review, we recorded a
slight decline in the risk situation in this category.
Political instability
KWS faces political risks in many countries in the
strongly regulated international agricultural industry.
The tense global geopolitical situation worldwide
impacts our business activities and growth
plans in the Middle East and Eastern Europe. In
Eastern Europe, the continuation of the Ukraine
war continues to pose high risks to our business
activities in Ukraine, Russia and Belarus. There are
still health risks for our Ukrainian employees (see
the section “Health, safety and environment”), but
also a large number of business risks, such as a
decline in cultivation area in Ukraine, an important
future market for KWS, and export opportunities
for farmers there remain restricted.
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Our business activities in Russia are subject to
regulations, sanctions, a lack of available services
and spare parts, and continued Russian localization
efforts (domestic production) in the seed market,
which have already led to restrictions (import
quotas) or could even result in complete cessation
of business operations in Russia. This could have
a large negative financial impact on KWS in the
future. We mitigate potential negative effects on
KWS through crisis teams that develop precau-
tionary measures, implement them if necessary and
report critical developments to the Executive Board
and Supervisory Board as and when required.
General legal risks
KWS is exposed to risks arising from official
proceedings and legal disputes with suppliers,
licensors, customers, employees, lenders and
investors. They may result in payments or other
obligations. One court case was pending in the
2023/2024 fiscal year, but as the proceedings
currently stand, it does not pose any significant
financial risk.
Social risks
However, we also operate in markets where there
are indications of insufficient compliance with
social standards. In some countries, for example,
child labor, forced labor and inadequate working
standards exist in agriculture. We systematically
recorded these risks in the year under review, which
led to an increase in the risks in this category. We
use these findings to design our measures, which
are intended to be applied both preventively and
in response to violations. We continue to work on
expanding our due diligence system and, in this
connection, published our Human Rights Policy for
the first time in the spring of 2024. We will update it
regularly in the future and make our objectives and
efforts transparent. A Human Rights Officer was
appointed to coordinate establishment of the due
diligence system within the KWS Group.
Markets and competition
Market trends
This covers in particular local external risks that
may impact our business success and over whose
emergence we have no or currently only limited
direct influence. This includes demand trends
and local conditions in the respective market, as
well as requirements from farmers to our sales
organization. We reduce this risks by reviewing
our cooperation with local partners, through new
licenses or by developing proprietary varieties
and traits. We are also continuously working on
expanding and optimizing our sales channels.
Competition and business partners
Strong competitive pressure, such as that due
to aggressive pricing strategies by other market
players, may have a negative impact on our
business success. In particular, good local variety
performance is the most effective means of
protecting against this. Acquisition or licensing
of technologies – such as genetically modified
traits – is customary in the industry and necessary
in markets such as North or South America. We
strive to reduce the related risks by developing
our own innovations, which may also be attractive
to competitors, and through long-term license
agreements. In the reporting year, the business
performance of our joint venture AgReliant once
again declined in an environment of high compet-
itive pressure, which led to a significant increase
in the short-term risk situation in this category.
Together with our business partner, we address the
risks there by means of a monitoring committee that
is made up of representatives of both parties and
makes joint decisions on key risk control measures.
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Price developments and procurement
We are exposed to potential price fluctuations,
delays and reduced availability in our global
purchasing activities. We counter these risks by
pooling our purchasing power in a centralized
Procurement Management unit and, in particular,
we adopt a structured approach in relation to
the organization, management and long-term
development of supplier relationships. Hedging
instruments in the form of commodity derivatives
are used to offset fluctuations in the prices of raw
materials to a limited extent. In the year under
review, we managed potential supply chain risks
in a structured manner for the first time as part of
the newly launched due diligence process, had the
related activities reviewed internally and reported
the results to the Executive Board and Supervisory
Board. We will continue to expand the due diligence
system in the coming year and plan to introduce
further process improvements and standards, such
as a revised Code of Business Ethics for Suppliers.
Climate change and natural disasters
We are increasingly experiencing extreme weather
events, such as heavy rain, flooding, storms
or drought, which may impact key business
processes. We mainly develop new varieties and
propagate our seed outdoors, meaning these
activities are exposed to weather events. Moreover,
weather risks can be insured against only at
economically unfavorable terms and conditions,
if at all. In addition to local protection measures
such as irrigation, flood control or greenhouses,
we can limit risks through regional diversification.
Contra-seasonal production in the southern
hemisphere enables two cultivation cycles a year.
In addition to extreme weather events, climate
change is also causing a gradual increase in
average temperatures, changes in regional average
rainfall, and changes in disease or pest pressure.
We counter this by continuously optimizing our
varieties as part of our global breeding programs.
The breeding objectives as part of that include
drought resistance, standing ability, better nutrient
utilization or new resistances. Climate change
thus also entails opportunities for KWS, which we
explain in the section “Opportunity Management.”
Overall statement on the risk situation
by the Executive Board
The KWS Group’s net risk position at the end of
the fiscal year was slightly lower compared with
the previous year, due in particular to lower energy
supply and production downtime risks as well as
the decline in inflation. The high political risks as a
result of Russia’s localization efforts remain. They
are having a negative impact on our local seed
supply (import quotas) and business development
there. Teams of experts analyze, assess and control
risk-related developments on an ongoing basis and
report to the Executive Board as and when required.
In Ukraine, we continue to maintain measures to
protect employees and business processes.
In view of the available assessments and counter-
measures we have initiated, risks that jeopardize
the company’s existence are not discernible at
present. Furthermore, based on the analysis of
our risk-bearing capacity, we did not identify any
potential threat to the company’s existence. We feel
sure that, thanks to our global footprint, innovative
strength and the quality of our products, we can
seize opportunities and successfully manage
risks as they arise. However, we cannot rule out
the possibility that other factors that are currently
unknown or which are not assessed as significant
may jeopardize the continued existence of the
KWS Group in the future.
Adjustments to risk reporting 2024/2025
In the reporting year, we added new categories to
our risk categories and merged existing categories
with others. As a result, we will be better able
to cluster risks according to the sustainability
categories of Environment, Social and Governance
(ESG) in future. In this context, we have also defined
new threshold values for our four-level risk classes.
As a result, we are taking into account both the
lower number of risk categories in the future and the
KWS Group’s increased earnings performance in
the past reporting years. From the coming year, we
will report on the risk situation in accordance with
these changes.
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Strategic risk categories with an horizon up to ten years
Risk Type
Risk Category
Risk classification
Strategic risks
Change of geopolitical alliances and market access
Limited access to technology
Structural change of demand
Structural underperformance of products
Substantial
Substantial
Substantial
Medium
Risk categories with a horizon of up to four years
Risk Type
Risk Category
Risk classification
Operative risks
Human Resources
Low
Incidents
Substantial
Influence on cultivation
Low
Price and supply chain
Medium
Product & service quality
Low
ESG risks
Environment
Low
Governance
Medium
Social
Noticeable
Legal and
compliance
Compliance risks
Noticeable
Other legal risks
Low
Financial risks
Financing & liquidity
Low
FX risks
Medium
Receiveable risks
Low
Tax risks
Low
Reputational risks
Public perception and customer trust
Low
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Combined Management Report | 2.6 Forecast Report
2.6 Forecast Report
The expectations of management outlined here
are based on our corporate planning and the
information it takes into account, including market
expectations, strategic decisions, regulatory
measures or exchange rate trends. They are
subject to the same premises as the consolidated
financial statements and forecast our business
performance up to the end of fiscal 2024/2025 on
June 30, 2025. In our forecast for the KWS Group’s
statement of comprehensive income, we deal
with the KWS Group’s anticipated net sales (on a
comparable basis, excluding exchange rate and
portfolio effects), anticipated EBIT margin and
anticipated R&D intensity. In our forecast for the
segments, we deal with the anticipated net sales
(on a comparable basis, excluding exchange rate
and portfolio effects), and the anticipated EBIT
margin, including the contributions made by our
equity-accounted companies, which are included
proportionately in the segment reports in line with
our internal corporate controlling structure.
2.6.1 Changes in the KWS Group’s Composition
that are Significant for the Forecast
Following the agreements reached in March 2024
to sell the South American corn and sorghum
business, it will be disclosed as a discontinued
operation in KWS’ financial reporting until the
transaction is closed.
The forecasts for fiscal 2024/2025 relate to KWS’
continuing operations.
2.6.2 Forecast for the KWS Group’s Statement
of Comprehensive Income
The KWS Group’s economic performance in
fiscal 2024/2025 will continue to be impacted by
the challenging changes on global agricultural
markets. The increased occurrence of weather
extremes as a result of climate change are making
the general conditions in agriculture more volatile.
The associated fluctuations in supply and demand
impair planning security for farmers and thus
also for us as a seed vendor. However, our broad
product portfolio enables us to counter these
fluctuations.
There are still significant currency risks in important
markets, in particular in Türkiye and Eastern
Europe.
Due to a generally subdued agricultural environment
and an anticipated significant decline in business
in Russia as a result of import restrictions and
localization efforts for seed, we expect growth in
fiscal 2024/2025 to be less buoyant than in previous
years.
We expect the KWS Group to grow its net sales
on a comparable basis (excluding exchange
rate effects) by 2% to 4% over the previous year
(€1,678 million).
We anticipate that the EBIT margin will be in the
range of 14% to 16%, while our R&D intensity is
expected to be between 18% and 19%. Due to the
strongly seasonal nature of our business as a result
of the great importance of the spring sowing season
and external factors that are difficult to anticipate,
such as the weather and fluctuations in cultivation
area, we are providing ranges in our forecasts here,
since more detailed statements on our net sales
and earnings performance cannot yet be made with
sufficient reliability.
2.6.3 Forecast for the Segments
In fiscal 2024/2025, we anticipate that the Corn
Segment (on a comparable basis, excluding
exchange rate and portfolio effects), will grow its
net sales slightly compared with the previous year
(€701.5 million), in particular on the back of growth
in Europe. We assume that competition will remain
intense in North America. As far as can be seen at
present, the EBIT margin is expected to be at the
level of the previous year (5.6%).
In the Sugarbeet Segment, our high-yielding
portfolio of varieties will likely mean another
successful fiscal year for us. We assume that
sugarbeet cultivation area will remain stable all in
all. The segment’s business performance should
benefit from further growth due to CONVISO®
SMART seed and demand for Cercospora-tolerant
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(CR+) varieties. We expect that the segment’s net
sales (on a comparable basis, excluding exchange
rate and portfolio effects), will increase slightly
compared with the previous year (€864.9 million)
and that the EBIT margin will be at the level of the
previous year (40.5%).
In the Cereals Segment, we assume (on a
comparable basis, excluding exchange rate and
portfolio effects), that net sales will decline sharply
compared with the previous year (€275.9 million),
as we anticipate stronger losses in our Russia
business as a result of import restrictions on seed.
We also expect the EBIT margin to fall sharply
compared with the previous year (18.3%).
The Vegetables Segment essentially comprises
the net sales and earnings contributed by acquired
vegetable seed businesses. Assuming a stable
market environment, in particular for spinach
seed, we expect the segment’s net sales (on a
comparable basis, excluding exchange rate and
portfolio effects), to rise sharply compared to
the previous year (€62.1 million). There are also
costs for establishing an international breeding
program and the Business Unit in the segment.
Consequently, the number of employees will
probably increase further. The segment’s income
also includes noncash effects from the purchase
price allocation as part of company acquisitions.
Due to the above-mentioned effects, we expect the
EBIT margin to be negative and at the level of the
previous year (–55.9%).
Revenue (albeit slight) from our farms in Germany,
France and Poland is grouped in the Corporate
Segment. Since all cross-segment costs for the
KWS Group’s central functions and research expen-
diture are still charged to the Corporate Segment,
its income is usually negative. In view of the planned
cost developments, we expect the segment’s EBIT
to be approximately € –130.0 (–127.1) million.
Forecast for the 2024/2025 fiscal year
Net sales growth 1
EBIT margin
R&D intensity
Statement of comprehensive income
of the KWS Group
2–4%
14–16%
18–19%
1 On a comparable basis, excluding exchange rate and portfolio effects
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2.7 Further Information
2.7.1 Corporate Governance and Declaration
on Corporate Governance
Responsible corporate governance has always been
of great importance at KWS SAAT SE & Co. KGaA.
Since it was founded 165 years ago, our company’s
successful development has been based on
thinking long term and acting in terms of sustain-
ability. The Executive Board (the personally liable
partner KWS SE, whose Executive Board is respon-
sible for management of the company’s business)
and the Supervisory Board run and accompany
KWS with the goal of ensuring it creates sustainable
value added. They once again examined in the
year under review whether the company complies
with the stipulations of the German Corporate
Governance Code and issued the Declaration of
Compliance in Accordance with Section 161 AktG
(German Stock Corporation Act) to the effect that
the company complies almost fully with the code’s
recommendations.
You can find detailed information on corporate
governance in our declaration on corporate
governance in accordance with Section 289f of the
German Commercial Code (HGB), which is available
in full on our website at www.kws.com/corp/en/
investors/corporate-governance. The Compen-
sation Report for fiscal 2022/2023 is also available
there.
2.7.2 Compliance declaration in accor-
dance with Section 161 AktG
(German Stock Corporation Act)
The final version of the Declaration of Compliance in
accordance with Section 161 AktG (German Stock
Corporation Act) is available to shareholders on the
website https://www.kws.com/corp/en/investors/
corporate-governance.
2.7.3 Remuneration Report
The Remuneration Report outlines the principles
and salient features of the compensation systems
for the Executive Board of KWS SE, the managing
partner of KWS SAAT SE & Co. KGaA, and its
Supervisory Board. It is no longer part of the
Group Management Report. The Remuneration
1
1
1
Report pursuant to Section 162 of the German
Stock Corporation Act (AktG) for the fiscal
2023/2024, together with the report on the
substantive and formal audit by the independent
auditor, can be found on our website at
www.kws.com/corp/en/company/investor-relations.
2.7.4 Explanatory Report of the Personally
Liable Partner (KWS SE) of
KWS SAAT SE & Co. KGaA in Accordance
with Section 176 (1) Sentence 1 AktG
(German Stock Corporation Act) on the
Disclosures in Accordance with Section
289a (1) and Section 315a (1) HGB
(German Commercial Code)
The personally liable partner of KWS SAAT SE &
Co. KGaA provides the following explanation on the
following disclosures in accordance with Section
289a and Section 315a HGB (German Commercial
Code):
Composition of the subscribed capital
The subscribed capital of KWS SAAT SE &
Co. KGaA is €99,000,000.00 and is divided into
33,000,000 bearer shares. The pro-rata share
of each share in the capital stock is €3.00. Each
share grants the holder the right to cast one vote
at the Annual Shareholders’ Meeting. The rights
of shareholders are governed by the German
Stock Corporation Act (AktG) and the Articles of
Association.
Restrictions relating to voting rights
or the transfer of shares
There may be restrictions relating to voting rights
or the transfer of shares as a result of statutory or
contractual provisions. For example, shareholders
are barred from voting under certain conditions
pursuant to Section 136 of the German Stock
Corporation Act (AktG) in conjunction with
Section 278 (3) of the German Stock Corporation
Act (AktG) or Section 44 of the German Securities
Trading Act (WpHG); the bars on voting pursuant
to Section 285 of the German Stock Corporation
Act (AktG) must also be observed for personally
liable partners at a partnership limited by shares
1 Not an audited part of the combined management report
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(KGaA). In addition, no voting rights accrue to
the company on the basis of the shares it holds
(Section 71b AktG).
The personally liable partner is not aware of any
contractual restrictions relating to voting rights or
transfer of shares. If there are no restrictions on
voting rights, all shareholders who register for the
Annual Shareholders’ Meeting in time and have
submitted proof of their authorization to participate
in the Annual Shareholders’ Meeting and exercise
their voting rights are authorized to exercise the
voting rights conferred by all the shares they hold
and have registered. If members of the Executive
Board of the personally liable partner or executive
employees of the company have acquired shares
as part of the long-term incentive programs, these
shares are subject to a lock-up period until the
end of the fifth year after the end of the quarter in
which they were acquired. The lock-up period for
shares that employees have acquired as part of the
Employee Stock Purchase Plans runs until the end
of the fourth year as of when they are posted to the
employee’s securities account.
Direct and indirect participating interests in
excess of 10% of the voting rights
The company has been informed by shareholders of
the following direct or indirect participating interests
in the capital of KWS SAAT SE & Co. KGaA in
excess of 10% of the voting rights in accordance
with Section 33 and Section 34 of the German
Securities Trading Act (WpHG) or elsewhere.
1. The voting shares, including mutual allocations,
of the persons, companies and foundations stated
below each exceed 10% and total 69.3%:
AKB Stiftung, Hanover
Büchting Beteiligungsgesellschaft mbH, Hanover
Zukunftsstiftung Jugend, Umwelt und Kultur,
Einbeck
Dr. Drs. h.c. Andreas J. Büchting, Germany
RETOKE Holding Vermögensverwaltungs-
gesellschaft mbH & Co. KG, Bad Schwartau
Tessner Beteiligungs GmbH, Goslar
Tessner Holding KG, Goslar
2. The voting shares of the persons stated below,
including mutual allocations and allocations of
voting shares of Dr. Drs. h.c. Andreas J. Büchting,
Germany, AKB Stiftung, Hanover, Büchting
Beteiligungsgesellschaft mbH, Hanover, Zukunfts
stiftung Jugend, Umwelt und Kultur, Einbeck,
and RETOKE Holding Vermögensverwaltungs-
gesellschaft mbH & Co. KG, Bad Schwartau, each
exceed 10% and total 54.8%:
Christiane Stratmann, Germany
Dorothea Schuppert, Germany
Michael C.-E. Büchting, Germany
Annette Büchting, Germany
Stephan O. Büchting, Germany
Christa Nagel, Germany
Matthias Sohnemann, Germany
Malte Sohnemann, Germany
Arne Sohnemann, Germany
3. The voting shares of the shareholder named
below, including allocations of the persons,
companies and foundations named in 1. above,
exceed 10% and total 69.3%:
Hans-Joachim Tessner, Germany
4. The voting shares of the shareholder named
below, including allocations of all the persons,
companies and foundations named in 2. above,
exceed 10% and total 56.0%:
Dr. Arend Oetker, Germany
5. The voting shares of the shareholders named
below, including allocations of all the persons,
companies and foundations named in 2. above,
exceed 10% and total 55.0%:
Dr. Marie Th. Schnell, Germany
Johanna Sophie Oetker, Germany
Leopold Heinrich Oetker, Germany
Clara Christina Oetker, Germany
Ludwig August Oetker, Germany
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Shares with special rights and voting control
Shares with special rights that grant powers of
control have not been issued by the company.
There is no special type of voting control for the
participating interests of employees. Employees
who have an interest in the company’s capital
exercise their control rights in the same way as
other shareholders.
Appointment and removal of management
The personally liable partner, KWS SE, is
responsible for managing the business
of KWS SAAT SE & Co. KGaA under
Section 7.2 of the Articles of Association
of KWS SAAT SE & Co. KGaA.
In accordance with Section 6 (3) of the Articles
of Association of KWS SAAT SE & Co. KGaA, the
personally liable partner shall leave the Company
if the majority of shares in the personally liable
partner can no longer be held directly and/or
indirectly for a time longer than 30 calendar days
by persons who hold a combined total of more than
15% of the Company’s capital stock directly and/
or indirectly through a company that is dependent
in accordance with Section 17 (1) of the German
Stock Corporation Act (AktG) or is controlled in
accordance with Section 290 (2) of the German
Commercial Code (HGB). This shall not apply if all
shares in the personally liable partner are held by
the Company.
Furthermore, Section 6 (4) of the Articles of
Association of KWS SAAT SE & Co. KGaA
stipulates that the personally liable partner shall
leave the Company if a person who is not a family
shareholder (acquiring party) obtains control over
the personally liable partner directly or indirectly
(acquisition of control) and does not submit to
the Company’s limited partners a takeover or
mandatory offer in accordance with this provision
and otherwise in accordance with the provisions
in the German Securities Acquisition and Takeover
Act (WpÜG) within three months of acquisition of
control.
Under Section 6.5 of the Articles of Association of
KWS SAAT SE & Co. KGaA, the personally liable
partner shall also leave the Company by means of
termination. Notice of termination shall be given to
all the limited partners at the Annual Shareholders’
Meeting. Outside of the Annual Shareholders’
Meeting, notice of termination shall be given to the
Chairperson of the Supervisory Board or his or her
deputy. The notice of termination shall be at least
six months before the end of and effective the end
of a fiscal year.
The other statutory grounds for the personally
liable partner leaving the Company shall remain
unaffected.
The members of the Executive Board of the
personally liable partner, which is responsible for
managing the company’s business, are appointed
and removed by the Supervisory Board of the
personally liable partner, KWS SE. Pursuant
to Article 46 (1) of Council Regulation (EC)
2157/2001 in conjunction with Section 6 of the
Articles of Association of KWS SE, members of
the Executive Board are appointed for a maximum
period of six years. Members may be reappointed.
Amendments to the Articles of Association
Amendments to the company’s Articles of Associ-
ation are made pursuant to a resolution adopted by
the Annual Shareholders’ Meeting in accordance
with Section 278 (3) in conjunction with Section
179 of the German Stock Corporation Act (AktG).
Section 285 (2) Sentence 1 of the German Stock
Corporation Act (AktG) stipulates that amendments
to the Articles of Association require the approval of
the personally liable partner.
In accordance with Section 133, Section 179 (2)
of the German Stock Corporation Act (AktG)
and Section 18 (1) of the Articles of Association
of KWS SAAT SE & Co. KGaA, a resolution by
the Annual Shareholders’ Meeting to amend the
Articles of Association must be adopted by a simple
majority of the votes cast and a simple majority of
the capital stock represented in adoption of the
resolution, unless obligatory statutory regulations
or the Articles of Association otherwise compel.
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The power to make amendments to the Articles of
Association that only affect the wording (Section
179 (1) Sentence 2 AktG) has been conferred
on the Supervisory Board in accordance with
Section 22 of the Articles of Association of
KWS SAAT SE & Co. KGaA.
Powers of the personally liable partner, in
particular in relation to issuing or buying
back shares
The personally liable partner is authorized, with the
consent of the Supervisory Board, to increase the
capital stock of the Company in the period up to
midnight on December 15, 2025, once or in install-
ments by a total of up to €9,900,000.00 by issuing
new shares in exchange for cash contributions
and/or contributions in kind (Authorized Capital
2020). As a matter of principle, shareholders have
a subscription right to the shares. The shares can
also be assumed by one or more credit institutions
or enterprises within the meaning of Section 186 (5)
Sentence 1 of the German Stock Corporation Act
(AktG) appointed by the personally liable partner,
with the obligation to offer them for subscription
solely to the shareholders’ (indirect subscription
right). However, the shareholders’ subscription right
can be excluded with the consent of the Super-
visory Board, subject to certain conditions defined
in the authorization.
Significant agreements in the event of a change
of control, compensation agreements
Significant agreements subject to the condition of
a change in control pursuant to a takeover bid have
not been concluded. The agreements with members
of the Executive Board of the personally liable
partner stipulate that any commitments in the case
of a change in control are limited to the maximum
amounts specified by the German Corporate
Governance Code.
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Combined Management Report | 2.8 Report on KWS SAAT SE & Co. KGaA
2.8 Report on KWS SAAT SE & Co. KGaA
(Declaration based on the German Commercial Code (HGB))
References to KWS SAAT SE & Co. KGaA in
the KWS Group’s Annual Report
The Management Reports of KWS SAAT SE &
Co. KGaA and the KWS Group are combined. The
declaration on corporate governance in accordance
with Section 289f of the German Commercial
Code (HGB), which also contains the compliance
declaration in accordance with Section 161 AktG
(German Stock Corporation Act), has been
published in the Internet at www.kws.de/ir. The
following disclosures are identical to those of the
KWS Group and are printed in this Annual Report:
References to KWS SAAT SE & Co. KGaA in the KWS Group’s Annual Report
Disclosures
Page(s)
Report in accordance with Section 289 (4) of the German Commercial Code (HGB)
and explanatory report of the Executive Board
96 to 99
On business activity, corporate strategy, corporate controlling and management,
as well as explanations on business performance
18 to 47
On the dividend
164 (Notes)
On research and development
26 to 28
On the report on events after the balance sheet date
165 (Notes)
KWS SAAT SE & Co. KGaA is the parent company
of the KWS Group. It is responsible for strategic
management and, among other things, propagates
and distributes sugarbeet and corn seed. It finances
basic research and breeding of the main range
of varieties at the KWS Group and provides its
subsidiaries with new varieties every year for the
purpose of propagation and distribution.
Earnings
Net sales at KWS SAAT SE & Co. KGaA in
the year under review increased sharply
to €970.6 (825.4) million (guidance: slight increase in
net sales). The increase resulted, in particular, from
growing cereals and sugarbeet business. Gross
profit likewise rose sharply to €592.4 (475.8) million
due to the expansion in business. Research and
development expenditure, which is pooled at
KWS SAAT SE & Co. KGaA, was increased as
planned to €269.3 (251.6) million. Selling expenses
rose to €101.0 (98.4) million. Most of the adminis-
trative expenses at the KWS Group are incurred
at KWS SAAT SE & Co. KGaA. General and
administrative expenses in the year under review
totaled €157.2 (136.4) million. The balance of other
operating income and other operating expenses
was €26.9 (9.3) million. KWS SAAT SE & Co. KGaA’s
operating income improved sharply to €91.8 million
following € –19.9 million in the previous year
(guidance: lower year on year), in particular thanks to
the increase in our high-margin sugarbeet business.
The interest result fell to € –11.0 (–6.1) million, in
particular as a result of higher interest expenses.
Taking into account taxes totaling €27.8 (4.2) million,
the net income for the year was €72.1 million
(previous year: net loss of € –4.1 million).
101
KWS Group | Annual Report 2023/2024
2.8 Report on KWS SAAT SE & Co. KGaA | Combined Management Report
Financial position and assets
KWS SAAT SE & Co. KGaA’s total assets in fiscal
2023/2024 increased to €1,982.5 (1,742.3) million.
Fixed assets at the balance sheet date were
€1,059.3 (1,038.1) million. Property, plant and
equipment and intangible assets rose sharply,
while financial assets were slightly below the
level of the previous year. Inventories rose
to €135.6 (119.6) million due to the planned increase
in production quantities. Receivables and other
assets increased sharply to €665.4 (523.3) million,
in particular as a result of the rise in receivables
from affiliated companies. Liabilities at the balance
sheet date rose to €1,239.4 (1,078.3) million,
mainly due to an increase in liabilities to affiliated
companies and due to higher financial borrowings
from banks. KWS SAAT SE & Co. KGaA’s equity
increased to €503.9 (461.5) million due to the
higher net retained profits, giving an equity ratio
of 25.5% (26.5%).
Employees
An average of 1,834 (1,737) people were employed
at KWS SAAT SE & Co. KGaA in the year under
review.
Risks and opportunities
The opportunities and risks at KWS SAAT SE &
Co. KGaA are essentially the same as at the
KWS Group. It shares the risks of its subsidiaries
and associated companies in accordance with its
respective stake in them. You can find a detailed
description of the opportunities and risks and
an explanation of the internal control and risk
management system (Section 289 (4) of the German
Commercial Code (HGB)) on pages 80 to 93.
Forecast Report
KWS SAAT SE & Co. KGaA generates the main part
of its net sales from sugarbeet, cereals and corn
seed business and royalties from basic seed. Its
further development depends, among other things,
on the performance of our varieties, cultivation area
in our key markets and developments in our growth
markets. On the basis of our planning, we anticipate
a decline in net sales, in particular due to the
fact that we expect a decline in cereals business.
KWS SAAT SE & Co. KGaA’s operating income is
mainly impacted by the costs of central functions
of the KWS Group and cross-segment research
and development activities. Given that spending on
research and development and central functions is
expected to rise, we anticipate a significant decline
in KWS SAAT SE & Co. KGaA’s operating income.
Einbeck, September 10, 2024
KWS SE
Dr. Felix Büchting | Dr. Peter Hofmann | Eva Kienle |
Nicolás Wielandt
3. Consolidated Financial Statements
of KWS SAAT SE & Co. KGaA
2023/2024
Consolidated Statement of Comprehensive Income
104
Consolidated Balance Sheet
105
Consolidated Statement of Changes in Equity
107
Consolidated Cash Flow Statement
108
Notes for KWS SAAT SE & Co. KGaA 2023/2024
110
1. General Disclosures
110
2. Standards and Interpretations Applied for the First Time
110
3. Accounting Policies
111
4. Consolidated Group and Changes
in the Consolidated Group
124
5. Segment Reporting for the KWS Group
126
6. Notes to the Consolidated Statement of
Comprehensive Income
130
7. Notes to the Consolidated Balance Sheet
137
8. Notes to the Consolidated Cash Flow Statement
163
9. Other Notes
164
Reproduction of the auditor’s report
172
Independent auditor’s report on a limited assurance
engagement
180
Declaration by Legal Representatives
182
Additional Information
183
104 Consolidated Financial Statements | Consolidated Statement of Comprehensive Income
Annual Report 2023/2024 | KWS Group
Consolidated Statement of Comprehensive Income
July 1 to June 30
in € thousand
Note no.
