Side 2
Business report for DLF 2021/22 CONTENT Highlights from 2021/22 4 Financial key figures 6 The Group Executive Management 8 The Group and business areas 10 HR and global values 12 R&D 14 Forage solutions for the agricultural sector 18 Turf grass for professionals 22 Turf grass for the retail market 26 Supply chain and customer services 28 Beets 30 Vegetable seed 32 Potatoes 33 Crops that benefit the soil, flora and fauna 34 The Board of Directors 35 WE TURN SCIENCE INTO GROWTH DLF AmbA Ny Østergade 9 DK-4000 Roskilde Tel.: +45 4633 0300 www.dlf.com dlf@dlf.com EDITING Communication Department DLF SEEDS A/S GRAPHIC DESIGN Lisbeth Eilenberger eilenberger.dk PRINTING Stibo Complete 1.600 pcs.
Side 3
Business report for DLF 2021/22 3 STRONG RESULT CEMENTS THE FOUNDATION FOR GROWTH Revenue growth reached 12.5%, while EBIT grew by 28.0% during the financial year 2021/22 com - pared with 2020/2021. Revenue reached DKK 8.5bn, and EBIT totalled DKK 713.3m in the year under review. We can be proud of an exceptionally strong 2021/22 result at the DLF Group. Christian Høegh-Andersen, Chairman of the Board of Directors, and Truels Damsgaard, CEO This impressive result cements the foundation for the growth strategy we have pursued for three decades while DLF has com - pletely transformed itself from a Danish-based clover and grass seed producer into a world-leading, globally active seed group. Largely speaking, we have managed to drive this transformation using financial resources we have generated from operations and skilled financial partners, except for the hybrid bond issued in 2019 that partly funded the purchase of PGG Wrightson Seeds. Since then, we have experienced years of exceedingly strong income that will enable us to redeem this bond in con - nection with the first redemption period, in November 2022. We benefit significantly from our regional market access, product portfolio and supply chain, which are the result of our 30-year strategic development. Our presence, with a full value chain on all four continents, has equipped us to avoid the worst supply chain disruptions. In fact, the shortages in North America during the 2021/22 season following a poor harvest sparked record sales from Europe to North America. Never before have so many Americans bought so much Danish-produced seed from DLF. We have a robust business platform for forage and turf seed, sugar beet and vegetable seed. This gives us crucial critical mass for investing in R&D, infrastructure and the organisation to an extent that can ensure we maintain our position as one of the world’s major global seed groups. The result for the year reinforces our belief that continuing to develop the Group is the right course of action, since a stronger DLF will be better equipped to handle external insecurities while seizing market opportunities that are also opening up in a changing world. The green transition goals of more resource-efficient agricultural production, more domestic-produced protein and generally food production more tailored to extreme climates are all challenges that can be partly solved by our clover, grass and beet prod- ucts. This requires a clear focus and resources, and an ongoing process that entails, over time, developing new varieties with stronger characteristics targeted to alleviate these challenges. With this in mind, we view it as a strength that we have been able to recruit Søren Halbye from our own ranks for the role of our new CEO. This will facilitate continuity in the Group in terms of our development and strategic growth.
