Nufarm Limited · ASX:NUF
Nufarm — 11th PAC Partners Agribusiness Conference (April 2014)
12 slides from Nufarm's conference presentation, Apr 30, 2014
Slide 1: 11th PAC Partners Agribusiness Conference
For personal use only 11th PAC Partners Agribusiness Conference 30 April 2014 Paul Binfield Chief Financial Officer
Slide 2: Balancing the needs and opportunities of a growing business
11th PAC Partners Agribusiness Conference Balancing the needs and opportunities of a growing business For personal use only • Capitalising on the growth opportunity in overseas markets and in our seeds business • Lowering the cost base and improving efficiencies in Australia • Executing on plans to
Slide 3: Capitalising on the growth opportunity: South America
11th PAC Partners Agribusiness Conference Capitalising on the growth opportunity For personal use only • South America – Continued market growth, fueled by additional cropping acres and more investment in technology inputs – An expanded presence in Brazil and Argentina supported by a strong product
Slide 4: Brazil turn-around – a story of people and innovation
11th PAC Partners Agribusiness Conference Brazil turn-around – a story of people and innovation For personal use only Brazil key metrics in local FX (BRL in millions) • EBITDA margin expanding rapidly 140 – Strategic focus on higher value segments of the 80% market has lifted the gross profit margin
Slide 5: Capitalising on the growth opportunity: Europe and Asia
11th PAC Partners Agribusiness Conference Capitalising on the growth opportunity For personal use only • Europe – Key crop focus (cereals; corn; TNVV; grassland & potatoes) – Leverage leadership position in ‘espace vert’ segment in France – Differentiating our product portfolio • Asia – Adding rice
Slide 6: Capitalising on the growth opportunity: North America and seeds
11th PAC Partners Agribusiness Conference Capitalising on the growth opportunity For personal use only • North America – Clear focus on specific growth segments in US Ag (burn-down; resistance; cotton; horticulture) – Consolidating/growing top three position in high value US turf and specialty segme
Slide 7: Changes that secure our leadership position in Australia
11th PAC Partners Agribusiness Conference Changes that secure our leadership position in Australia For personal use only • A lower, more flexible cost base • Higher utilisation of manufacturing assets • A flatter, more focused management structure • Increased responsiveness to customer needs • More
Slide 8: An unrelenting focus on working capital management
11th PAC Partners Agribusiness Conference An unrelenting focus on working capital management For personal use only • All management have incentives tied to NWC performance • Extensive S&OP projects in US, EU and Australia • Reduction in stocking points across Australia • Output through plants reduce
Slide 9: NWC build at January related to strength of Brazil season
11th PAC Partners Agribusiness Conference NWC build at 31 January related to strength of Brazil season and elevated inventory levels elsewhere For personal use only • Growth in NWC since July has been driven by: – Strength of Brazilian season – receivables up and inventory down in line with cropping
Slide 10: Progress towards meeting July NWC target
11th PAC Partners Agribusiness Conference Progress towards meeting July NWC target For personal use only • Cash collections strong in South America • Expectations high for another good season in Brazil, will drive inventory build • Accelerated plant shut downs in EU will benefit NWC but at expense o
Slide 11: Clear balance sheet objectives
11th PAC Partners Agribusiness Conference Clear balance sheet objectives For personal use only • Robust capital structure designed to cope with inherent seasonality of agribusiness: – Longer term capital – hybrids and high yield bond – Working capital needs – debtors securitisation and revolver • On
Slide 12: Nufarm — Grow a better tomorrow
6A Nufarm — Growa better tomorrow.
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