KTG Agrar AG
Half-yearly report 2012
the Land.
and the PeoPLe.
Consolidated Figures
Consolidated Figures
KTG Agrar AG
01.01. – 30.06.2012
01.01. – 30.06.2011
01.01. – 30.06.2010
31.3
27.1
10.2
Organic agriculture
0.7
2.3
0.5
Conventional agriculture
4.1
7.4
1.5
Energy production, biogas
13.6
8.9
6.5
Complementary agricultural activities
4.5
4.4
1.7
Food
7.3
2.5
–
Consolidated Figures (HGB)
In EUR millions
Earnings situation
Turnover
1.1
1.6
–
Total output
Animal production
56.6
46.1
27.3
EBITDA
11.0
8.7
–
8.2
6.3
4.6
EBIT
Result from ordinary activities
3.2
3.5
3.7
Net profit/loss for the period
0.1
–0.7
2.1
Asset situation
Equity
Liabilities
80.0
63.6
62.1
247.0
207.3
97.3
Fixed assets 136.8
104.4
69.3
Current assets
190.8
166.2
89.2
Total assets
331.1
274.6
162.2
GERMANY
LITHUANIA
Total
Leased
Owned 24.700
3.800
2.900
4.300
27.600
8.100
Total
28.500
7.200
35.700
Area under cultivation as of 30.06.2012
Hectares
KTG AGRAR AG HALF-YEARLY REPORT 2012
Contents
Contents
1 · COMPANY
03 · Foreword by the Management Board
05 · KTG Agrar AG on the capital market
06 · Company Locations
2 · BUSINESS PERFORMANCE
09 · Business activities
09 · Economic circumstances
10 · Business operations
11 · Outlook
3 · FINANCIAL DATA
14 · Consolidated balance Sheet
18 · Profit and loss account
19 · Consolidated cash flow statement
20 · Statement of changes in equity
22 · Statement of changes in consolidated fixed assets
4 · COMMENTS
26 · Comments concerning the first half of 2012
28 · Legal notice
1 ∙ KTG Agrar AG Half-yearly Report 2012
CoMPAnY
1 ∙ CoMPAnY
2 ∙ KtG
KTG AGrAr
AGRARAG
AGHAlf-yeArly
HALF-YeARLY
reporT
RePoRt
2012
2012
Company ∙ Foreword by the Management Board
FOREWORD BY THE
MANAGEMENT BOARD
29 June 2012 represented a milestone in the progress of the
KTG Group, being the day on which KTG Energie AG became
the first German company of the year to take to the trading
floor of Frankfurt Stock Exchange. This was a testament to
the fact that we have been investing in substance over recent
years and have created genuine value: the flotation generated
proceeds of EUR 10.7 million, and we retain a 70 per cent holding
in KTG Energie AG, a company with a market capitalisation of
EUR 87 million. This figure is just as hard to find on our balance
sheet as our hidden reserves of arable land: out of an overall
area of 35,700 hectares, just 8,100 are under our ownership.
As a result, actual market value exceeds the acquisition costs
recognised on the balance sheet by over EUR 30 million.
Another valuable asset which we are currently expanding
successfully is FZ Foods AG. In 2011, we took advantage of the
opportunity to extend our value chain in a strategic direction.
Since taking over Frenzel Tiefkühlkost, based in the small East
German town of Ringleben, KTG now offers everything from
the primary production of organic and conventional food crops
to the manufacture of frozen products for the classical retail and
wholesale trades - all from a single source. FZ Foods AG, with
its brands Frenzel, NaturKing and biofarmers, is Germany's
third-largest retailer of frozen food. Apart from vegetables, FZ
also offers fruit products, potato specialities and convenience
food. The company currently sells some 80 products to the retail
trade and around 200 to the wholesale trade and industry.
INTEGRATED SYSTEM FROM THE FIELD
TO THE COUNTER PAYS OFF
The integrated 'from the field to the counter' system represents a
genuine USP which proved its worth within a few short months.
After successful appearances at the Biofach and Fruit Logistica
trade fairs, we were able to arrange several new nationwide
deals with leading retailers at Intercool Düsseldorf. Thanks to
its flexible working practices, special offers and ranges as well as
innovative own-brand quality products unique to the company,
FZ Foods AG is steadily opening up new markets and target
groups. On top of this the company has also made giant leaps in
the wholesale sector, trebling its turnover during the first half of
2012 alone, and plans are afoot to further boost FZ's European
market shares for its potato, vegetable, fruit, mushroom and
herb specialities during the coming half year. We shall of course
remain committed to our high quality standards, using fresh,
regionally-sourced products as a matter of course. Wherever
possible we choose supplies from either our Group-internal
value chain or regional partners in order to ensure a rapid route
to the FZ Foods plant in Ringleben.
Alongside the strategic steps in the form of the KTG Energie AG
IPO and the expansion of KTG Energie AG, the first half of 2012
has also seen dynamic operational developments, with turnover
15.7 per cent up at EUR 31.3 million and total output rising by
22.7 per cent to EUR 56.6 million. Furthermore, our operational
profits increased disproportionately to turnover and total output,
as EBIT soared by 30.6 per cent to EUR 8.2 million. Naturally the
first half of the year is a weak one for the agricultural sector, and
here the Food and Energy segments were the growth drivers.
