KTG Agrar : Update on the interest payment and the current performance

Dear investors,
dear shareholders,
dear business partners,

We would like to inform you of the current performance of the company and the interest payment on the Biowertpapier II bond.

We deeply regret not having paid the interest on the Biowertpapier II bond. We would like to apologise once again and ask for your understanding.

Please rest assured that all our efforts are focused on making the interest payment shortly. During the past two weeks, we held many talks. In view of the agreements reached and the commitments obtained, we assume that the payment will be made within the announced grace period and prior to the planned Annual General Meeting.

Over the past 20 years, KTG Agrar SE has built up a dynamic group of companies operating in the farming and food sectors as well as in the renewable energy sector - initiated, driven and influenced by the general idea of a strongly growing world population and the need to reduce the worldwide carbon emissions. These two megatrends were relevant during the past 20 years and we expect them to gain further importance in the coming years, thus offering huge potential for success for sustainable investors. A look at the success strategies of renowned investors shows that they all have one thing in common, namely anti-cyclical activity.

In the first years of its existence, after the political change in Germany, the KTG Group, which primarily operates in the new federal states as well as in Lithuania and Romania, has mastered considerable corporate challenges. With over EUR 300 million in revenues and some 800 employees in 2015, we hold leading positions in our market segments. Our Group includes investments in firms with a history of up to 135 years. A look at the history of our companies and other enterprises shows that successful companies rich in tradition repeatedly went through financially difficult times and emerged from them stronger than before.

We are absolutely convinced that this will also be true of KTG Agrar.

Unfortunately, some 'commentators', whom we believe to be unaware of the actual business situation and our market and earnings potential, have caused uncertainty among some investors. We regret this very much. The harvest on our fields will start in a few weeks' time. In view of the current favourable weather conditions and an area of roughly 46,000 hectares, we expect the harvest to clearly exceed EUR 60 million - which would be far higher than last year's harvest. We are convinced that demand for agricultural resources, especially in the organic and vegan segment, in which we are very strong, will continue to show a positive trend. We also see strongly growing export demand for grain. We are currently in promising contractual negotiations for the harvest of 2016 and subsequent years.

Moreover, the energy segment generates monthly sales revenues of over EUR 7 million, and the other business activities such as the food and trading segment also generate monthly revenues of up to EUR 10 million.

Anti-cyclical investments and sticking to one's investments requires a shared understanding from both parties - the company and its investors. Please rest assured that we will not bury our heads in the sand but will do everything in our power to master the challenge as quickly as possible with the support of our highly committed employees.

Please support us as best as you can: people will always need to eat!

We farm for life.

The KTG Management Board