Ktg Agrar Ag: Final financial statements for 2011 confirm preliminary results

02.07.2012  |  DGAP

- Successful mega investments in farmland, biogas plants and new
opportunities
- Sales at EUR 77.5 million, total output at EUR 112.2 million, EBIT at EUR
15.0 million
- Successful IPO of KTG Energie sees 775,000 shares placed with new
investors
- Targets for 2012 and 2013: continued earnings growth and positive cash
flows

Hamburg, 2 July 2012 - As indicated by the preliminary results published in
May, the financial year 2011 of KTG Agrar AG (ISIN: DE000A0DN1J4) was
marked by massive investments in farmland, which is in short supply
worldwide, biogas plants and new business segments. 'We have again
reconciled the conflicting demands of profitable growth and massive
investments in the future,' said Siegfried Hofreiter, CEO of KTG Agrar AG.
'The successful investments of the year 2011 are an excellent basis for
continued profit growth in the future.'

Last year saw KTG Agrar expand its farmland by 2,500 hectares to about
35,000 hectares, of which some 8,000 hectares in east Germany and Lithuania
are owned by the company. This makes KTG Agrar one of Europe's largest
farming companies in terms of both leased and own land. In the past, KTG
Agrar specialised in the production of agricultural commodities such as
grain, maize, rapeseed and vegetables. In 2011, the company began to extend
the value chain in the food market by taking over Frenzel Tiefkühlkost,
Ringleben/Thuringia, and established a Food segment. Says Siegfried
Hofreiter: 'We offer food retailers local produce from a single source.
This is very much appreciated and still has huge potential.'

The company not only made investments but also continued its profitable
operational growth. Sales revenues climbed 72.6 percent from EUR 44.9
million to EUR 77.5 million. KTG Agrar's total output passed the EUR 100
million mark for the first time, rising 58.4 percent from EUR 70.8 million
to EUR 112.2 million. Earnings before interest and taxes (EBIT) increased
from EUR 13.4 million to EUR 15.0 million. The financial result clearly
reflected the company's growth financing efforts. Due to the issue of
bonds, the financial result stood at EUR -7.2 million (previous year: EUR
-2.8 million). The extraordinary result of EUR -4.8 million (previous year:
EUR -6.4 million) is mainly attributable to the bond issue. The latter led
to one-time expenses, as the German Commercial Code (HGB), contrary to
International Financial Reporting Standards (IFRS), requires the costs to
be recognised in profit/loss. Consolidated net income amounted to EUR 1.2
million in 2011 (previous year: EUR 2.4 million), while the balance sheet
profit stood at EUR 8.0 million (previous year: EUR 8.2 million). A 20
percent dividend increase to EUR 0.18 will be proposed to shareholders at
the upcoming Annual General Meeting.

Says Siegfried Hofreiter: 'We seized opportunities that arose in the past
years and invested heavily in scarce farmland and state-of-the-art biogas
plants. In the coming years, we will harvest the profits of these
investments. Our hidden reserves alone clearly exceed our current market
value.' To realise part of these reserves, the company's energy arm, KTG
Energie AG, went public on 29 June. A capital increase provided KTG Energie
with gross proceeds of EUR 13.8 million. KTG Agrar initially placed another
775,000 shares after the end of the subscription period. KTG Agrar thus
generated proceeds of roughly EUR 10.7 million and continues to hold 70
percent in KTG Energie. Based on a closing price of EUR 14.40, KTG
Energie's market capitalisation totalled EUR 86.4 million on 29 June 2012.
At this stage, it is not planned to place further shares with new
investors.

TARGETS FOR 2012 and 2013: PROFITABLE GROWTH AND STRUCTURAL OPTIMASATION

Following the massive investments in farmland, biogas plants and new
business segments made in 2010 and 2011, KTG Agrar will reap the harvest in
2012 and 2013, when profits will increase significantly. Moreover, the
company will optimise the processes in all business segments in 2012, which
will contribute to a clearly positive cash flow.

After the IPO of KTG Energie, KTG Agrar will continue to expand the
production of agricultural commodities and food. The model of the
integrated agricultural supplier will remain the basis for profitable
growth in the future, as the company aims to accelerate the increase in
farmland. The takeover of Frenzel Tiefkühlkost has extended the company's
value chain to the retail store and given it access to attractive new
markets through direct sales to retailers. The Food segment's sales
revenues of EUR 8.8 million in 2011 are to be doubled in the current
financial year, with a positive contribution to earnings expected already
one year after the integration. KTG Agrar also sees considerable potential
in the area of farm management.

ABOUT KTG AGRAR
With cultivable land of around 35,000 hectares, KTG Agrar AG (ISIN:
DE000A0DN1J4) is one of the leading producers of agricultural commodities
in Europe. As an integrated supplier, the company produces agricultural
commodities and renewable energy and food. The Hamburg-based company's core
area of expertise is the organic and traditional cultivation of market
products such as cereals, maize and rapeseed. For organic market products
KTG Agrar is the European market leader. The company mainly produces in
Germany but has also operated production in the EU member state of
Lithuania since 2005. The company's third mainstay is the production of
bio-energy. At present, KTG Agrar operates biogas plants with a total
capacity of around 30 megawatts. As a result of the takeover of Frenzel
Tiefkühlkost in 2011, KTG has expanded the value chain by the production of
food. In the year 2011, KTG achieved a total output of EUR 112,1 million
and EBIT of EUR 15,0 million. Since November 2007 the company is listed on
the Frankfurt Stock Exchange and has currently about 600 employees. Further
information can be found at www.ktg-agrar.de.

CONTACT
Investor Relations / Presse
Fabian Lorenz
IR.on AG
Phone: +49 221 914097-6
E-mail: fabian.lorenz@ir-on.com


End of Corporate News

Unternehmen: KTG Agrar AG - ISIN: DE000A0DN1J4