3 ∙ KTG Agrar AG Half-yearly Report 2012
Company ∙ Foreword by the Management Board
The Management Board: Siegfried Hofreiter, Dr. Thomas R.G. Berger, Ulf Hammerich, Bert Wigger
In the organic and conventional food crop segments KTG Agrar
AG adopted a deliberate policy of selling fewer products in the
first half of the year in order to drive up prices during the second
half. In light of price trends for wheat, maize and so forth, this
strategy has proven absolutely correct and will pay off steadily as
the year unfolds. During the second half the sale of good harvests
at very good prices will ensure a further boost in profits.
More than ever before, KTG Agrar AG is operating with great
dynamism in a number of attractive markets, and we welcome all
those who choose to accompany us down this path in future.
Siegfried Hofreiter
Dr. Thomas R. G. Berger
Ulf Hammerich
Bert Wigger
4 ∙ KTG Agrar AG Half-yearly Report 2012
COMPANY ∙ KTG AGRAR AG ON THE CAPITAL MARKET
KTG AGRAR AG ON THE
CAPITAL MARKET DURING THE
FIRST HALF OF 2012
During the reporting period the DAX rose by six per cent to
6,416. The Entry Standard index fared far worse, falling five per
cent and ending the half year at 370.
During the reporting period the overall effect of the European
debt crisis on the financial markets was to exacerbate their
volatility. At the start of the year rating agency Standard & Poor's
downgraded the credit ratings of nine eurozone countries. Then
in June rating agencies Moody’s and Fitch both reduced Spain's
credit rating, to Baa3 and BBB respectively. Germany remains
the sole eurozone country to be given an AAA rating by all
three major rating agencies.
PERFORMANCE OF THE KTG SHARE OVER
THE FIRST SIX MONTHS OF THE YEAR
KTG shares began the year at EUR 14.34, and their price
initially remained very stable within a window of between
EUR 14.20 to EUR 14.80. However, during the second quarter
KTG shares succumbed to market trends, briefly slipping below
the EUR 14 mark. Since July, though, they have profited from
news of KTG Energie AG's successful IPO, stabilising at prices
ranging from EUR 14.30 to EUR 15.20. They reached their
year's high of EUR 15.20 on 19 June, while the half-year closing
price came in at EUR 14.09, 1.7 per cent lower than at the start
of the year. KTG Agrar AG's shares thus performed significantly
better than the Entry Standard index as a whole.
KTG AGRAR AG
SHARE DETAILS
ISIN
DE000A0DN1J4
Stock market symbol
7KT
Segment
Entry Standard
Designated sponsors
DZ Bank, Equinet Bank
Half-yearly high
EUR 15.00
Half-yearly low
EUR 13.46
Closing price on 30.06.2012
EUR 14.09
Number of shares as of 30.06.2012
5,676,000
Market capitalisation as of 30.06.2012 EUR 79,974,840
SUCCESSFUL IPO FOR SUBSIDIARY
KTG Energie AG
In its IPO during June this year KTG Energie AG successfully
placed 1,000,000 shares, which had been created via a capital
increase, at a fixed price of EUR 13.80. Alongside the capital
increase, 775,000 shares previously owned by KTG Agrar AG
were also placed with new investors. At the issue price
KTG Energie AG's market capitalisation came to EUR 82.80
million. With a 70 per cent holding, KTG Agrar AG remains
the company's majority shareholder. The share was admitted
for trading on the Frankfurt Stock Exchange's Entry Standard
index on 29 June 2012.
5 ∙ KTG Agrar AG Half-yearly Report 2012
COMPANY ∙ COMPANY LOCATIONS
COMPANY
LOCATIONS OF
KTG Agrar AG
Mazeikiai
LITHUANIA
Raseiniai
Pauliai
Vilnius
SCHLESWIG-HOLSTEIN
Hamburg
Schmilau
Hamburg
Görke
Dersewitz
Brenkenhof
MECKLENBURG-WEST POMERANIA
Schwerin
Grabowhöfe
Karft
Putlitz
Marienfließ
Herzsprung
Putlitz PAL
Papenbruch
Seebeck
Wuthenow
Schwedt
(Oder)
Breydin
Oranienburg
Vehlefanz
Schönfließ
Berlin
Wegenstedt
Flechtingen
Potsdam
Nonnendorf
Körbelitz
SAXONY-ANHALT
THURINGIA
Halle
Ringleben
Altdöbern
Schöllnitz
Hornow
Leipzig
Quesitz
Starsiedel
Erfurt
Podelzig
Brandenburg
Magdeburg
Altjeßnitz
Seelow
Waldsieversdorf
Marxdorf
Linthe
Lübs
Letschin
Dresden
SAXONY
Trusetal
Cultivated land and biogas production
Cultivated land
Food production
Company Headquarters
6 ∙ KTG Agrar AG Half-yearly Report 2012
COMPANY ∙ COMPANY LOCATIONS
· CULTIVATED LAND AND
BIOGAS PRODUCTION
· CULTIVATED LAND
11 · Starsiedel
Plants in operation
12 · Quesitz
01 · Putlitz
13 · Altjeßnitz
02 · Flechtingen
14 · Körbelitz
03 · Schöllnitz
15 · Lübs
04 · Seelow
16 · Wegenstedt
05 · Hornow
17 · Nonnendorf
06 · Wuthenow
18 · Podelzig
07 · Dersewitz
19 · Marxdorf
08 · Putlitz PAL
20 · Waldsieversdorf
09 · Lübs
21 · Schönfließ
10 · Vehlefanz
22 · Oranienburg
23 · Letschin
24 · Breydin
25 · Marienfließ
26 · Karft
27 · Grabowhöfe
28 · Brenkenhof
29 · Görke
30 · Putlitz
31 · Wuthenow
32 · Seebeck
33 · Altdöbern
34 · Herzsprung
35 · Linthe
36 · Schmilau
37 · Papenbruch
38 · Pauliai
39 · Raseiniai
40 · Mazeikiai
41 · Trusetal
· COMPANY HEADQUARTERS
42 · Hamburg
7 ∙ KTG Agrar AG Half-yearly Report 2012
BUSINESS PERFORMANCE
2 · BUSINESS Performance
8 ∙ KTG Agrar AG Half-yearly report 2012
BUSINESS PERFORMANCE ∙ 1ST HALF YEAR 2012
BUSINESS PERFORMANCE
DURING THE FIRST HALF OF 2012
1 ∙ Business Activity
With cultivated land totalling 35,700 hectares, KTG Agrar AG is
one of Europe's leading producers of agricultural commodities.