2023/2024
2022/2023 1
I. Income statement
Continuing operations
Net sales
6.1
1,678,118
1,500,291
Cost of sales
6.1
622,423
589,893
Gross profit on sales
1,055,695
910,398
Selling expenses
6.1
284,277
257,980
Research & development expenses
6.1
325,565
299,791
General and administrative expenses
6.1
149,586
140,140
Other operating income
6.2
57,453
41,214
Other operating expenses
6.3
51,769
58,590
Operating income
301,951
195,113
Financial income
6.4
8,709
9,861
Financial expenses
6.4
34,326
21,325
Result from equity-accounted financial assets
6.4
–24,345
–12,337
Net financial income/expenses
6.4
–49,963
–23,801
Earnings before taxes from continuing operations
251,988
171,311
Income taxes
6.5
67,912
45,219
Earnings after taxes from continuing operations
6.8
184,076
126,092
Discontinued operation
Earnings after taxes from discontinued operations
4.2
–53,246
897
Group
Earnings after taxes
130,830
126,989
II. Other comprehensive income 2
Changes in reserve for currency translation differences and
hyperinflation for foreign operations 2
7.9
3,252
–38,834
Other income from equity-accounted financial assets
7.9
1,457
–13,434
Net gain/(loss) on cash flow hedges
7.9
0
0
Net change in cost of hedging
7.9
–397
–200
Items that may have to be subsequently reclassified
as profit or loss 2
4,312
–52,468
Net gain/(loss) on equity instruments designated at fair value
through other comprehensive income
7.9
–738
–2,616
Remeasurement gain/(loss) in defined benefit plans
7.9
4,134
–341
Items not reclassified as profit or loss
3,396
–2,957
Other comprehensive income after tax 2
7.9
7,708
–55,425
III. Comprehensive income 2
138,538
71,564
Diluted and basic earnings per share
from continuing operations (in €)
6.8
5.58
3.82
Diluted and basic earnings per share for the Group (in €)
6.8
3.96
3.85
1 The previous year’s figures have been adjusted due to the fact that the commercial corn and sorghum business in South America is recognized as a discontinued operation
(see also section “4.2 Discontinued operation: disposal group classified as held for sale” of the Notes).
2 The previous year’s figures have been adjusted due to the change in recognition relating to hyperinflation (see also section “3.1. Consistency of accounting policies” of the Notes).
Consolidated Balance Sheet | Consolidated Financial Statements 105
KWS Group | Annual Report 2023/2024
Consolidated Balance Sheet
Assets
in € thousand
Note no.
06/30/2024
06/30/2023
Goodwill
7.1
105,407
123,679
Intangible assets
7.1
279,916
319,866
Right-of-use assets
7.15
46,200
46,627
Property, plant and equipment
7.2
621,296
594,995
Equity-accounted financial assets
7.3
119,919
155,558
Financial assets
7.5
6,704
6,879
Noncurrent tax assets
7.5
123
21,986
Other noncurrent receivables
7.5
5,104
10,883
Deferred tax assets
6.5
35,433
46,330
Noncurrent assets
1,220,103
1,326,802
Inventories and biological assets
7.6
380,551
415,255
Trade receivables
7.7
504,202
582,010
Cash and cash equivalents
7.8
222,363
172,999
Current tax assets
7.7
121,004
128,113
Other current financial assets
7.7
36,861
68,534
Other current assets
7.7
36,525
53,780
Current assets
1,301,505
1,420,691
Assets held for sale
4.2; 4.3
434,486
2,067
Total assets
2,956,093
2,749,561
Equity and liabilities
Subscribed capital
7.9
99,000
99,000
Capital reserve
7.9
5,530
5,530
Retained earnings
7.9
1,295,384
1,186,545
Equity
7.9
1,399,914
1,291,075
Long-term provisions
7.11
91,333
97,293
Long-term borrowings
7.11
427,035
566,106
Noncurrent lease liabilities
7.11; 7.15
35,828
38,288
Deferred tax liabilities
6.5
53,872
57,486
Other noncurrent financial/non-financial liabilities
7.11
1,927
2,823
Noncurrent liabilities
7.11
609,995
761,996
Short-term provisions
7.12
30,910
38,008
Short-term borrowings
7.12
180,420
172,121
Current lease liabilities
7.12; 7.15
15,578
13,314
Trade payables
7.12
202,579
228,124
Current tax liabilities
7.12
53,606
33,994
Other current financial liabilities
7.12
17,024
36,198
Contract and refund liabilities
7.12
59,703
79,686
Other current liabilities
7.12
95,345
95,045
Current liabilities
7.12
655,165
696,489
Liabilities in connection with assets held for sale
4.2
291,020
0
Liabilities
1,556,180
1,458,485
Total equity and liabilities
2,956,093
2,749,561
106 Consolidated Financial Statements | Consolidated Statement of Changes in Equity
Annual Report 2023/2024 | KWS Group
Consolidated Statement of Changes in Equity
July 1 to June 30
in € thousand
Parent company
Subscribed
capital
Capital
reserve
Accumulated
Group equity
from earnings
Comprehensive
other Group income
Reserve for
currency
translation
differences
and effects of
hyperinflation
for foreign
operations
Reserve for
currency
translation
differences
on equity-
accounted
financial assets
06/30/2022 (as reported)
99,000
5,530
1,235,099
–95,362
20,985
Adjustment to recognition
relating to hyperinflation
–44,996
44,996
07/01/2022
99,000
5,530
1,190,103
–50,366
20,985
Dividends paid
–26,400
Earnings after taxes
126,989
Other comprehensive income
after taxes
–38,834
–7,769
Total consolidated
gains (losses)
126,989
–38,834
–7,769
Other changes
06/30/2023
99,000
5,530
1,290,692
–89,200
13,216
07/01/2023
99,000
5,530
1,290,692
–89,200
13,216
Dividends paid
–29,700
Earnings after taxes
130,830
Other comprehensive income
after taxes
3,252
3,020
Total consolidated
gains (losses)
130,830
3,252
3,020
Other changes
0
0
0
06/30/2024
99,000
5,530
1,391,822
–85,948
16,236
Consolidated Statement of Changes in Equity | Consolidated Financial Statements 107
KWS Group | Annual Report 2023/2024
Parent company
Group equity
Kumuliertes übriges
Konzernergebnis
Total
Total
Cash flow hedge
reserve on
equity-accounted
financial assets
Net gain/(loss) on
equity instruments
designated at
fair value through
other compre-
hensive income
Revaluation
of defined
benefit plans
Cost of
hedging reserve
3,339
5,402
–28,083
1,245,911
1,245,911
3,339
5,402
–28,083
1,245,911
1,245,911
0
0
0
–26,400
–26,400
0
0
0
126,989
126,989
–5,665
–2,616
–341
–200
–55,425
–55,425
–5,665
–2,616
–341
–200
71,564
71,564
0
0
0
0
0
–2,326
2,786
–28,424
–200
1,291,075
1,291,075
–2,326
2,786
–28,424
–200
1,291,075
1,291,075
–29,700
–29,700
130,830
130,830
–1,563
–738
4,134
–397
7,708
7,708
–1,563
–738
4,134
–397
138,538
138,538
0
0
0
0
0
0
–3,889
2,048
–24,290
–597
1,399,914
1,399,914
108 Consolidated Financial Statements | Consolidated Cash Flow Statement
Annual Report 2023/2024 | KWS Group
Consolidated Cash Flow Statement
July 1 to June 30
in € thousand
Note no.
2023/2024
2022/2023
Earnings after taxes
6.8
130,830
126,989
Depreciation and amortization
7.1; 7.2; 7.15
119,088
95,392
Increase/decrease in long-term provisions
7.11
–2,652
1,640
Other non-cash expenses/income
8
89,733
78,789
Increase/decrease in short-term provisions
7.12
26,692
–3,829
Net gain/loss from the disposal of assets
6.2; 6.3
–30,431
–1,598
Income tax expense/income
6.5
67,912
48,680
Income tax payments/refunds
6.5
–41,778
–46,978
Interest expense/interest income
6.4
17,653
29,525
Increase/decrease in inventories
7.6
–152,790
–131,696
Increase/decrease in trade receivables
7.7
–71,662
–74,583
Increase/decrease in other assets not attributable to
investing or financing activities
–32,130
–34,447
Increase/decrease in trade payables
7.12
10,493
29,796
Increase/decrease in other liabilities not attributable to
investing or financing activities
26,088
21,475
Proceeds and payments from equity-accounted entities
7.3
160
5,499
Net cash from operating activities of the Group
157,205
144,654
minus net cash from operating activities of the discontinued operation
–718
–6,945
Net cash from operating activities of discontinued operations
157,923
151,599
Proceeds from disposal of tangible assets
7.2
953
3,485
Payments for capital expenditures for tangible assets
7.2
–136,060
–101,164
Proceeds from disposal of intangible assets
7.1
30,705
0
Payments for capital expenditures for intangible assets
–15,119
–8,353
Proceeds from disposal of financial assets
11,528
0
Interest received
4,598
5,887
Net cash from investing activities of the Group
–103,395
–100,145
minus net cash from investing activities of the discontinued operation
–2,299
1,497
Net cash from investing activities of discontinued operations
–101,096
–101,642
Consolidated Cash Flow Statement | Consolidated Financial Statements 109
KWS Group | Annual Report 2023/2024
July 1 to June 30
in € thousand
Note no.
2023/2024
2022/2023
Dividend payments to shareholders
7.9
–29,700
–26,400
Payment of principal portion of lease liabilities
7.15
–17,125
–11,933
Payment of interest portion of lease liabilities
6.4; 7.15
–2,526
–1,628
Interest paid incl. transaction costs on issuance of promissory notes
and borrowings
–14,864
–28,532
Proceeds from long-term borrowings
208,106
91,952
Repayment of long-term borrowings
–98,105
–90,620
Changes from proceeds/repayments of short-term borrowings
–21,036
7,822
Net cash from financing activities of the Group
24,750
–59,339
minus net cash from financing activities of the discontinued operation
–30,449
294
Net cash from financing activities of discontinued operations
55,199
–59,633
Net cash changes in cash and cash equivalents and
restricted cash
78,560
–14,829
Changes in cash and cash equivalents and restricted cash due to
exchange rate, consolidated group and measurement changes
–6,091
–15,836
Cash and cash equivalents and restricted cash of
the discontinued operation (IFRS 5)
–23,105
0
Cash and cash equivalents, including restricted cash,
at beginning of year
172,999
203,664
Cash and cash equivalents, including restricted cash,
at end of year
8
222,363
172,999
thereof restricted cash and cash equivalents at end of year
265
21
110
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 1. General Disclosures
Notes for KWS SAAT SE & Co. KGaA
2023/2024
1. General Disclosures
The consolidated financial statements of KWS SAAT SE &
Co. KGaA and its subsidiaries were prepared under the
assumption that the operations of the companies will
be continued and applying Section 315e of the German
Commercial Code (HGB). They comply with the Interna-
tional Financial Reporting Standards (IFRS) as applicable
in the European Union (EU) for the fiscal year 2023/2024.
KWS SAAT SE & Co. KGaA, the ultimate parent company
of the KWS Group, is an international company based
in Germany, has its headquarters at Grimsehlstraße 31,
37574 Einbeck, Germany, and is registered at Göttingen
Local Court under the number HRB 205722. Since it
was founded in 1856, the KWS Group has specialized in
developing, producing and distributing high-quality seed
for agriculture. The KWS Group covers the complete value
chain of a modern seed producer – from breeding of new
varieties, propagation and processing to marketing of
the seed and consulting for farmers. KWS’ core compe-
tence is in breeding new, high-performance varieties that
are adapted to regional needs, such as climatic and soil
conditions.
The Executive Board of KWS SE, the personally liable
partner of KWS SAAT SE & Co. KGaA, prepared the
consolidated financial statements on September 10, 2024,
and released them for distribution to the Supervisory
Board. The Supervisory Board has the task of examining
the consolidated financial statements and declaring
whether it approves them.
2. Standards and Interpretations
Applied for the First Time
The following standards and interpretations have been
adopted and applied for the first time in fiscal year
2023/2024:
Standards and interpretations applied for the first time
Financial reporting standards and interpretations
IFRS 17 – Insurance Contracts, including amendments to
IFRS 17 Insurance Contracts: Initial Application of IFRS 17
and IFRS 9 – Comparative Information
IAS 1 – Amendments to IAS 1 Presentation of Financial
Statements and to IFRS Practice Statement 2: Disclosure
of Accounting Policies
IAS 8 – Amendments to IAS 8 Accounting Policies,
Changes in Accounting Estimates and Errors: Definition
of Accounting Estimates
IAS 12 – Amendments to IAS 12 Income Taxes: Deferred
Tax related to Assets and Liabilities arising from a Single
Transaction
IAS 12 – Amendments to IAS 12 Income Taxes:
International Tax Reform – Pillar Two Model Rules
At the date of signing, all amendments to the financial
reporting standards and interpretations applied as of
July 1, 2023, did not have a significant impact on the
consolidated financial statements of the KWS Group.
Nevertheless, given the highly multinational nature of the
KWS Group’s business activities, supplementary infor-
mation on the changes to IAS 12 (Pillar Two Model Rules)
resulting from the fact that more than 130 countries have
agreed on a global minimum tax rate can be found in
sections “3.15 Actual taxes” and “6.5 Taxes” of the Notes.
Standards and interpretations to be applied in future
The IASB has issued the following standards and inter-
pretations and amendments to standards and interpre-
tations whose application was not yet mandatory for the
2023/2024 fiscal year or where the standards or interpreta-
tions have been published by the IASB, but the European
Union had not yet completed the endorsement process.
The standards in the table below have not yet been applied
by the KWS Group.
Based on the analyses currently conducted, these
standards and interpretations are not expected to have a
significant impact on the KWS Group’s assets, financial
position and earnings.
111
KWS Group | Annual Report 2023/2024
3. Accounting Policies | Notes for the KWS Group | Consolidated Financial Statements
Standards and interpretations to be applied in future
Financial reporting standards and interpretations
(adopted into European law)
Mandatory first-time
application
IFRS 16 – Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback
Fiscal year 2024/2025
IAS 1 – Amendments to IAS 1 Presentation of Financial Statements: Classification of
Liabilities as Current or Non-current, including Deferral of Effective Date, and
Non-current Liabilities with Covenants
Fiscal year 2024/2025
IAS 7 – Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial
Instruments: Disclosures – Supplier Finance Arrangements
Fiscal year 2024/2025
Standards and interpretations to be applied in future
Financial reporting standards and interpretations
(not yet adopted into European law)
Anticipated mandatory
first-time application acc. to
IASB
IAS 21 – Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates:
Lack of Exchangeability (published by the IASB on August 15, 2023)
Fiscal year 2025/2026
Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments:
Disclosures: Classification and Measurement of Financial Instruments
(published by the IASB on May 30, 2024)
Fiscal year 2026/2027
IFRS 18 Presentation and Disclosure in Financial Statements
(published by the IASB on April 09, 2024)
Fiscal year 2027/2028
IFRS 19 Subsidiaries without Public Accountability: Disclosures
(published by the IASB on May 9, 2024)
Fiscal year 2027/2028
3. Accounting Policies
3.1 Consistency of accounting policies
Consistent accounting policies are applied in the financial
statements of the companies included in the consolidated
financial statements. There were no changes to accounting
policies from the previous financial year, with the exception
of the standards to be applied for the first time and the
following change in presentation.
Due to the close link between exchange rate develop-
ments and inflation in countries to which IAS 29 “Financial
Reporting in Hyperinflationary Economies” applies, the
inflation-related remeasurement effect on equity, the
scope of which has increased sharply over time, together
with the currency translation effect, has now qualified as
a whole as an exchange difference in accordance with
IAS 21 since the 2023/2024 fiscal year. The overall effect is
recognized directly in equity under “Other comprehensive
income,” resulting overall in a more relevant and reliable
presentation. The change has been made retrospectively.
The figures for the previous fiscal year 2022/2023 and the
opening balance sheet figures for it have been adjusted
accordingly. The change was made because it enables a
clearer and more meaningful presentation of the mutually
influencing effects of hyperinflation and exchange rate
developments.
The changes to the relevant items in the statement of
changes in equity for the previous year can be seen in the
overview below. The cumulative total effect for previous
periods (i.e. all periods prior to July 1, 2022) was €44,996
and has also been presented separately in the consoli-
dated statement of changes in equity.
112
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 3. Accounting Policies
3.3 Consolidation methods
The single-entity financial statements of the individual
subsidiaries included in the consolidated financial state-
ments and the single-entity financial statements of the
joint ventures and associated companies included using
the equity method and of the proportionately consoli-
dated joint operations were uniformly prepared on the
basis of the accounting and measurement policies applied
at KWS SAAT SE & Co. KGaA. For business combina-
tions, capital consolidation is performed according to the
acquisition method by allocating the cost of acquisition to
the Group’s interest in the subsidiary’s remeasured equity
at the time of acquisition. Any excess of interest in equity
over cost is recognized as an asset, up to the amount by
which fair value exceeds the carrying amount. Any goodwill
remaining after first-time consolidation is recognized as
an intangible asset. Costs incurred as part of the business
combination are recognized as an expense and carried as
administrative expenses.
All estimates and assessments as part of accounting and
measurement are continually reviewed; they are based
on historical patterns and expectations about the future
regarded as reasonable in the particular circumstances.
Consolidated statement of changes in equity (excerpt)
in € thousand
Reported
Adjustment
After adjustment
Accumu-
lated Group
equity from
earnings
Compre-
hensive
other Group
income
Accumu-
lated Group
equity from
earnings
Compre-
hensive
other Group
income
Accumu-
lated Group
equity from
earnings
Compre-
hensive
other Group
income
Reserve for currency
translation differences on
foreign operations
Reserve for currency
translation differences on
foreign operations
Reserve for currency
translation differences and
effects of hyperinflation for
foreign operations
06/30/2022
1,235,099
–95,362
–44,996
44,996
1,190,103
–50,366
Dividends paid
–26,400
–26,400
Earnings after taxes
126,989
126,989
Other comprehensive income
after taxes
–77,862
39,028
–38,834
Other changes
39,028
–39,028
0
06/30/2023
1,374,716
–173,224
–84,024
84,024
1,290,692
–89,200
3.2 Companies consolidated in the KWS Group
The consolidated financial statements of the KWS Group
include the single-entity financial statements of
KWS SAAT SE & Co. KGaA and its subsidiaries in
Germany and other countries, as well as joint ventures and
associated companies, which are carried using the equity
method, and joint operations. A company is a subsidiary
if KWS SAAT SE & Co. KGaA currently has existing rights
that give it the ability to control its relevant activities.
Relevant activities are the activities that significantly affect
the company’s returns. Control therefore only exists if
KWS SAAT SE & Co. KGaA has the ability to use its power
to affect the amount of the variable returns. Control can
usually be derived from holding a majority of the voting
rights directly or indirectly. Details on the changes in the
consolidated group are provided in section 4 “Consoli-
dated Group and Changes in the Consolidated Group” of
the Notes.
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According to IAS 36, goodwill is not amortized, but tested
for impairment at least once a year at the end of the year
(impairment-only approach).
Joint ventures are consolidated using the equity method
in application of IFRS 11 and IAS 28. The basis for a joint
venture is a contractual agreement with a third party to
control and manage a venture collectively. In the case of
joint ventures, the parties who exercise joint management
have rights to the net assets of the agreement.
In the case of joint ventures carried in accordance with
the equity method, the carrying amount is increased or
reduced annually by the equity capital changes corre-
sponding to the KWS Group’s share. In the case of
first-time consolidation of equity investments using the
equity method, differences from first-time consolidation
are treated in accordance with the principles of full
consolidation. The changes in the proportionate equity
that are recognized in profit or loss are included, along
with impairment of goodwill, under the item “Result from
equity-accounted financial assets” in the net financial
income/expenses. Associated companies in which the
KWS Group exerts a significant influence (which can
usually be assumed if it holds a stake of between 20% and
50%) are likewise measured using the equity method.
The basis for a joint operation is likewise a contractual
agreement with a third party to manage the company’s
activities jointly. In this case, the parties have rights to the
assets that can be ascribed to the agreement and obliga-
tions in respect of the liabilities. The assets and liabilities
and revenue and expenses are included in the consoli-
dated financial statements proportionately in accordance
with the KWS Group’s stake (50%).
Deferred taxes on consolidation transactions recognized
in income are calculated at the tax rate applicable to the
company concerned. These deferred taxes are aggregated
with the deferred taxes recognized in the separate financial
statements.
As part of the elimination of intra-Group balances,
borrowings, receivables, liabilities, and provisions are
netted between the consolidated companies. Inter-
company profits not realized at Group level are elimi-
nated from intra-Group transactions. Sales, income, and
expenses are netted between consolidated companies,
and intra-Group distributions of profit are eliminated.
If there are non-controlling interests, they are recognized
in the amount of the imputed percentage of equity in the
consolidated companies.
3.4 Currency translation
Under IAS 21, the financial statements of the consolidated
foreign subsidiaries that conduct their business as finan-
cially, economically, and organizationally independent
entities are translated into euros using the functional
currency method and rounded in accordance with
standard commercial practice as follows:
Income statement items at the average exchange rate
for the year on a monthly basis;
Balance sheet items at the exchange rate on the
balance sheet date.
The following exchange rates were applied in the consoli-
dated financial statements for the main foreign currencies
relative to the euro:
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Consolidated Financial Statements | Notes for the KWS Group | 3. Accounting Policies
Argentina’s IPC price index was 1,709.61 points at
July 1, 2023, and rose by 271.5% in the past fiscal year
to 6,351.71 points at June 30, 2024. Türkiye’s Consumer
Price Index (CPI) was 1,351.59 points at July 1, 2023, and
rose by 71.6% in the past fiscal year to 2,319.29 points
at June 30, 2024.
3.5 Classification of the statement of
comprehensive income
The KWS Group has prepared the income statement using
the cost-of-sales method. The costs for the functional
areas include all directly attributable costs, including other
taxes, as well as received government grants recognized
in profit or loss.
3.6 Recognition of income and expenses
Revenue from contracts with customers is primarily
generated from the sale of seed. It is recognized when
the KWS Group transfers control over products to the
customer. That is usually the time when risk passes to the
customer. The revenue is recognized at the amount of the
consideration promised in the contract.
The revenue is limited to the amount that the KWS Group
expects to receive for fulfilling its performance obligations.
Accordingly, revenue is reduced by value-added or sales
taxes as well as actual and expected discounts, cash
discounts and bonuses. If rights of return are provided for
in the contract, these must be measured separately. The
KWS Group uses empirical country-specific and seasonal
figures and information on already announced returns to
estimate the anticipated returns.
Exchange rates for main currencies
Rate on balance sheet date
Average rate
1 EUR/
06/30/2024
06/30/2023
2023/2024
2022/2023
ARS 1
Argentina
976.67
280.14
976.67
280.14
BRL
Brazil
5.99
5.22
5.41
5.40
GBP
UK
0.85
0.86
0.86
0.87
RUB
Russia
92.42
95.11
99.73
72.97
TRY 1
Türkiye
35.13
28.15
35.13
28.15
UAH
Ukraine
43.35
40.00
41.00
38.18
USD
U.S.
1.07
1.09
1.08
1.05
1 The average exchange rate corresponds to the rate on the balance sheet date pursuant to the application of IAS 29 for the Turkish and Argentinean subsidiaries
The difference resulting from the application of annual
average rates on a monthly basis to the earnings after
taxes in the income statement at the rate on balance sheet
date is taken directly to equity.
Differences arising from currency translation of monetary
balance sheet items denominated in foreign currency are
recognized in profit or loss under “Other operating income”
or “Other operating expenses” and, where they result
from financial transactions, under “Financial income” or
“Financial expenses.” An exception is currency translation
differences from loan receivables that represent part of the
net investment in a foreign subsidiary. According to IAS 21,
these translation differences are recognized in the other
comprehensive income and are not reclassified to profit or
loss until disposal of the net investment. The accumulated
amount is recognized in the income statement only when
the net investment is disposed of.
Argentina and Türkiye were still classified as hyper-
inflationary economies this fiscal year, as a result of
which IAS 29 “Financial Reporting in Hyperinflationary
Economies” was applied to the significant subsidiaries
in these countries. The net gains or losses from the
ongoing inflation of non-monetary assets and liabilities as
well as equity and all items in the income statement are
recognized in profit or loss under “Other comprehensive
income.”
The financial statements of these subsidiaries are generally
based on the historical cost concept. Due to changes in
the general purchasing power of the functional currency,
these financial statements had to be adjusted to the unit of
measure applicable at the balance sheet date.
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The KWS Group’s contracts with customers do not usually
have any significant separable performance obliga-
tions apart from the delivery of seed. Consequently,
splitting of the transaction price is not required for most
of the KWS Group’s contracts with customers. The total
purchase price must be recognized at a point in time.
The level of the promised consideration is not adjusted
by the effects of a financing component if the period
for payment is less than 12 months. For contracts with
customers that have a period for payment of more than
12 months, the financing component is carried separately
on the basis of present value.
The incremental costs of obtaining a contract are recog-
nized as a current expense in the period.
Revenue from service transactions is recognized over
the period of time in which the service is provided and
measured using the percentage of completion method
or in accordance with the costs incurred. Revenue from
royalties and other income, such as interest and dividends,
are recognized in the period in which they accrue as soon
as there is a contractual or legal entitlement to them.
Performance-based public grants are carried as a
reduction in the respective function costs.
Operating expenses are recognized in the income
statement upon the service in question being used or
as of the date on which they occur.
3.7 Intangible assets
Purchased intangible assets are carried at cost less
straight-line amortization and impairment losses. It
is necessary to examine whether the useful life of intan-
gible assets is finite or indefinite. Any amortization is
included in the respective functional areas. Goodwill has
an indefinite useful life. Goodwill and intangible assets with
an indefinite useful life are not amortized, but tested for
impairment at least once a year.
Intangible assets acquired as part of business combi-
nations are carried separately from goodwill if they are
separable according to the definition in IAS 38 or result
from a contractual or legal right.
The useful life of intangible assets with a finite useful life is
as follows:
Useful life of intangible assets
Useful life
Breeding material, proprietary rights
to varieties and trademarks
10 – 30 years
Other rights
3 – 10 years
Software
3 – 8 years
Distribution rights
5 – 20 years
Customer relationships
1 – 5 years
The residual values, useful economic lives (finite and indef-
inite) and methods of amortization for intangible assets are
reviewed no later than at the end of each fiscal year and
adjusted prospectively if necessary.
3.8 Property, plant and equipment
Property, plant and equipment is measured at cost less
straight-line depreciation over its expected useful life and
impairment losses. Depreciation of an asset commences
when the asset is at its location and is in the condition
necessary for it to be capable of operating in the manner
intended by management. Depreciation of an asset ends
when the asset has been fully expensed or is classified
as held for sale in accordance with IFRS 5 or at the latest
when it is derecognized. This depreciation is still recog-
nized in the respective function costs.
If property, plant and equipment is sold or scrapped, the
profit or loss from the difference between the proceeds
and residual carrying amount is recognized under the other
operating income or other operating expenses.
In addition to directly attributable costs, the cost of
self-produced plant or equipment also includes a
proportion of the overheads and depreciation/amortization.
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Useful life of property, plant and equipment
Useful life
Buildings
10 – 50 years
Operating equipment and other
facilities
5 – 25 years
Technical equipment and machinery
5 – 15 years
Laboratory and research facilities
5 – 13 years
Other equipment, operating and
office equipment
3 – 15 years
Low-value assets (with a value of up to €1 thousand) are
fully expensed in the year of purchase; they are reported
as additions and disposals in the year of purchase in the
statement of changes in fixed assets.
If there is evidence of a possible impairment, an
impairment test on the property, plant and equipment or
at a cash-generating unit is carried out in accordance with
IAS 36. An impairment is recognized if the recoverable
amount for the asset/cash-generating unit has fallen below
the residual carrying amount. The recoverable amount is
the higher of the fair value less costs to sell or the value
in use. If the reason for an earlier impairment loss on
property, plant and equipment no longer applies, its value
is increased to up to the amount that would have resulted
if the impairment loss had not occurred, taking depreci-
ation into account. In accordance with IAS 20, government
grants for assets are deducted from the costs of the asset.
The residual values, useful economic lives and methods
of depreciation for property, plant and equipment are
reviewed at the end of each fiscal year and adjusted
prospectively if necessary.
In accordance with IAS 23, borrowing costs are capitalized
if they can be classified as qualifying assets.
3.9 Leases
A lease is an agreement whereby the lessor conveys the
right to use an asset for an agreed period of time to the
lessee in exchange for a payment or a series of payments.
If the KWS Group is the lessee, leases are recognized as
a right-of-use asset and lease liability in the balance sheet
in accordance with the regulations of IFRS 16. In subse-
quent periods, the right-of-use asset is depreciated over
the lease’s term, taking into account the exercise of any
renewal options. This depreciation is recognized in the
respective function costs. Interest expense is accrued on
the lease liability in the course of the lease and the liability
is reduced by the lease payments that have been made.
The effect from the accrued interest is recognized in the
interest expense under net financial income/expenses.
The lease payments for short-term leases and leases of
low-value assets are recognized as operating expenses in
accordance with the available exemption.
The right-of-use assets are recognized to the amount of
the corresponding lease liabilities, adjusted for any prepaid
or accrued lease payments if applicable. The right-of-use
assets and lease liabilities are each reported in the balance
sheet under a separate item.
If the KWS Group is the lessor and the main risks and
rewards from use of the leased object are transferred
to the contractual partner, the lease is deemed to be a
financial lease. The net investment in the lease is recog-
nized as a receivable.
If the KWS Group acts as a lessor as part of an
operating lease, the lease payments are recognized as
other operating income in the income statement on a
straight-line basis over the lease’s term.
The KWS Group’s leases mainly relate to tenancy agreements
for office space, lease agreements and leased vehicles.
3.10 Assets and disposal groups held for sale and
discontinued operations
Noncurrent assets or disposal groups comprising assets
and liabilities are classified as held for sale if it is highly
probable that they will be realized predominantly through
sale or distribution rather than through continued use.
In general, these assets or the disposal group are recog-
nized at the lower of their carrying amount and fair value
less costs to sell. Any impairment loss on a disposal group
is first allocated to goodwill and then to the remaining
assets and liabilities on a pro rata basis – with the
exception that no loss is allocated to inventories, financial
assets, deferred tax assets, assets arising from employee
benefits, investment property or biological assets, which
continue to be measured in accordance with the Group’s
other accounting policies.
Impairment losses on initial classification of an asset as
held for sale and subsequent gains and losses on remea-
surement are recognized in profit or loss.
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Intangible assets and property, plant and equipment are
no longer amortized or depreciated from the time they
are classified as held for sale, and any equity-accounted
investee is no longer carried using the equity method as
soon as it is classified as held for sale.
An operation is classified as a discontinued operation upon
its sale or as soon as it meets the criteria for classification
as held for sale, whichever is earlier.
