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2 CONTENTS WE TURN SCIENCE INTO GROWTH DLF 2019/20 We turn science into growth Grass and clover as protein sources are interesting – not least in the context of the climate and environment DLF AmbA Ny Oestergade 9 4000 Roskilde Denmark Phone: +45 4633 0300 www.dlf.com dlf@dlf.com EDITING Communications Department DLF SEEDS A/S 4 Highlights from 2019/20 6 Financial key figures 8 The Group Executive Management 10 The Group 12 HR and digitalisation 14 R&D 18 Forage grass for agriculture 22 Turf grass for professionals 26 Turf grass for the retail market 30 Beets 32 Vegetable seeds 33 Potatoes 34 Crops that benefit the soil, flora and fauna 35 The Board of Directors
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3 A year to remember By Christian Høegh-Andersen, Chairman of the Board of Directors, and Truels Damsgaard, CEO Our 2019/20 financial statements present considerable growth, record-breaking revenue and operating profit. Revenue for the DLF Group amounted to DKK 7,437m. Up 40% compared with 2018/19. EBITDA was DKK 599.0m – an increase of 48% on the previous financial year. The acquisition of PGG Wrightson Seeds (PGW Seeds) was clearly the prime driving force for the development. We also saw organic growth both in the European and North American forage and turf seed companies. Sales were realised at generally good prices. Moreover, Jensen Seeds had a record-breaking year. Thus, on all parameters the year was a great success. Naturally, PGW Seeds has rather stolen the spotlight in the management’s calendar. The first year was highly satisfactory both regarding the organisation and finances. The New Zealand activities, in particular, contributed remarkably well to the Group’s income. As for the organisation, our companies and activities in New Zealand and Australia merged under one management. Our operations in South America also followed suit. The various DLF and PGW Seeds brands are being continued to the extent that they complement each other. In this context, it has been important to retain our overall market share. Besides PGW Seeds, a new strategy for the DLF Group has required attention. We have focused on our forage and turf seed activities, which are organised among four geographical business units, so-called SBUs. The four SBUs are supported by a range of cross-organisational functions, particularly R&D, finances, IT and HR. The two strategic priorities for all SBUs are to develop our sales and distribution platform, especially in the technical segments where we can communicate our breeding progress, and to harvest the subsequent gains. We are not planning aggressive volume growth but wish to focus on the value-based elements of our varieties, mixtures and concepts. Historically, PGW Seeds has always played a very strong role in this regard in New Zealand. The green agenda, digitalisation and general application of new technology have gained high priority on the strategic agenda, and we are already taking a range of actions. For example, we are counting on green proteins and are currently testing approx. 300 varieties to find the most suitable. We also intend to highlight our HR efforts in the future, with recruitment, development and talent retention as defined action areas. We are in the midst of a global Covid-19 pandemic, which has significantly affected our daily lives. Operationally, it is crucial that all DLF employees feel safe concerning coming to work every day. An operational lockdown would have major consequences, especially in the peak season. Around the world astronomical amounts are being spent on keeping societies running, but nevertheless, reports worldwide paint a picture of decreasing economic activity. Despite this, we venture to believe that even in challenging times, global demand for quality seeds will prevail.