We specialise in the cultivation of food crops such as cereals,
maize and rape seed. Our cultivated land is located in Germany
and Lithuania. KTG Agrar AG's core areas of expertise are
clear: organic food crop cultivation, conventional food crop
cultivation, energy production from biogas under the aegis of
KTG Energie AG plus the production of frozen food by our
subsidiary FZ Foods AG. KTG Agrar AG operates on the basis
of an integrated philosophy whereby all our segments are closely
intermeshed with each other. This enables us to exploit synergies,
boost our efficiency and generate clear added value.
2 ∙ Economic Circumstances
2.1 ∙ Macroeconomic Situation
Economic growth in Asia and Latin America is currently cooling
off markedly, and the Eurozone's economic performance remains
extremely weak. The severe budget deficit in the United States,
the chronic eurozone debt crisis, the marked cooling of Chinese
economic growth and high commodity prices are the principle
factors exerting a drag on the economy during 2012. In light of
the high level of uncertainty, in their latest forecast for the world
economy the economic experts at the International Monetary
Fund (IMF) are now predicting 2012 global growth of just 3.5 per
cent, a 0.1 per cent drop on previous forecasts for the year. For
Germany, the IMF has reaffirmed the 1.0 per cent growth forecast
contained in the earlier country-by-country report.
2.2 ∙ Sectoral Environment
Agriculture
Harvests in Germany during the agricultural year 2011/2012 were
average. However, due to severe droughts in major agricultural
regions such as the USA and Eastern Europe, agricultural
commodity prices have risen sharply during 2012. At the end of
June the price of elite wheat on the German spot market stood at
some 295 euros per tonne, significantly above last year's level.
According to a study by the consumer research company Nielsen
sales of bioproducts are up. Organic produce enjoys the highest
levels of trust among consumers. During the first quarter of 2012
grocery retailers and pharmacists sold organic produce worth
EUR 656, up three per cent on the figure for the same quarter
the year before. In 2012 KTG Agrar AG is farming roughly half
its cultivated area organically, making it a leading producer of
organic grain.
Energy
The amendment of the German Renewable Energy Sources Act
(EEG) was adopted in the summer of 2011, and the new legal
framework came into force on 1 January 2012. On-site power
generation plants are still subsidised relative to their size. On top
of that there is an input material subsidy which is divided into
two subsidy classes. Input material subsidy class 1 comprises
plants cultivated specifically for the production of biogas, like
maize, sugar beet and whole crop silage, while input material
class II comprises liquid manure and catch crops.
Furthermore, additional compensation for biogas feed-in comes
in the form of a gas treatment premium. Meanwhile, thermal
power stations drawing biogas from the grid and converting
9 ∙ KTG Agrar AG Half-yearly Report 2012
BUSINESS PERFORMANCE ∙ 1ST HALF YEAR 2012
it into electricity receive additional support of EUR 0.01 to
0.03 per kilowatt-hour (kWh), depending on the size of the
processing plant.
KTG Energie AG focused right from the start on the extensive
utilisation of catch crops and residual matter, as well as the
sustainable use of heat. The amended EEG has vindicated this
philosophy, as well as increasing the flexibility with which biogas
plants can be operated. Accordingly the new legal framework
has not had a significant impact on our business activities.
3 ∙ BUSINESS OPERATIONS
During the first half of 2012 KTG Agrar AG continued
growing vigorously. We currently farm around 35,700 hectares
of agricultural land. Over recent months we have massively
expanded our capacity in the Energy segment, a fact reflected by
a sharp growth in the Energy segment's turnover and operating
result. KTG Energie AG's IPO took place in June 2012. The aim of
the flotation was to allow the Energy segment to achieve financial
independence while simultaneously allowing KTG Agrar AG
to tap into part of our considerable hidden reserves. The food
segment operated by FZ Foods has been further integrated into
the Group, and new products have been developed.
