Nufarm Limited · ASX:NUF
Nufarm — H1 2007 Earnings Presentation
32 slides from Nufarm's earnings presentation, Mar 26, 2007
Slide 1: Le a Ny Ly i
Le 17 7 a Ny Ly i =. =—re—e—sS— oe a ~=~—rer—r——S—C“E > C=" . . 7 _ _ _ 2 ©=——r—r—. CsFvr+—ws _ . 7 Lo _ - . . Lo Le _ _ y . ; LD a Tey 7 Le _ eg . J yy Ce ee . . i . _ ee _ oo CC BACH ER ETE _ -. LD Le ay La 7 i Cl MEE oe, ee L . CC ae i y UE Ee oe Te _ a Le 7 a Lge 7 Le Te oy oe ae ERM Le Le ee JD
Slide 2: Doug Rathbone, Managing Director
= Doug Rathbone - Managing Director
Slide 3: Interim results to January 31, 2007
Interim results to January 31, 2007 LAN — 7 _ Nufarm = Profit result is in line with guidance at AGM = Tough period for Australia = Improving confidence in Brazil => Quiet period in North America / Europe = Strong growth drivers for agriculture, going forward
Slide 4: Interim results 2007
i nterim results 2007 a Nufarm 4H 2006 $m Group Sales 603 Operating profit 32.7 Non operating items 1.5 Reported result 34.2 Agripec contribution 18.3 Interim dividend 10.0 cents
Slide 5: Kevin Martin, Chief Financial Officer
Kevin Martin -. Chief Financial Officer
Slide 6: Profit after tax
Profit after tax Profit as reported Continuing operations Discontinued operations Minority interest Total Non operating items Operating profit Agripec contribution Nufarm contribution 23.8 10.7 -0.3 34.2 1.5 32.7 18.3 14.4
Slide 7: Operating profit pre Agripec contribution
Operating profit pre agripec contribution LAN — — Nufarm 2007 2006 ~—sCODifference Profit from operations 14,694 26,072 Add head office costs 13,148 14,923 27,842 40,995 ~13,153 Addi/(deduct) material items -3,436 7,207 «10,643 Regional operating profit 24,406 48,202 ~23,796 GP Exp __ Total Australa
Slide 8: Profit reporting
ec Profit reporting Agripec financial year December, RI millions Cash Net working capital Fixed assets Other assets Borrowings Other liabilities Net assets EBITDA 59 44 243 343 70 68 85 79 -28 -85 -55 -86 374 362 7 78 242
Slide 9: Profit reporting
Profit reporting Nufarm financial year AUD millions 1st half 2nd half Total 2005 22.4 8 30.4 2006 18.3 -9.8 8.5 2007 13.4 0.7 14.1
Slide 10: Second half 2006 vs second half 2007
Second half 2006 =" Currency appreciation =" Low commodity price " Credit crisis ~ Discounts ~— Product returns Second half 2007 ‘Stable’ currency " High commodity price Confidence high " Government fund to acquire old debts
Slide 11: Working capital
Working C Increase /<decrease> between years $ millions Inventory Receivables Payables Total Australia 43 27 17 87 New Zealand -43 -43 Europe 16 22 15 53 Americas 4 15 24 43 63.2 20.7 56.8 140
Slide 12: Doug Rathbone, Managing Director
= Doug Rathbone - Managing Director
Slide 13: Months in review: Australia
interim results 2007 ea a rsieeetncesttery _ Nufarm 6 months in review AUSTRALIA " Reduced post-emergent activity =" Summer cropping - worst in 20 years =" Some margin pressure " Signs of recovery in January
Slide 14: Months in review: North America
interim results 2007 ea ==$= _ Nufarm 6 months in review NORTH AMERICA =" Sales up on previous first half =" Well positioned for major selling period =" New products meeting early expectations
Slide 15: Months in review: South America
interim results 2007 ea ere Nufarm 6 months in review SOUTH AMERICA =" Strong sales growth and profit improvement in Argentina " Initial full first half contribution from Agrogen (Colombia) =" Sales growth in Chile