A discontinued operation is a component of the Group’s
business where
its business area and cash flows can be clearly segre-
gated from the rest of the Group and it represents a
separate major line of business or geographical area of
operations;
it is part of a single coordinated plan to dispose of a
separate major line of business or geographical area of
operations, or
it is a subsidiary acquired exclusively with a view to
resale.
If an operation is classified as discontinued, the income
statement for the comparative year is adjusted as if the
operation had been classified as discontinued from the
beginning of the comparative year.
Consolidation processes are regularly applied in calcu-
lating current earnings after taxes from discontinued
operations, i.e. all transactions between the discontinued
and continuing operations are eliminated in full.
In addition, the regulations of IAS 29 “Financial Reporting
in Hyperinflationary Economies” are also applied if the
discontinued operation includes subsidiaries located in
hyperinflationary economies.
Cash proceeds/payments from discontinued operations
are presented separately from cash proceeds/payments
from continuing operations in the consolidated cash
flow statement. Prior-year figures are adjusted as if the
operation had been classified as discontinued from the
beginning of the comparative year.
3.11 Financial instruments
Classification and measurement
Apart from equity instruments, financial instruments are
financial assets and financial liabilities.
When financial assets are initially recognized, they are
assigned to one of the following three categories for the
purpose of subsequent measurement:
At amortized cost
At fair value through other comprehensive income
At fair value through profit or loss.
Equity instruments are generally measured at fair value
through profit or loss, unless an option to classify them
irrevocably as being measured at fair value through other
comprehensive income is exercised when they are initially
recognized. Such an option is available if the financial
investments in equity instruments are neither held for
trading nor constitute a contingent consideration as part of
a company acquisition. The debt instruments are classified
taking into account the KWS Group’s business model for
controlling these financial assets and the contractual cash
flow characteristics for the financial instrument. A financial
asset is measured at amortized cost if it is held with the
objective of collecting contractual cash flows and the
latter comprise solely payments of interest and principal. If
financial assets are held as part of the business model to
collect contractual cash flows and sell accordingly desig-
nated financial instruments, these financial instruments are
classified as being measured at fair value through other
comprehensive income. All the other financial instruments
are classified in the category “measured at fair value
through profit or loss.” There is also the option of desig-
nating the debt instrument as being measured at fair value
through profit or loss under certain conditions when it is
carried for the first time.
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The financial assets consist of bank balances and cash
on hand, trade receivables, loans, fund shares, securities,
derivatives and other financial assets. Regular-way
purchases and sales of financial assets are recognized or
derecognized in general at the settlement date. Because
fund shares have the characteristics of equity, they are
classified irrevocably as being measured at fair value
through other comprehensive income. The changes to
fair value in subsequent measurement are recognized
as unrealized gains and losses directly in other compre-
hensive income in the reserve for revaluation of equity
instruments.
In addition, derivatives designated as hedging relationships
are classified in accordance with hedge accounting regula-
tions as being measured through other comprehensive
income. In contrast, derivatives not designated as hedging
relationships are recognized through profit or loss.
The other financial assets are measured at amortized
cost. The carrying amount of receivables, money market
accounts and cash is assumed as the fair value.
Impairment losses
The credit risk is the risk that a contractual partner
does not fulfill its payment obligations as part of a
financial instrument. The risks of default are monitored
and controlled constantly and reflected by means of
impairment losses. The KWS Group ascertains the need
to recognize an impairment loss for all financial assets
not classified in the category “at fair value through profit
or loss.” That is calculated on the basis of the expected
losses. The expected losses are in general the present
value resulting from the difference between the cash flows
defined in the contract and the cash flows the KWS Group
expects to receive.
In general, a two-stage model must be applied in calcu-
lating the expected losses. If the credit risk for financial
instruments has not increased significantly, the risk
provision is recognized only on the basis of losses
resulting from default events within the next 12 months.
In the case of financial instruments whose credit risk has
increased significantly since first-time recognition, the
entire remaining lifetime is used to calculate the expected
losses.
The KWS Group uses a simplified approach under IFRS 9
to determine the expected losses because the financial
assets mainly consist of current trade receivables.
Measurement and first-time recognition of the receivables
and also their subsequent measurement therefore take into
account expectations of default on the item in question
over its entire lifetime.
The KWS Group determines the expected counterparty
default on the basis of the probability of default and the
loss rate in the event of default.
The probability of default is generally determined on the
basis of customer-specific ratings. The probability of
default relates to a year, which is usually the maximum
lifetime of receivables at the KWS Group. Since specific
ratings are not available for all customers, an average
rating based on all classified customers is calculated for
each country, regardless of the receivables per customer.
It is then applied to the total amount for all the receiv-
ables in the country in question. If that information is not
available for a country, the average rating of a country with
a comparable risk is applied.
The loss rate is the percentage loss in the event of default
and corresponds to the amount of the unpaid receivables
less an expected recovery rate. The KWS Group applies a
uniform recovery rate determined regardless of customer
group, due date and country over a long period of time and
over a broad total number of company insolvencies.
Changes to the level of the risk provision must be carried in
the income statement as a reversal of an impairment loss
or as an impairment loss.
Cash and cash equivalents are exposed only to an insignif-
icant risk of fluctuations in their value. The seasonal nature
of the KWS Group’s liquidity situation over the fiscal year
only permits short-term cash deposits in the period from
May to August. The bank balances and short-term cash
deposits are mainly with banks that have high and stable
creditworthiness. Given the external credit rating for these
banks, the KWS Group’s cash and cash equivalents are
regarded as low risk. Moreover, bank balances are spread
over multiple banks in order to avoid any concentration of
them. Impairment losses on cash and cash equivalents
are regularly calculated on the basis of credit default
swaps (CDS) of the banks and are only recognized as an
impairment loss in the balance sheet if they are material.
Bank balances are recognized at nominal value less any
necessary risk provision for expected credit losses.
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3. Accounting Policies | Notes for the KWS Group | Consolidated Financial Statements
Financial assets are mainly derecognized once the
contractual rights to obtain cash flows from financial
assets have expired or the financial assets with all
their risks and rewards have been transferred to a third
party. When the contractual rights are transferred, the
KWS Group assesses whether and to what extent risks
and rewards associated with ownership of them remain
with the Group. If the risks and rewards are not transferred
in full, the KWS Group continues to recognize the asset
to the extent of its continuing involvement. In that case, a
related liability is also recognized.
The financial liabilities mainly comprise trade payables,
loans from banks, derivatives and other financial liabilities.
When financial liabilities are initially recognized, they are
classified as being measured at fair value through profit
or loss or at amortized cost. KWS Group adopts first-time
measurement at fair value. The fair value of financial
liabilities with a long-term fixed interest rate is determined
as present values of the payments related to the liabilities,
using a yield curve applicable on the balance sheet date.
All financial liabilities at the KWS Group, with the exception
of derivative financial instruments, are measured at
amortized cost using the effective interest method. The
liabilities are derecognized at the time they are settled or
when the reason why they were formed no longer exists.
Depending on their structure, liabilities from derivative
financial instruments are recognized with changes in value
in the other comprehensive income or in profit or loss (see
also section “3.12 Derivatives” of the Notes). Financial
instruments in level 1 are measured using quoted prices in
active markets for identical assets or liabilities. In level 2,
they are measured by directly observable market inputs or
derived indirectly on the basis of prices for similar instru-
ments. Finally, input factors not based on observable
market data are used to calculate the value of level 3
financial instruments.
3.12 Derivatives
The KWS Group uses derivatives to reduce currency,
interest rate and commodity price risks. It mainly uses
forward and swap deals and options that are customary
in the market for that purpose. Derivative instruments are
measured at fair value; they can be assets or liabilities.
The fair value of the financial instruments is measured
on the basis of the market information available on the
balance sheet date and using recognized mathematical
models, such as present value or Black-Scholes, to
calculate option values, taking their volatility, remaining
maturity and capital market interest rates into account.
The instruments must also be classified in a level of the fair
value hierarchy.
The changes in the market value of derivatives not desig-
nated as hedging relationships are recognized in the
income statement. Derivatives are derecognized on their
day of settlement.
Hedging relationships
The KWS Group uses commodity options to hedge against
commodity price risks. Derivatives can be designated
as hedges of cash flows from a transaction that is highly
likely to occur in the future in individual cases, but this is
only considered for commodity derivatives at present. In
such cases, the hedged item and hedging transactions
formally defined and documented as a hedging relationship
are managed and monitored as part of operational risk
management.
The effective portion of the changes in the market value
of designated derivatives is recognized in other compre-
hensive income in the reserve for cash flow hedging. The
ineffective portion is recognized immediately in the income
statement under other operating expenses. The reserve
for cash flow hedging is adjusted to the lower of the
cumulative gain or loss from the hedging instrument and
the cumulative change in fair value of the hedged item.
The KWS Group only designates the change in the intrinsic
value of an option as a hedging instrument. The change
in fair value is recognized directly in other comprehensive
income and accumulated in a separate equity component,
the “Cost of hedging reserve.”
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Deferred taxes are measured on the basis of the applicable
local income tax rates anticipated at the time the asset
is realized or the liability is settled. Deferred tax assets
and liabilities are measured based on the tax rates/laws
that apply or have been enacted or substantively enacted
by the balance sheet date. No discounting is carried out.
Deferred taxes and actual taxes are generally recognized
as an expense, unless they relate to transactions or events
that are recognized outside of profit or loss.
Deferred tax assets are netted off against deferred tax
liabilities if there is a legally enforceable right to set off
actual tax refund claims against actual tax liabilities and
if the deferred taxes relate to income taxes levied by the
same taxing authority.
Deferred tax assets are recognized if it is considered
probable that there will be sufficient future taxable profit
against which the deductible temporary differences, tax
loss carryforwards, tax credits and interest carryforwards
can be offset. Future taxable gains are determined on the
basis of the reversal of taxable temporary differences.
Deferred tax claims are reviewed at each balance sheet
date and reduced to the extent that it is no longer probable
that the related tax benefit can be realized. Write-ups are
made if the probability of future taxable income improves.
Irrespective of the forecast for taxable gains, deferred tax
assets are recognized to the extent that they are offset
by deferred tax liabilities. Deferred tax liabilities must be
recognized for all taxable temporary differences.
The measurement of deferred taxes reflects the tax conse-
quences that result from the KWS Group’s expectations
with regard to the way in which the carrying amounts of its
assets will be realized or its liabilities settled at the balance
sheet date.
Deferred tax liabilities on taxable temporary differences
associated with investments in subsidiaries, branches
and associated companies, and interests in joint arrange-
ments, are not recognized if the entity is able to control the
timing of the reversal of the temporary differences and it is
probable that the reversal will not occur in the foreseeable
future.
If a hedged future transaction subsequently results in the
recognition of a non-financial item (for example, inven-
tories), the amount accumulated in other comprehensive
income is reclassified to initial cost (basis adjustment). If
recognition of hedging relationships for cash flow hedging
is discontinued, the amount accumulated in other compre-
hensive income remains in other comprehensive income
if the hedged future cash flows are still expected to occur.
Otherwise, the amount is immediately reclassified to the
income statement.
3.13 Inventories and biological assets
Inventories are measured at the lower of cost or net
realizable value less an allowance for obsolescent or
slow-moving items. In addition to directly attributable
costs, the cost of sales also includes indirect labor and
materials including depreciation under IAS 2.
As in previous years, biological assets result from the
KWS Group’s farming activities at its locations in Germany,
France and Poland. At these locations, the KWS Group
has farms that carry out all agricultural activities as part
of seed propagation. Under IAS 41, biological assets are
measured at fair value less the estimated costs to sell.
If their fair value cannot be reliably determined, they are
measured at cost. Immature biological assets are carried
as inventories as of the time they are harvested.
3.14 Deferred taxes
Deferred taxes are calculated in accordance with IAS 12.
Deferred taxes are calculated on temporary differences
between the different carrying amounts of assets and
liabilities between the IFRS and the tax regulations,
including differences from consolidation measures, and
on tax loss carryforwards, tax credits and interest carry-
forwards. Since it is not permissible to recognize deferred
tax liabilities arising from initial recognition of goodwill
pursuant to a business combination, the KWS Group does
not calculate any deferred taxes on them. Deferred taxes
are generally recognized in profit or loss, except to the
extent that they are linked to an item recognized in equity
or in other comprehensive income.
121
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3. Accounting Policies | Notes for the KWS Group | Consolidated Financial Statements
3.15 Actual taxes
Actual taxes are the expected tax liability or tax asset on
the taxable income or tax loss for the fiscal year, based on
tax rates that apply at the balance sheet date or will soon
apply. The actual income taxes are calculated on the basis
of the respective national taxable profit and regulations
for the year. In addition, the actual taxes recognized in the
fiscal year also include adjustments for any tax payments
or refunds in respect of years that have not yet been defin-
itively assessed, but excluding interest payments, interest
refunds and penalties on payments of tax arrears.
If there is uncertainty over the income tax treatment, the
KWS Group measures actual or deferred tax claims or
liabilities in accordance with the regulations of IAS 12 and
IFRIC 23. The KWS Group decides on a case-by-case
basis whether the uncertain tax treatment should be
considered independently or collectively together with
one or more other uncertain tax treatments, depending
on which approach provides better predictions of the
resolution of the uncertainty.
If it is considered improbable that the tax authority will
accept an uncertain tax treatment, the KWS Group recog-
nizes the effects of the uncertainty at the amount of the
anticipated tax payment (the expected value or most likely
amount of the tax treatment). Tax assets from uncertain
tax positions are recognized if it is probable that they can
be realized. No provision for taxes is recognized for these
uncertain tax positions only if there is a tax loss carry-
forward or an unused tax credit; instead, the deferred
asset is adjusted for the unused tax loss carryforwards
and tax credits.
In assessing whether and how an uncertain tax treatment
affects determination of the taxable profits/taxable losses,
tax bases, unused loss carryforwards, unused tax credits
and tax rates, the KWS Group assumes that a tax authority
will examine the amounts it is authorized to examine and
has full knowledge of all related information as part of such
examinations.
The KWS Group operates in a large number of countries
and is therefore subject to various tax jurisdictions. Deter-
mining the tax liabilities requires a number of assessments
by management. Management has conducted an extensive
assessment of tax-related imponderables; however, it is
not possible to rule out a deviation from the results of that
and the actual outcome of the imponderables.
Any deviations may impact the amount of tax liabilities or
deferred taxes in the year the decision is made.
The global minimum tax under Pillar Two is calculated
on the basis of the taxable profit or loss in the country in
question. This profit or loss – before elimination of intra-
Group items and after other adjustments – is included in
the consolidated financial statements of the ultimate parent
company. The KWS Group has come to the conclusion that
this global minimum tax, which is payable under national
legislation for Pillar Two, is an income tax within the scope
of IAS 12. The KWS Group has applied the temporary,
mandatory exemption regarding the recognition of deferred
taxes resulting from introduction of global minimum
taxation, i.e. deferred taxes in connection with income
taxes resulting from current or announced tax regulations
to implement the Pillar Two legislation do not have to be
recognized or disclosed. These taxes are carried accord-
ingly as actual tax expense/income at the time they are
incurred.
3.16 Provisions for pensions and other
employee benefits
The provisions for pensions and other employee benefits
are calculated using actuarial principles in accordance
with the projected unit credit method. Actuarial gains
and losses must be recognized directly in equity in other
comprehensive income. The service costs (including
past service costs) are recognized in operating income
in accordance with the employees’ assignment to the
functional areas. If there are plan assets and the relevant
requirements for netting them off are met, they are netted
off against the associated obligations.
The provisions for semi-retirement include obligations from
concluded semi-retirement agreements. Payment arrears
and top-up amounts for semi-retirement pay and for the
contributions to the statutory pension insurance program
are recognized in measuring them.
122
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 3. Accounting Policies
3.17 Other provisions
Provisions are recognized for present legal and
constructive obligations arising from past events that
will likely give rise to a future outflow of resources,
provided that a reliable estimate can be made of the
amount of the obligations.
Provisions are measured at their expected amount or
most likely amount, depending on whether they comprise
a large number of items or constitute a single obligation.
Provisions are reviewed regularly and adjusted to reflect
new findings or changes in circumstances. If it is no longer
likely that the economic outflow of a provision will occur, or
the conditions for why it was recognized no longer apply,
the provision is reversed by the corresponding amount and
the resulting income recognized in the item(s) in which the
original charge was recognized. If the reversal amount is
material and so the effect not related to the period must
be classified as material, the reversal is carried as income
from the reversal of provisions under other operating
income not related to the period.
Long-term provisions are discounted taking into account
future cost increases and using a market interest rate that
adequately reflects the risk, provided the interest effect is
material.
3.18 Contingent liabilities
The contingent liabilities result from debt obligations where
outflow of the resource is not probable or the level of the
obligation cannot be estimated with sufficient reliability or
from potential obligations for loan amounts drawn down by
third parties as of the balance sheet date.
3.19 Significant accounting judgments, estimates
and assumptions
In preparing the consolidated financial statements,
management has to make certain assumptions and
estimates that may substantially impact the presentation
of the Group’s financial position and/or results of opera-
tions. Essential estimates and assumptions that may affect
reporting in the various item categories of the financial
statements are described in the following:
Calculation of the expected returns and discounts from
customers at the balance sheet date (section 3.6 of the
Notes)
Determination of the useful life of the depreciable asset
(sections 3.7 and 3.8 of the Notes)
Assessment by management of whether deferred tax
assets can be realized, taking into account the time at
which deferred tax liabilities are reversed and the antic-
ipated future taxable income in the period under review
(section 6.5 of the Notes)
Assessment of uncertain tax positions in accordance
with IFRIC 23 (section 6.5 of the Notes)
Definition of measurement assumptions and future
results in connection with impairment tests, above all
for capitalized goodwill (section 7.1 of the Notes)
Determination of the need to recognize impairment
losses on inventories (section 6.1 of the Notes)
Definition of the parameters required for measuring
pension provisions (section 7.11 of the Notes)
Measurement of other provisions (section 7.12 of
the Notes)
Determination whether there is reasonable certainty as
to whether extension or termination options as a part
of a lease will be exercised or not (section 7.15 of the
Notes).
Estimates are based on historical experience and other
assumptions that are considered reasonable under given
circumstances. They are continually reviewed but may
vary from the actual values.
123
KWS Group | Annual Report 2023/2024
3. Accounting Policies | Notes for the KWS Group | Consolidated Financial Statements
3.20 Impact of significant events
The war between Russia and Ukraine
In view of the ongoing war resulting from Russia’s invasion
of Ukraine in February 2022, the situation in both countries
is constantly being monitored and assessed. The spread of
hostilities in Ukraine may result in interruptions to business
operations (corn seed production), for example. There are
continued efforts by the Russian Ministry of Agriculture to
increase localization and control of the local seed market
and tighter import restrictions.
Consequently, the macroeconomic conditions resulting
from the war between Russia and Ukraine were – as in
previous years – taken into account in the measurement
policies at June 30, 2024.
Among other things, the change in the market situation
caused by the war between Russia and Ukraine was taken
into account in the adopted budget and medium-term
planning, which in turn were included in the annual
goodwill impairment test at June 30, 2024. In addition,
indications of impairment of property, plant and equipment
and other intangible assets were examined against the
backdrop of the war between Russia and Ukraine. All in all,
the examination did not reveal any impairment losses.
The effect on other assets, such as trade receivables and
inventories, was continually examined with regard to the
impact of the war in Ukraine on the economic environment.
The KWS Group’s business model is seasonal in nature,
which is why it generates most of its net sales by the
end of the third quarter and collects a large proportion
of the receivables owed to it in the fourth quarter. As
regards customers’ solvency, no circumstances justifying
impairment of the receivables above and beyond the
existing approach were identified. Potential industry- and
country-specific risks were, and will continue to be, taken
into account in assessing the potential impact of the war
between Russia and Ukraine on trade receivables.
Our business activities in Russia in fiscal 2023/2024
accounted for 8.2% (9.5%) of consolidated net sales.
Potential effects of economic and geopolitical develop-
ments on the recognition and measurement of assets
and liabilities are analyzed on an ongoing basis. The
KWS Group’s assets, financial position and earnings in
fiscal 2023/2024 were impacted by the repercussions of
the war between Russia and Ukraine only to a small extent.
Impacts of climate change
Climate-related effects on our business activities are
analyzed as part of our global risk management and in
our strategic planning. There are operational risks in
particular from extreme weather events such as heavy rain,
flooding, storms or drought, which according to prevailing
scientific analyses will continue to increase in number.
We mainly develop new varieties and propagate our seed
outdoors, meaning these activities are exposed to weather
events. In addition to local protection measures such as
irrigation, flood control or greenhouses, we can limit these
risks through regional diversification. Contra-seasonal
production in the southern hemisphere enables two culti-
vation cycles a year.
In addition to extreme weather events, climate change
is also causing a gradual increase in average tempera-
tures, changes in regional average rainfall, and changes in
disease or pest pressure. We counter that by continuously
improving our varieties as part of our global breeding
programs. The breeding objectives as part of that include
drought resistance, standing ability, better nutrient utili-
zation or new resistances. Climate change thus also entails
opportunities for KWS, which we explain in the section
“Opportunity Management” in the Management Report.
In general, the above-mentioned climate-related issues
are already inherent in the KWS Group’s business activ-
ities and are therefore reflected in the accounting policies
and assumptions. Consequently, there is currently no or
only a minor impact on estimates of the useful lives and
impairment of noncurrent assets, including goodwill, for
example.
The Group Management Report provides a more detailed
explanation of these significant events.
124 Consolidated Financial Statements | Notes for the KWS Group | 4. Consolidated Group and Changes
in the Consolidated Group
Annual Report 2023/2024 | KWS Group
4. Consolidated Group and Changes
in the Consolidated Group
4.1 Changes in the consolidated group in the
current fiscal year
There are 85 companies consolidated in the KWS Group
(previous year: 88).
Number of companies including KWS SAAT SE & Co. KGaA
06/30/2024
06/30/2023
Germany
Abroad
Total
Germany
Abroad
Total
Fully consolidated
13
60
73
13
61
74
Equity method
0
5
5
0
6
6
Joint operation
0
7
7
0
8
8
Total
13
72
85
13
75
88
There were the following changes among the fully consoli-
dated foreign subsidiaries:
In December 2023, KWS BRASIL LTDA. (Brazil) was
established with the aim of bundling South American
vegetable business, which comprises in particular the
crops tomatoes, melons and watermelons.
KWS FIDC (Brazil) was dissolved with effect from
December 31, 2023. The company is a subsidiary that
was ascribable to the discontinued South American
corn and sorghum business, meaning that the decon-
solidation loss of €876 thousand was recognized in
the income of the discontinued operation (see section
“4.2 Discontinued operation: disposal group classified
as held for sale” of the Notes).
KWS Seed Science & Technology (Sanya) Co., Ltd.
(China) was dissolved effective June 30, 2024.
In connection with the deconsolidation, a gain
of €12 thousand was recognized in the income
statement as other operating income.
There were the following changes among the equity-
accounted foreign companies:
On October 31, 2023, it was announced that the 49%
stake in KENFENG – KWS SEED CO., LTD (China) and
the Chinese corn portfolio (including licenses) would
be divested to the joint venture partner. Accordingly,
the stake was classified as an asset held for sale in
accordance with IFRS 5 during the year and no income
was recognized for the stake using the equity method
since then. Overall, the transaction was completed
successively, whereby various assets of the Chinese
corn portfolio were initially transferred to the joint
venture partner step by step (asset deals) before the
shares were transferred on February 26, 2024, upon
payment of the purchase price (share deal). A gain
of €30,664 thousand from the disposal of assets (asset
deal) was recognized in the income statement as other
operating income; on the other hand, there was a
deconsolidation loss of €784 thousand from the share
deal, which was recognized in the result from equity-ac-
counted financial assets.
There were the following changes among the foreign joint
operations:
Due to the discontinuation of its business activities,
GENECTIVE CANADA INC., (Canada) was no longer
included proportionately in the consolidated financial
statements with effect from July 1, 2023. This resulted
in a deconsolidation gain of €1 thousand, which was
recognized in the income statement as other operating
income.
4.2 Discontinued operation: disposal group classified
as held for sale
KWS concluded an agreement with GDM Holding S.A.
(GDM Group) to sell its corn and sorghum business,
together with licenses, effective March 25, 2024.
125
4. Consolidated Group and Changes| Notes for the KWS Group | Consolidated Financial Statements
in the Consolidated Group
KWS Group | Annual Report 2023/2024
The transaction essentially comprises all breeding and
sales activities for corn in South America (Brazil, Argentina,
Paraguay and Uruguay) and all of the KWS Group’s
production sites for corn seed in Argentina and Brazil and
thus relates in particular to the Corn operating segment.
The South American sorghum business, which was also
sold, was part of the Cereals operating segment.
The transaction was subject to defined closing condi-
tions and approval by the competent authorities. These
conditions were not met until after the balance sheet
date, meaning that closing took place on July 31, 2024,
and the South American corn and sorghum business was
therefore still presented as a discontinued operation in
the current fiscal year 2023/2024.
The recoverable amount of the disposal group’s noncurrent
assets was estimated immediately prior to classification as
a discontinued operation (March 31, 2024). No impairment
loss was identified or recognized as part of that.
Following initial classification, the disposal group was
recognized at the lower of their carrying amount and fair
value less costs to sell.
At June 30, 2024, the disposal group was recognized at its
carrying amount and comprises the assets and liabilities
listed in the table.
Assets held for sale
in € thousand
06/30/2024
Goodwill
17,249
Intangible assets
15,551
Property, plant and equipment
58,697
Trade receivables
117,959
Inventories
101,529
Cash and cash equivalents
23,105
Taxes
51,533
Other
36,684
Assets held for sale
422,307
Liabilities in connection with assets held for sale
in € thousand
06/30/2024
Financial liabilities
196,452
Provisions
28,880
Trade payables
23,617
Taxes
16,513
Other
18,776
Liabilities in connection with assets
held for sale
284,237
The income from the discontinued operation, which also
include transaction costs of €3,185 thousand, is as follows:
Income of the discontinued operation
in € thousand
2023/2024
Revenue
265,120
Expenses
335,703
Earnings before taxes
(operating activities)
–70,582
Taxes
–17,337
Earnings after taxes (total)
of the discontinued operation
–53,246
Earnings per share (€)
–1.61
The other comprehensive income includes a cumulative
effect of € –9,256 thousand in connection with the disposal
group.
As the disposal group was reported at the lower carrying
amount as of June 30, 2024, no impairment losses or
subsequent reversals of impairment losses from a possible
measurement or remeasurement at fair value less costs to
sell were recognized.
4.3 Other assets and disposal groups held for sale
At the end of fiscal year 2023/2024, the KWS Group
terminated the joint venture agreement relating to the 50%
stake in GENECTIVE S.A. (including subsidiaries), which
is included proportionately in the consolidated financial
statements. As the shares are expected to be sold within
12 months, the joint operation was classified as held for
sale at the balance sheet date on June 30, 2024. The stake
was tested for impairment immediately prior to classifi-
cation of the joint operation as held for sale. An impairment
loss of €4,573 thousand was recognized as part of that and
is fully ascribable to the “R&D costs” functional area.
126
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 5. Segment Reporting for the KWS Group
The following table shows the significant assets and
liabilities of GENECTIVE S.A. (including subsidiaries) after
impairment.
Assets held for sale
(proportionately at 50%)
in € thousand
06/30/2024
Intangible assets
6,283
Property, plant and equipment
2,536
Cash and cash equivalents
3,048
Other
312
Assets held for sale
12,179
Liabilities in connection with assets held for sale
(proportionately at 50%)
in € thousand
06/30/2024
Financial liabilities
4,556
Provisions
542
Trade payables
322
Other
1,362
Liabilities in connection with assets
held for sale
6,783
5. Segment Reporting for the
KWS Group
In accordance with its internal reporting and controlling
system, the KWS Group is primarily organized according
to the following business segments:
Corn
Sugarbeet
Cereals
Vegetables and
Corporate
The core competency for the KWS Group’s entire product
range, plant breeding, including the related biotech-
nology research, is essentially concentrated at the
parent company KWS SAAT SE & Co. KGaA in Einbeck.
The breeding material, including the relevant infor-
mation and expertise about how to use it, is owned by
KWS SAAT SE & Co. KGaA with respect to sugarbeet and
corn and mainly by KWS LOCHOW GMBH with respect
to cereals. Product-related R&D costs are carried directly
in the product segments Corn, Sugarbeet and Cereals.
The activities of the Vegetables Segment are pooled
at KWS VEGETABLES B.V. in Wageningen (the Nether-
lands) and its subsidiaries. Centrally controlled corporate
functions are grouped in the Corporate Segment. The
distribution and production of oil and field seed are
reported in the Cereals and Corn Segments, in keeping
with the legal entities currently involved.
The Executive Board is the main decision-making body
and is responsible for allocating resources and assessing
the earnings strength of the business segments. The
segments and regions are defined in compliance with the
internal controlling and reporting systems (management
approach). The accounting policies used to determine
the information for the segments are adopted in line
with those used for the KWS Group. The only exception
relates to consolidation of the equity-accounted joint
ventures and associated companies that are assigned to
the Corn Segment, namely AGRELIANT GENETICS LLC.,
AGRELIANT GENETICS INC., FARMDESK B.V. and
KENFENG – KWS SEEDS CO., LTD (on a pro rata
temporis basis until October 31, 2023 – see also section
“4.1 Changes in the consolidated group in the current fiscal
year” of the Notes). In accordance with internal controlling
practices, they are included proportionately as part of
segment reporting.
The presentation of net sales, income, depreciation and
amortization, other noncash items, operating assets,
operating liabilities and capital expenditure on noncurrent
assets by segment have been determined in accordance
with the internal operational controlling structure. The
allocation of the above joint ventures and associated
companies are consolidated proportionately on the
same basis.
The corn and sorghum business in Brazil and Argentina
is no longer included in the management reporting for the
Corn and Cereals Segments because of the intention to
close the sale of it. Corn and sorghum business in Brazil
and Argentina (discontinued operation) is therefore no
longer reflected in the segment information for the current
year under review.