Agriculture
For seasonal reasons KTG Agrar AG's results for the two halves
of the year are very different, with the bulk of the agriculture
segment's revenues coming in after the harvest during the
second half of the year. To date the harvest season has unfolded
satisfactorily, and as a result we shall profit during the second
half from both high agricultural commodity prices and the
massive ongoing expansion of biogas production. Because of
this KTG Agrar AG is expecting significant growth in both
total output and operating profit.
Farmland is a significant success factor for any agricultural
company. At the end of June the company had some 35,700
hectares of land available for cultivation. 28,500 hectares of our
farmland is in Germany, and we also farm some 7,200 hectares
in Lithuania. Of a total area of 35,700 hectares, just 8,100 are
under our ownership (Germany 3.800 hectares & Lithuania
4,300), a ratio of 23 per cent. The remaining land is leased on a
long-term basis.
Energy
The biogas segment run by KTG Energie AG represents a growth
driver for KTG Agrar AG. The company has vigorously pursued
the expansion of its biogas operations, increasing production
capacity by 84 per cent, from 16.5 to 30.6 megawatts (MW).
Of the plants connected to the grid, on 30 June 22.4 MW were
running at full capacity, and additional plants are either under
construction or at the planning and approval stages. During
the first half of 2012 we produced 70.2 million kilowatt hours
of environmentally friendly energy. Through the production of
renewable energy we generate solid margins and steady cash
flow. Thanks to a capital increase in connection with the IPO,
KTG Energie AG generated gross proceeds from the flotation
totalling EUR 13.8 million, and on top of this KTG Agrar AG
sold 775,000 shares at a fixed price of EUR 13.80, thus raising
EUR 10.7 million. KTG Agrar AG continues to hold a 70 per
cent stake in KTG Energie AG.
Food
FZ Foods AG is being further integrated into KTG Agrar AG.
Alongside synergy effects in warehousing, logistics and sales, this
opens up major opportunities for the expansion of FZ Foods'
organic range.
Total output and earnings
During the first half of 2012 we boosted our total output by
22.7 per cent, to EUR 56.6 million from EUR 46.1 million the
year before. For seasonal reasons, in the agricultural industry
a major portion of total output up to 30 June takes the form of
changes in inventories of finished goods and work in progress.
These chiefly comprise growing crops which will be harvested
during the second half of the year, at which point they are
recognised as income. On the balance sheet date our inventories
of finished goods and work in progress were valued at EUR 8.5
million. During the first half of 2011 KTG Agrar AG boosted
its total output by 15.7 per cent, to EUR 31.3 million from EUR
27.1 million the year before, a result to which the Food and
Energy segments made a significant contribution. Revenues from
the sale of electricity and heat rose by 52.8 pert cent, from EUR
8.9 million to EUR 13.6 million. After the takeover of Frenzel
Tiefkühlkost by the KTG subsidiary FZ Foods during the first
half of 2011, we generated major growth in this segment during
the first half of 2012 as turnover soared by 191.1 per cent,
from EUR 2.5 million to EUR 7.3 million. In the organic and
conventional food crop segments KTG Agrar AG adopted a
deliberate policy of selling fewer products during the first half of
the year in order to await higher prices later on in the year. In the
organic segment we registered turnover of EUR 700,000 during
the first half (H1 2011: EUR 2.3 million) and in the conventional
segment EUR 4.1 million (H1 2011: EUR 7.4 million). Turnover
in the Complementary Agricultural Activities segment rose to
10 ∙ KTG Agrar AG Half-yearly Report 2012
BUSINESS PERFORMANCE ∙ 1ST HALF YEAR 2012
EUR 4.5 million (H1 2011: EUR 4.4 million). Other operating
income stood at EUR 16.7 million.
The expansion of our land holdings and biogas activities,
coupled with company acquisitions, mean that our costs have
also increased. Material costs chiefly involve expenditure on
raw materials and supplies such as silage for biogas production,
fertiliser, seeds and fuel. During the first half of 2012 these came
to EUR 21.6 million (H1 2011: EUR 19.9 million). Personnel
costs increased from EUR 5.2 million to EUR 7.1 million. Due to
the new biogas plants depreciation and amortisation during the
reporting period rose from EUR 2.5 million to EUR 2.8 million,
while other operating income was up from EUR 12.4 million to
EUR 16.9 million.
EBITDA was 25.5 per cent up at EUR 11 million, while EBIT
increased by 30.6 per cent, from EUR 6.3 million to EUR 8.2
million. Due to the bond issue to finance growth, interest
expenditure rose as expected. Because of this the financial result
was EUR -5.0 million (H1 2011: EUR −2.7 million). We thus
achieved a result from ordinary activities of EUR 3.1 million
(H1 2011: EUR 3.5 million). The extraordinary expenditure of
EUR 2.4 million is chiefly due to the costs of the bond issue
concluded during the first few weeks of 2012. At EUR 600,000,
tax expenditure remained at the same level as in H1 2011.
After the elimination of these one-off extraordinary cost items,
KTG Agrar AG registered a result for the first half of 2012 of
EUR 100,000 (H1 2011: EUR −0.6 million). Here it should be
noted that the bulk of the agriculture segment's revenues are
generated after the harvest during the second half of the year.