Slide 16: Months in review: Agripec / Brazil
interim results 2007 ea a Nufarm 6 months in review AGRIPEC / BRAZIL " Improved 'macro' conditions — Currency more stable — Good season — Higher commodity prices
Slide 17: Agripec / Brazil: exchange rate impact on grower returns
Agripec / Brazil LAN Nufarm oa Exchange rate impact on grower returns Real to USD 4.0 3.5 5 2.5 +-.- 2.0 4-----------e---- fen ----J ee ees ee || -20.9% | _ 1.5 4----- 4.0 4----- 0.5 4+---<---]---n-5
Slide 18: Months in review: Agripec / Brazil
interim results 2007 ea eng Nufarm 6 months in review AGRIPEC / BRAZIL " 'Risk averse’ selling =" Increased confidence re collections =" Commenced 'barter' trade
Slide 19: Months in review: Europe
interim results 2007 6 months in review EUROPE " Mild winter " Sales growth in all markets " Central / Eastern Europe - good progress " Italian acquisition good platform for further growth " Timing and product mix impacted margins; start up costs of new businesses
Slide 20: Current trading conditions, outlook to year end
Slide 21: Outlook - Full year 2007: Australia
interim results 2007 ea — ee Nufarm Outlook - Full year 2007 AUSTRALIA =" Improved sentiment / cause for optimism =" Strong rebound if conditions allow =" Well positioned to take advantage " Margin recovery anticipated in second half
Slide 22: Outlook - Full year 2007: North America
interim results 2007 ea es 2 tnae By, Nufarm Outlook - Full year 2007 NORTH AMERICA =" Buoyant ag sector (corn/ethanol impact) " Seasonal conditions positive =" Continued growth in turf/specialty
Slide 23: Outlook - Full year 2007: Brazil
interim results 2007 ea —_ ata _ Nufarm Outlook - Full year 2007 BRAZIL =" Payments outlook much improved " 'Safrinha' (small season) plantings strong " Product portfolio expansion continues
Slide 24: Agripec portfolio expansion
Agripec Portfolio expansion =" 10 new product introductions in 07/08 " Additional opportunities in corn, cotton, wheat and pasture =" Sugar cane portfolio now a priority
Slide 25: Outlook - Full year 2007: Europe
interim results 2007 ea ee Nufarm Outlook - Full year 2007 EUROPE =" Good season anticipated " Additional products =" Romania/Eastern Europe sales growth
Slide 26: Outlook in summary
interim results 2007 Outlook in summary =" Seasonal conditions expected to be positive " Australia will need strong rebound =" US and Europe set to meet growth targets " Agripec to approx 'break even’ in second half
Slide 27: Guidance: Unchanged
Interim results 2007 tt ne a Nufarm Guidance: Unchanged Headline profit: Approx $160m Profit on chlor alkali: $24m Operating profit: 136m _ (inc NSS interest benefit)
Slide 28: Agriculture: sustainable growth drivers
- Agriculture | Sustainable growth drivers
Slide 29: Demand for food and emerging demand for biofuels
Ni Demand for Emerging demand food for ‘bio fuels’
Slide 30: Global biofuels opportunity to 2020 (or sooner)
Glo bal biofuels opportunity to 2020 (or sooner) allons - 435 billion litres | Sources: DuPont, BP, US Department of Energy, Bio-era
Slide 31: Food or fuel?
Food or fuel? Pic 2
Slide 32: KO ark inane DUNS BLAUL EDD Moda a ODOC SELES UU UN MLE ISON
KO ark inane DUNS BLAUL EDD Moda a ODOC SELES UU UN MLE ISON SSA CAMS LO ee llr ”C™—*ti“‘=‘#éCOCOCO#C#*é#téwé#é*é(‘“(‘(C(‘’SCOé‘(R:;C*C(C(‘i‘(C(#N);#C#C#CN LM eG lh lL lllrlr””C C—O TEE EID: EL OS AD OE LE LTE > ~SCCrrtC( —™tététséts—s—s—s—s—s—s—s—s—ssSsOOSOsOs“(‘COSNNS;U(CCSUCO”OC”C“(‘(;#SS)NS;RC(C