3. Juni 2019, Brussels Share Deals: the Case of KTG AGRAR SE Jobst - PowerPoint PPT Presentation

“Share Deals” – new challenges for the farmland market? 3. Juni 2019, Brussels Share Deals: – the Case of KTG AGRAR SE Jobst Jungehülsing Head of Division 423 Bundes · · f" .. mm1sterium „Land Market“ ur Ernahrung und Landwirtschaft Tel.: 030 / 18529-4450 Email: jobst.jungehuelsing@bmel.bund.de

1. KTG AGRAR SE: organisation and growth through share deals Group headquarter (listed company at the Frankfurt stock exchange) - I r -1 corporate branch 1: national political objectives: Agriculture ? • widespread distribution of property I I I I Farm 1 Farm … ? • No market-dominating position I Farm 2 Farms in I I I X Romania • Preemption right for farmers I Farm … I I I Farm … • speculation prevention I Farm … XX I I I Farm … • Regional value addition Farms in I I I I Lithuania Farm 88 I I. I I Farm … Farm 89 11 I I Foreign 53.000 ha farmland companies Jungehülsing "Farmland Market Regulation" 2 (average seize: 600 ha) 3 Juni 2019

1. KTG AGRAR SE: organisation and growth through share deals Group headquarter I I I corporate branch 2: corporate branch 1: corporate branch 3: I I Renewable Energy Agriculture Food processing I I I I I I Company 1 Farm 1 Farm … Company 1 I I I I I I Farm 2 Farms in Company 2 Company 2 Romania I I I I Company 3 Company 3 Farm … I I Farm … in Russia I I I I Company … Farm … Farm … Company … I I Company … Farms in I I I Lithuania Farm 88 Company 13 I I Company 35 Farm … Farm 89 11 Foreign companies Jungehülsing "Farmland Market Regulation" 3 3 Juni 2019

I 1. KTG AGRAR SE: organisation and growth through share deals I I Group headquarter I corporate branch 2: corporate branch 1: corporate branch 3: I I Renewable Energy Agriculture Food processing I I I I Company 1 Farm 1 Farm … Company 1 201s I Farm 2 Farms in Company 2 Company 2 I I I Romania foreign tinaniial investors tf\/ to take over I Company 3 Company 3 Farm … I I • I 9,03 % of 1<.1G r,.GRAR SE Farm … in Russia I Company … Farm … I I fidelidae conwanhia de seguros SA, Portugal I Farm … Company … • Company … Farms in controlled hi/ fosun international Urnited, I I I I Lithuania Farm 88 Company 13 • Company 35 shangha\, ch\na I I Farm … Farm 89 11 Foreign companies Jungehülsing "Farmland Market Regulation" 4 3 Juni 2019

2. KTG AGRAR SE: insolvency 2016 • 100 million € stock market value eroded; • debts of 400 million €; • 800 jobs at risk; • Individual agricultural holdings (subsidiaries) insolvent:  Farmland under ownership was sold to pay off the group’s debt.  The EU agricultural payments were pledged to the banks for years to come; Jungehülsing "Farmland Market Regulation" 5 3 Juni 2019

2 . KTG AGRAR SE: insolvency 2016 Group headquarter I I I corporate branch 2: corporate branch 1: corporate branch 3: I I Renewable Energy Agriculture Food processing I I I I I I Company 1 Farm 1 Farm … Company 1 I I I I I I Farm 2 Farms in Company 2 Company 2 Romania I I I I Company 3 Company 3 Farm … I I Farm … in Russia I I I I Company … Farm … Farm … Company … I I Company … Farms in I I I Lithuania Farm 88 Company 13 I I Company 35 Farm … Farm 89 11 Foreign companies Jungehülsing "Farmland Market Regulation" 6 3 Juni 2019

3. Purchase of KTG AGRAR SE by the Gustav-Zech-Foundation Group headquarter corporate branch 2: corporate branch 1: agricutturat objectives? Renewable Energy Agriculture • 36 farms With an area of 20,0oo hectares Foreign financial Company 1 Farm 1 Farm … Were acquired by the next financial investor. Investor Farm 2 No local I Young farmers were able to buy Company 2 land. --_J • private owner Company 3 Farm … Farm … • speculation could not be controlled. Company … Farm … Farm … • The regional value added flows to the Group Company … · headquarters abroad. Farm … Company 31 Deutsche Agra Farm … Farm 36 Holding 11 Foreign companies Jungehülsing "Farmland Market Regulation" 7 3 Juni 2019

4. Is KTG AGRAR SE an isolated case? Land concentration ? groups like KTG AGRAR do not exist in the: • EU farmstructure survey; • Farm Accountancy Data Network (FADN) • EU-database for agricultural payments; Jungehülsing "Farmland Market Regulation" 8 3 Juni 2019

4. Is KTG AGRAR SE an isolated case? Land concentration ? … 111 agricultural enterprises or Jungehülsing "Farmland Market Regulation" 9 3 Juni 2019

4. Is KTG AGRAR SE an isolated case? Land concentration ? … 111 agricultural enterprises or … 5 Groups, 111 subsidiaries! 8.000 hectare * 20.000 hectare * 22.000 hectare * 4.000 hectare * 20.600 hectare * Jungehülsing "Farmland Market Regulation" 10 3 Juni 2019

4. Is KTG AGRAR SE an isolated case? Study „Supraregional Capital investors “ 709.000 ha (56% - • In 2017 34 % of the farms and 25 % of LF) the farmland belongs to investors; • The agricultural land owned by investors has increased by 42%. • Share deals: 18 % of agicultural land sales, in some years up to 51 %. 853 compan observa ies tion: 11 years TI-Report 52, A. Tietz, Braunschweig, 2017. Jungehülsing "Farmland Market Regulation" 3 Juni 2019 11

4. Is KTG AGRAR SE an isolated case? • The extent of soil concentration is underestimated by the authorities. • Share deals with agricultural land are increasing. Thank you for your attention! www.bmel.de Jungehülsing "Farmland Market Regulation" 12 3 Juni 2019