Financial and assets position
At the end of the first half of 2012 KTG Agrar AG finds itself
in a solid financial and assets position. As of the balance sheet
date company equity had increased from EUR 15.7 million on
31 December 2011 to EUR 80.0 million, whereas the EUR 5.6
million increase in liabilities, to a total of EUR 247.0 million,
was disproportionately slight. The equity ratio thus stood at
24.2 per cent, a sound figure for a medium-sized company.
In the wake of the increase in our land holdings and the
expansion of biogas and food production, KTG Agrar AG's fixed
assets have further increased, rising from EUR 127.5 million at
the start of the year to EUR 136.8 million by the end of June.
Due to the above-mentioned seasonal nature of the agricultural
industry, inventories rose during the first six months of 2012
from EUR 34.1 million to EUR 45.9 million. On 30 June 2012
KTG Agrar AG held liquid assets totalling EUR 16.5 million.
4 ∙ OUTLOOK
In its August 2012 forecast the International Monetary Fund
(IMF) predicts global growth for 2012 as a whole of some 3.5
per cent. However, economists now take a significantly more
optimistic view of the German economy, and have even revised
growth forecasts upwards. They now expect 2012 German growth
to come in at 1 per cent, 0.4 percentage points higher than
predicted back in the spring.
Current economic circumstances give grounds for confidence.
After two successive below-average harvests worldwide reserves
have declined, and the severe drought in the US Midwest, coupled
with poor harvests this summer in other key producer countries,
has put further pressure on grain supplies. This scarcity of supply
entails very stable demand, which has an inevitable impact on
world trade. Consequently, prices of agricultural commodities
have risen sharply.
Furthermore, the long-term megatrends of population growth,
increasing prosperity in the emerging economies, urbanisation
and healthier nutrition will continue to apply, and as a result
demand for agricultural commodities will keep on rising.
Due to the amended EEG, the German biogas sector is currently
undergoing a transformation, with the German Biogas Association
(Fachverband Biogas e.V.) anticipating the construction of 300
new plants in Germany during 2012, considerably fewer than
the year before. The amended EEG has not had any significant
impact on KTG Energie AG's growth strategy. Since 2006 we have
pursued a policy of using second crops and residual matter, as
well as incorporating systems for the use of the heat generated
when planning our facilities. Accordingly, the EEG and the
German Gas Grid Access Ordinance (Gasnetzzugangsverordnung
- GasNZV) between them provide us with a stable and attractive
legal framework. The German Frozen Food Institute (Deutsches
Tiefkühlinstitut - dti) is optimistic about the future of the German
frozen food industry, and expects the market to remain stable.
KTG Agrar AG is similarly optimistic about the future. Our
goals for 2012 are to optimise processes in all business segments,
to achieve profitable growth and to significantly improve our
cash flow. At Group level we are endeavouring to maintain
EBIT at the previous year's level through the measures we have
initiated thus far.
11 ∙ KTG Agrar AG Half-yearly Report 2012
BUSINESS PERFORMANCE ∙ 1ST HALF YEAR 2012
By the end of 2012 KTG Energie AG is scheduled to be feeding
over 35 MW into the grid, and by 2015 the output from our
biogas plants should have hit the 60 megawatt mark.
Hamburg, 28 September 2012
KTG Agrar AG
Siegfried Hofreiter
Management Board Chairman
Dr. Thomas R.G. Berger
Executive Director
Ulf Hammerich
Executive Director
Bert Wigger
Executive Director
12 ∙ KTG Agrar AG Half-yearly Report 2012
FINANCIAL DATA
3 · FINANCIAL DATA
13 ∙ KTG Agrar AG Half-yearly Report 2012
FINANCIAL DATA ∙ CONSOLIDATED BALANCE SHEET
CONSOLIDATED
BALANCE SHEET
ASSETS (HGB – German Commercial Code)
30.06.2012
IN EUR
31.12.2011
IN EUR
2,438,954.46
2,474,298.09
4,758,986.58
7,197,941.04
4,762,986.59
7,237,284.68
40,751,393.00
39,375,155.16
36,471,787.55
38,716,600.98
5,169,163.75
4,879,541.50
A ∙ Fixed Assets
I. Intangible assets
1. Concessions and software
2. Goodwill
II. Tangible assets
1. Land and buildings
2. Technical plant and machinery
3. Other equipment, factory and office equipment
4. Permanent crops
527,526.72
227,337.01
44,596,963.60
35,124,052.88
127,516,834.62
118,322,687.53
1,099,943.30
