KTG Agrar : SE enters new attractive segment in the food market

• Successful participation in INTERNORGA
• Out-of-home market records revenues of a good EUR 74 billion
• Successful diversification of the distribution channels in the food segment

Hamburg, 17 March 2016. KTG Agrar SE (ISIN: DE000A0DN1J4) has entered an attractive segment of the food market: food for restaurants, caterers and commercial kitchens. This out-of-home market is undergoing a fundamental change, as quality, organic products and regionality are increasingly gaining importance. The segment has posted stable growth rates for many years. Sales in the German out-of-home market alone amounted to a good EUR 74 billion in 2014 - compared to EUR 64 billion in 2010 (source: Statista).

At the INTERNORGA trade fair from 11 to 16 March 2016, KTG exhibited its products at its own booth for the first time. While 2016 saw the leading event for the out-of-home market celebrate its 90th anniversary, there were no signs of old age on the part of the roughly 1,300 domestic and international exhibitors and the 95,000 visitors. The trend topics of this year's event - superfoods, vegan, organic and regional food as well as sustainable system concepts - had their finger on the pulse of the times. Accordingly, the new smoothies were the top products at the KTG booth.

'The trend towards healthy food will drive the out-of-home market in Germany and abroad in the coming years. Our » from field to plate « strategy is a unique response to the key trends of regionality, organic food and frozen products. Accordingly, we received a lot of positive feedback in the many talks we held at INTERNORGA,' says Siegfried Hofreiter, CEO of KTG Agrar SE. 'I am convinced that this is a new attractive output market for our company.'

INTERNORGA has shown that KTG is developing new output markets with great determination. This is an important strategic objective for the year 2016. German retail stores, where KTG occupies close to 50 kilometres of shelf and freezer space, remain the company's most important distribution channel. The Group's growth in the coming years will additionally be driven by exports, online distribution and the development of new segments such as the out-of-home market. The company will push ahead with its expansion without major investments. Thanks to the investments made in the past years, KTG Foods, which serves as the umbrella for the food plants and the 'Frenzel Tiefkühlkost', 'Bio-Zentrale' and 'Die Landwirte' brands, will be able to increase the food segment's sales revenues to approx. EUR 200 million (2014: EUR 103 million). The segment's margin will increase in sync with capacity utilisation.