Consequently, comparative segment information, with the
exception of operating assets and operating liabilities, has
also been adjusted retroactively, i.e. the adjusted figures
for the previous year no longer include the activities of the
discontinued operation.
127
KWS Group | Annual Report 2023/2024
5. Segment Reporting for the KWS Group | Notes for the KWS Group | Consolidated Financial Statements
In order to permit better comparability, the figures have
been reconciled with those in the consolidated financial
statements.
Sales per segment
in € thousand
Segment sales
Internal sales
External sales
2023/2024
2022/2023
2023/2024
2022/2023
2023/2024
2022/2023
Corn
701,455
738,154
0
94
701,455
738,060
Sugarbeet
864,873
716,284
0
24
864,873
716,259
Cereals
275,855
247,052
0
0
275,855
247,052
Vegetables
62,349
66,001
284
0
62,066
66,001
Corporate
23,582
22,959
14,419
14,645
9,164
8,314
Total for the segments
1,928,114
1,790,450
14,702
14,764
1,913,412
1,775,686
Elimination of equity-accounted finan-
cial assets
–235,294
–275,396
Sales according to the consolidated
statement of comprehensive income
1,678,118
1,500,291
Segment sales contains both net sales from third parties
(external sales) and net sales between the segments
(intersegment sales). The prices for intersegment sales are
determined on an arm’s-length basis. Uniform royalty rates
per segment for breeding genetics are used as the basis
or variable royalties are paid in order to ensure compliance
with the arm’s length principle. Technology revenues
from genetically modified traits (“tech fees”) are paid as a
per-unit royalty on the basis of the number of units sold,
due to their growing competitive importance.
Earnings, depreciation and amortization and non-cash items per segment
in € thousand
Segment earnings
Depreciation and
amortization
Other noncash items
2023/2024
2022/2023
2023/2024
2022/2023
2023/2024
2022/2023
Corn
39,066
18,749
38,715
32,990
–44,293
–60,447
Sugarbeet
350,050
253,404
23,506
22,204
–46,174
–34,967
Cereals
50,354
39,244
7,178
7,764
–5,488
–14,904
Vegetables
–34,711
–11,764
23,516
14,065
–1,516
–1,051
Corporate
–127,060
–115,015
25,858
20,918
–11,176
–11,776
Total for the segments
277,699
184,618
118,774
97,940
–108,648
–123,145
Elimination of equity-accounted
financial assets
24,253
10,495
–15,829
–14,289
14,705
13,718
Total excluding equity-accounted
financial assets
301,951
195,113
102,945
83,651
–93,943
–109,426
Net financial income/expenses
–49,963
–23,801
Earnings before taxes from
continuing operations
251,988
171,311
128
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 5. Segment Reporting for the KWS Group
The income statements of the consolidated companies
are assigned to the segments by means of profit center
allocation. Operating income, an important internal
parameter and an indicator of the earnings strength in
the KWS Group, is used as the segment earnings. The
operating income of each segment is reported as the
segment earnings. The segment earnings are presented
on a consolidated basis and include all directly attrib-
utable income and expenses. Items that are not directly
attributable are allocated to the segments on the basis of
an appropriate formula. Depreciation and amortization
charges allocated to the segments relate exclusively to
intangible assets and property, plant and equipment.
The other noncash items recognized in the income
statement relate to noncash changes in the allowances
on inventories and receivables, and in provisions.
Operating assets and operating liabilities per segment
in € thousand
Operating assets
Operating liabilities
2023/2024
2022/2023
2023/2024
2022/2023
Corn
637,581
1,016,898
148,775
250,603
Sugarbeet
622,211
471,541
123,498
139,153
Cereals
166,063
187,098
42,462
73,298
Vegetables
436,703
438,025
9,582
8,468
Corporate
263,404
214,185
270,110
172,873
Total for the segments
2,125,962
2,327,747
594,427
644,396
Elimination of equity-accounted financial assets
–187,989
–239,163
–65,754
–52,566
Total excluding equity-accounted financial assets
1,937,973
2,088,585
528,673
591,830
Others
1,018,120
660,976
1,027,507
866,655
KWS Group acc. to consolidated financial statements
2,956,093
2,749,561
1,556,180
1,458,485
The operating assets of the segments are composed of
intangible assets, property, plant and equipment, inven-
tories, biological assets and trade receivables that can
be charged directly to the segments or indirectly allocated
to them by means of an appropriate formula.
Other assets include financial assets, tax assets,
deferred tax assets, cash and cash equivalents and
assets held for sale and are accordingly carried
under the “Others” item.
The operating liabilities attributable to the segments
include – in accordance with the management
approach – trade payables, contractual and refund
obligations, lease liabilities and provisions, insofar
as these are not connected to income taxes.
Other liabilities include financial liabilities, provisions for
taxes, deferred tax liabilities and liabilities in connection
with assets held for sale and are accordingly carried
under the “Others” item.
The increase in the “Others” item is almost exclusively
due to recognition of the South American corn and
sorghum business as a discontinued operation.
129
KWS Group | Annual Report 2023/2024
5. Segment Reporting for the KWS Group | Notes for the KWS Group | Consolidated Financial Statements
Investments in long-term assets by segment 1
in € thousand
2023/2024
2022/2023
Corn
27,843
25,863
Sugarbeet
58,474
37,034
Cereals
17,527
12,824
Vegetables
16,458
14,286
Corporate
25,417
17,873
Total for the segments
145,719
107,880
Elimination of equity-
accounted financial assets
–5,804
–7,044
Investments acc. to
consolidated financial
statements
139,915
100,836
1 Excluding right-of-use assets in accordance with IFRS 16
The main capital spending for each segment is as follows:
Corn: Expansion and modernization of production and
processing plants in Ukraine and Romania
Sugarbeet: Expansion of storage capacities in Germany,
among other things with construction of an elite store-
house at Einbeck, and expansion of the seed treatment
plants in Türkiye.
Cereals: Expansion and modernization of production
plants, warehouses and breeding stations, in particular
in Germany, France and Poland
Vegetables: Start of construction of a research center
in the Netherlands; acquisition of a license for the crops
watermelons, cucumbers and tomatoes, and expansion
and completion of the breeding stations in Brazil,
Mexico and Spain
Corporate: Implementation of new ERP software and an
efficiency project aimed at using heat from effluents
Disclosures by region
The disclosures on the regional composition of net sales
and noncurrent operating assets have been made in
accordance with the accounting policies to be applied to
the consolidated financial statements of the KWS Group
and thus without proportionate consolidation of the equity-
accounted financial investments. Noncurrent operating
assets comprise goodwill, other intangible assets,
property, plant and equipment, and financial assets.
The external net sales by sales region are broken down on
the basis of the country where the customer is based. No
individual customer accounted for more than 10% of total
net sales in the current and the previous fiscal years.
External sales by region
in € thousand
2023/2024
2022/2023
Germany
307,756
281,184
Europe (excluding Germany)
928,720
825,064
thereof in France
169,246
144,214
North and South America
295,587
273,836
thereof in the U.S.
267,856
250,482
Rest of world
146,055
120,207
KWS Group
1,678,118
1,500,291
Long-term assets by region
in € thousand
2023/2024
2022/2023
Germany
333,153
328,910
Europe (excluding Germany)
630,387
630,306
thereof in the Netherlands
411,868
424,567
North and South America
190,732
275,720
thereof in the U.S.
170,190
187,145
Rest of world
25,170
12,667
KWS Group
1,179,442
1,247,603
130 Consolidated Financial Statements | Notes for the KWS Group | 6. Notes to the Consolidated Statement
of Comprehensive Income
Annual Report 2023/2024 | KWS Group
6. Notes to the Consolidated
Statement of
Comprehensive Income
Until the transaction is closed, the South American corn
and sorghum business is reported as a discontinued
operation (see section “4.2 Discontinued operation:
disposal group classified as held for sale” of the Notes for
details).
All of the figures presented below for fiscal years
2023/2024 and 2022/2023 in the “Notes to the Consol-
idated Statement of Comprehensive Income” therefore
relate to the company’s continuing operations, unless
explicitly stated otherwise. The figures for 2022/2023
have been adjusted accordingly.
6.1 Net sales and function costs
Net sales increased by 11.9% to €1,678,118 (1,500,291) thou
sand. Net sales are mainly generated from seed deliveries
(€1,487,093 thousand; previous year: €1,338,210 thousand)
and royalties (€131,470 thousand; previous year: €114,145
thousand). A breakdown by segments and regions
is provided in the segment reporting in section 5 of
the Notes.
The cost of sales increased by 5.5% to €622,423
(589,893) thousand, or 37.1% (39.3%) of sales. The key
factors behind the higher cost in absolute terms were the
strong expansion of business in the Sugarbeet Segment
and higher destruction and write-downs of inventories. The
total cost of goods sold was €527,621 (510,824) thousand.
The decline in the cost of sales as a percentage of net
sales is mainly due to the disproportionately high price-
related increases in net sales and economies of scale.
The grants recognized in the cost of sales amounted
to €1,227 (1,197) thousand. The impairment losses on and
destruction of inventories and the reversals of impairment
losses, which are carried as a reduction in the cost of
materials in the period, are as follows:
July 1 to June 30
in € thousand
2023/2024
2022/2023
Impairment losses
56,917
52,797
Reversals of impairment
losses
2,773
8,814
The impairment losses relate mainly to unsold or destroyed
seed. They are based on, among other things, empirical
values (such as germination capacity) and expectations
as to substitution by new varieties. Impairment losses on
inventories are reversed if the reasons for the impairment
no longer apply.
Selling expenses increased by €26,297 thousand
to €284,277 (257,980) thousand, or 16.9% (17.2%) of
sales. This increase in absolute terms is mainly attrib-
utable to cost increases compared with the previous year.
The grants recognized in the selling expenses amounted
to €344 (221) thousand.
Research & development is recognized as an expense
in the year it is incurred; in the year under review, this
amounted to €325,565 (299,791) thousand. That was 19.4%
(20.0%) of sales. Development costs for new varieties are
not recognized as an asset because evidence of future
economic benefit can only be provided after the variety
has been officially approved. The grants recognized in the
R&D costs amounted to €10,372 (9,037) thousand.
General and administrative expenses rose
by €9,446 thousand to €149,586 (140,140) thousand,
among other things due to higher IT, energy and wage
costs, and were 8.9% (9.3%) of sales. The grants
recognized in the general and administrative expenses
amounted to €17 (306) thousand.
131
6. Notes to the Consolidated Statement | Notes for the KWS Group | Consolidated Financial Statements
of Comprehensive Income
KWS Group | Annual Report 2023/2024
6.2 Other operating income
July 1 to June 30
in € thousand
2023/2024
2022/2023
Income from the disposal of noncurrent assets
31,002
1,938
Foreign exchange gains
12,251
26,425
Income from reversal of valuation allowances for trade receivables and
recovery of written-off receivables
4,355
3,072
Unrealized gain on derivatives measured at fair value through profit or loss
1,173
911
Income from received compensation
996
36
Other income related to previous periods
243
16
Income from the reversal of provisions
2
82
Miscellaneous other operating income
7,431
8,733
Total
57,453
41,214
Other operating income in fiscal 2023/2024 was impacted
by the non-recurring income from divestment of the
Chinese corn portfolio (including licenses) to an amount
of €30,664 thousand (see also section “4.1. Changes in the
consolidated group in the current fiscal year” of the Notes).
In addition, other operating income mainly includes foreign
exchange gains. These result from exchange rate changes
between the time at which foreign currency receivables
and liabilities arose and when they were paid, as well as
from exchange rate gains from measurement at the rate on
the balance sheet date. The high foreign exchange gains
in the previous year are largely attributable to the sharp
volatility of various currencies during the year, particularly
in Eastern Europe and Türkiye.
In addition, other operating income of €749 thousand was
generated from the sale of the carrot breeding program in
fiscal 2023/2024; it is carried under “Miscellaneous other
operating income.”
6.3 Other operating expenses
July 1 to June 30
in € thousand
2023/2024
2022/2023
Foreign exchange losses
19,540
42,840
Loss on net monetary position (hyperinflation)
9,244
5,543
Valuation allowances on receivables
6,848
4,201
Expenses relating to previous periods
1,592
2,243
Unrealized loss on derivatives measured at fair value through profit or loss
622
867
Other expenses
13,923
2,896
Total
51,769
58,590
The other operating expenses mainly comprise foreign
exchange losses and valuation allowances on receiv-
ables, as well as losses from the net monetary position
(hyperinflation).
The foreign exchange losses result from exchange rate
changes between the time at which foreign currency
receivables and liabilities arose and when they were paid,
as well as from exchange rate losses from measurement
at the rate on the balance sheet date. The high foreign
exchange losses in the previous year are largely attrib-
utable to the sharp volatility of various currencies, particu-
larly in Eastern Europe, and the devaluation of the Turkish
lira. Outstanding items denominated in foreign currency
were reduced significantly in fiscal 2023/2024.
132 Consolidated Financial Statements | Notes for the KWS Group | 6. Notes to the Consolidated Statement
of Comprehensive Income
Annual Report 2023/2024 | KWS Group
Net financial income/expenses fell compared with the
previous year, mainly due to higher interest expenses and
the loss from equity-accounted financial assets.
The net interest result of € –21,013 (–13,410) thousand was
mainly influenced by higher interest expenses in Türkiye
during the year and the generally higher level of interest
rates in Germany.
The net loss from foreign exchange gains and losses
amounted to €4,605 thousand (previous year: net gain
of €1,946 thousand). These arose in connection with the
Group’s financing. The net loss is largely attributable to
short-term intra-Group loans denominated in US dollars.
The negative result from equity-accounted joint ventures
and associated companies is almost exclusively due to
the high loss made by AGRELIANT GENETICS LLC (see
also section “7.3 Equity-accounted financial assets” of
the Notes).
6.5 Taxes
Income tax expenses
in € thousand
2023/2024
2022/2023
Actual income taxes
80,135
59,473
thereof from previous years
–2,577
1,343
Deferred taxes
–12,223
–14,254
Income taxes
67,912
45,219
The KWS Group pays tax in Germany at a rate of 29.7%
(29.7%). Corporate income tax of 15.0% (15.0%) and
solidarity tax of 5.5% (5.5%) are applied uniformly to
distributed and retained profits. In addition, trade tax
The increase of €3,701 thousand in losses from the net
monetary position to €9,244 (5,543) thousand is attrib-
utable solely to above-proportionate inflation in Türkiye.
The other expenses include the setup of a provision for
value-added tax risks to an amount of €7,744 thousand
as well as other taxes and expenses in connection with
divestment of the Chinese corn portfolio (asset deal)
totaling €2,134 thousand.
6.4 Net financial income/expenses
July 1 to June 30
in €
2023/2024
2022/2023
Interest income
4,801
2,625
Foreign exchange gains
3,818
6,828
Income from other financial assets
90
408
Financial income
8,709
9,861
Interest expenses
20,017
12,061
Foreign exchange losses
8,423
4,882
Interest effects from pension provisions
3,003
2,713
Interest expenses for lease liabilities
2,526
1,463
Interest expense for other long-term provisions
357
206
Financial expenses
34,326
21,325
Result from equity-accounted financial assets
–24,345
–12,337
Net financial income/expenses
–49,963
–23,801
is payable on profits generated in Germany. Trade tax
is applied at a weighted average rate of 13.9% (13.9%),
resulting in a total tax rate of 29.7% (29.7%).
133
6. Notes to the Consolidated Statement | Notes for the KWS Group | Consolidated Financial Statements
of Comprehensive Income
KWS Group | Annual Report 2023/2024
The profits generated by Group companies outside
Germany are taxed at the rates applicable in the country
in which they are based. The tax rates of the fully consol-
idated companies in foreign countries vary between 2.0%
(2.0%) in Russia (Special Economic Zone) and 30.0%
(30.0%) in Mexico.
The deferred taxes that are recognized relate to the
following balance sheet items and tax loss carryforwards:
Deferred taxes
in € thousand
At 06/30/2023
Changes in current year
Deferred
tax assets
Deferred
tax
liabilities
Net
value
Dispos-
al from
IFRS 5
reclassifi-
cation
Recog-
nized in
profit or
loss
Other
compre-
hensive
income
Currency
incl. hyper-
inflation
effects
Intangible assets 1
382
53,340
–52,957
199
4,366
0
–208
Property, plant and equipment
842
24,557
–23,715
6,971
482
0
–1,834
Financial assets
4,081
4,394
–314
–109
2,788
290
–657
Inventories
15,927
8,005
7,922
3,243
2,683
0
–266
Current assets
1,756
3,684
–1,928
2,270
–564
0
–48
Noncurrent liabilities 2
35,301
1,387
33,914
–15,046
–1,834
–1,577
84
of which pension provisions
10,734
7
10,727
0
–725
–1,541
1
Current liabilities 3
18,542
1,564
16,978
–5,499
5,360
0
–245
Deferred taxes recognized
(gross)
76,831
96,931
–20,100
–7,970
13,280
–1,287
–3,174
Tax loss carryforward
8,945
0
8,945
–7,076
–1,057
0
Setting off
–39,446
–39,446
0
0
0
0
Deferred taxes recognized
(net)
46,330
57,485
–11,156
–15,046
12,223
–1,287
–3,174
in € thousand
At 06/30/2024
Deferred
tax assets
Deferred
tax liabilities
Net value
Intangible assets 1
123
48,723
–48,600
Property, plant and equipment
608
19,162
–18,553
Financial assets
2,837
260
2,577
Inventories
16,898
4,531
12,367
Current assets
5,431
4,486
946
Noncurrent liabilities 2
17,465
1,887
15,578
of which pension provisions
8,875
413
8,462
Current liabilities 3
18,565
2,131
16,434
Deferred taxes recognized (gross)
61,927
81,179
–19,251
Tax loss carryforward
812
0
812
Setting off
–27,307
–27,307
0
Deferred taxes recognized (net)
35,432
53,871
–18,439
1 Due to application of IFRS 16, there are deferred tax liabilities of €8,752 (12,440) thousand attributable to intangible assets as of June 30, 2024.
2 Due to application of IFRS 16, there are deferred tax assets of €8,129 (10,499) thousand attributable to noncurrent liabilities as of June 30, 2024.
3 Due to application of IFRS 16, there are deferred tax liabilities of €2,735 (3,351) thousand attributable to temporary differences in the recognition of current liabilities as of June 30, 2024.
134 Consolidated Financial Statements | Notes for the KWS Group | 6. Notes to the Consolidated Statement
of Comprehensive Income
Annual Report 2023/2024 | KWS Group
Due to the use of tax loss carryforwards and tax credits
on which no deferred taxes were recognized in the past,
the actual tax expense fell by €362 (841) thousand.
No deferred taxes were formed for tax loss carryfor-
wards totaling €20,986 (20,040) thousand that have not
yet been utilized. Loss carryforwards totaling €20,986
(20,040) thousand can be utilized without any time limit.
No deferred taxes were recognized on temporary differ-
ences totaling €38,536 (32,742) thousand associated with
investments in subsidiaries, branches and associated
companies, and interests in joint arrangements, where the
KWS Group is able to control the timing of the reversal
of the differences and if it is probable that the reversal will
not occur in the foreseeable future.
In the year under review, there were surpluses of deferred
tax assets from temporary differences and loss carry-
forwards totaling €17,323 (23,773) thousand at Group
companies that made losses in the past period or the
previous period. These were considered recoverable, since
it is assumed that the companies in question will post
taxable profits in the future. The fact is taken into account
here that the KWS Group may realize income with a delay
due to the long-term nature of research and development
spending.
The reconciliation of the expected income tax expense to
the reported income tax expense is derived on the basis of
the consolidated income before taxes and the nominal tax
rate for the Group of 29.7% (29.7%), taking into account
the following effects:
Reconciliation of income taxes
in € thousand
2023/2024
2022/2023
Earnings before income taxes
251,988
171,311
Expected income tax expense 1
74,952
50,919
Reconciliation with the reported income tax expense
Differences from the Group’s tax rate
–10,906
–8,865
Effects of changes in the tax rate
–1,446
–4,173
Tax effects from:
0
Expenses not deductible for tax purposes and other additions
5,346
6,797
Tax-free income
–5,122
–817
Other permanent deviations
–2,568
–3,643
Recognition and measurement of deferred tax assets
–427
217
Income taxes for prior years, withholding taxes and uncertain tax positions
5,083
3,232
Other effects
3,001
1,552
0
Reported income tax expense
67,912
45,219
Effective tax rate
27.0%
26.4%
1 Tax rate of the Group’s parent company: 29.7% (29.7%)
135
6. Notes to the Consolidated Statement | Notes for the KWS Group | Consolidated Financial Statements
of Comprehensive Income
KWS Group | Annual Report 2023/2024
The other effects include effects from the application
of IAS 29 (hyperinflation) amounting to €2,850 (1,850)
thousand in Türkiye.
The item “Recognition and measurement of deferred tax
assets” includes in particular the effects of the non-rec-
ognition and initial recognition of deferred tax assets on
temporary differences and tax loss carryforwards. There
is a deferred tax expense of €452 (1,361) thousand from
the non-recognition of deferred taxes on tax loss carry-
forwards and temporary differences in the year under
review. The first-time recognition of deferred taxes and
use of deferred taxes on loss carryforwards that had not
previously been recognized result in deferred tax income
of €158 (307) thousand.
Effects from changes in tax rates relate in particular to
the Dutch companies. The future realization of recognized
deferred taxes for the Netherlands takes into account the
influence of research and development activities on the
effective tax. Tax rates also changed in Austria and the
Czech Republic in particular.
There is no definitive tax assessment in respect of
several years at the Group. A tax audit in Germany and
in a number of other countries has currently not been
concluded. Since the KWS Group operates multinationally
and there are numerous relationships between affiliated
companies, queries on the subject of transfer prices in
particular are expected from the local fiscal authorities.
The KWS Group believes it has made adequate provi-
sions for these years where the tax assessment is not
concluded. As a result of future legislation or changes in
the opinions of the fiscal authorities, and allowing for the
fact that there is some uncertainty in the area of transfer
pricing, it is not possible to rule out that there will be tax
refunds or payments of tax arrears for past years.
In order to reduce tax avoidance and profit shifting, the
Organization for Economic Cooperation and Development
(OECD) has published the Pillar Two Model Rules, which
are intended to address the tax challenges arising from
digitalization of the global economy in order to ensure an
effective minimum tax rate of 15%. Where applicable, the
KWS Group will pay an additional tax amounting to the
difference between the effective tax rate and the minimum
tax rate of 15% in accordance with the legislation for each
country. Since the Pillar Two legislation will not apply to
the KWS Group until the next fiscal year, the KWS Group is
not subject to any tax burden in this regard in the current
fiscal year. Similarly, the temporary, mandatory exemption
regarding the recognition of deferred taxes means that
deferred taxes in connection with income taxes resulting
from current or announced tax regulations to implement
the Pillar Two Model Rules published by the OECD are not
recognized or disclosed.
Based on country-by-country reporting, almost all Group
companies are subject to an effective tax rate of more
than 15% per country in the current fiscal year. The only
exception is one country for which a future supplementary
tax could be expected, but that is not considered to be
material given the size of the local subsidiary. In view
of that, introduction of the Pillar Two legislation will not
have any significant effects on the KWS Group’s assets,
financial position and earnings.
6.6 Personnel costs/employees
(continuing operations only)
July 1 to June 30
in € thousand
2023/2024
2022/2023
Wages and salaries
317,209
296,808
Social security contributions,
expenses for pension plans
and benefits
79,863
74,593
Total
397,072
371,401
Personnel costs went up by 6.9%. The number of
employees increased from 4,391 to 4,673, or by 6.4%. Of
the 4,673 (4,391) employees, 4,461 (4,173) are permanent
employees and 212 (218) are temporary employees. The
number of trainees and interns is recorded separately
and not included in the headcount. There were 157 (140)
trainees and interns at KWS at June 30, 2024.
136 Consolidated Financial Statements | Notes for the KWS Group | 6. Notes to the Consolidated Statement
of Comprehensive Income
Annual Report 2023/2024 | KWS Group
Employees (FTE) by region
(continuing operations only)
2023/2024
2022/2023
Employees (FTE)
Germany
2,316
2,179
Europe (excluding Germany)
1,749
1,646
North and South America
409
379
Rest of world
199
187
Total
4,673
4,391
Trainees and interns
157
140
6.7 Share-based payment
Employee Stock Purchase Plan
KWS has an Employee Stock Purchase Plan. All employees
who have been with the company for at least one year
without interruption and have an employment relationship
that has not been terminated at a KWS Group company
that participates in the program are eligible to take part.
That also includes employees who are on maternity leave or
parental leave or who are in semi-retirement.
Each employee can acquire up to 2,000 shares. A bonus of
20% is deducted from the purchase price, which depends
on the price applicable on the key date. The shares are
subject to a lock-up period of four years beginning when
they are posted to the employee’s securities account.
The right to a dividend, if declared by KWS SAAT SE &
Co. KGaA, exists during the lock-up period. Holders can
also participate in the Annual Shareholders’ Meeting during
the lock-up period. They can dispose freely of the shares
after the lock-up period.
In the year under review, 62,300 (71,023) shares were repur-
chased for the Employee Stock Purchase Plan at a total
price of €3,189 (4,493) thousand and transferred directly
to the employees. The total cost for issuing shares at a
reduced price was €623 thousand in the past fiscal year
(previous year: €791 thousand).
Long-term incentive (LTI)
The stock-based compensation plans awarded at the
KWS Group to members of the Executive Board and of the
first management level are recognized in accordance with
IFRS 2 “Share-based Payment.” The incentive program,
which was launched in fiscal 2009/2010, involves stock-
based payment transactions with cash compensation,
which are measured at fair value at every balance sheet
date. Members of the Executive Board are obligated to
acquire shares in KWS SAAT SE & Co. KGaA every year
in a freely selectable amount ranging between 35% and
50% of the gross performance-related bonus. Along with
that, members of the first management level below the
Executive Board likewise take part in an LTI program.
As part of this program, they are obligated to invest in
shares in KWS SAAT SE & Co. KGaA every year in a freely
selectable amount ranging between 10% and 40% of the
gross performance-related bonus. The shares acquired
under the LTI program may be sold at the earliest after a
regular holding period of five years beginning at the time
they are acquired (end of the quarter in which the shares
were acquired). In addition to the shares being unlocked,
the entitled persons are paid a long-term incentive (LTI) in
the form of cash compensation after the holding period for
the tranche in question. Its level is calculated on the basis
of KWS SAAT SE & Co. KGaA’s share performance and
on the KWS Group’s return on sales (ROS), measured as
the ratio of operating income to net sales, over the holding
period. For persons with contracts as of July 1, 2014, the
cash compensation for members of the Executive Board is
a maximum of one-and-half times (for the Spokesperson of
the Executive Board two times), and for members of the first
management level below the Executive Board a maximum
of two times their own investment (LTI cap). The costs of
this compensation are recognized in the income statement
over the period and, taking the cash compensation in
January 2024 into account, were €542 (657) thousand in the
period under review. The provision for it at June 30, 2024,
was €2,923 (3,017) thousand. The LTI fair values are calcu-
lated by an external expert.
6.8 Earnings after taxes
The earnings after taxes of the continuing operations
were €184,076 (126,092) thousand on operating income
of €301,951 (195,113) thousand and net financial income/
expenses of € –49,963 (23,801) thousand and after
taxes totaling €67,912 (45,219) thousand. Including
the earnings after taxes of the discontinued operation
totaling € –53,246 (897) thousand, the Group’s earnings
after taxes amounted to €130,830 (126,989) thousand.
The return on sales (earnings after taxes of the continuing
operations relative to net sales) was 11.0% and thus
well above the level of the previous year (8.4%). Diluted/
basic earnings per share are calculated by dividing the
Group’s earnings after taxes by 33,000,000 shares and
was €3.96 (3.85) for the Group and €5.58 (3.82) for the
continuing operations.
137
KWS Group | Annual Report 2023/2024
7. Notes to the Consolidated Balance Sheet | Notes for the KWS Group | Consolidated Financial Statements
7. Notes to the Consolidated
Balance Sheet
Until the transaction is closed, the South American corn
and sorghum business is reported as a discontinued
operation (see section “4.2 Discontinued operation:
disposal group classified as held for sale” of the Notes for
details). The associated assets and liabilities are reported
accordingly as separate items (“Assets held for sale” and
“Liabilities in connection with assets held for sale”) in the
consolidated balance sheet as of June 30, 2024.
Unlike in the consolidated income statement, the Interna-
tional Financial Reporting Standards (IFRS) do not provide
for any adjustment of the previous year’s figures in the
consolidated balance sheet as of June 30, 2023.
In view of that, the informational value of any direct
comparison of the consolidated balance sheet figures as
of June 30, 2024, with those at June 30, 2023, is limited.