1,044,543.30
182,438.94
182,438.94
41,864.54
41,864.54
4. Securities held as fixed assets
211,181.54
211,181.54
5. Other loans
457,361.92
458,665.65
5. Assets under construction
III. Financial assets
1. Interests in non-consolidated affiliated companies
2. Interests in affiliated companies
3. Participating interests
6. Shares in cooperatives
B ∙ Livestock assets
51,174.84
51,174.84
2,043,965.08
1,989,868.81
136,758,740.74
127,549,841.02
820,404.60
653,498.40
14 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
FINANCIAL DATA ∙ CONSOLIDATED BALANCE SHEET
C ∙ Current assets
I. Inventories
1. Raw materials and supplies
2. Work in progress
3. Finished goods
4. Payments on account
II. Accounts receivable and other assets
1. Trade receivables
2. Receivables from non-consolidated affiliated companies
3. Receivables from companies in which a participating interest is held
4. Other assets
III. Shares in affiliated companies
IV. Cash in hand and bank balances
D ∙ Prepayments and accrued income
E ∙ Deferred item for prospective tax relief in subsequent financial years
pursuant to Section 274 paragraph 2 of the German Commercial Code
(Handelsgesetzbuch - HGB)
F ∙ Excess of plan assets over pension liabilities
Total assets
7,961,331.42
7,189,186.17
32,042,318.61
21,432,324.18
3,320,144.70
4,567,048.26
2,573,848.97
887,490.95
45,897,643.70
34,076,049.56
52,745,137.09
5,126,749.26
51,241,047.13
7,878,158.08
2,247,318.57
9,770,486.51
64,323,809.86
61,509,367.09
124,443,014.78
130,399,058.81
3,958,836.45
3,882,964.70
16,519,459.21
10,706,522.94
190,818,954.14
179,064,596.01
2,388,688.29
1,555,312.10
312,145.00
312,145.00
31,709.84
30,492.23
331,130,642.61
309,165,884.76
15 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
FINANCIAL DATA ∙ CONSOLIDATED BALANCE SHEET
EQUITY AND LIABILITIES (HGB)
30.06.2012
IN EUR
31.12.2011
IN EUR
5,676,000.00
5,676,000.00
A ∙ EQUITY
I. Subscribed capital
II. Par value of own shares
−5,000.00
−5,000.00
III. Capital reserves
55,117,817.97
40,241,000.00
IV. Revenue reserve
1,368,454.97
1,292,537.17
V. Goodwill arising from acquisition
5,330,697.09
5,302,353.05
VI. Net income
7,499,260.70
7,985,086.82
VII. Balancing item for minority interests
5,054,280.23
3,835,954.11
80,041,510.96
64,327,931.15
95,707.85
60,807.62
4,290.54
3,414.00
2. Provisions for taxes
1,366,223.93
1,888,900.66
3. Other provisions
2,296,199.26
1,344,758.98
3,666,713.73
3,237,073.64
B ∙ Special item for investment subsidies
C ∙ Provisions
1. Provisions for pensions and similar obligations
16 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
FINANCIAL DATA ∙ CONSOLIDATED BALANCE SHEET
D ∙ Liabilities
1. Loans
2. Liabilities to banks
3. Payments received on account of orders
4. Trade payables
5. Liabilities on bills accepted and drawn
6. Liabilities to affiliated companies
158,869,000.00
129,058,000.00
75,289,288.10
80,848,100.76
249,751.82
103,803.23
6,377,371.62
13,105,033.37
0
600,000.00
0
113,040.57
135,852.16
166,989.90
6,096,328.33
17,443,997.71
247,017,592.03
241,438,965.54
E ∙ Deferred income
160,319.04
101,106.81
F ∙ Deferred tax liabilities
148,799.00
0
331,130,642.61
309,165,884.76
7. Liabilities to companies in which a participating interest is held
8. Other liabilities
Total liabilities
17 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
FINANCIAL DATA ∙ PROFIT AND LOSS ACCOUNT
PROFIT AND
LOSS ACCOUNT
CONSOLIDATED PROFIT AND LOSS ACCOUNT (HGB)
1. Sales revenue
2. Increase in inventories of finished goods, work in progress and livestock
3. Other own work capitalised
01.01. – 30.06.2012
IN EUR
01.01. – 30.06.2011
IN EUR
31,349,197.13
8,512,490.18
27,102,763.75
13,434,245.28
60,282.82
429,528.75
4. Other operating income
16,698,605.55
5,167,319.67
5. Total output
56,620,575.68
46,133,857.45
−21,168,795.49
−449,433.51
−19,036,815.53
−840,182.65
−21,618,229.00
−19,876,998.18
−5,997,449.65
−1.141.321.73
−4,335,023.53
−828,474.17
−7,138,771.38
−5,163,497.70
−2,804,875.59
−16,891,894.16
−2,489,334.98
−12,352,616.20
8,166,805.55
6,251,410.39
5,496.62
133.62
6. Material costs
a) Costs of raw materials and supplies and of purchased goods
b) Costs of purchased services
7. Personnel costs
a) Wages and salaries
b) Social security, pension and benefit expenses
8. Depreciation, amortisation and impairment of intangible fixed assets and
property, plant and equipment
9. Other operating costs
10. Operating result (EBIT)
11. Income from participating interests
