KTG Agrar : SE poised for efficiency gains in the 2016 agricultural season

• Modernised fleet of agricultural machines
• Fertiliser and diesel fuel costs as much as 25% down on the year

Hamburg, 24 February 2016. Following several years of continued investment in farmland, agricultural property and food production, the year 2016 sees KTG Agrar SE (ISIN: DE000A0DN1J4) focus on operational improvements as well as on raising both yields and earnings. In doing so, the company will benefit from the modernisation of its fleet of agricultural machines as well as clearly lower prices of diesel fuel and fertiliser.

The grain and rapeseed sown in autumn 2015 has made it through the winter in good shape and the employees on the company's twenty farms have taken delivery of new efficient machines in time for the 2016 season. Most notably, KTG Agrar has replaced 35 of its large tractors. All made by leading manufacturers, the new machines boast a total engine power of more than 10,000 bhp between them. Fuel-efficient machines combined with the latest GPS technology allow for the highest levels of operational efficiency and lower costs in working the fields. In addition, on-road efficiency will be improved by the use of ten new road tractor units which will help, among other things, to improve the logistics in supplying the company's own food processing plants. The KTG fleet now comprises more than 150 modern tractors, 30 combine harvesters and shredders as well as more than 30 trucks and semi-trailers. Ulf Hammerich, Chief Agricultural Officer of KTG Agrar SE, says: 'Our modern agricultural machines are at the forefront of cost efficiency in Europe'.

In addition, this year will see KTG Agrar benefit from clearly lower oil prices. In terms of the diesel fuel consumed by company's fleet, it is important to see that KTG purchases some eight million litres of diesel fuel to keep its vehicles running and move some one million tons of food and agricultural raw materials. In addition, KTG Agrar will make substantial savings on its fertiliser purchases, given that the prices of many fertilisers follow the oil prices. Urea fertilisers, for instance, are currently selling some 25% below the previous year's prices. Seeds are currently significantly cheaper to buy than last year as well. Says KTG CEO Siegfried Hofreiter: 'We are optimistic about the year 2016, having only just begun our optimisation drive which will be instrumental in realising the earnings potential inherent in our unique 'from the field to the plate' value chain. Apart from efficiency gains, earnings will also be pushed up by growing capacity utilisation at our food processing plants.' The existing production capacities will support the Foods segment's revenue growth from EUR 100 million in 2014 to as much as EUR 200 million in the coming years, which will have a clearly positive effect on margins.