7.1 Intangible assets
Reconciliation of the carrying amount of intangible assets
in € thousand
Other
intangible
assets
Goodwill
Intangible
assets
Gross carrying amounts: 07/01/2023
493,253
123,678
616,931
Currency translation
–2,095
–1,696
–3,792
IAS 29 inflation adjustment
84
0
84
Additions
15,120
0
15,120
Disposals
692
0
692
Transfers
547
0
547
Reclassification of assets held for sale (IFRS 5)
60,883
16,575
77,458
Gross carrying amounts: 06/30/2024
445,333
105,407
550,740
Amortization and write-downs: 07/01/2023
173,387
0
173,387
Currency translation
–1,840
0
–1,839
Planned additions
30,373
0
30,373
Impairment
4,573
0
4,573
Disposals
421
0
421
Transfers
0
0
0
Reclassification of assets held for sale (IFRS 5)
40,656
0
40,656
Amortization and write-downs: 06/30/2024
165,417
0
165,417
Net carrying amounts: 06/30/2024
279,916
105,407
385,323
Net carrying amounts: 06/30/2023
319,866
123,679
443,544
138
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 7. Notes to the Consolidated Balance Sheet
in € thousand
Other
intangible
assets
Goodwill
Intangible
assets
Gross carrying amounts: 07/01/2022
489,275
122,990
612,265
Currency translation
639
688
1,328
IAS 29 inflation adjustment
15
0
15
Additions
8,352
0
8,352
Disposals
5,067
0
5,067
Transfers
39
0
39
Gross carrying amounts: 06/30/2023
493,253
123,678
616,931
Amortization and write-downs: 07/01/2022
156,277
–1
156,276
Currency translation
577
1
577
Planned additions
19,911
0
19,911
Impairments
1,725
0
1,725
Disposals
5,067
0
5,067
Transfers
–35
0
–35
Amortization and write-downs: 06/30/2023
173,387
0
173,387
Net carrying amounts: 06/30/2023
319,866
123,679
443,544
Net carrying amounts: 06/30/2022
332,998
122,990
455,989
Intangible assets include purchased varieties, rights
to varieties and distribution rights, brands, customer
relationships, software licenses for electronic data
processing, and goodwill. The current additions
of €15,120 (8,352) thousand related to the ongoing
implementation of a new ERP system and the
acquisition of software licenses in the Vegetables
Segment. Amortization of intangible assets amounted
to €30,373 (19,911) thousand. The main driver behind
the increase in amortization is the “Pop Vriend” brand,
which was still assigned an indefinite useful life and had
a carrying amount of €20,752 thousand in the previous
year. At the beginning of fiscal 2023/2024, various strategic
aspects were evaluated, among other things against the
backdrop of the appointment of a new management team.
That also included a future uniform brand presence under
the KWS Group brand, i.e. full integration of the “Pop
Vriend” brand. In light of this new development, the brand’s
useful life was reassessed and a finite rather than an
indefinite useful life was taken into account, with the result
that the “Pop Vriend” brand will now be amortized until
the date when it is completely discontinued. Amortization
of €10,376 thousand was recognized in the fiscal year
2023/2024, meaning that the remaining carrying amount at
June 30, 2024, also amounted to €10,376 thousand.
The main carrying amount of the other intangible
assets still relates to the technology from acquisition
of the POP VRIEND SEEDS Group on July 1, 2019,
namely €219,589 (228,372) thousand, which has an
expected remaining useful life of 25 years.
Similarly to intangible assets with an indefinite useful life,
goodwill obtained as part of company acquisitions is
tested for impairment at least once a year.
To enable that, cash-generating units have been defined
in line with internal budgeting and reporting processes.
In the KWS Group, these are the Business Units. To test
for impairment, the carrying amount of each Business
Unit is determined by allocating the assets and liabilities,
including attributable goodwill and intangible assets. An
impairment loss is recognized if the recoverable amount
of a Business Unit is less than its carrying amount. The
recoverable amount is the higher of the fair value less
costs to sell and the value in use of a cash-generating unit.
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7. Notes to the Consolidated Balance Sheet | Notes for the KWS Group | Consolidated Financial Statements
As of June 30, 2024, only the “Vegetables” Business
Unit had significant goodwill, since the goodwill of
the “Corn America” Business Units that existed in the
previous year relates to the South American corn and
sorghum business and is therefore part of the discon-
tinued operation (see section “4.2 Discontinued operation:
disposal group classified as held for sale” of the Notes
for details).
Goodwill
in € thousand
06/30/2024
06/30/2023
Vegetables
99,576
99,576
Corn America
0
17,704
Cereals
4,017
3,987
Other
1,814
2,411
Total
105,407
123,679
The recoverable amount for the Business Unit Vegetables
is calculated as the fair value less costs to sell.
Measurement is based on the present value of future cash
flows derived from planning (fair value hierarchy level 3).
This takes into account not only the medium-term but
also the long-term net sales and earnings expectations
from establishment of KWS’ vegetable breeding opera-
tions. For this reason, the estimate of future cash flows
covers a long-term period extending beyond the basic
detailed planning period until a stable state is reached in
fiscal 2039/2040. The global establishment of breeding
stations for vegetable seed underscores the fact that
further important foundations for the Business Unit’s
future long-term growth were laid in fiscal 2023/2024 and,
at the same time, implementation of the KWS Group’s
strategic goals was intensified. Alongside spinach and
beans, significant market share for vegetable seed (in
Europe, Türkiye and Central and South America) is to be
captured, in particular, by the world’s five most important
crops in this segment: tomatoes, peppers, cucumbers,
watermelons and melons. In addition to the expectations
for long-term developments in the “Vegetables” Business
Unit, a recovery in the market environment and an increase
in net sales of spinach and bean seed are expected in the
short to medium term.
The discount rate at the “Vegetables” Business Unit has
been derived as the weighted average cost of capital
(WACC) and was 8.22% (6.47%). The change compared to
the previous year is mainly attributable to the increase in
the risk-free interest rate.
A long-term growth rate of 2.0% (2.0%) has been assumed
here on the basis of the long-term business expectations
beyond the detailed planning horizon.
The impairment test conducted at the end of fiscal year
2023/2024 confirmed that the goodwill is not impaired.
Sensitivity analyses were also carried out, and it was
assumed that the future cash flows would fall by 10%,
the weighted average cost of capital would increase
by 10% and the long-term growth rate would fall by
1 percentage point.
The sensitivity analyses did not reveal the need to
recognize an impairment loss, apart from the reduction
in the long-term growth rate by 1 percentage point.
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Consolidated Financial Statements | Notes for the KWS Group | 7. Notes to the Consolidated Balance Sheet
7.2 Property, plant and equipment
Reconciliation of the carrying amount of property, plant and equipment
in € thousand
Land and
buildings
Technical
equipment
and
machinery
Operating
and office
equipment
Prepay-
ments for
assets under
construction
Property,
plant and
equipment
Gross carrying amounts: 07/01/2023
483,265
378,458
159,930
77,128
1,098,781
Currency translation
–14,615
–11,919
–6,367
–1,870
–34,772
IAS 29 inflation adjustment
17,836
11,545
7,845
4,961
42,187
Additions
16,783
21,911
12,593
84,773
136,060
Disposals
330
2,749
5,323
134
8,536
Transfers
15,686
21,598
4,476
–42,523
–763
Reclassification of assets held for sale
(IFRS 5)
40,176
26,301
15,290
5,886
87,653
Gross carrying amounts: 06/30/2024
478,449
392,543
157,863
116,448
1,145,304
Amortization and write-downs:
07/01/2023
155,725
237,779
110,284
0
503,786
Currency translation
–2,922
–5,169
–3,111
0
–11,201
IAS 29 inflation adjustment
4,785
7,225
4,760
0
16,770
Additions
14,631
24,268
13,219
0
52,118
Disposals
156
2,616
4,811
0
7,583
Transfers
–2,091
1,954
–76
0
–214
Reclassification of assets held for sale
(IFRS 5)
9,510
11,835
8,324
0
29,669
Amortization and write-downs:
06/30/2024
160,462
251,605
111,942
0
524,008
Net carrying amounts: 06/30/2024
317,987
140,938
45,922
116,448
621,296
Net carrying amounts: 06/30/2023
327,540
140,679
49,646
77,128
594,995
in € thousand
Land and
buildings
Technical
equipment
and
machinery
Operating
and office
equipment
Prepay-
ments for
assets under
construction
Property,
plant and
equipment
Gross carrying amounts: 07/01/2022
474,660
371,355
147,935
36,168
1,030,118
Currency translation
–18,305
–20,931
–6,241
–1,153
–46,630
IAS 29 inflation adjustment
9,673
10,512
4,651
–819
24,018
Additions
14,160
13,618
12,317
60,666
100,761
Disposals
338
4,943
2,578
1,005
8,864
Transfers
3,415
8,847
3,845
–16,729
–622
Gross carrying amounts: 06/30/2023
483,265
378,458
159,930
77,128
1,098,781
Amortization and write-downs:
07/01/2022
143,440
219,842
100,967
0
464,248
Currency translation
–3,277
–7,781
–2,985
0
–14,042
IAS 29 inflation adjustment
2,332
5,968
2,849
0
11,149
Additions
14,106
23,545
12,306
0
49,957
Disposals
429
4,168
2,380
0
6,977
Transfers
–448
373
–474
0
–548
Amortization and write-downs:
06/30/2023
155,725
237,779
110,284
0
503,786
Net carrying amounts: 06/30/2023
327,540
140,679
49,646
77,128
594,995
Net carrying amounts: 06/30/2022
331,220
151,513
46,968
36,168
565,870
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7. Notes to the Consolidated Balance Sheet | Notes for the KWS Group | Consolidated Financial Statements
The main focus of the KWS Group’s capital spending in the
year under review was again on erecting and expanding
production and research and development capacities.
Construction of the new elite storehouse for processing
and storing breeding material for sugarbeet was continued
at the Einbeck location. In the Vegetables Segment,
construction of an extensive research facility in the Nether-
lands was commenced, among other things. Across all
segments, investments were made in office and laboratory
equipment, among other things.
7.3 Equity-accounted financial assets
Equity-accounted joint ventures
The joint ventures AGRELIANT GENETICS LLC. and
AGRELIANT GENETICS INC., which the KWS Group
operates together with its partner Vilmorin & Cie (Limagrain
Group), are recognized at equity. They are both classified
together as significant joint ventures.
The joint ventures AGRELIANT GENETICS LLC. and
AGRELIANT GENETICS INC. are closely affiliated operating
units. The main business activity of the two joint ventures
is the production and sale of corn and soybean seed in
North America.
The following disclosures relate to the two joint ventures,
which KWS runs with its partner Vilmorin and an identical
management team.
Disclosures on equity-accounted joint ventures
(with the partner Vilmorin)
in € thousand
06/30/2024
06/30/2023
Stake in the joint ventures
50%
50%
Current assets
248,494
341,178
thereof cash and cash
equivalents
33,433
48,346
Noncurrent assets
202,212
215,901
Current liabilities
224,390
284,280
thereof current financial
liabilities (excluding
trade payables and other
liabilities and provisions)
77,310
167,686
Noncurrent liabilities
4,915
5,740
Net assets (100%)
221,402
267,060
Group share of net assets
(50%)
110,701
133,530
Goodwill
8,780
8,780
Carrying amount for the
stake in the joint ventures
119,481
142,310
Net sales
495,069
560,737
Depreciation and amortization
26,824
25,881
Net income for the period
–46,764
–24,437
Comprehensive income
(100%)
–45,964
–45,073
Comprehensive income (50%)
–22,982
–22,536
Group share of
comprehensive income
–22,982
–22,536
Dividend payment (100%)
379
3,526
In addition, the carrying amount of the insignificant joint
venture FARMDESK B.V. fell from €770 thousand in the
previous year to €0 thousand in the year under review.
The resultant changes in the proportionate equity that
are recognized in profit or loss are included, along with
impairment of the goodwill, under the item “Result from
equity-accounted financial assets” in the net financial
income/expenses.
Equity-accounted associated companies
The Chinese joint venture KENFENG – KWS SEED CO.,
LTD., which was classified as a significant associated
company in the previous year, was divested in the year
under review (see also section “4.1. Changes in the consoli-
dated group in the current fiscal year” of the Notes).
Consequently, only insignificant associated
companies – IMPETUS AGRICULTURE, INC. at a
carrying amount of €386 (387) thousand and GIE RHP
RECOLTE HAUTE PRECISION at a carrying amount
of €53 (51) thousand – were included in the KWS Group’s
consolidated financial statements using the equity method.
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Consolidated Financial Statements | Notes for the KWS Group | 7. Notes to the Consolidated Balance Sheet
The other noncurrent receivables totaling €5,104
(10,883) thousand relate to trade receivables amounting
to €855 (5,307) thousand that have a remaining period for
payment of more than 365 days on June 30 and noncurrent
receivables amounting to €2,773 (3,314) thousand from
the subleasing of office space that is classified as a
financial lease. In addition, this item includes noncurrent
receivables from derivative financial instruments
totaling €1,162 (1,632) thousand.
7.6 Inventories and biological assets
Inventories and biological assets
in € thousand
06/30/2024
06/30/2023
Raw materials and
consumables
53,567
68,974
Work in progress
132,282
185,506
Immature biological assets
6,047
6,163
Finished goods
183,528
148,738
Rights of return
5,127
5,873
Total
380,551
415,255
Inventories and biological assets fell year on year by
€34,704 thousand or 8.4%. Including the inventories of
the South American corn and sorghum business, along
with the licenses, as a discontinued operation as of
June 30, 2024, to an amount of €101,529, which – unlike
in the previous year – are now reported under assets held
for sale (see section “4.2 Discontinued operation: disposal
group classified as held for sale” of the Notes), there is
effectively an increase in inventories. This increase reflects
the Group’s volume- and price-related growth in business.
Immature biological assets relate to living plants in
the process of growing (before harvest) at the farms
in Germany, France and Poland. The field inventories
of the previous year have been harvested in full and the
fields have been newly tilled in the year under review.
Government grants of €589 (1,044) thousand, for which all
the requirements were met at the balance sheet date, were
awarded for agricultural activity in the fiscal year. Future
government grants depend on the further development of
European agricultural policy.
7.4 Proportionately consolidated joint operations
In general, the assets and liabilities and revenue and
expenses from the joint operations are included propor-
tionately (at 50%) in the consolidated financial statements.
GENECTIVE S.A., including its subsidiaries, whose
main activity is development of genetically improved
traits for crops, was proportionately consolidated up to
now. However, in light of the intention to sell it, the joint
operation was classified as held for sale at the balance
sheet date on June 30, 2024 (see also section “4.3 Other
assets and disposal groups held for sale” of the Notes).
As a result, AARDEVO B.V., including its subsidiaries,
which specializes in developing potato seed, is the
only proportionately consolidated joint operation in the
KWS Group at the balance sheet date.
7.5 Financial assets and noncurrent receivables
Financial assets mainly comprise the investments in the
capital investment fund MLS Capital Fund II (financing
of projects/access to biotechnology developments)
totaling €5,487 (6,204) thousand, which are measured at
fair value through other comprehensive income due to
the long-term nature of the investment. The remainder
relates to a large number of financial investments that
– taken individually – are insignificant, such as other
interest-bearing loans, shares in cooperatives, and other
securities. For the first time, the financial assets also
include plan assets totaling €536 (0) thousand, as the fair
value of the plan assets for the pension commitments in
the U.S. exceeded the present value of the accrued benefit
entitlements from retirement obligations by a corre-
sponding amount at June 30, 2024 (see also section “7.11.
Noncurrent liabilities”, subsection “Defined benefit plans”).
The noncurrent tax assets total €123 thousand and relate
solely to income tax assets. In the previous year, there
were noncurrent tax assets totaling €21,986 thousand,
which related solely to value-added tax assets and refund
claims for sales-related social security contributions in
Brazil. Due to the classification of the South American
corn and sorghum business, along with the licenses,
as a discontinued operation, these are now reported
under assets held for sale (see section “4.2 Discontinued
operation: disposal group classified as held for sale” of
the Notes).
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7. Notes to the Consolidated Balance Sheet | Notes for the KWS Group | Consolidated Financial Statements
7.7 Current receivables and other assets
Current receivables and other assets
in € thousand
06/30/2024
06/30/2023
Trade receivables
504,202
582,010
Current tax assets
121,004
128,113
Other current financial assets
36,861
68,534
Other current assets
36,525
53,780
Total
698,591
832,437
Credit risk exposure on trade receivables
in € thousand
Overdue in days
Not
overdue
1 – 180 days
181 – 360 days
> 360 days
Total
06/30/2024
Expected credit loss rate
1%
2%
60%
99%
Total gross amount upon default
474,266
31,768
7,024
7,286
520,345
Expected credit loss
3,094
763
4,219
7,212
15,288
06/30/2023
Expected credit loss rate
1%
3%
39%
95%
Total gross amount upon default
524,439
64,849
5,937
21,582
616,807
Expected credit loss
4,800
1,784
2,303
20,603
29,490
The trade receivables include €12,247 (11,950) thousand in
receivables from joint ventures and joint operations.
The need to recognize impairment losses at June 30, 2024,
was analyzed using the provision matrix on the basis of
the expected losses. To enable that, the receivables were
grouped by geographical region and the length of time they
were overdue and multiplied by appropriate default rates.
Receivables that are overdue by more than 360 days and
are no longer subject to an enforcement measure have
been classified as uncollectible and written off in full.
The maximum credit risk exposure from noncurrent and
current trade receivables is the carrying amount reported
on the balance sheet and is as follows at June 30, 2024:
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Consolidated Financial Statements | Notes for the KWS Group | 7. Notes to the Consolidated Balance Sheet
7.8 Cash and cash equivalents
This item comprises cash and cash equivalents in the
form of cash on hand, checks, and immediately available
balances at banks, as well as securities.
Cash and cash equivalents at June 30, 2024, were €222,362
(168,869) thousand. Securities at the balance sheet date
amounted to €1 thousand and fell sharply compared to the
previous year (€4,130 thousand), because the securities
were almost exclusively attributable to Brazil and these
are now reported under assets held for sale due to the
classification as a discontinued operation (see section
“4.2 Discontinued operation: disposal group classified
as held for sale” of the Notes).
As in the previous year, the annual impairment test of
cash and cash equivalents did not result in any need to
recognize any need for significant write-downs, meaning
that no impairment loss has been recognized.
The change in cash and cash equivalents compared to the
previous year is explained in the cash flow statement.
At June 30, 2024, the KWS Group had firmly promised
loans it had not used totaling €398,190 (381,302) thousand.
7.9 Equity
The fully paid-up capital of KWS is still €99,000 thousand.
The no-par bearer shares are certificated by a global certif-
icate for 33,000,000 shares. The company does not hold
any shares of its own. KWS has Authorized Capital of up
to €9,900 thousand at the balance sheet date.
The capital reserves essentially comprise the premium
obtained as part of share issues.
The credit risks were reflected by the following allowances
at June 30, 2024, and in the previous year:
Change in allowances on receivables
in € thousand
2023/2024
2022/2023
07/01
29,490
26,274
Currency translation
–2,752
–1,768
Addition
13,084
8,908
Disposal
5,169
546
Reversal
5,137
3,378
Reclassification of disposal
group (IFRS 5)
14,229
0
06/30
15,288
29,490
Current tax assets mainly include income tax receivables
of €46,475 (41,879) thousand and other tax assets (in
particular value-added tax) of €74,529 (86,015) thousand.
The deposited security for concluded commodity deriva-
tives is €351 (69) thousand. It is carried in the other current
financial assets. This item also includes other current
receivables that are not allocated to trade receivables (e.g.
creditors with debit balances and other short-term loans
and deferrals).
Other current assets include payments on account
totaling €23,042 (45,415) thousand.
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7. Notes to the Consolidated Balance Sheet | Notes for the KWS Group | Consolidated Financial Statements
The other reserves and net retained profit essentially
comprise the net income generated in the past by the
companies included in the consolidated financial state-
ments, minus dividends paid to shareholders, and the net
retained profit. Differences from currency translation and
effects of hyperinflation, the reserve for revaluation of net
liabilities/assets from defined benefit plans, the reserve
for currency translation differences for equity-accounted
financial assets, the reserve for the changes in value of the
cash flow hedges of the equity-accounted joint ventures,
the reserve for revaluation of equity instruments (with
changes in value in the other comprehensive income), the
reserves for cash flow hedging and the cost of hedging are
also carried here.
Differences from translation of the functional currency
of foreign business operations into the currency used
by the Group in reporting (euro) and inflation-related
remeasurement effects for subsidiaries located in hyper-
inflationary economies are carried in the item “Reserve
for currency translation differences and effects of hyper-
inflation for foreign operations.” The item “Revaluation of
net liabilities/assets from defined benefit plans” and the
associated plan assets includes the actuarial gains and
losses from pensions and similar obligations. Differences
from translation of the functional currency of equity-ac-
counted foreign business units into the currency used by
the Group in reporting (euro) are carried in the “Reserve
for currency translation differences on equity-accounted
financial assets.” The effective portions of the changes in
the value of derivatives recognized as part of cash flow
hedges are carried in the “Cost of hedging reserve” for
cash flows. If options are used in hedging, the changes in
value of the fair value component are carried in a separate
cash flow hedge reserve.
Other comprehensive income
in € thousand
2023/2024
2022/2023
Before
taxes
Tax effect
After
taxes
Before
taxes
Tax effect
After
taxes
Items that may have to be
subsequently reclassified as profit
or loss 1
4,022
290
4,312
–52,590
122
–52,468
Changes in reserve for currency
translation differences and effects of
hyperinflation for foreign operations 1
3,252
0
3,252
–38,834
0
–38,834
Other comprehensive income from
equity-accounted financial assets
1,457
0
1,457
–13,434
0
–13,434
Net gain/(loss) on cash flow hedges
0
0
0
0
0
0
Net change in cost of hedging
–688
290
–397
–322
122
–200
Items not reclassified as profit
or loss
4,973
–1,577
3,396
–3,816
859
–2,957
Net gain/(loss) on equity instruments
designated at fair value through other
comprehensive income
–702
–36
–738
–3,265
649
–2,616
Revaluation of net liabilities/assets from
defined benefit plans
5,675
–1,541
4,134
–551
210
–341
Other comprehensive income 1
8,995
–1,287
7,708
–56,406
981
–55,425
1 The previous year’s figures have been adjusted due to the change in recognition relating to hyperinflation (see also section 3.1 of the Notes).
The objective of the KWS Group’s capital management
activities is to pursue the interests of shareholders and
employees in accordance with the corporate strategy and
earn a reasonable return on investment. The KWS Group
is not subject to any external minimum capital require-
ments. One main goal is to retain the trust of investors,
lenders and the market so as to strengthen the company’s
future business development. The KWS Group’s capital
management activities intend to continue optimizing
the average cost of capital. Another goal is a balanced
mix of equity and debt capital. The Group’s earnings
after taxes were €130,830 (126,989) thousand. On
the other hand, there was a total dividend payout
of €29,700 (26,400) thousand in December 2023. This
mix ensures the adequate financing of future operating
business expansion in the long term.
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Consolidated Financial Statements | Notes for the KWS Group | 7. Notes to the Consolidated Balance Sheet
Capital structure
in € thousand
06/30/2024
06/30/2023
Equity
1,399,914
1,291,075
Long-term borrowings
427,035
566,106
Other noncurrent liabilities
182,960
195,890
Short-term borrowings
180,420
172,121
Other noncurrent liabilities
474,745
524,368
Liabilities in connection with assets held for sale
291,020
0
Total capital
2,956,093
2,749,561
Equity ratio (%)
47.4
47.0
The focus in selecting financial instruments is on financing
with matching maturities, which is achieved by controlling
the maturities. Long-term borrowings decreased
by €139,071 (47,483) thousand.
7.10 Minority interests
As in the previous year, there are no minority interests in
the KWS Group at June 30, 2024.
7.11 Noncurrent liabilities
Noncurrent liabilities decreased
by €152,001 (52,169) thousand. That is mainly attrib-
utable to the classification of the South American corn
and sorghum business, along with the licenses, as a
discontinued operation and the related recognition of
the long-term borrowings under liabilities in connection
with assets held for sale (see section “4.2 Discontinued
operation: disposal group classified as held for sale” of
the Notes).
At the continuing operations, various loans totaling
€75,000 thousand were taken out from the European
Investment Bank in fiscal 2023/2024. They have an
average interest rate of 3.54% and mature through 2035.
The financing provided is in connection with the Group’s
research and development projects. In addition, a loan
of €5,000 thousand with an interest rate of 3.53% and
maturing by 2030 was taken out.
The previously existing noncurrent liabilities due
to the European Investment Bank with an average
interest rate of 0.62% and maturing through 2033
total €150,732 (170,488) thousand).
Noncurrent liabilities from borrower’s note loans in
Germany decreased to €167,000 (309,737) thousand, as
the scheduled repayment of a five-year borrower’s note
loan (€143,000 thousand) will be made in the first quarter
of 2024/2025 and the loan is reported accordingly under
short-term borrowings (see also section “7.12. Current
liabilities” of the Notes). The remaining noncurrent liabilities
from borrower’s note loans have an average interest rate of
0.70% and mature through 2029.
Noncurrent liabilities
in € thousand
06/30/2024
06/30/2023
Long-term provisions
91,333
97,293
Long-term borrowings
427,035
566,106
Trade payables 1
5
0
Deferred tax liabilities
53,872
57,486
Lease liabilities
35,828
38,288
Other noncurrent liabilities 1
1,923
2,823
Total
609,995
761,996
1 This item has been disclosed in the consolidated balance sheet within “Other noncurrent
financial/non-financial liabilities” and is not stated separately.
147
KWS Group | Annual Report 2023/2024
7. Notes to the Consolidated Balance Sheet | Notes for the KWS Group | Consolidated Financial Statements
Long-term provisions
in € thousand
06/30/
2023
06/30/
2024
Changes
in the
consol-
idated
group,
currency
Interest
expens-
es from
com-
pounding
Addition
Adjust-
ment not
affecting
profit or
loss
Con-
sumption
Reversal
Pension
provisions
85,355
–1,450
2,939
539
–3,334
4,658
0
79,391
Other
provisions
11,938
–1,223
369
1,722
0
864
0
11,942
Total
97,293
–2,673
3,308
2,261
–3,334
5,522
0
91,333
Nature and scope of the pension benefits
At the KWS Group, the company retirement pension
program is based on both defined contribution plans and
defined benefit plans. The defined contribution plans are
statutory or contractual requirements or involve voluntary
contributions to an external pension provider.
In previous years, the KWS Group countered the usual
risks of direct obligations in Germany by converting
the pension obligations from defined benefit to defined
contribution plans. As a result, subsequent benefits will
be provided by a provident fund backed by a guarantee.
The existing obligations, which are partly covered by plan
assets, are funded from the operating cash flow and are
subject to the measurement risks specified below.
Defined benefit plans
The pension provisions are based on defined benefit
obligations, determined by years of service and
pensionable compensation. They are measured using
the accrued benefit method under IAS 19, on the basis
of assumptions about future development.
In Germany
The following benefits are provided under a company
agreement relating to the company retirement pension
program:
An old-age pension at the age of 65
An early retirement pension before the age of 65,
coupled with benefits from the early retirement pension
from the statutory pension insurance program
An invalidity pension for persons who suffer from
occupational disability or incapacity to work as defined
by the statutory pension insurance program
A widow’s or widower’s pension
For benefit obligations backed by a guarantee by an
insurance company toward three former members
of the Executive Board, the plan assets of €6,764
(7,420) thousand correspond to the present value of
the obligation. In accordance with IAS 19, the pension
commitments are netted off against the corresponding
plan assets.
148
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 7. Notes to the Consolidated Balance Sheet
A retirement age of 65 years is imputed for Germany and
the U.S.
The pension plans are mainly subject to the following risks:
Investment and return
The present value of the defined benefit obligation from the
pension plan is calculated using a discount rate defined
on the basis of the returns on high-quality fixed-income
corporate bonds. If the income from the plan assets is
below this rate of interest, that may result in general in a
shortfall in the plan. The corporate bonds and share funds
are chosen to ensure risk diversification and managed by
an external fund manager.
Change in interest rates
The fall in the returns on corporate bonds and thus the
discount rate will result in an increase in the obligations,
which is only partly compensated for by a change in the
value of the plan assets.
Life expectancy
The present value of the defined benefit obligation from
the plan is calculated on the basis of the best-possible
estimate using mortality tables. An increase in the life
expectancy of the entitled employees results in an increase
in the planned liabilities.
Salary and pension trends
The present value of the defined benefit obligation from the
plan is calculated on the basis of future salaries/pensions.
Consequently, increases in the salary and pension of the
entitled employees results in an increase in the planned
liabilities.
Abroad
The defined benefit obligations abroad mainly relate to
pension commitments in the U.S. Share funds and bonds
were mainly invested as plan assets to cover them. All
employees who have reached the age of 21 are entitled to
benefits. In addition, each employee must have worked at
least one year and at least 1,000 working hours to earn an
entitlement.
The legal and regulatory framework of the pension plan in
the U.S. is based on the U.S. Employee Retirement Income
Security Act (ERISA), which sets minimum standards
for pension plans, including the minimum funding level.
In accordance with U.S. regulations, the funding level is
determined on the basis of a regular assessment in order
to avoid benefit restrictions.
The following benefits are granted from the pension plan:
An old-age pension at the age of 65
An early retirement pension before the age of 65 – to
be eligible, the employee must be at least 55 and the
minimum vesting period is five years and
A pro-rata pension if the employee reaches the
minimum vesting period of five years, but is below 55.
The assumptions in detail are that wages and salaries in
Germany will increase by 3.00% (3.00%) annually, in the
U.S. by 4.50% (4.50%) annually and in the rest of the world
by 2.50% to 3.00% (2.40% to 3.23%) annually. An annual
increase in pensions of 2.00% (2.50%) in the long term is
assumed in Germany. The discount rate in Germany was
unchanged at 3.60%, 5.50% in the U.S. compared with
5.15% the year before, and between 3.44% and 5.80%
(3.61% and 6.00%) in the rest of the world.
The following mortality tables were used at June 30, 2024:
In Germany: The 2018 G mortality table of
Klaus Heubeck
Abroad: Mainly Pri-2012 Private Retirement Plans
Mortality Table Projection Scale MP-2021 and
INSEE TD/TV 19–21.
149
KWS Group | Annual Report 2023/2024
7. Notes to the Consolidated Balance Sheet | Notes for the KWS Group | Consolidated Financial Statements
Changes in accrued benefit entitlements
in € thousand
2023/2024
2022/2023
Germany
Abroad
(excl. the
U.S.)
U.S.
Total
Germany
Abroad
Total
Accrued benefit entitle-ments
from retirement obligations on
July 1
89,357
2,739
25,531
117,628
86,868
29,332
116,199
Service cost
344
195
1,108
1,647
416
1,347
1,763
Interest expense
3,123
97
1,311
4,531
2,702
1,241
3,943
Actuarial gains (–)/losses (+)
–3,664
–8
–660
–4,331
4,305
–1,615
2,690
of which due to a change in
financial assumptions used
for calculation
–4,120
–27
–1,433
–5,580
160
–2,313
–2,154
of which due to demographic
assumptions
0
64
0
64
0
394
394
of which due to experience
adjustments
457
–45
773
1,185
4,145
304
4,450
Pension payments made
–5,243
–76
–939
–6,258
–4,933
–998
–5,931
Exchange rate changes
0
8
469
477
0
–1,036
–1,036
Accrued benefit entitlements
from retirement obligations
on July 30
83,919
2,954
26,820
113,694
89,357
28,270
117,628
Change in plan assets
in € thousand
2023/2024
2022/2023
Germany
Abroad
(excl. the
U.S.)
