DGAP-News: KTG Agrar SE

DGAP-News: KTG Agrar SE starts online sales in China: 'biozentrale' and 'Die Landwirte' available at Alibaba and JD.com

DGAP-News: KTG Agrar SE / Key word(s): Strategic Company Decision/Miscellaneous KTG Agrar SE starts online sales in China: 'biozentrale' and 'Die Landwirte' available at Alibaba and JD.com

04.03.2016 / 08:44 The issuer is solely responsible for the content of this announcement.

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KTG Agrar SE starts online sales in China: "biozentrale" and "Die Landwirte" available at Alibaba and JD.com

- China is already the world's biggest e-commerce market for food

- e-commerce will become the most important distribution platform in the coming years

- Target for 2018: EUR 25 million in online food sales

Hamburg, 4 March 2016. KTG Agrar SE (ISIN: DE000A0DN1J4) has successfully started to sell food produced from its own resources on the leading Chinese online marketplaces. KTG thus opens up an important growth market for its own products made in Germany. In a first step, the company has, together with retail partners, opened shops for the "biozentrale" and "Die Landwirte" brands on the Tmall Global platform of the Alibaba Group and on JD.com. The focus will initially be placed on high-quality breakfast cereals and oils. "After thorough market studies, this is a strategic first step in a market of the future. We are convinced that the Chinese middle and upper class - which is larger than the US population - will realise the added value of our products made in Germany in conjunction with our "from field to plate" strategy and that we will develop a strong market for our company in the medium term," says Siegfried Hofreiter, CEO of KTG Agrar SE.

While online sales of food in Europe are only slowly picking up, Chinese consumers already ordered food worth USD 41 billion on the Internet in 2015 - and rising strongly. Consulting firm IDG expects sales to climb to USD 178 billion already by 2020, with China assumed to expand its world-leading position. In addition, KTG benefits from a clear guarantee of origin, which definitely encourages Chinese consumers to buy such products not least because of the many food scandals surrounding Chinese-made products in the past years. This is why especially the strongly growing middle and upper class of 350 million people are increasingly buying high-quality food made in Europe.

KTG Agrar believes that online sales in Asia and Europe are an important growth driver. Siegfried Hofreiter comments: "We clearly aim to increase online sales of our food segment from currently less than EUR 5 million to over EUR 25 million by 2018." The domestic e-commerce activities are also expected to contribute to this growth. This year, KTG will invest in distribution via Amazon, among others.

Simultaneous to its online presence, KTG will also enter the traditional food market in China and is building up its distribution activities in the country. In a first step, the company was able to list its products with important Chinese food retailers in the past months. Besides regular participation in the leading Chinese trade fairs, the company will therefore focus on advising its retail customers in China in the coming weeks.

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 states of Lithuania and Rumania. KTG Agrar SE has been expanding the value chain since 2011 and added food production to its business portfolio. The brands Frenzel Tiefkühlkost, Bio-Zentrale Naturprodukte, Ölmühle Naturoel Anklam and Die Landwirte are under the umbrella of KTG Foods SE. Since 2015 the KTG Group is maintaining a sales office in Shanghai. In the year 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 Press / Investor Relations Fabian Lorenz T: +49 221 29831588 E: presse@ktg-agrar.de

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04.03.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English Company: KTG Agrar SE Ferdinandstr. 12 20095 Hamburg Germany Phone: +49 (0)40-303 76-47 Fax: +49 (0)40-303 76-799 E-mail: presse@ktg-agrar.de Internet: www.ktg-agrar.de ISIN: DE000A0DN1J4, DE000A1H3VN9, DE000A1ELQU9, DE000A11QGQ1, WKN: A0DN1J , A1H3VN, A1ELQU, A11QGQ Indices: HASPAX Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich (m:access), Stuttgart; Open Market (Entry Standard) in Frankfurt End of News DGAP News Service ---------------------------------------------------------------------------

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