Nufarm Limited · ASX:NUF
Nufarm — Macquarie Securities Australia Conference 2015
18 slides from Nufarm's conference presentation, May 7, 2015
Slide 1: Macquarie Securities Australia Conference
For personal use only Macquarie Securities Australia Conference Greg Hunt Managing Director & CEO, Nufarm Limited May, 2015
Slide 2: Macquarie Securities Australia conference
Macquarie Securities Australia conference For personal use only 1 Overview of the business 2 Our strengths and opportunities 3 Strategic focus and change program 4 Trading update 2
Slide 3: Business overview
Business overview For personal use only • Nufarm Australia established in 1957 • Acquisitions help drive global expansion through 1990s and early 2000s • Diversified into seeds segment more recently • Crop protection and specialty seeds 3
Slide 4: We have a strong global footprint
Strengths & opportunities We have a strong global footprint For personal use only Strategically located production and distribution platform • Locally based production facilities Wyke, Linz, UK • Raw materials sourced Calgary, Austria from multiple suppliers Canada Gaillon, France • Large scale enab
Slide 5: We have a balanced and growing revenue base
Strengths & opportunities We have a balanced and growing revenue base For personal use only 2014: $2,478.3m 5 year revenue & profit growth Underlying Revenue (A$m) EBIT (A$m) 3,000 260 2,622 2,500 Aust/NZ 2,277 Europe 2,169 2,182 220 22% 24% Europe 2,084 2,000 21% 206 201 Asia 1,500 187 180 South So
Slide 6: Our product portfolio is broad and becoming more diversified
Strengths & Opportunities Our product portfolio is broad and becoming more diversified For personal use only Nufarm Portfolio Split by Product Type Over 270 active ingredients Over 3,800 product registrations 6
Slide 7: We are a global leader in phenoxy herbicides
Strengths & opportunities We are a global leader in phenoxy herbicides For personal use only • Trusted chemistry with a growing market in resistance management • Able to be combined with other chemistry for broader control • Ability to develop new mixtures and formulations • Well positioned to capit
Slide 8: We have strong regulatory skills/resources and a global network of development laboratories
Strengths & opportunities We have strong regulatory skills/resources and a global network of development laboratories For personal use only • Increased cost and complexity of regulatory environment is a barrier to entry • Member of relevant industry task forces to generate data and protect positions
Slide 9: Our addressable market continues to grow at a faster rate than overall industry
Strengths & opportunities Our addressable market continues to 2013 total industry sales grow at a faster rate than overall industry For personal use only Off-Patent • As more of the industry's chemistry 77.3% moves into the off-patent space, Patent 22.7% Nufarm gains access to additional product dev
Slide 10: We have secured value-adding relationships that support our strategic growth objectives
Strengths & opportunities We have secured value-adding relationships that support our strategic growth objectives For personal use only • Our strategic relationship with Sumitomo Chemical Company continues to generate value and further opportunities for co-operation – Distribution arrangements cover
Slide 11: Our expansion into seeds is focused on segments where we can succeed
Strengths & opportunities Our expansion into seeds is focused on segments where we can succeed For personal use only • We own proprietary germplasm that supports our breeding programs in canola, sorghum and sunflower • We have a rich pipeline of new varieties that will support growth and value expan
Slide 12: Strategic focus & change program
Strategic focus & change program We have a clear focus on improving the performance of the business and lifting returns on investment For personal use only • Nufarm has a clear focus on improving the performance of the business and lifting returns on investment • Our primary returns measure is ROFE,
Slide 13: Performance improvement program
Performance improvement program A comprehensive review of all parts of the business, involving change in many areas For personal use only Work streams and areas of focus Customers Operations Products Costs • Develop the best channel • Optimise footprint • Reduce the complexity of • Apply Procurement
Slide 14: Performance improvement program: our initial target is realistic and achievable
Performance improvement program Our initial target is both realistic and achievable For personal use only • While representing a material uplift on last year’s underlying EBIT, the $100 million benefit target represents less than 4% of our addressable cost base • We have significant opportunities to
Slide 15: Change program well underway
Change program well underway For personal use only • Rationalisation of manufacturing footprints in Australia and Europe • Better processes and systems to support permanent improvements in working capital management • Initial $100m cost savings and performance improvement program that addresses all
Slide 16: Trading update
Trading update For personal use only • Australia Positive start to major season in a number of key cropping regions, but rain still needed in some areas • North America More favourable spring season than previous year and improved selling opportunities • South America Safrinha corn plantings down an
Slide 17: Investment highlights
Investment highlights For personal use only 1 We are a leading supplier of crop protection products, with a highly profitable and growing seeds platform 2 We have a strong and balanced global footprint, with sales in more than 100 countries around the world 3 We have a pipeline of new and differenti
Slide 18: Nufarm — Grow a better tomorrow
er Nufarm — Growa better tomorrow.
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