U.S.
Total
Germany
Abroad
Total
Fair value of the plan as-sets
on July 1
7,420
780
24,073
32,272
7,064
23,496
30,561
Interest income
255
28
1,258
1,541
216
1,030
1,246
Income from plan assets excluding
amounts already recognized as
interest income
–250
–89
1,683
1,344
775
1,364
2,139
Pension payments made
–661
0
–939
–1,600
–636
–847
–1,483
Contributions to plan assets
0
0
925
925
0
787
787
Exchange rate changes
0
0
443
443
0
–892
–892
Other changes in value
0
0
–87
–87
0
–84
–84
Fair value of the plan assets
on July 30
6,764
719
27,356
34,839
7,420
24,853
32,272
150
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 7. Notes to the Consolidated Balance Sheet
In order to allow reconciliation with the figures in the
balance sheet, the accrued benefit must be netted off with
the plan assets.
As the fair value of the plan assets for the pension
commitments in the U.S. exceeded the present value
of the accrued benefit entitlements from retirement
obligations by €536 thousand at June 30, 2024, these
pension commitments were shown separately from the
other pension commitments abroad in the presentation
of the changes in the accrued benefit entitlements,
plan assets and balance sheet values. The plan assets
totaling €536 thousand were reported under financial
assets (see also section “7.5. Financial assets and
noncurrent receivables” of the Notes).
Reconciliation with the balance sheet values for pensions
in € thousand
2023/2024
2022/2023
Germany
Abroad
(excl. the
U.S.)
U.S.
Total
Germany
Abroad
Total
Accrued benefit entitlements from
retirement obligations on June 30
83,919
2,954
26,820
113,694
89,357
28,270
117,628
Fair value of the plan assets
on July 30
6,764
719
27,357
34,839
7,420
24,853
32,273
Balance sheet values on June 30
77,155
2,236
–536
78,854
81,938
3,417
85,355
The following amounts were recognized in the statement of
comprehensive income:
Effects on the statement of comprehensive income
in € thousand
2023/2024
2022/2023
Germany
Abroad
Total
Germany
Abroad
Total
Service cost
344
1,303
1,647
416
1,347
1,763
Net interest expense (+)/income (–)
2,867
122
2,989
2,486
211
2,697
Amounts recognized in the income
statement
3,211
1,425
4,636
2,902
1,558
4,460
Gains (–)/losses (+) from revaluation
of the plan assets (excluding amounts
already recognized as interest income)
250
–1,594
–1,344
–775
–1,364
–2,139
Actuarial gains (–)/losses (+) due to a
change in financial assumptions used
for calculation
–4,120
–1,460
–5,580
160
–2,313
–2,154
Actuarial gains (–)/losses (+) due to a
change in demographic assumptions
used for calculation
0
64
64
0
394
394
Actuarial gains (–)/losses (+) due to
experience adjustments
457
728
1,185
4,145
304
4,450
Amounts recognized in other
comprehensive income
–3,412
–2,263
–5,675
3,530
–2,978
551
Total (amounts recognized in
the statement of comprehensive
income)
–201
–838
–1,039
6,432
–1,421
5,011
The service cost is recognized in operating income in the
respective functional areas by means of an appropriate
formula. Net interest expenses and income are carried in
the interest result.
151
KWS Group | Annual Report 2023/2024
7. Notes to the Consolidated Balance Sheet | Notes for the KWS Group | Consolidated Financial Statements
The fair value of the plan assets was split over the following
investment categories:
Breakdown of the plan assets by investment category
in € thousand
2023/2024
2022/2023
Germany
Abroad
Total
Germany
Abroad
Total
Corporate bonds
7,651
7,651
6,694
6,694
Equity funds
18,507
18,507
16,499
16,499
Consumer
industry
2,779
2,779
2,734
2,734
Finance
2,912
2,912
2,424
2,424
Industry
2,305
2,305
1,869
1,869
Technology
3,880
3,880
3,378
3,378
Health care
2,142
2,142
2,166
2,166
Other
4,489
4,489
3,928
3,928
Cash and cash
equivalents
1,917
1,917
1,660
1,660
Reinsurance
policies
6,764
6,764
7,420
7,420
Plan assets
on June 30
6,764
28,075
34,839
7,420
24,853
32,273
The plan assets abroad relate mainly to the U.S.
There is no active market for the reinsurance policies in
Germany. There is an active market for the other plan
assets: the fair value can be derived from their stock
market prices. 70.42% (previous year: 69.65%) of the
corporate bonds have an AAA rating.
The following sensitivity analysis at June 30, 2024, shows
how the present value of the obligation would change
given a change in the actuarial assumptions. No correla-
tions between the individual assumptions were taken
into account in this, i.e. if an assumption varies, the other
assumptions were kept constant. The projected unit credit
method used to calculate the balance sheet values was
also used in the sensitivity analysis.
Sensitivity analysis
in € thousand
Effect on obligation in
2023/2024
Effect on obligation in
2022/2023
Change in
assumptions
Decrease
Increase
Change in
assumptions
Decrease
Increase
Discount rate
+/–100 bps 1
15,262
–12,392
+/–100 bps 1
16,436
–13,278
Anticipated annual
pay increase
+/–50 bps
–846
915
+/–50 bps
–834
902
Anticipated annual
pension increase
+/–25 bps
–1,942
2,019
+/–25 bps
–2,162
2,251
Life expectancy
+/–1 year
–3,199
3,236
+/–1 Jahr
–3,491
3,538
1 Lower limit 0%
152
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 7. Notes to the Consolidated Balance Sheet
The following undiscounted payments for pensions (with
their due dates) are expected in the following years:
Anticipated payments for pensions
in € thousand
2023/2024
Germany
Abroad
Total
2024/2025
5,281
1,229
6,509
2025/2026
5,211
1,253
6,464
2026/2027
5,208
1,562
6,770
2027/2028
5,226
1,466
6,692
2028/2029
5,216
1,628
6,844
2029/2030–2033/2034
25,294
9,934
35,229
Anticipated payments for pensions
in € thousand
2022/2023
Germany
Abroad
Total
2023/2024
5,218
1,109
6,327
2024/2025
5,253
1,198
6,451
2025/2026
5,213
1,211
6,424
2026/2027
5,232
1,479
6,712
2027/2028
5,292
1,455
6,747
2028/2029–2032/2033
26,146
9,668
35,813
The weighted average time at which the pension
obligations are due is 11.7 (12.3) years in Germany and
17.4 (17.3) years abroad.
Defined contribution plans
Apart from the above-described pension obligations, there
are other old-age pension systems. However, no provisions
have to be recognized for them, since there are no further
obligations above and beyond payment of the contribu-
tions (defined contribution plans). These comprise benefits
that are funded solely by the employer and allowances for
conversion of earnings by employees.
153
KWS Group | Annual Report 2023/2024
7. Notes to the Consolidated Balance Sheet | Notes for the KWS Group | Consolidated Financial Statements
The total pension costs for fiscal 2023/2024 were as
follows:
Pension costs
in € thousand
2023/2024
2022/2023
Germany
Abroad
Total
Germany
Abroad
Total
Cost for defined
contribution plans
4,252
1,076
5,327
3,792
1,242
5,034
Service cost for the
defined benefit obligations
344
1,309
1,653
416
1,347
1,763
Pension costs
4,596
2,385
6,980
4,208
2,589
6,797
In addition, contributions of €18,724 (17,652) thousand were
paid to statutory pension insurance institutions.
The costs for defined contribution plans in Germany
mainly related to the provident fund backed by a
guarantee. The contributions to this pension plan
were €3,939 (3,493) thousand. In addition, the pension
benefits from salary conversion were backed by a
guarantee that exactly matches the present value of the
obligation of €6,190 (5,353) thousand.
Other provisions
The other provisions mainly comprise provisions by
the German companies for semi-retirement and loyalty
bonuses.
7.12 Current liabilities
Current liabilities
in € thousand
06/30/2024
06/30/2023
Short-term provisions
30,910
38,008
Current liabilities to banks
180,348
167,427
Other short-term borrowings
72
4,695
Short-term borrowings
180,420
172,121
Trade payables
202,579
228,124
Tax liabilities
53,606
33,994
Other current financial liabilities
17,024
36,198
Lease liabilities
15,578
13,314
Other current liabilities
95,345
95,045
Contract liabilities
12,889
48,182
Refund liabilities
46,815
31,504
Total
655,165
696,489
154
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 7. Notes to the Consolidated Balance Sheet
The current liabilities to banks mainly include
€175,813 thousand in loan liabilities to banks in Germany,
of which €143,000 thousand is attributable to a five-year
borrower’s note loan that will be repaid as scheduled in the
first quarter of 2024/2025. The remaining current liabilities
totaling €4,535 thousand are due to banks in Türkiye.
The tax liabilities of €53,606 (33,994) thousand include
amounts for the year under review and the period for which
the external tax audit has not yet been concluded. Of that
figure, income taxes account for €48,311 (28,296) thousand
and other taxes (in particular value-added tax) account
for €5,295 (5,698) thousand.
The fall in contract liabilities to €12,889 (48,182) thousand
is due, among other things, to the separate disclosure of
the South American corn and sorghum business as “liabil-
ities in connection with assets held for sale.” Payments
on account received are always carried as net sales in the
next fiscal year.
The increase in refund obligations to €46,815
(31,504) thousand is due to higher expected returns
from the selling season ended.
Short-term provisions
in € thousand
06/30/2023
06/30/2024
Changes in
the con-
solidated
group,
currency
Addition
Con
sumption
Reversal
Reclassifi-
cation incl.
IFRS 5
Obligations from
sales transactions
25,899
–4,727
21,217
5,251
0
–26,799
10,339
Other obligations
12,110
–183
17,995
6,727
2
–2,621
20,571
Total
38,007
–4,910
39,213
11,978
2
–29,421
30,910
The obligations from sales transactions essentially relate
to guarantees, obligations for services received that have
not yet been invoiced (licenses) and sales commission
obligations, where they are not contained in the trade
payables. The other obligations relate to risks from legal
disputes, provisions from procurement transactions, such
as compensation for breeding areas, and other provisions
that cannot be assigned to the group of sales transactions.
The other obligations include the setup of a provision for
value-added tax risks to an amount of €7,744 thousand.
155
KWS Group | Annual Report 2023/2024
7. Notes to the Consolidated Balance Sheet | Notes for the KWS Group | Consolidated Financial Statements
7.13 Financial instruments
In general, the fair values of financial assets and liabilities
are calculated on the basis of the market data available
on the balance sheet date and are assigned to one of the
three hierarchy levels in accordance with IFRS 13. The
principal market, i.e. the market with the largest volume
of trading and the greatest business activity, is used to
calculate the fair value. If this market does not exist for the
asset or liabilities in question, the market that maximizes
the amount that would be received to sell the asset or
minimizes the amount that would be paid to transfer the
liability, after taking into account transaction costs, is
used. These are active and accessible markets for identical
assets and liabilities, where the fair value results from
quoted prices that are observable (level 1 input factors).
The KWS Group has commodity derivatives that are
assigned to level 1 in the current fiscal year.
The level 2 input factors relate to equity instruments (fund
shares) and derivative financial instruments that have been
concluded between Group companies and banks. The fair
values of such financial instruments are measured on the
basis of market data that is directly or indirectly connected
with the financial instrument. The level 3 input factors
cannot be derived from observable market information.
There were no reclassifications between the levels in the
fiscal year.
The carrying amounts and fair values of the financial
assets (financial instruments), split into the measurement
categories in accordance with IFRS 9, are as follows:
06/30/2024
in € thousand
Financial assets
Fair values
Carrying amounts
At amortized
cost
At fair value
through other
comprehensive
income
At fair value
through profit
and loss
Total carry-
ing amount
Financial assets
Financial assets
6,704
0
6,704
0
6,704
Other noncurrent receivables
5,104
3,942
0
1,162
5,104
of which derivative financial
instruments
1,162
0
0
1,162
1,162
Short-term trade receivables
504,202
504,202
0
0
504,202
Cash and cash equivalents
222,363
222,363
0
0
222,363
Other current financial assets
36,861
36,455
0
406
36,861
of which derivative financial
instruments
406
0
0
406
406
Total
775,233
766,962
6,704
1,568
775,233
156
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 7. Notes to the Consolidated Balance Sheet
06/30/2023
in € thousand
Financial assets
Fair values
Carrying amounts
At amortized
cost
At fair value
through other
comprehensive
income
At fair value
through profit
and loss
Total carry-
ing amount
Financial assets
Financial assets
6,879
2
6,877
0
6,879
Other noncurrent receivables
10,883
9,251
0
1,632
10,883
of which derivative financial
instruments
1,632
0
0
1,632
1,632
Short-term trade receivables
582,010
582,010
0
0
582,010
Cash and cash equivalents
172,999
172,999
0
0
172,999
Other current financial assets
68,534
67,279
0
1,256
68,534
of which derivative financial
instruments
1,256
0
0
1,256
1,256
Total
841,304
831,540
6,877
2,888
841,304
The financial assets and derivative financial instruments
are measured and carried at fair value. The fair value of
the long-term fund shares contained in the financial assets
is measured using generally accepted methods based on
directly and indirectly observable market inputs.
The fair value of currency derivatives is the present values
of the payments related to these balance sheet items.
These instruments are mainly forward exchange and
currency swap deals. They are measured on the basis of
quoted exchange rates and yield curves available from
the market data and allowing for counterparty risks.
Commodity derivatives are mainly measured on the basis
of current market prices.
The fair values of noncurrent and current trade receivables
corresponded to their carrying amounts at the balance
sheet date.
157
KWS Group | Annual Report 2023/2024
7. Notes to the Consolidated Balance Sheet | Notes for the KWS Group | Consolidated Financial Statements
The carrying amounts and fair values of the financial
liabilities (financial instruments), split into the measurement
categories in accordance with IFRS 9, are as follows:
06/30/2024
in € thousand
Financial liabilities
Fair values
Carrying amounts
At amortized
cost
At fair value
through profit
and loss
Total carrying
amount
Financial liabilities
Long-term borrowings
393,414
427,035
0
427,035
Long-term trade payables
5
5
0
5
Short-term borrowings
180,420
180,420
0
180,420
Short-term trade payables
202,579
202,579
0
202,579
Other current financial liabilities
17,024
16,932
92
17,024
of which derivative financial instruments
92
0
92
92
Total
793,442
826,970
92
827,063
06/30/2023
in € thousand
Financial liabilities
Fair values
Carrying amounts
At amortized
cost
At fair value
through profit
and loss
Total carrying
amount
Financial liabilities
Long-term borrowings
512,330
566,106
0
566,106
Long-term trade payables
Short-term borrowings
172,121
172,121
0
172,121
Short-term trade payables
228,124
228,124
0
228,124
Other current financial liabilities
36,198
35,431
767
36,198
of which derivative financial instruments
767
0
767
767
Total
948,773
1,001,782
767
1,002,549
The fair value of long-term borrowings was calculated on
the basis of discounted cash flows. To enable that, interest
rates for comparable transactions and yield curves were
used.
Due to the generally short times by which trade payables
and other current financial liabilities (excluding derivatives)
are due, it is assumed that their carrying amounts are
equal to the fair value.
158
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 7. Notes to the Consolidated Balance Sheet
The following table shows the financial assets and liabilities
measured at fair value:
Financial assets and liabilities measured at fair value
in € thousand
06/30/2024
06/30/2023
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Derivative financial instruments without
application of hedge accounting under
IFRS 9
0
1,568
0
1,568
2
2,885
0
2,888
Financial assets
0
6,704
0
6,704
0
6,877
0
6,877
Financial assets
0
8,272
0
8,272
2
9,762
0
9,764
Derivative financial instruments without
application of hedge accounting under
IFRS 9
0
92
0
92
0
767
0
767
Financial liabilities
0
92
0
92
0
767
0
767
The table below presents the net gains/losses carried in
the consolidated statement of comprehensive income for
financial instruments in each measurement category:
Net gain/losses of financial instruments
(gain(+)/loss(–))
in € thousand
2023/2024
2022/2023
Equity instruments measured
at fair value through other
comprehensive income
–738
–2,616
Financial assets measured at
fair value through profit or loss
2,308
3,877
Financial assets measured at
amortized cost
943
2,947
Financial liabilities measured
at amortized cost
–20,017
–37,023
Financial liabilities measured
at fair value through profit or
loss
–3,065
–3,168
The net losses for equity instruments measured at fair
value through other comprehensive income include income
from non-terminable interests in investment funds.
The net gains from financial assets and net losses from
financial liabilities measured at fair value through profit or
loss solely comprise changes in the market value of deriv-
ative financial instruments.
The net gains from financial assets measured at amortized
cost mainly include effects from changes in the allowances
for impairment.
The net losses from financial liabilities measured at
amortized cost result mainly from interest expense.
Credit risks
The credit risk is the risk that a business partner does not
fulfill its obligations as part of a financial instrument or
contract with a customer, resulting in a financial loss. The
KWS Group is exposed to credit risks in its operational
activities mainly in relation to trade receivables.
In order to control the credit risks resulting from receiv-
ables from customers, a regular creditworthiness analysis
is conducted in accordance with the credit volume. If a
customer’s credit risk is classified as high, it is reduced
by means of security. This includes, in particular, credit
insurance, prepayments, down payments, promissory
notes and guarantees. Depending on the contract’s
design, reservation of ownership of goods is agreed with
our customers. Credit limits are defined for our customers.
Credit limits, outstanding claims and the collection of
receivables are analyzed in regular meetings of the Credit
Committee. For details of the exposure to the risk of
default at June 30, 2024, please refer to section 7.7 of
the Notes.
159
KWS Group | Annual Report 2023/2024
7. Notes to the Consolidated Balance Sheet | Notes for the KWS Group | Consolidated Financial Statements
Credit risks from financial transactions are controlled
centrally by the Treasury department. In order to minimize
risks, financial transactions are exclusively conducted
within defined limits with banks and partners who always
have an investment grade. Compliance with the risk
limits is constantly monitored. The limits are adjusted
depending on the credit volume only subject to the
approval of the regional or divisional management and
the Executive Board.
Liquidity risks
Liquidity risk is the risk that funds to settle due payment
obligations cannot be obtained on time or at all.
Liquidity is managed in the Eurozone by the central Treasury
unit using a cash pooling system. Liquidity requirements are
generally determined by means of cash planning and are
covered by cash and promised credit lines.
As part of its liquidity management, the KWS Group
ensures that it complies with the financial covenants that
have been agreed as part of specific interest-bearing loans
and relate to the capital structure. The lenders have the
right to terminate the loan agreements in question immedi-
ately if these requirements are not met. The KWS Group
complied with all agreed financial covenants in the
fiscal year.
The table below shows the KWS Group’s liquidity analysis
for non-derivative and derivative financial liabilities. The
table is based on contractually agreed, undiscounted
payment flows (interest and payments of principal):
Fiscal 2023/2024
in € thousand
Carrying
amount
Cash flows
Liquidity analysis of financial liabilities
06/30/
2024
06/30/
2024
Total
Due in
< 1 year
Due in
> 1 year and
< 5 years
Due in
> 5 years
Financial liabilities
607,455
635,903
181,525
256,193
198,185
Trade payables
202,584
202,584
202,579
5
0
Other financial liabilities
16,932
16,932
16,932
0
0
Lease liabilities
51,406
60,374
16,347
29,860
14,167
Nonderivative financial liabilities
878,376
915,793
417,383
286,058
212,352
Payment claim
0
0
0
0
0
Payment obligation
92
92
92
0
0
Derivative financial liabilities
92
92
92
0
0
Fiscal 2022/2023
in € thousand
Carrying
amount
Cash flows
Liquidity analysis of financial liabilities
06/30/
2023
06/30/
2023
Total
Due in
< 1 year
Due in
> 1 year and
< 5 years
Due in
> 5 years
Financial liabilities
738,227
744,359
178,353
403,677
162,329
Trade payables
228,124
228,124
228,124
0
0
Other financial liabilities
35,431
35,431
35,431
0
0
Lease liabilities
51,602
60,210
13,686
28,451
18,074
Nonderivative financial liabilities
1,053,384
1,068,124
455,594
432,128
180,402
Payment claim
0
0
0
0
Payment obligation
767
767
0
0
Derivative financial liabilities
767
767
767
0
0
160
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 7. Notes to the Consolidated Balance Sheet
The cash flows of the derivative financial liabilities for
forward exchange deals are presented as an undis-
counted gross amount. These derivative financial instru-
ments are settled in gross. Net settlement is envisaged
for commodity derivatives. Accordingly, cash flows are
presented on a net basis.
Currency risks
Currency risks are where the fair value or future cash flows
of a financial instrument are subject to fluctuations due to
exchange rate changes. The KWS Group is mainly exposed
to currency risks as part of goods deliveries, services and
financing activities with foreign subsidiaries. To reduce
currency risks in its operating activities, the KWS Group
increasingly relies on advance payments and short-term
settlement of invoices in volatile currency areas. Deriv-
ative financial instruments (forward exchange deals and
currency swaps) are concluded to hedge against currency
risks from intra-Group financing. The company ensures
that the derivative financial instrument is commensurate
with the risk to be hedged.
In order to assess the currency risk, the sensitivity of a
currency to fluctuations was determined. The calculated
figures relate to the portfolio of financial instruments
at the balance sheet date and show the hypothetical
effect on income and equity for one year. After the euro,
the US dollar is the most important currency in the
KWS Group. The currency risk results from intra-Group
trade receivables and payables and from financing activity.
The average EUR/USD exchange rate in the fiscal year
was 1.08 (1.05). If the US dollar depreciated by 10%, the
extra income would be €3,063 (7,971) thousand. If the
US dollar appreciated by 10%, the extra expense would
be €3,063 (7,971) thousand.
The sensitivity for the Russian ruble (RUB) and Turkish lira
(TRY) was also determined. In the fiscal year, the average
EUR/RUB exchange rate was 99.73 (72.97) and the average
EUR/TRY exchange rate was 35.13 (28.15).
If the ruble depreciated by 10%, the extra expense would
be €358 (2,114) thousand. If the ruble appreciated by 10%,
the extra income would be €358 (2,114) thousand. If the
Turkish lira depreciated by 10%, the extra income would
be €1,870 (348) thousand. If the Turkish lira appreciated by
10%, the extra expense would be €1,870 (348) thousand.
All other currencies are generally of minor importance.
Risk of changes in interest rates
The risk of changes in interest rates is where the fair value
or future cash flows of a financial instrument are subject to
fluctuations due to changes in market interest rates.
The risk of changes in interest rates is controlled by means
of a balanced portfolio of fixed-interest and variable-in-
terest loans. In addition, rising interest rates in Germany
had an impact on interest expenses for short-term
financing. Interest rate swaps are concluded if there is
a high risk of interest rate variability in the portfolio. As
part of them, the KWS Group exchanges the difference
between fixed-interest and variable-interest amounts
determined with reference to a previously agreed nominal
amount with a contractual partner at defined intervals of
time. In addition, the KWS Group uses interest rate collars
to secure a certain interest rate spread.
Interest rate sensitivity is a measure for showing the
interest rate risk. The interest rate sensitivity analysis
was conducted for the portfolio of financial instruments
with a variable interest rate at the balance sheet date and
shows the hypothetical effect on income for one year.
The variable-interest components of the KWS Group’s
interest expenses and interest income were determined
to calculate that. In a scenario analysis, the effects of an
increase/reduction of one percentage point (100 base
points) in the relevant underlying capital market interest
rate on the interest result were calculated. An increase in
all relevant rates of interest of 1 percentage point would
result in additional interest expense of €34 (620) thousand.
A reduction in the rate of interest of 1 percentage point
would add a further €34 (620) million in income.
The far lower interest rate sensitivity compared to the
previous year is due to the fact that the majority of the
variable-interest loans in the previous year were attrib-
utable to Brazil (discontinued operation), while in the
continuing operations there were only financial instruments
with variable interest rates in Türkiye at June 30, 2024.
Commodity price risks
Volatility in the prices of certain agricultural raw materials
has an impact on the KWS Group. In its procurement
transactions, the KWS Group is partly exposed to a
risk from fluctuating market prices for agricultural raw
materials.
161
KWS Group | Annual Report 2023/2024
7. Notes to the Consolidated Balance Sheet | Notes for the KWS Group | Consolidated Financial Statements
The depreciation on rights of use for leased assets was as
follows in the year under review:
Depreciation of right-of-use assets
in € thousand
2023/2024
2022/2023
Land, land rights and
buildings including buildings
on third-party land
5,688
5,761
Technical equipment and
machinery
701
272
Other equipment, operating
and office equipment
8,858
6,618
Total
15,247
12,650
7.14 Hedging instruments and derivative financial
instruments
Hedging transactions and derivative financial instruments
in € thousand
06/30/2024
06/30/2023
Nominal
volume
Net
carrying
amounts
Fair value
Nominal
volume
Net
carrying
amounts
Fair value
Currency hedges
11,111
1,135
1,135
21,337
2,111
2,111
Interest-rate hedges
80,000
27
27
80,000
225
225
Commodity hedges
3,715
313
313
9,669
–215
–215
Total
94,826
1,475
1,475
111,006
2,121
2,121
7.15 Leases
Carrying amounts for right-of-use assets
in € thousand
06/30/2024
06/30/2023
Land, land rights and
buildings including buildings
on third-party land
29,754
33,325
Technical equipment and
machinery
1,390
171
Other equipment, operating
and office equipment
15,056
13,131
Total
46,200
46,627
Additions to rights of use for leased assets totaling €17,907
(17,289) thousand were recognized in fiscal 2023/2024. Of
this amount, €3,339 thousand is attributable to “Land, land
rights and buildings” (almost exclusively for research and
development), €1,931 thousand to “Technical equipment
and machinery” (mainly warehouse and agricultural
vehicles) and €12,637 thousand to “Other equipment,
operating and office equipment” (almost exclusively in
connection with the leasing of company vehicles).
The KWS Group mitigates the impact of market price
risks on operating income by hedging them with deriv-
ative financial instruments. Various commodity futures
(forwards, options and swaps) are used in that.
Selected commodity price hedges are accounted for using
hedge accounting in accordance with IFRS 9, i.e. recog-
nized directly in equity in the other comprehensive income.
This relates in particular to the Corn Segment in Brazil.
There were also effects from the equity-accounted joint
ventures AGRELIANT GENETICS LLC and AGRELIANT
GENETICS INC. at the KWS Group in fiscal 2023/2024.
As in the previous year, all currency and commodity
hedges have a remaining maturity of less than one year.
The interest rate hedges have a remaining maturity of more
than one year.
As part of analysis of the market price risk, a sensitivity
analysis is performed based on the portfolio of financial
instruments at the balance sheet date. The values calcu-
lated show the hypothetical impact of a 10% change
in forward market quotations on operating income for
one year.
A 10% increase in the year-end price of commodity futures
would result in additional expense of €133 (21) thousand. A
10% decrease in the year-end price of commodity futures
would add a further €133 (21) thousand in income.
162
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 7. Notes to the Consolidated Balance Sheet
Expenses for short-term leases and for leases relating to
low-value assets totaled €17,208 (20,667) thousand in the
period under review.
Short-term lease liabilities totaled €15,578 (13,314) thousand
and long-term lease liabilities €35,828 (38,288) thousand at
June 30, 2024. The maturity analysis of the lease liabilities
is presented in section “7.13 Financial instruments” of the
Notes. Lease payments totaled 17,125 (11,933) thousand in
fiscal 2023/2024. Interest expenses from interest accrued
on the lease liabilities were €2,526 (1,628) thousand.
In general, lease agreements are concluded without
extension or termination options. Possible cash outflows
of €24,486 (23,796) thousand for existing options to extend
a property rental agreement were not included in deter-
mining the lease liabilities since there is no reasonable
certainty as to whether the options will be exercised.
The KWS Group also acts as a lessor. There is currently
a long-term sublease agreement, which has been
classified as a financial lease in relation to the main lease
agreement. The interest income was €117 (76) thousand.
The sublease is reported under the other noncurrent
receivables to an amount of €2,773 (3,314) thousand
and under the other current receivables to an amount
of €691 (674) thousand. The annual income from the
sublease is €813 (773) thousand. The lease agreement
contains a clause permitting annual adjustment of the
lease payment depending on market circumstances.
7.16 Contingent liabilities and other financial
obligations
The obligations from uncompleted capital expen-
diture projects, mainly relating to property, plant and
equipment, and the other capital commitment amount
to €28,628 (54,163) thousand.
There are guarantees with respect to third parties
amounting to €140,817 (34,999) thousand. The sharp
increase is due to the fact that at the beginning of fiscal
2023/2024 the KWS Group together with the other share-
holder issued a new guarantee to a bank for the fulfillment
of the payment obligations of the joint venture AGRELIANT
GENETICS LLC. The KWS Group’s portion of that is a
maximum of €116,659 thousand. Moreover, they also
include a further guarantee of €8,796 (13,764) thousand
toward a non-Group third party for the license payments
of AGRELIANT GENETICS, LLC. The likelihood that the
guarantee will be utilized is seen as slight, based on the
experience of previous years. No claims were asserted.
In addition, environmental damage was identified for
disposal services provided by a former service provider,
which AGRELIANT GENETICS LLC. has agreed to volun-
tarily remedy with other affected parties. The scope of the
measures has been expanded in the current phase, but the
resulting obligation cannot be reliably estimated.
In addition to the provisions for value-added tax risks
recognized in the balance sheet in this fiscal year, there
were also for the first time potential claims totaling an
estimated €14,519 thousand, although they were unlikely
for the most part. Furthermore, a routine quality control at
a subsidiary indicated a potential contamination of seed,
which only accounts for a small proportion of Group sales
and has largely already been sown by our customers.