12. Other interest and similar income
1,868,694.40
551,670.18
−6,884,904.10
−3,261,643.88
3,156,092.47
3,541,570.31
−2,439,496.56
−3,556,625.66
16. Taxes on income
−479,521.94
−515,796.81
17. Other taxes
−127,812.13
−116,732.57
109,261.84
−647,584.73
19. Retained profit
7,985,086.82
8,191,374.05
20. Portion of earnings attributable to minority shareholders
−485,826.12
−610,082.12
7,499,260.70
6,933,707.20
13. Interest and similar expenditure
14. Result from ordinary activities
15. Extraordinary costs
18. Net profit for the period
21. Net income
18 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
FINANCIAL DATA ∙ CONSOLIDATED CASH FLOW STATEMENT
CONSOLIDATED
CASH FLOW STATEMENT
01.01. – 30.06.2012
IN THOUSANDS OF
EUROS
01.01. – 30.06.2011
IN THOUSANDS OF
EUROS
Consolidated net profit before extraordinary items
2,549
2,909
Depreciation, amortisation and impairment
2,805
2,489
CONSOLIDATED CASH FLOW STATEMENT
(HGB)
Income from disposals of assets
Increase (+) / decrease (−) in deferred tax liabilities
Increase (+) / decrease (−) in deferred tax assets
Changes in long-term provisions
Increase (+) / decrease (−) in other liabilities
Increase (+) / decrease (−) in other assets
Non-cash costs and income
Gross cash flow from operating activities
0
411
149
−4
−2
0
1
−224
0
−3,330
−1,077
−301
−20
68
4,181
2,241
NWC
−23,512
−31,434
Cash flow from operating activities (NOCF)
−19,331
−29,193
Payments for investments in fixed assets
−12,373
−15,213
23
67
0
−12,350
−201
−15,347
Payments for extraordinary items
−2,439
−3,557
Equity injections
14,982
5
Proceeds from disposals of assets
Proceeds/payments from the sale of consolidated companies
Cash flow from investment activities
Changes in medium- and long-term loans Loans (including repayments)
24,252
89,499
Cash flow from financing activities
36,795
85,947
5,114
41,407
Changes in liquid assets
0
184
Liquid assets at start of period
Consolidation-related changes in cash funds
10,707
9,235
Liquid assets at end of period
15,820
50,826
Rounding differences possible
19 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
FINANCIAL DATA ∙ STATEMENT OF CHANGES IN EQUITY
STATEMENT OF
CHANGES IN EQUITY
PARENT COMPANY
STATEMENT OF CHANGES IN EQUITY (HGB)
iN THOUSANDS OF EUROS
SUBSCRIBED
CAPITAL ORDINARY
SHARES
PAR VALUE
OWN SHARES
CAPITAL
RESERVE
STATUTORY
RESERVE
5,676
0
40,241
5
Allocation to statutory reserves
0
−5
0
0
Allocation par value own shares
0
0
0
0
01 January 2011
Allocation to retained earnings
0
0
0
0
Other adjustments
0
0
0
0
Changes in the entities included in consolidation
0
0
0
0
0
0
0
0
31 December 2011
5,676
−5
40,241
5
01 January 2012
5,676
−5
40,241
5
0
0
0
Allocation to statutory reserves
Allocation to capital reserves
0
0
14,877
−5
Allocation par value own shares
0
0
0
0
Allocation to retained earnings
0
0
0
0
Other adjustments
0
0
0
0
0
0
0
0
0
0
0
0
5,676
−5
55,118
0
Allocation to balancing item for minority
interests
Consolidated net profit
30 June 2012
20 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
FINANCIAL DATA ∙ STATEMENT OF CHANGES IN EQUITY
MINORITY SHAREHOLDERS
OTHER RESERVES
GOODWILL
ARISING FROM
ACQUISITION
CONSOLIDATED
EQUITY
EQUITY
MINORITY CAPITAL
CONSOLIDATED
EQUITY
1,288
5,332
8,855
60,733
3,538
64,271
0
0
0
−5
0
−5
0
0
−66
−66
0
−66
0
0
−851
−851
0
−851
0
−30
0
−30
200
−230
0
0
0
0
0
0
0
0
1,209
711
498
1,209
1,288
5,302
9,147
60,492
3,836
64,328
1,288
5,302
9,147
60,492
3,836
64,328
0
0
0
0
0
0
0
0
0
14,872
0
14,872
0
0
0
0
0
0
0
0
0
0
0
0
80
29
0
0
0
0
0
0
0
0
0
109
0
−376
733
485
732
109
1,368
5,331
9,256
74,988
5,054
80,041
21 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
FINANCIAL DATA ∙ CONSOLIDATED STATEMENT OF CHANGES IN FIXED ASSETS
CONSOLIDATED STATEMENT OF
CHANGES IN FIXED ASSETS
ACQUISITION OR MANUFACTURING COSTS
iN THOUSANDS OF EUROS
01.01.2012
CHANGES inTHE ENTITIES
INCLUDED IN
ADDITIONS
EUR
RECLASSIFICATIONS
TRANSFERS
DISPOSALS
30.06.2012
42
3
0
3,252
CONSOLIDATION
Fixed assets
I. Intangible assets
1. Concessions, industrial property rights and
similar rights and assets as well as licences to
such rights and assets
2. Goodwill
3,207
0
7,149
0
5
−3
0
7,151
10,356
0
47
0
0
10,403
1. Land, rights equivalent to real property and
buildings, including buildings on
third-party land
46,692
0
1,837
0
21
48,508
2. Technical plant and machinery
51,976
0
622
−280
529
51,789
7,716
0
526
0
25
8,217
675
0
310
0
0
985
35,124
0
9,193
280
0
44,597
142,183
0
12,488
0
575
154,096
1,045
