KTG Agrar SE: Five successful years with a win-win situation for investors and the company

Corporate bond 10/15 repaid as planned
- Building up a farming business with a unique business model in only five years

- Investment phase completed: staff +750; farmland +15,000 ha; biogas +50 MW; + strong brands

- Harvesting phase has begun: leveraging synergies, tapping new markets, boosting revenues and earnings

Hamburg, 15 September 2015. KTG Agrar SE (ISIN: DE000A0DN1J4) today repaid its corporate bond 2010/2015 (ISIN: DE000A1ELQU9) on time upon maturity. The agricultural company issued the EUR 50 million bond in 2010 to invest in farmland, healthy food and clean energy.

"Over the past five years we have made massive investments in farmland, strong food brands and the corresponding production capacities and biogas plants. The corporate bond gave us the financial scope we needed to make these investments within a well plannable medium-term framework," said Siegfried Hofreiter, CEO of KTG Agrar SE. "Today we are an agricultural company with a unique business model comprising the production of primary agricultural products, their processing into high-quality food as well as the production of renewable energy. For this I would like to thank all investors."

In the meantime KTG Agrar has completed its investment phase. The headcount more than quadrupled to roughly 1,000 between 2010 and 2015. Most of these employees work in economically weak regions in Eastern Germany, where KTG is among the largest employers in many districts and communities. During the term of the bond, the company increased its farmland by 15,000 hectares to over 45,000 hectares. The agricultural products are processed by KTG at its own facilities in Anklam, Wittibreut, Manschnow, Ringleben and Linthe and marketed under the biozentrale, Frenzel Tiefkühlkost and Die Landwirte brands. The result: high-quality food from field to plate from a single source. Consumers can choose from a wide range of products from muesli to pan-fried vegetables to regionally produced soya oil with complete proof of origin.

Started 20 years ago, the agricultural operations are still at the heart of KTG Agrar. Besides these activities, the production of energy from renewable resources has become an important revenue and earnings generator. During the term of the bond, the production capacity has increased from 11 megawatts to over 60 megawatts. KTG Energie AG, KTG's biogas subsidiary, is today the leading biogas producer in Germany with a secured long-term revenue base of over EUR 90 million and an EBITDA base of over EUR 28 million - and rising. Far more than half of the renewable resources are generated from catch crops, agricultural wastes and grasses. The result: healthy food and clean energy from the same field.

KTG Agrar has meanwhile initiated the harvesting phase. The company has scaled back its investments and begun to leverage potential synergies. Siegfried Hofreiter says: "Our 'from field to plate' strategy has become a genuine USP. We now need to optimise our costs and processes, utilise our capacities and tap new markets."

Besides the Energy Production activities, the Food segment is the key revenue driver. The company's internally produced food passed the EUR 100 million revenue mark for the first time in 2014, with revenues of over EUR 120 million expected to be generated in 2015. The existing food production capacity is sufficient to handle up to EUR 200 million in revenues without material investments in the coming years. To reach this target, the KTG brands will again present numerous product innovations at the ANUGA fair in October, the world's leading event of the food industry. In addition, the company will increasingly make inroads into selected new markets, especially in Asia.

Siegfried Hofreiter says: "We are excellently positioned. People will always eat, and our focus on non-GMO production, in both the agricultural and the food segment, goes down very well with our customers. This encourages us to pursue such long-term trends as GMO-free diet and transparent origin and supply chains at an attractive price-performance ratio. For the coming years, we are firmly targeting EUR 250 million in sales revenues." 2014 saw KTG Agrar increase its revenues by 42% to EUR 234.1 million.


About KTG Agrar SE

With cultivable land of over 45,000 hectares, KTG Agrar SE (ISIN: DE000A0DN1J4) is one of the leading producers of agricultural commodities in Europe. As an integrated supplier, the company produces agricultural commodities, 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, potatoes, soy and rapeseed. KTG Agrar is the European market leader in organic market products. The company mainly produces in Germany but since 2005 also in the EU member state of Lithuania. Through the takeover of the companies Frenzel Tiefkühlkost and Bio-Zentrale Naturprodukte, KTG Agrar SE has been expanding the value chain since 2011 and added food production to its business portfolio. In 2014, KTG Agrar SE achieved a total output of EUR 297.7 million and an EBIT of EUR 37.1 million. The company has been listed on the Frankfurt Stock Exchange since November 2007 and employed more than 1,000 staff at year end 2014. Further information can be found on the company's website at www.ktg.ag.



Contact:

Investor Relations / Press
Fabian Lorenz
T: +49 221 29831588
E: investor@ktg.ag