Since the investigation is still at a very early stage, it is not
possible to make a reliable assessment of whether and to
what extent this could result in any claims for damages and
if covered by existing insurance claims.
As of June 30, 2024, the discontinued operation had
contingent liabilities from tax-related matters totaling
€30,024 (30,514) thousand to pay certain tax levies on
agricultural companies.
163
KWS Group | Annual Report 2023/2024 8. Notes to the Consolidated Cash Flow Statement | Notes for the KWS Group | Consolidated Financial Statements
8. Notes to the Consolidated
Cash Flow Statement
The cash flow statement shows the changes in cash and
cash equivalents of the KWS Group in the three categories
of operating activities, investing activities and financing
activities, presenting the three categories separately for the
continuing operations and for the discontinued operation.
The effects of exchange rate changes and changes in
the consolidated group have been eliminated from the
respective balance sheet items, except those affecting
cash and cash equivalents.
As in previous years, cash and cash equivalents are
composed of cash (on hand and balances with banks) and
current securities.
Financial liabilities changed as follows this year and in the
previous year:
Changes in financial liabilities
in € thousand
Cash
flows
Non-cash-effective changes
06/30/
2023
Reclassi-
fication of
discontinued
operation
(IFRS 5)
Currency
New
contracts
(IFRS 16)
Other
effects
06/30/2024
Financial liabilities
738,227
88,965
–196,452
–23,285
0
0
607,455
Lease liabilities
51,602
–17,125
–1,906
–404
17,907
1,332
51,406
06/30/
2022
06/30/
2023
Financial liabilities
725,580
9,154
0
3,494
0
–1
738,227
Lease liabilities
49,151
–11,933
0
–1,602
17,289
–1,304
51,602
The non-cash expenses and income totaling €89,733
(78,789) thousand relate, among other things, to the
measurement of inventories, trade receivables and deriva-
tives, as well as the result from equity-accounted financial
assets and effects from the application of IAS 29 “Financial
Reporting in Hyperinflationary Economies.”
164
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 9. Other Notes
9. Other Notes
9.1 Proposal for the appropriation of net retained profits
The net retained profits of KWS SAAT SE & Co. KGaA
are €293,944 (251,528) thousand.
A proposal will be made to the Annual Shareholders’
Meeting that an amount of €33,000 (29,700) thousand
should be used to pay a dividend of €1.00 (0.90) for each
of the 33,000,000 shares.
9.2 Total remuneration of the Supervisory Board and
the Executive Board and of former members of
the Supervisory Board and the Executive Board of
KWS SAAT SE & Co. KGaA
The compensation of the members of the Supervisory
Board was converted to a purely fixed compensation
pursuant to the resolution adopted by the Annual
Shareholders’ Meeting in December 2017. Members
of the Supervisory Board who are members of a
committee – with the exception of the Chairperson of the
Supervisory Board – receive an additional fixed payment
therefor. The total compensation for members of the
Supervisory Board amounts to €582 (620) thousand,
excluding value-added tax. The total compensation
for members of the Supervisory Board of KWS SE, the
personally liable partner of KWS SAAT SE & Co. KGaA, in
the year under review amounted to €218 (185) thousand,
excluding value-added tax.
In fiscal year 2023/2024, total Executive Board compen-
sation amounted to €5,958 thousand (€5,622 thousand).
The variable compensation, which is calculated on the
basis of the earnings after taxes of the KWS Group,
is made up of a bonus and a long-term incentive.
The bonus totals €2,772 (2,642) thousand; there are
contributions from the long-term incentive tranche
for 2022/2023 totaling €521 thousand (tranche
for 2021/2022: €655 thousand). Pension provisions
totaling €920 (959) thousand were formed for two members
of the Executive Board at KWS SAAT SE & Co. KGaA.
Compensation of former members of the Executive
Board and their surviving dependents amounted
to €1,252 (1,206) thousand. Pension provisions recog-
nized for this group of persons amounted to €4,001
(4,302) thousand as of June 30, 2024, after being netted
off with the relevant plan assets.
9.3 Related party disclosures
Transactions with related parties in accordance with IAS 24
are all business dealings that are conducted with the
reporting entity by entities or natural persons or their close
family members, if the party or person in question controls
the reporting entity or is a member of its key management
personnel, for example.
The personally liable partner KWS SE provides business
management services on behalf of KWS SAAT SE &
Co. KGaA. KWS SE is therefore considered a related party,
as are its respective shareholders who have at least signif-
icant influence.
Related parties
in € thousand
Deliveries and
services provided
Received deliveries
and services
Receivables
Payables
2023/2024
2022/2023
2023/2024
2022/2023
2023/2024
2022/2023
2023/2024
2022/2023
KWS SE
0
0
6,232
5,782
0
0
5,133
4,124
Equity-accounted
joint ventures
908
8,426
2,911
6,012
1
8,418
4
4,991
Equity-accounted
associated
companies
69
2,240
508
92
3
1,962
22
0
Other related
parties
81
51
0
0
0
0
0
0
165
KWS Group | Annual Report 2023/2024
9. Other Notes | Notes for the KWS Group | Consolidated Financial Statements
As part of its operations, the KWS Group procures goods
and services worldwide from a large number of business
partners. They also include companies in which the
KWS Group has an interest or on which representatives
of the KWS Group’s Supervisory Board exert a significant
influence. The services for joint ventures and associated
companies are mainly rendered under existing license
agreements. The services received from joint ventures
relate to research activities. The guarantees issued for joint
ventures are presented in section “7.16 Contingent liabil-
ities and other financial obligations” of the Notes. Business
dealings with related companies are always conducted
on an arm’s length basis and are not material in terms
of volume.
The compensation of members of the Executive Board
comprises short-term employee benefits, share-based
payment benefits and post-employment benefits. Individu-
alized disclosures on the compensation of members of the
Executive Board and the Supervisory Board are presented
in the Compensation Report. The Compensation Report
can be found on our website at: www.kws.de
There were also no business transactions or legal trans-
actions that required reporting for related parties in fiscal
2023/2024.
9.4 Disclosure
The following subsidiaries with the legal form of a corpo-
ration within the meaning of Section 264 (3) and 264b
of the German Commercial Code (HGB) have utilized
the exemption provided in Section 264 (3) of the German
Commercial Code (HGB) as regards preparation of
financial statements and their publication:
KWS LOCHOW GmbH, Bergen
KWS Landwirtschaft GmbH, Einbeck
Betaseed GmbH, Frankfurt am Main
KWS SAATFINANZ GmbH, Einbeck
Delitzsch Pflanzenzucht GmbH, Einbeck
Kant-Hartwig & Vogel GmbH, Einbeck
Agromais GmbH, Everswinkel
KWS Berlin GmbH, Berlin
KWS INTERSAAT GmbH, Einbeck
Euro-Hybrid Gesellschaft für
Getreidezüchtung mbH, Einbeck
KWS Klostergut Wiebrechtshausen GmbH,
Northeim-Wiebrechtshausen
RAGIS Kartoffelzucht- und
Handelsgesellschaft mbH, Einbeck
KWS SAAT SE & Co. KGaA prepares the consolidated
financial statements for the largest and smallest group of
companies.
9.5 Audit of the annual financial statements
On December 13, 2023, the Annual Shareholders’ Meeting
of KWS SAAT SE & Co. KGaA elected the accounting firm
EY GmbH & Co. KG Wirtschaftsprüfungsgesellschaft,
Stuttgart, to be the Group’s auditors for fiscal year
2023/2024.
Fee paid to the external auditors under
Section 314 (1) No. 9 HGB
in € thousand
2023/2024
2022/2023
a) Audit of the consolidated
financial statements
988
925
b) Other certification services
153
104
c) Tax consulting
0
0
d) Other services
20
0
Total fee paid
1,161
1,029
Other certification services in fiscal 2023/2024 essentially
comprised non-audit services as part of the voluntary
audit of the Non-Financial Declaration and auditing of the
Compensation Report.
9.6 Report on events after the balance sheet date
As described in section “4.2 Discontinued operation:
disposal group classified as held for sale” of the Notes, the
sale of the South American corn and sorghum business
was closed effective July 31, 2024. In this connection, a
non-recurring positive effect on earnings from discon-
tinued operations of around €100 million (after taxes) is
expected. The selling price was in the mid triple-digit
million euro range.
Apart from that, there have been no events of particular
significance that might have an impact on the presentation
of the KWS Group’s assets, financial position and earnings
since the end of the fiscal year.
9.7 Declaration of compliance with the German
Corporate Governance Code
KWS SAAT SE & Co. KGaA has issued the declaration
of compliance with the German Corporate Gover-
nance Code required by Section 161 of the Aktien
gesetz (AktG – German Stock Corporation Act) in
September 2023 and made it accessible to its share-
holders on the company’s homepage at www.kws.de/
corporate-governance.
166
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 9. Other Notes
9.8 List of shareholdings
List of shareholdings in accordance with Section 313 (2) HGB (German Commercial Code)
Fiscal 2023/2024
Name and registered office of the company
Currency
Interest held
Footnote
Total in %
Fully consolidated subsidiaries (direct)
Germany
AGROMAIS GMBH, Everswinkel
EUR
100.00
1
BETASEED GMBH, Frankfurt am Main
EUR
100.00
DELITZSCH PFLANZENZUCHT GMBH, Einbeck
EUR
100.00
1
EURO-HYBRID GESELLSCHAFT FÜR
GETREIDEZÜCHTUNG MBH, Einbeck
EUR
100.00
KANT-HARTWIG & VOGEL GMBH, Einbeck
EUR
100.00
1
KWS BERLIN GMBH, Berlin
EUR
100.00
KWS INTERSAAT GMBH, Einbeck
EUR
100.00
KWS KLOSTERGUT WIEBRECHTSHAUSEN GMBH,
Northeim-Wiebrechtshausen
EUR
100.00
1
KWS LANDWIRTSCHAFT GMBH, Einbeck
EUR
100.00
KWS LOCHOW GMBH, Bergen
EUR
100.00
1
KWS SAATFINANZ GMBH, Einbeck
EUR
100.00
1
RAGIS KARTOFFELZUCHT- UND
HANDELSGESELLSCHAFT MBH, Einbeck
EUR
100.00
1
Abroad
KWS ARGENTINA S.A., Balcarce/Argentina
ARS
100.00
26
KWS BULGARIA EOOD., Sofia/Bulgaria
BGN
100.00
KWS SEMENA S.R.O., Bratislava/Slovakia
EUR
100.00
KWS SRBIJA D.O.O., New Belgrade/Serbia
RSD
100.00
SEMILLAS KWS CHILE LTDA., Rancagua/Chile
CLP
100.00
Fully consolidated subsidiaries (indirect)
Abroad
BEIJING KWS AGRICULTURE TECHNOLOGY CO., LTD.,
Beijing/China
CNY
100.00
7
BETASEED FRANCE S.A.R.L., Bethune/France
EUR
100.00
2
BETASEED RUS LLC, Moscow/Russia
RUB
100.00
30
BTS TURKEY TARIM TICARET LIMITED SIRKETI,
Eskisehir/Türkiye
TRY
100.00
2
EUROPSEEDS B.V., Enkhuizen/Netherlands
EUR
100.00
17
GLH SEEDS INC., Bloomington/U.S.
USD
100.00
3
KLEIN WANZLEBENER SAATZUCHT MAROC S.A.R.L.A.U.,
Casablanca/Morocco
MAD
100.00
8
KWS AGRICULTURE RESEARCH & DEVELOPMENT
CENTER, Hefei/China
CNY
100.00
7
KWS AUSTRIA SAAT GMBH, Vienna/Austria
EUR
100.00
2
KWS BENELUX B.V., Amsterdam/Netherlands
EUR
100.00
2
167
KWS Group | Annual Report 2023/2024
9. Other Notes | Notes for the KWS Group | Consolidated Financial Statements
KWS BRASIL LTDA., Campinas/Brazil
BRL
100.00
2
KWS CEREALS USA LLC, Champaign/U.S.
USD
100.00
3
KWS FRANCE S.A.R.L., Roye/France
EUR
100.00
2
KWS GATEWAY RESEARCH CENTER LLC, St. Louis/U.S.
USD
100.00
3
KWS INTERNATIONAL HOLDING B.V.,
Emmeloord/Netherlands
EUR
100.00
5
KWS INTERNATIONAL HOLDING II B.V.,
Emmeloord/Netherlands
EUR
100.00
2
KWS ITALIA S.P.A., Forlì/Italy
EUR
100.00
2
KWS KUBAN O.O.O., Krasnodar/Russia
RUB
100.00
6
KWS LOCHOW POLSKA SP.Z O.O., Kondratowice/Poland
PLN
100.00
2
KWS MAGYARORSZÁG KFT., Györ/Hungary
HUF
100.00
2
KWS MAIS FRANCE S.A.R.L., Champol/France
EUR
100.00
2
KWS MOMONT RECHERCHE S.A.R.L.,
Mons-en-Pévèle/France
EUR
100.00
10
KWS MOMONT S.A.S., Mons-en-Pévèle/France
EUR
100.00
2
KWS OSIVA S.R.O, Velké Mezirici/Czech Republic
CZK
100.00
2
KWS PARAGUAY SRL, Asunción/Paraguay
PYG
100.00
11
KWS PERU S.A.C., Lima/Peru
PEN
100.00
4
KWS PODILLYA T.O.V., Kyiv/Ukraine
UAH
100.00
9
KWS POLSKA SP.Z O.O., Poznan/Poland
PLN
100.00
2
KWS R&D INVEST B.V., Emmeloord/Netherlands
EUR
100.00
2
KWS R&D RUS LLC, Lipetsk/Russia
RUB
100.00
6
KWS RUS O.O.O., Lipetsk/Russia
RUB
100.00
22
KWS SCANDINAVIA A/S, Guldborgsund/Denmark
DKK
100.00
2
KWS SEEDS CANADA, LTD., Calgary/Canada
CAD
100.00
2
KWS SEEDS INC., Bloomington/U.S.
USD
100.00
2
KWS SEEDS INDIA PRIVATE LIMITED, New Delhi/India
INR
100.00
2
KWS SEEDS LLC, Bloomington/U.S.
USD
100.00
3
KWS SEMENTES LTDA., Patos de Minas/Brazil
BRL
100.00
27
KWS SEMILLAS CANARIAS S.L.U., Gran Canaria/Spain
EUR
100.00
2
KWS SEMILLAS IBÉRICA S.L., Zaratán/Spain
EUR
100.00
2
KWS SEMINTE S.R.L., Bucharest/Romania
RON
100.00
23
KWS SERVICOS E PARTICIPACOES SOUTH AMERICA
LTDA., São Paulo/Brazil
BRL
100.00
28
KWS SJEME D.O.O., Osijek/Croatia
HRK
100.00
2
KWS SUISSE S.A., Basel/Switzerland
CHF
100.00
2
KWS TÜRK TARIM TICARET A.S., Eskisehir/Türkiye
TRY
100.00
2
KWS UK LTD., Thriplow/UK
GBP
100.00
2
KWS UKRAINA T.O.V., Kyiv/Ukraine
UAH
100.00
22
KWS VEGETABLES B.V., Heythuysen/Netherlands
EUR
100.00
2
KWS VEGETABLES ITALIA S.R.L: A SOCIO UNICO,
Noceto/Italy
EUR
100.00
15
KWS VEGETABLES MEXICO S.A. DE C.V.,
Mexico City/Mexico
MXN
100.00
29
POP VRIEND HOLDING B.V., Amsterdam/Netherlands
EUR
100.00
15
Fiscal 2023/2024
Name and registered office of the company
Currency
Interest held
Footnote
Total in %
168
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 9. Other Notes
POP VRIEND INTERNATIONAL B.V., Andijk/Netherlands
EUR
100.00
17
POP VRIEND SEEDS B.V., Andijk/Netherlands
EUR
100.00
17
POP VRIEND TOHUMCULUK VE TARIM ÜRÜNLERI
SANAYI VE TICARET LIMITED SIRKETI, Istanbul/Türkiye
TRY
100.00
18
PV TOHUMCULUK TARIM ÜRÜNLERI SANAYI VE TICARET
LIMITED SIRKETI, Izmir/Türkiye
TRY
100.00
19
SEED PLANT KWS O.O.O., Lipetsk/Russia
RUB
100.00
6
Equity-accounted joint ventures
AGRELIANT GENETICS INC., Chatham/Canada
CAD
50.00
AGRELIANT GENETICS LLC, Westfield/U.S.
USD
50.00
12
FARMDESK B.V., Antwerp/Belgium
EUR
50.00
21
Equity-accounted associated companies
GIE RHP RECOLTE HAUTE PRECISION, Roye/France
EUR
49.67
16
IMPETUS AGRICULTURE INC., Lewes/U.S.
USD
38.82
20
Joint operations (proportionately consolidated)
AARDEVO B.V., Nagele/Netherlands
USD
50.00
13
AARDEVO NORTH AMERICA LLC, Boise/U.S.
USD
50.00
14
GENECTIVE JAPAN K.K., Chiba/Japan
JPY
50.00
24
GENECTIVE KOREA, Sangdaewon-dong/Korea
KRW
50.00
24
GENECTIVE S.A., Chappes/France
EUR
50.00
GENECTIVE TAIWAN LTD., Taipei/Taiwan
TWD
50.00
24
GENECTIVE USA Corp., Weldon/U.S.
USD
50.00
24
1 Profit and loss transfer agreement
2 Subsidiary of KWS INTERNATIONAL HOLDING B.V.
3 Subsidiary of KWS SEEDS INC.
4 Subsidiary of SEMILLAS KWS CHILE LTDA. and KWS INTERNATIONAL HOLDING B.V.
5 Subsidiary of KWS INTERSAAT GMBH
6 Subsidiary of KWS RUS O.O.O.
7 Subsidiary of EURO-HYBRID GMBH
8 Subsidiary of KWS BENELUX B.V.
9 Subsidiary of KWS UKRAINA T.O.V.
10 Subsidiary of KWS MOMONT S.A.S.
11 Subsidiary of KWS SERVICOS E PARTICIPACOES SOUTH AMERICA LTDA. and KWS SEMENTES LTDA.
12 Participation of GLH SEEDS INC.
13 Participation of RAGIS KARTOFFELZUCHT- UND HANDELSGESELLSCHAFT MBH
14 Subsidiary of AARDEVO B.V.
15 Subsidiary of KWS VEGETABLES B.V.
16 Participation of KWS FRANCE S.A.R.L
17 Subsidiary of POP VRIEND HOLDING B.V and CHURA B.V.
18 Subsidiary of POP VRIEND INTERNATIONAL B.V.
19 Subsidiary of POP VRIEND TOHUMCULUK VE TARIM ÜRÜNLERI SANAYI VE TICARET LIMITED SIRKETI
20 Participation of KWS R&D INVEST B.V.
21 Participation of KWS INTERNATIONAL HOLDING B.V.
22 Subsidiary of EURO-HYBRID GMBH and KWS SAATFINANZ GMBH
23 Subsidiary of KWS INTERSAAT GMBH and KWS SAATFINANZ GMBH
24 Subsidiary of GENECTIVE S.A.
25 Subsidiary of KWS KLOSTERGUT WIEBRECHTSHAUSEN GMBH
26 Subsidiary of KWS SERVICOS E PARTICIPACOES SOUTH AMERICA LTDA.
27 Subsidiary of KWS SERVICOS E PARTICIPACOES SOUTH AMERICA LTDA. and KWS INTERSAAT GMBH
28 Subsidiary of KWS INTERNATIONAL HOLDING B.V. and KWS SAATFINANZ GMBH
29 Subsidiary of KWS INTERNATIONAL HOLDING B.V. and KWS VEGETABLES B.V.
30 Subsidiary of KWS INTERNATIONAL HOLDING B.V. and KWS INTERNATIONAL HOLDING II B.V.
Fiscal 2023/2024
Name and registered office of the company
Currency
Interest held
Footnote
Total in %
169
KWS Group | Annual Report 2023/2024
9. Other Notes | Notes for the KWS Group | Consolidated Financial Statements
9.9 Supervisory Board and Executive Board of KWS SAAT SE & Co. KGaA in fiscal 2023/2024
9.9.1 Supervisory Board
Members
Other seats held in 2023/2024
(at the balance sheet date)
Philip Freiherr von dem Bussche † (until April 8, 2024)
Bad Essen
Graduate in business administration,
entrepreneur and farmer
Chairperson of the Supervisory Board
of KWS SAAT SE & Co. KGaA and KWS SE
(until April 8, 2024)
Membership of other legally required supervisory boards:
Bernhard Krone Holding SE & Co. KG, Spelle
(member of the Supervisory Board)
Membership of comparable German and foreign oversight
boards:
DF World of Spices GmbH, Dissen
(member of the Advisory Board)
Dr. Marie Theres Schnell
Munich
Graduate in communications
Chairperson of the Supervisory Board
of KWS SAAT SE & Co. KGaA and KWS SE
(since April 17, 2024)
Membership of comparable German and foreign oversight
boards:
DR. SCHNELL GmbH & Co. KGaA, München
(member of the Advisory Board)
Victor W. Balli
Zurich (Switzerland)
Chemical Engineer
Deputy Chairperson of the Supervisory Board
of KWS SAAT SE & Co. KGaA and KWS SE
(Since April 17, 2024)
Membership of comparable German and foreign oversight
boards:
Givaudan SA, Vernier (Switzerland)
(Chairperson of the Audit Committee, member of the
Board of Directors and the Compensation Committee)
Medacta International SA, Frauenfeld (Switzerland)
(member of the Board of Directors and Chairperson
of the Audit Committee)
Hemro AG, Bachenbülach (Switzerland)
(member of the Management Board)
Sika AG, Baar (Switzerland)
(member of the Board of Directors,
the Audit Committee and the ESG Committee)
Louis Dreyfus Company International Holding B.V.,
Amsterdam (Netherlands)
(member of the Supervisory Board and Chairperson of
the Audit Committee)
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Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Notes for the KWS Group | 9. Other Notes
Members
Other seats held in 2023/2024
(at the balance sheet date)
Christine Coenen
Einbeck
Interpreter
Member of the Supervisory Board of KWS SAAT SE &
Co. KGaA
Chairperson of the European Employees’ Committee (EEC)
of KWS SAAT SE & Co. KGaA
Eric Gombert (since 12/06/2023)
Villeneuve-sur-Lot (France)
Graduate in agricultural engineering
Member of the Supervisory Board of KWS SAAT SE &
Co. KGaA
Vice-Chairperson of the European Employees’ Committee
(EEC) of KWS SAAT SE & Co. KGaA
Prof. Dr. Dr. h.c. mult. Stefan W. Hell (since 12/06/2023)
Göttingen
Physicist
Director at the Max Planck Institute for Multidisciplinary
Sciences, Göttingen, and Director at the Max Planck
Institute for Medical Research, Heidelberg
Member of the Supervisory Board
of KWS SAAT SE & Co. KGaA and KWS SE
Honorary members
Other seats held in 2023/2024
(at the balance sheet date)
Dr. Drs. h. c. Andreas J. Büchting
Göttingen
Agricultural Biologist
Honorary member of the Supervisory Board
of KWS SAAT SE & Co. KGaA and KWS SE
Dr. Arend Oetker
Berlin
Honorary member of the Supervisory Board
of KWS SAAT SE & Co. KGaA and KWS SE
9.9.2 Supervisory Board committees
Committee
Chairperson
Members in 2023/2024
Audit Committee
Victor W. Balli
Christine Coenen
Dr. Marie Theres Schnell
Nominating Committee
Prof. Dr. Dr. h.c. mult. Stefan W. Hell
Victor W. Balli
Dr. Marie Theres Schnell
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KWS Group | Annual Report 2023/2024
9. Other Notes | Notes for the KWS Group | Consolidated Financial Statements
9.9.3 Executive Board
Members
Other seats held in 2023/2024
(at the balance sheet date)
Dr. Felix Büchting
Einbeck
Spokesperson
Research, Breeding, Global Human Resources, Farming
Group Strategy, Corporate Office & Services
Dr. Peter Hofmann
Einbeck
Sugarbeet, Vegetables, Cereals,
Oilseed Rape/Special Crops & Organic Seeds,
Global Marketing & Communications
Eva Kienle
Göttingen
Finance & Procurement, Controlling, Global Transaction
Center, Legal Services & IP, IT, Group Governance,
Compliance & Risk Management
Membership of other legally required supervisory boards:
Zumtobel Group AG, Dornbirn (Austria)
(member of the Supervisory Board and Chairperson
of the Audit Committee)
Schott Pharma AG & Co. KGaA, Mainz
(member of the Supervisory Board)
Nicolás Wielandt
Einbeck
Corn Europe, Corn South America,
Corn North America, Corn China/Asia
Einbeck, September 10, 2024
KWS SE
Dr. Felix Büchting | Dr. Peter Hofmann | Eva Kienle | Nicolás Wielandt
172
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Independent auditor’s report
Reproduction of the auditor’s report
For the consolidated financial statements and the group management report, which has been combined with the
management report of the Company and for the ESEF documents, we have issued the following audit opinion:
the accompanying group management report as a whole
provides an appropriate view of the Group’s position. In
all material respects, this group management report is
consistent with the consolidated financial statements,
complies with German legal requirements and appro-
priately presents the opportunities and risks of future
development. We do not express an opinion on the parts
of the group management report listed in the appendix.
Pursuant to Sec. 322 (3) Sentence 1 HGB, we declare that
our audit has not led to any reservations relating to the
legal compliance of the consolidated financial statements
and of the group management report.
Basis for the opinions
We conducted our audit of the consolidated financial
statements and of the group management report in accor-
dance with Sec. 317 HGB and the EU Audit Regulation
(No 537/2014, referred to subsequently as “EU Audit
Regulation”) and in compliance with German Generally
Accepted Standards for Financial Statement Audits
promulgated by the Institut der Wirtschaftsprüfer [Institute
of Public Auditors in Germany] (IDW). Our responsibil-
ities under those requirements and principles are further
described in the “Auditor’s responsibilities for the audit
of the consolidated financial statements and of the group
management report” section of our auditor’s report. We are
independent of the group entities in accordance with the
requirements of European law and German commercial and
professional law, and we have fulfilled our other German
professional responsibilities in accordance with these
requirements. In addition, in accordance with Art. 10 (2) f)
of the EU Audit Regulation, we declare that we have not
provided non-audit services prohibited under Art. 5 (1) of
the EU Audit Regulation. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a
basis for our opinions on the consolidated financial state-
ments and on the group management report.
Independent auditor’s report
To KWS SAAT SE & Co. KGaA
Report on the audit of the consolidated financial
statements and of the group management report
Opinions
We have audited the consolidated financial statements of
KWS SAAT SE & Co. KGaA, Einbeck, and its subsidiaries
(the Group), which comprise the consolidated statement of
comprehensive income for the fiscal year from 1 July 2023
to 30 June 2024, and the consolidated balance sheet as at
30 June 2024, consolidated statement of changes in equity
and consolidated cash flow statement for the fiscal year
from 1 July 2023 to 30 June 2024, and notes to the consol-
idated financial statements, including a summary of signif-
icant accounting policies. In addition, we have audited the
group management report of KWS SAAT SE & Co. KGaA,
which was combined with the management report of
the Company, for the fiscal year from 1 July 2023 to
30 June 2024. We have not audited the content of the parts
of the group management report specified in the appendix
to the auditor’s report and the company information stated
therein that is provided outside of the annual report and is
referenced in the group management report.
In our opinion, on the basis of the knowledge obtained in
the audit,
the accompanying consolidated financial statements
comply, in all material respects, with the IFRSs as
adopted by the EU, and the additional requirements of
German commercial law pursuant to Sec. 315e (1) HGB
[“Handelsgesetzbuch”: German Commercial Code] and,
in compliance with these requirements, give a true and
fair view of the assets, liabilities and financial position of the
Group as at 30 June 2024 and of its financial performance
for the fiscal year from 1 July 2023 to 30 June 2024, and
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KWS Group | Annual Report 2023/2024
Independent auditor’s report | Consolidated Financial Statements
Key audit matters in the audit of the consolidated
financial statements
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
consolidated financial statements for the fiscal year from
1 July 2023 to 30 June 2024. These matters were addressed
in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon;
we do not provide a separate opinion on these matters.
Below, we describe what we consider to be the key audit
matters:
(1) Revenue recognition from the sale of seed
Reasons why the matter was determined to be a
key audit matter
In the consolidated financial statements of
KWS SAAT SE & Co. KGaA, revenue from the sale of
seed is recognized when control is transferred to the
customer, allowing for contractually agreed returns. Due to
different contractual agreements and judgment exercised
in assessing expected return deliveries, therefore is an
elevated risk of misstatement in relation to the proper
recognition of revenue on an accrual basis.
Auditor’s response
During our audit, we considered, based on the criteria
defined in IFRS 15, the accounting policies applied in accor-
dance with the internal accounting instructions in the consol-
idated financial statements of KWS SAAT SE & Co. KGaA
for the recognition of revenue. Our response included
an examination of whether control was transferred to
the customers upon the sale of seed. We analyzed the
process implemented by the executive directors of
KWS SAAT SE & Co. KGaA for the recognition of seed
sales, taking into account knowledge about actual returns.
Based on analytical procedures defined group-wide, we
examined whether the significant revenue items for fiscal
year 2023/2024 correlate with the corresponding trade
receivables to identify any irregularities in the development
of revenue. With a view to the recognition of revenue on
an accrual basis, we also obtained balance confirma-
tions from customers and performed data analyses to
identify any irregularities in comparison with the prior year.
We analyzed the recognition of revenue based on the
contractual arrangements on a sample basis with regard
to the requirements of IFRS 15. Using historical data on
actual returns and returns made after the reporting date
of the fiscal year, we applied analytical procedures to
examine the calculation of expected returns of seed and
their deduction from revenue.
Reference to related disclosures
With regard to the recognition and measurement policies
applied for the recognition of revenue from the sale of
seed, refer to the disclosure in note 3.6 “Recognition of
income and expenses” in section 3 “Accounting Policies”
in the notes to the consolidated financial statements.