0
55
0
0
1,100
2. Interests in affiliated companies
182
0
0
0
0
182
3. Participating interests
219
0
0
0
0
219
4. Securities held as fixed assets
211
0
0
0
0
211
5. Other loans
476
0
0
0
2
474
51
0
0
0
0
51
2,184
0
55
0
2
2,237
154,723
0
12,590
0
577
166,736
II. Property, plant & equipment
3. Other equipment, factory and office equipment
4. Permanent crops
5. Payments on account and assets under
construction
III. Financial assets
1. Interests in non-consolidated
affiliated companies
6. Shares in cooperatives
22 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
FINANCIAL DATA ∙ CONSOLIDATED STATEMENT OF CHANGES IN FIXED ASSETS
CUMULATIVE DEPRECIATION, AMORTISATION and IMPAIRMENT
iN THOUSANDS OF EUROS
01.01.2012
733
CHANGES
IN ENTITIES
INCLUDED IN
SCHEDULED
DEPRECIATION
and
CONSOLIDATION AMORTISATION
0
80
BOOK VALUES
iN THOUSANDS OF EUROS
WRITE-UPS
DISPOSALS
30.06.2012
31.12.2011
30.06.2012
0
0
813
2,474
2,439
2,386
0
6
0
0
2,392
4,763
4,759
3,119
0
86
0
0
3,205
7,237
7,198
7,317
0
440
0
0
7,757
39,375
40,751
13,259
0
2,283
0
225
15,317
38,717
36,472
2,836
0
246
0
34
3,048
4,880
5,169
448
0
9
0
0
457
227
528
0
0
0
0
0
0
35,124
44,597
23,860
0
2,978
0
259
26,579
118,323
127,517
0
0
0
0
0
0
1,045
1,100
0
0
0
0
0
0
182
182
177
0
0
0
0
177
42
42
0
0
0
0
0
0
211
211
17
0
0
0
0
17
459
457
0
0
0
0
0
0
51
51
194
0
0
0
0
194
1,990
2,043
27,173
0
3,064
0
259
29,978
127,550
136,758
23 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
COMMENTS
4 · COMMENTS
24 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
COMMENTS
25 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
COMMENTS ∙ Concerning the first half of 2012
COMMENTS
CONCERNING THE FIRST HALF OF 2012
1 ∙ GENERAL INFORMATION
The details given here should not be regarded as Notes in the sense of annual financial statements. The following comments relate to
items which have changed since the audited annual financial statements to 31 December 2011.
2 ∙ ENTITIES IN CONSOLIDATION
No changes since the previous year.
3 ∙ VALUATION OF GROWING CROPS
In conformity with the procedure adopted as of 30 June 2011, growing crops are valued at the costs actually incurred per crop
and hectare.
4 ∙ FIXED ASSETS
Movements in individual fixed asset items are set out in the consolidated statement of changes in fixed assets on pages 22 and 23.
5 ∙ SALES REVENUES
Sales revenues are generated in three divisions. They break down as follows:
SALES REVENUES
01.01. – 30.06.2012
IN THOUSANDS OF EUROs
01.01. – 30.06.2011
IN THOUSANDS OF EUROs
735
2,260
Conventional crop cultivation
4,148
7,365
Complementary agricultural activities
4,519
4,479
Animal production
1,093
1,620
13,580
8,880
7,274
2,499
31,349
27,103
Organic crop cultivation
Energy
Biogas & energy production
Food
Food production
Total
26 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
COMMENTS ∙ Concerning the first half of 2012
Other operating income
Other operating income breaks down as follows:
Other operating income
01.01. – 30.06.2012
IN THOUSANDS OF EUROs
01.01. – 30.06.2011
IN THOUSANDS OF EUROs
Subsidies and grants
4,301
4,045
Other income
4,147
1,122
Income from financial assets
8,251
0
16,699
5,167
01.01. – 30.06.2012
IN THOUSANDS OF EUROs
01.01. – 30.06.2011
IN THOUSANDS OF EUROs
Expenditure on machinery, repairs and maintenance
1,841
1,531
Rent, leases and costs of premises
2,908
2,178
Administration, legal and consulting costs
1,821
1,636
Leasing and motor vehicle costs
3,470
2,802
Other marketing expenditure
1,668
468
Insurance policies, contributions and levies
1,269
800
Total
Other operating costs
Other operating costs break down as follows:
Other operating costs
Other expenditure
Total
3,915
2,937
16,892
12,353
Hamburg, 28 September 2012
KTG Agrar AG
Siegfried Hofreiter
Dr. Thomas R.G. Berger
Ulf Hammerich
Bert Wigger
27 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
Legal Notice
LEGAL NOTICE
PUBLISHER
PRINTING AND PRODUCTION
KTG Agrar AG
Ferdinandstraße 12
20095 Hamburg
Germany
MSDD
Medienservice Digitaldruck GmbH
Telefon +49 (0)40 303764 - 7
Telefax +49 (0)40 303764 - 99
Email info@ktg.ag
Website www.ktg-agrar.de
An den Eichen 1
16515 Oranienburg
Germany
Telefon +49 (0)3301 575 - 0
Telefax +49 (0)3301 575 - 200
CONCEPT AND DESIGN
KTG Agrar AG
Camao AG
TEXT
KTG Agrar AG
IR.on AG
Image credits
KTG Agrar AG
Gettyimages
28 ∙ KTG AGRAR AG HALF-YEARLY REPORT 2012
KTG AGRAR AG HALF-YEARLY REPORT 2012
Ktg agrar ag
Ferdinandstraße 12
20095 Hamburg
Germany