(2) Impairment testing of the goodwill of
Business Unit Vegetables
Reasons why the matter was determined to be a
key audit matter
The goodwill of the Business Unit Vegetables
presented in the consolidated financial statements of
KWS SAAT SE & Co. KGaA results from the acquisition of
subsidiaries and is a significant balance sheet item.
Goodwill is tested for impairment as of 30 June each year.
The result of this test is highly dependent on the executive
directors’ estimate of future cash flows and the respective
discount rates used.
In light of the definition of the cash-generating units, the
complexity of the valuation and the judgment exercised
during valuation, impairment tests for goodwill were a key
audit matter.
Auditor’s response
During our audit, among other things, we obtained an
understanding of the methods used to carry out the
impairment tests including an examination of the suitability
of the procedure for performing an impairment test in
accordance with IAS 36. In doing so, we analyzed the
planning process and the controls implemented therein.
We discussed the significant planning assumptions with
the executive directors of KWS SAAT SE & Co. KGaA
and compared these with the results and cash inflows
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Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Independent auditor’s report
realized in the past. Our assessment of the result of the
impairment test as of 30 June was based among other
things on a comparison with general and industry-specific
market expectations underlying the expected cash inflows.
Based on our understanding that even relatively small
changes in the discount rates used may have significant
effects on the amount of the business value calculated, we
analyzed the inputs used to determine the discount rates
and reperformed the calculation with regard to the relevant
requirements of IAS 36. In addition, we analyzed the
sensitivity analyses performed by the executive directors
of KWS SAAT SE & Co. KGaA on the goodwill impairment
test in order to estimate any potential impairment risk
associated with a reasonably possible change in one of the
significant assumptions used in the valuation.
We obtained evidence that BU Vegetables continues
to represent the lowest level within the Group at which
independent cash inflows are generated and goodwill
is monitored for internal management purposes. Our
auditor’s response also included the disclosures in
the notes to the consolidated financial statements of
KWS SAAT SE & Co. KGaA in relation to the requirements
of IAS 36.
Reference to related disclosures
With regard to the recognition and measurement policies
applied for goodwill, refer to the disclosure on intangible
assets in section 3 “Accounting Policies” in the notes to the
consolidated financial statements. For the related disclo-
sures on judgments by the executive directors and sources
of estimation uncertainty as well as the disclosures on
goodwill, refer to note 7.1 “Intangible assets” in section 7
“Notes to the Consolidated Balance Sheet” in the notes to
the consolidated financial statements.
(3) Accounting for discontinued operations in
accordance with IFRS 5
Reasons why the matter was determined
to be a key audit matter
Effective 25 March 2024, the Executive Board of
KWS SAAT SE & Co. KGaA reached an agreement with
GDM Holding S.A., Argentina, on the sale of the corn and
sorghum business in South America. The transaction
essentially comprises the entire breeding and sales
activities for corn and sorghum in South America (Brazil,
Argentina, Paraguay, Uruguay) and all of the KWS Group’s
production locations for corn seed in Argentina and Brazil
and thus affects the corn operating segment in particular.
As the sale had not yet been closed as of the balance
sheet date, the assets and liabilities classified as held for
sale are accounted for in accordance with the accounting
standard IFRS 5 “Non-current Assets Held for Sale and
Discontinued Operations.”
The sale represents a significant business unit of KWS in
a geographical region and will be sold in a single trans-
action. The group to be sold was therefore classified as an
independent component of the Group and reported as a
discontinued operation in the consolidated financial state-
ments and group management report.
With assets of EUR 422,307k being disposed of, liabil-
ities of EUR 284,237k being disposed of and accounting
for a significant share of total consolidated revenue, the
discontinued operation represents a significant component
of the group and therefore has a significant effect on the
presentation of the assets, liabilities, financial position and
financial performance in the consolidated financial state-
ments as of 30 June 2024.
Applying the relevant accounting standard IFRS 5
“Non-current Assets Held for Sale and Discontinued
Operations” as of the reporting date is a non-routine trans-
action in terms of its scope and complexity.
Auditor’s response
We considered the assessment by the executive directors
of KWS SAAT SE & Co. KGaA regarding the criteria for
classification as a discontinued operation based on
inquiries, inspections of contracts and resolutions. We also
verified that the executive directors of KWS performed an
impairment test immediately before reclassification as a
discontinued operation.
In addition, we verified the proper reclassification of the
assets and liabilities of the discontinued operation to a
separate line item in the consolidated balance sheet and
of the expenses and income allocated to the discontinued
operation to a separate line item in the income statement.
In that regards we reconciled the reclassification entries
with the accounting records and reports of local auditors
as well as adjusting entries made at group level.
175
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Independent auditor’s report | Consolidated Financial Statements
On the basis of the sales contracts, inquiries of the
executive directors and accounting records, we also verified
that the sale was presented in a transparent manner in the
consolidated financial statements and group management
report and, in particular, that the disclosures in the notes to
the consolidated financial statements were complete.
Reference to related disclosures
Please refer to sections 3.10 and 4.2 of the notes to the
consolidated financial statements for disclosures and
information relating to the discontinued operation.
Other information
The Supervisory Board is responsible for the Report of the
Supervisory Board. The executive directors and the Super-
visory Board are responsible for the declaration pursuant
to Sec. 161 AktG [“Aktiengesetz”: German Stock Corpo-
ration Act] on the German Corporate Governance Code,
which is part of the Declaration on Corporate Governance,
as well as for the paragraph “Control and monitoring
systems” in section 2.5.2 “Risk Management” of the group
management report. In all other respects, the executive
directors are responsible for the other information. The
other information comprises the parts of the annual report
listed in the appendix. We obtained a version of this other
information prior to issuing our auditor’s report.
Our opinions on the consolidated financial statements and
on the group management report do not cover the other
information, and consequently we do not express an opinion
or any other form of assurance conclusion thereon.
In connection with our audit, our responsibility is to read
the other information and, in so doing, to consider whether
the other information
is materially inconsistent with the consolidated financial
statements, with the group management report or our
knowledge obtained in the audit, or
otherwise appears to be materially misstated.
Responsibilities of the executive directors and the
Supervisory Board for the consolidated financial state-
ments and the group management report
The executive directors are responsible for the preparation
of the consolidated financial statements that comply, in all
material respects, with IFRSs as adopted by the EU and
the additional requirements of German commercial law
pursuant to Sec. 315e (1) HGB, and that the consolidated
financial statements, in compliance with these require-
ments, give a true and fair view of the assets, liabilities,
financial position and financial performance of the Group.
In addition, the executive directors are responsible for
such internal control as they have determined necessary to
enable the preparation of consolidated financial statements
that are free from material misstatement, whether due to
fraud (i.e., fraudulent financial reporting and misappropri-
ation of assets) or error.
In preparing the consolidated financial statements, the
executive directors are responsible for assessing the
Group’s ability to continue as a going concern. They
also have the responsibility for disclosing, as applicable,
matters related to going concern. In addition, they are
responsible for financial reporting based on the going
concern basis of accounting unless there is an intention to
liquidate the Group or to cease operations, or there is no
realistic alternative but to do so.
Furthermore, the executive directors are responsible for
the preparation of the group management report that,
as a whole, provides an appropriate view of the Group’s
position and is, in all material respects, consistent with
the consolidated financial statements, complies with
German legal requirements, and appropriately presents
the opportunities and risks of future development. In
addition, the executive directors are responsible for such
arrangements and measures (systems) as they have
considered necessary to enable the preparation of a
group management report that is in accordance with the
applicable German legal requirements, and to be able to
provide sufficient appropriate evidence for the assertions
in the group management report.
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Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Independent auditor’s report
The Supervisory Board is responsible for overseeing the
Group’s financial reporting process for the preparation of
the consolidated financial statements and of the group
management report.
Auditor’s responsibilities for the audit of the consoli
dated financial statements and of the group manage-
ment report
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and whether the group management report as a
whole provides an appropriate view of the Group’s position
and, in all material respects, is consistent with the consol-
idated financial statements and the knowledge obtained
in the audit, complies with the German legal requirements
and appropriately presents the opportunities and risks of
future development, as well as to issue an auditor’s report
that includes our opinions on the consolidated financial
statements and on the group management report.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with Sec. 317 HGB and the EU Audit Regulation and in
compliance with German Generally Accepted Standards
for Financial Statement Audits promulgated by the Institut
der Wirtschaftsprüfer (IDW) will always detect a material
misstatement. Misstatements can arise from fraud or
error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of
these consolidated financial statements and this group
management report.
We exercise professional judgment and maintain profes-
sional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of
the consolidated financial statements and of the group
management report, whether due to fraud or error,
design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinions. The
risk of not detecting a material misstatement resulting
from fraud is higher than the risk of not detecting a
material misstatement resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrep-
resentations, or the override of internal control.
Obtain an understanding of internal control relevant
to the audit of the consolidated financial statements
and of arrangements and measures (systems) relevant
to the audit of the group management report in order
to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an
opinion on the effectiveness of these systems.
Evaluate the appropriateness of accounting policies
used by the executive directors and the reasonableness
of estimates made by the executive directors and
related disclosures.
Conclude on the appropriateness of the executive
directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or condi-
tions that may cast significant doubt on the Group’s
ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to
draw attention in the auditor’s report to the related
disclosures in the consolidated financial statements and
in the group management report or, if such disclosures
are inadequate, to modify our respective opinions. Our
conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to
be able to continue as a going concern.
Evaluate the overall presentation, structure and content
of the consolidated financial statements, including the
disclosures, and whether the consolidated financial
statements present the underlying transactions and
events in a manner that the consolidated financial state-
ments give a true and fair view of the assets, liabilities,
financial position and financial performance of the
Group in compliance with IFRSs as adopted by the EU
and the additional requirements of German commercial
law pursuant to Sec. 315e (1) HGB.
Obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business
activities within the Group to express opinions on the
consolidated financial statements and on the group
management report. We are responsible for the direction,
supervision and performance of the group audit. We
remain solely responsible for our audit opinions.
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KWS Group | Annual Report 2023/2024
Independent auditor’s report | Consolidated Financial Statements
Evaluate the consistency of the group management
report with the consolidated financial statements,
its conformity with [German] law, and the view of the
Group’s position it provides.
Perform audit procedures on the prospective infor-
mation presented by the executive directors in the
group management report. On the basis of sufficient
appropriate audit evidence we evaluate, in particular, the
significant assumptions used by the executive directors
as a basis for the prospective information, and evaluate
the proper derivation of the prospective information
from these assumptions. We do not express a separate
opinion on the prospective information and on the
assumptions used as a basis. There is a substantial
unavoidable risk that future events will differ materially
from the prospective information.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with
a statement that we have complied with the relevant
independence requirements, and communicate with them
all relationships and other matters that may reasonably be
thought to bear on our independence and where appli-
cable, the related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the consolidated financial
statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure
about the matter.
Other legal and regulatory requirements
Report on the assurance on the electronic rendering
of the consolidated financial statements and the group
management report prepared for publication purposes
in accordance with Sec. 317 (3a) HGB
Opinion
We have performed assurance work in accordance
with Sec. 317 (3a) HGB to obtain reasonable assurance
about whether the rendering of the consolidated financial
statements and the group management report (herein-
after the “ESEF documents”) contained in the file
KWS_SAAT_SE_KA_LB_ESEF_30.06.2024.zip and
prepared for publication purposes complies in all material
respects with the requirements of Sec. 328 (1) HGB for
the electronic reporting format (“ESEF format”). In accor-
dance with German legal requirements, this assurance
work extends only to the conversion of the information
contained in the consolidated financial statements and
the group management report into the ESEF format and
therefore relates neither to the information contained
within these renderings nor to any other information
contained in the file identified above.
In our opinion, the rendering of the consolidated financial
statements and the group management report contained in
the attached file identified above and prepared for publi-
cation purposes complies in all material respects with
the requirements of Sec. 328 (1) HGB for the electronic
reporting format. Beyond this assurance opinion and our
audit opinions on the accompanying consolidated financial
statements and the accompanying group management
report for the fiscal year from 1 July 2023 to 30 June 2024
contained in the “Report on the audit of the consolidated
financial statements and of the group management report”
above, we do not express any assurance opinion on the
information contained within these renderings or on the
other information contained in the file identified above.
Basis for the opinion
We conducted our assurance work on the rendering of
the consolidated financial statements and the group
management report contained in the accompanying file
identified above in accordance with Sec. 317 (3a) HGB and
the IDW Assurance Standard: Assurance on the Electronic
Rendering of Financial Statements and Management
Reports Prepared for Publication Purposes in Accordance
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Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Independent auditor’s report
with Sec. 317 (3a) HGB (IDW AsS 410 06.2022). Our respon-
sibility in accordance therewith is further described in the
“Group auditor’s responsibilities for the assurance work on
the ESEF documents” section. Our audit firm applies the
IDW Standard on Quality Management 1: Requirements for
Quality Management in the Audit Firm (IDW QS 1).
Responsibilities of the executive directors and the
Supervisory Board for the ESEF documents
The executive directors of the Company are responsible
for the preparation of the ESEF documents including the
electronic rendering of the consolidated financial state-
ments and the group management report in accordance
with Sec. 328 (1) Sentence 4 No. 1 HGB and for the tagging
of the consolidated financial statements in accordance with
Sec. 328 (1) Sentence 4 No. 2 HGB.
In addition, the executive directors of the Company are
responsible for such internal control as they have deter-
mined necessary to enable the preparation of ESEF
documents that are free from material intentional or
unintentional non-compliance with the requirements of
Sec. 328 (1) HGB for the electronic reporting format.
The Supervisory Board is responsible for overseeing the
preparation of the ESEF documents as part of the financial
reporting process.
Group auditor’s responsibilities for the assurance work
on the ESEF documents
Our objective is to obtain reasonable assurance about
whether the ESEF documents are free from material
intentional or unintentional non-compliance with the
requirements of Sec. 328 (1) HGB. We exercise profes-
sional judgment and maintain professional skepticism
throughout the engagement. We also:
Identify and assess the risks of material intentional or
unintentional non-compliance with the requirements
of Sec. 328 (1) HGB, design and perform assurance
procedures responsive to those risks, and obtain
assurance evidence that is sufficient and appropriate to
provide a basis for our assurance opinion.
Obtain an understanding of internal control relevant
to the assurance on the ESEF documents in order to
design assurance procedures that are appropriate in the
circumstances, but not for the purpose of expressing an
assurance opinion on the effectiveness of these controls.
Evaluate the technical validity of the ESEF documents,
i.e., whether the file containing the ESEF documents
meets the requirements of Commission Delegated
Regulation (EU) 2019/815, in the version in force at the
date of the financial statements, on the technical specifi-
cation for this file.
Evaluate whether the ESEF documents enable an
XHTML rendering with content equivalent to the audited
consolidated financial statements and to the audited
group management report.
Evaluate whether the tagging of the ESEF documents
with Inline XBRL technology (iXBRL) in accordance
with the requirements of Arts. 4 and 6 of Commission
Delegated Regulation (EU) 2019/815, in the version in
force at the date of the financial statements, enables an
appropriate and complete machine-readable XBRL copy
of the XHTML rendering.
Further information pursuant to Art. 10 of the EU Audit
Regulation
We were elected as group auditor by the Annual Share-
holders’ Meeting on 13 December 2023. We were engaged
by the Supervisory Board on 8 May 2024. We have been
the group auditor of KWS SAAT SE & Co. KGaA without
interruption since fiscal year 2016/2017.
We declare that the opinions expressed in this auditor’s
report are consistent with the additional report to the audit
committee pursuant to Art. 11 of the EU Audit Regulation
(long-form audit report).
Other matter – Use of the auditor’s report
Our auditor’s report must always be read together with the
audited consolidated financial statements and the audited
group management report as well as the assured ESEF
documents. The consolidated financial statements and the
group management report converted to the ESEF format
– including the versions to be published in the Unterneh-
mensregister [German Company Register] – are merely
electronic renderings of the audited consolidated financial
statements and the audited management report and do
not take their place. In particular, the ESEF report and our
assurance opinion contained therein are to be used solely
together with the assured ESEF documents made available
in electronic form.
179
KWS Group | Annual Report 2023/2024
Independent auditor’s report | Consolidated Financial Statements
German Public Auditor responsible for the engagement
The German Public Auditor responsible for the
engagement is Martin von Michaelis.
Appendix to the auditor’s report:
1. Parts of the group management report whose content is
unaudited
We have not audited the content of the following parts of
the group management report:
The combined non-financial declaration for
KWS SAAT SE & Co. KGaA and the KWS Group
contained in section 2.4 “Sustainability Information
(Combined Non-Financial Declaration)” of the group
management report, including any information in other
sections referred to in this declaration.
The declaration on corporate governance and the
declaration of compliance in accordance with Sec. 161
AktG which are published on the websites stated in
sections 2.7.1 “Corporate Governance and Declaration
on Corporate Governance” and 2.7.2 “Declaration of
Compliance in Accordance with Section 161 AktG
(German Stock Corporation Act),” which are part of the
group management report.
Furthermore, we have not audited the content of the
following disclosures extraneous to group management
reports. Disclosures extraneous to group management
reports are such disclosures that are not required pursuant
to Secs. 315, 315a HGB or Secs. 315b to 315d HGB:
Section 2.1.3 “Vision and Mission”
Section 2.2 “Research & Development Report,”
Section 2.4.1 “General Information”
Section 2.4.2 “Environment”
Section 2.4.3 “Social Report”
Section 2.4.4 “Governance”
Section 2.5.2 “Risk Management,” paragraph “Control
and monitoring systems”
2. Additional other information
The other information comprises the following parts of
the annual report, of which we obtained a version prior to
issuing this auditor’s report, in particular the sections:
Foreword of the Executive Board
Report of the Supervisory Board
KWS on the Capital Market
KWS in Figures
but not the consolidated financial statements, not the
management report disclosures whose content is audited
and not our auditor’s report thereon.
3. Company information outside of the annual report
referenced in the group management report
We have not audited the content of the following infor-
mation that is cross-referenced in the management report:
2.7.3 Remuneration Report pursuant to Section 162 of
the German Stock Corporation Act (AktG].
Berlin, 10 September 2024
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
von Michaelis
Böhme
Wirtschaftsprüfer
Wirtschaftsprüfer
[German Public Auditor]
[German Public Auditor]
180
Annual Report 2023/2024 | KWS Group
Consolidated Financial Statements | Independent auditor’s report
Independent auditor’s report on a limited assurance engagement
in section “EU-Taxonomy” of the combined non-financial
statement. They are responsible for the defensibility of this
interpretation. Due to the immanent risk that undefined
legal terms may be interpreted differently, the legal
conformity of the interpretation is subject to uncertainties.
Independence and quality assurance of the
auditor’s firm
We have complied with the German professional require-
ments on independence as well as other professional
conduct requirements.
Our audit firm applies the national legal requirements and
professional pronouncements - in particular the BS WP/
vBP [“Berufssatzung für Wirtschaftsprüfer/vereidigte
Buchprüfer”: Professional Charter for German Public
Accountants/German Sworn Auditors] in the exercise
of their Profession and the IDW Standard on Quality
Management issued by the Institute of Public Auditors in
Germany (IDW): Requirements for Quality Management
in the Audit Firm (IDW QS 1) and accordingly maintains a
comprehensive quality management system that includes
documented policies and procedures with regard to
compliance with professional ethical requirements, profes-
sional standards as well as relevant statutory and other
legal requirements.
Responsibilities of the auditor
Our responsibility is to express a conclusion with limited
assurance on the combined non-financial statement based
on our assurance engagement.
We conducted our assurance engagement in accordance
with International Standard on Assurance Engagements
(ISAE) 3000 (Revised): “Assurance Engagements other
than Audits or Reviews of Historical Financial Information”
issued by the IAASB. This standard requires that we plan
and perform the assurance engagement to obtain limited
assurance about whether any matters have come to our
attention that cause us to believe that the Company’s
combined non-financial statement is not prepared, in
all material respects, in accordance with Sec. 315c
in conjunction with Secs. 289c to 289e HGB and the
EU Taxonomy Regulation and the Delegated Acts adopted
thereunder as well as the interpretation by the executive
directors disclosed in section “EU-Taxonomy” of the
combined non-financial statement.
To KWS SAAT SE & Co. KGaA, Einbeck
We have performed a limited assurance engagement on
the non-financial statement of KWS SAAT SE & Co. KGaA,
Einbeck, (hereinafter the “Company”), which is combined
with the non-financial statement of the Group, which
comprises the section “2.4 Sustainability Information
(combined non-financial statement)” and the section
“2.1 Fundamentals of the KWS Group” of the combined
management report for the period from 1 July 2023 to
30 June 2024 (hereinafter the “combined non-financial
statement”).
Responsibilities of the executive directors
The executive directors of the Company are respon-
sible for the preparation of the combined non-financial
statement in accordance with Sec. 315c in conjunction
with Secs. 289c to 289e HGB [“Handelsgesetzbuch”:
German Commercial Code] and Art. 8 of Regulation (EU)
2020/852 of the European Parliament and of the Council
of 18 June 2020 on the establishment of a framework to
facilitate sustainable investment and amending Regulation
(EU) 2019/2088 (hereinafter the “EU Taxonomy Regulation”)
and the Delegated Acts adopted thereunder as well as in
accordance with their own interpretation of the wording
and terms contained in the EU Taxonomy Regulation
and the Delegated Acts adopted thereunder as set out
in section “EU-Taxonomy” of the combined non-financial
statement.
These responsibilities of the Company’s executive
directors include the selection and application of appro-
priate non-financial reporting methods and making
assumptions and estimates about individual non-financial
disclosures that are reasonable in the circumstances.
Furthermore, the executive directors are responsible for
such internal control as the executive directors consider
necessary to enable the preparation of a combined
non-financial that is free from material misstatement,
whether due to fraud (manipulation of the combined
non-financial statement) or error.
The EU Taxonomy Regulation and the Delegated Acts
adopted thereunder contain wording and terms that
are still subject to considerable interpretation uncer-
tainties and for which clarifications have not yet been
published in every case. Therefore, the executive directors
have disclosed their interpretation of the EU Taxonomy
Regulation and the Delegated Acts adopted thereunder
181
KWS Group | Annual Report 2023/2024
Independent auditor’s report | Consolidated Financial Statements
In a limited assurance engagement, the procedures
performed are less extensive than in a reasonable
assurance engagement, and accordingly, a substantially
lower level of assurance is obtained. The selection of
the assurance procedures is subject to the professional
judgment of the auditor.
In the course of our assurance engagement we have,
among other things, performed the following assurance
procedures and other activities:
Gain an understanding of the structure of the sustain-
ability organization and stakeholder engagement,
Inquiries of the executive directors and relevant
employees involved in the preparation of the combined
non-financial statement about the preparation process,
about the internal control system related to this process,
and about disclosures in the combined non-financial
statement,
Inquiries of the employees regarding the selection of
topics for the combined non-financial statement, the risk
assessment and the policies of the Company and the
Group for the topics identified as material,
Inquiries of employees of the Company and the Group
responsible for data capture and consolidation about the
data capture and compilation methods as well as internal
controls to the extent relevant for the assurance of the
disclosures in the combined non-financial statement,
Identification of likely risks of material misstatement in
the combined non-financial statement,
Analytical procedures on selected disclosures in the
combined non-financial at the level of the Company and
the Group,
Inquiries and inspection of documents on a sample
basis relating to the collection and reporting of selected
qualitative disclosures and data,
Reconciliation of selected disclosures with the corre-
sponding data in the group financial statements and
combined management report,
Evaluation of the process to identify the economic
activities taxonomy-eligible and taxonomy-aligned as
well as the corresponding disclosures in the combined
non-financial statement,
Evaluation of the presentation of the combined non-fi-
nancial statement.
In determining the disclosures in accordance with Art. 8
of the EU Taxonomy Regulation, the executive directors
are required to interpret undefined legal terms. Due to
the immanent risk that undefined legal terms may be
interpreted differently, the legal conformity of their inter-
pretation and, accordingly, our assurance engagement
thereon are subject to uncertainties.
Assurance conclusion
Based on the assurance procedures performed and the
evidence obtained, nothing has come to our attention
that causes us to believe that the combined non-financial
statement of the Company for the period from 1 July 2023
to 30 June 2024 is not prepared, in all material respects, in
accordance with Sec. 315c in conjunction with Secs. 289c
to 289e HGB and the EU Taxonomy Regulation and the
Delegated Acts adopted thereunder as well as the inter-
pretation by the executive directors as disclosed in section
“EU-Taxonomy” of the combined non-financial statement.
Restriction of use
We draw attention to the fact that the assurance
engagement was conducted for the Company’s purposes
and that the report is intended solely to inform the
Company about the result of the assurance engagement.
As a result, it may not be suitable for another purpose than
the aforementioned. Accordingly, the report is not intended
to be used by third parties for making (financial) decisions
based on it. Our responsibility is to the Company alone.
We do not accept any responsibility to third parties. Our
assurance conclusion is not modified in this respect.
General Engagement Terms and Liability
The “General Engagement Terms for Wirtschaftsprüfer
and Wirtschaftsprüfungsgesellschaften [German Public
Auditors and Public Audit Firms]” dated 1 January 2024
are applicable to this engagement and also govern
our relations with third parties in the context of this
engagement (www.de.ey.com/general-engagement-terms).
In addition, please refer to the liability provisions contained
there in no. 9 and to the exclusion of liability towards
third parties. We accept no responsibility, liability or other
obligations towards third parties unless we have concluded
a written agreement to the contrary with the respective
third party or liability cannot effectively be precluded.
182
Annual Report 2023/2024 | KWS Group
Declaration by Legal Representatives
182
Declaration by Legal Representatives
We declare to the best of our knowledge that the
consolidated financial statements give a true and fair view
of the assets, financial position and earnings of the Group
in compliance with the generally accepted standards of
consolidated accounting, and that an accurate picture of
the course of business, including business results, and the
Group’s situation is conveyed by the Group Management
Report, which is combined with the Management Report
of KWS SAAT SE & Co. KGaA, and that it describes the
main opportunities and risks of the Group’s anticipated
development.
We make express reference to the fact that we will not
update the report to reflect events or circumstances
arising after it was issued, unless required to do so by law.
It is the sole responsibility of anyone taking note of the
summarized result of our work contained in this report to
decide whether and in what way this information is useful
or suitable for their purposes and to supplement, verify or
update it by means of their own review procedures.
Hannover, 10 September 2024
EY GmbH & Co. KG
Wirtschaftsprüfungsgesellschaft
Dr. zur Nieden
Narttek
Wirtschaftsprüfer
Wirtschaftsprüferin
[German Public Auditor]
[German Public Auditor]
Einbeck, 10 September 2024
KWS SE
Dr. Felix Büchting
Dr. Peter Hofmann
Eva Kienle
Nicolás Wielandt
KWS Group | Annual Report 2023/2024
183
Additional Information
Additional Information
Financial calendar
Date
November 12, 2024
Quarterly Report Q1 2024/2025
December 5, 2024
Annual Shareholders’ Meeting
February 13, 2025
Semiannual Report 2024/2025
May 13, 2025
Quarterly Report 9M 2024/2025
September 25, 2025
Publication of 2024/2025 financial statements, annual
press and analyst conference
KWS share
Key data of KWS SAAT SE & Co. KGaA
Securities identification number
707400
ISIN
DE0007074007
Stock exchange identifier
KWS
Transparency level
Prime Standard
Index
SDAX
Share class
Non-par
Number of shares
33,000,000
Dividend
22/23
23/24
14/15 15/16
16/17
17/18
18/19
19/20
20/21 21/22
Dividend payment and dividend ratios of the past ten years
Dividend proposal 2024
Dividend payment in €
Dividend ratio (total
dividends/net income)
in %
25%
20%
0.80
0.80
0.90
0.70
0.67
0.64
0.64
0.64
0.60
21.2
21.3
24.3
21.6
23.2
23.9
23.4
1.00
25.2
24.5
24.7
About this report
The Annual Report can be downloaded on our Internet sites at www.kws.de and www.kws.com. The KWS Group’s fiscal
year begins on July 1 and ends on June 30. Unless otherwise specified, figures in parentheses relate to the same period or
date in the previous year. There may be rounding differences for percentages and numbers.
Contact
Investor Relations and
Financial Press
Peter Vogt
investor.relations@kws.com
Phone: +49 30 816914-490
Press
Gina Wied
press@kws.com
Phone: +49 5561 311-1427
Sustainability
Dr. Sophie Winter
Gabriella Gyori
sustainability@kws.com
Editor
KWS SAAT SE & Co. KGaA
Grimsehlstrasse 31
P.O. Box 1463
37555 Einbeck
Safe harbor statement
This Annual Report includes forward-looking statements based on the assumptions and estimates of KWS SAAT SE &
Co. KGaA’s management. These forward-looking statements may be identified by words such as “forecast,” “assume,”
“believe, “assess,” “expect,” “intend,” “can/may/might,” “plan,” “should” or similar expressions.
These statements are based on current assessments and forecasts of the Executive Board and the information currently
available to it and are subject to certain elements of uncertainty, risks and other factors that may result in significant
deviations between expectations and actual circumstances. These factors may be, for example, changes in the overall
economic situation, the general statutory and regulatory framework, and the industry.
KWS SAAT SE & Co. KGaA provides no guarantee and accepts no liability for future developments and the actual results
achieved in the future matching the assumptions and estimates expressed in this Annual Report. Forward-looking
statements are therefore not to be understood as a guarantee or assurance of the expected developments or events
mentioned therein. KWS SAAT SE & Co. KGaA neither warrants intends, nor does KWS SAAT SE & Co. KGaA assumes
any obligation to update forward-looking statements, forward-looking statements to reflect events or developments
after the date of this report.
Photo credits
Bart Homburg Fotografie Frank Stefan Kimmel Julia Lormis Karsten Koch Lennart Ritscher Roman Thomas
Date of publication: September 26, 2024
This translation of the original German version of the Annual Report has been prepared for the convenience of our
English-speaking shareholders. The German version is legally binding.
KWS SAAT SE & Co. KGaA
Grimsehlstrasse 31
P.O. Box 14 63
37555 Einbeck/Germany
www.kws.com