Nufarm Limited · ASX:NUF
Nufarm — Macquarie Securities Australia Conference 2016
22 slides from Nufarm's conference presentation, May 6, 2016
Slide 1: Macquarie Securities Australia Conference
For personal use only Macquarie Securities Australia Conference Greg Hunt , Managing Director and CEO Nufarm May, 2016
Slide 2: Disclaimer
Disclaimer For personal use only General This presentation has been prepared by Nufarm Limited. The information contained in this presentation is for informational purposes only. The information contained in this presentation is not investment or financial product advice and is not intended to be us
Slide 3: Overview
Overview For personal use only Business overview Industry overview and opportunities Business transformation and growth strategy Trading update 3
Slide 4: Nufarm overview
Nufarm overview For personal use only • Established marketing and distribution capability in key agricultural markets. Market leader in Australia and established platform in the fastest growing market of Latin America • A leader in phenoxy herbicides • Proprietary seed technologies business with a p
Slide 5: Nuseed - Beyond Yield
Nuseed - Beyond Yield™ Pipeline Target Launch For personal use only 2017 2018 2019 2020-22 Canola: Monola Gen2 Canola Gen3 hybrid + gen2 HT Sunflower: High Oleic Gen2, Early Black type food ingredient White type food ingredient Novel oil Sorghum: AUS grain sorghum LAS Gen2 grain sorghum Novel HT Ome
Slide 6: Nufarm today
Nufarm today We have a balanced and growing revenue base For personal use only Insecticide 10% 5 year revenue & profit growth Herbicide 64% Fungicide Revenue Underlying 10% (A$m) EBIT (A$m) 2015: 3,000 280 Seed 2,737m Technologies 2,737 2,622 6% 240 2,500 Other 2,277 10% 2,182 237 2,084 200 2,000 20
Slide 7: Business overview
For personal use only Business overview Industry overview and opportunities Business transformation and growth strategy Trading update 7
Slide 8: Macro economic factors support the agricultural sector
Macro economic factors support the agricultural sector For personal use only • World population will grow to 8.5 Growing population and increasing middle class billion by 2030 +1.0% 8.5 7.3 Population (billion) • The major changes in demand are in +4.9% 4.9 developing countries, where continued but
Slide 9: Global crop protection market
Global crop protection market For personal use only 70 • 2015 market value affected by Sales US$(m) currency translation, adverse 60 weather conditions, and low crop prices 50 CAGR 4.7% • Market down -9.6% in nominal terms, but in constant currency 40 market was down only 0.7% 30 • 2016 Market growt
Slide 10: Off patent market continues to expand
Off patent market continues to expand For personal use only As more of the industry's chemistry moves into the off-patent space, Nufarm gains access to additional product development opportunities 2014 total industry sales $53.7b Industry revenue growth patent v off-patent 60 50 Off-Patent Patent 78
Slide 11: Business overview
For personal use only Business overview Industry overview and opportunities Business transformation and growth strategy Trading update 11
Slide 12: The evolution of Nufarm
The evolution of Nufarm For personal use only 1916 The New Zealand Farmers Fertilizer Beginning Company Limited (Fernz) founded in NZ 1957 Nufarm Australia Nufarm incorporated in Melbourne, Australia 1984 Achieved group 1990’s sales $200m Asia and Initial expansion into SE Asia NA Expansion
Slide 13: Performance Improvement Program
Performance Improvement Program For personal use only Initiatives Targeted savings by FY 2018 Reinvestment in systems, resources and capabilities that protect margins Manufacturing Footprint $40m and ensure sustainable performance Manufacturing $21-26m improvement efficiencies Procurement $45-65m •
Slide 14: Our strategy
Our strategy For personal use only Branded sales Geographic Focus Crop Org structures & roles Performance Deliver great customer experience 14
Slide 15: Our core geographies & crops
Our core geographies & crops For personal use only Crop protection production sites PASTURE, SOYBEAN CEREAL CORN TREES, NUTS, TURF & VINES & ORNAMENTALS VEGETABLES 15
Slide 16: Crop protection by country: size and projected growth rates
Crop protection by country: size and projected growth rates For personal use only Forecast >10% 7-10% 3-7% <3% Note: Regulated markets defined by time and cost of market entry growth (’12-’20) Source: Phillips McDougall; Euromonitor; Bain Analysis 16
Slide 17: Increase in global supply required to meet future demand for key staple grains
Increase in global supply required to meet future demand for key staple grains For personal use only Total = 34% 32% 101% 34% Source: FAPRI; SAGE; FAOStat; Bain Analysis 17
Slide 18: One Nufarm
One Nufarm For personal use only CUSTOMER EXPERIENCE PEOPLE | VALUES | CULTURE Improvements in these areas and investment into a better customer experience will drive sustainable growth 18
Slide 19: Business overview
For personal use only Business overview Industry overview and opportunities Business transformation and growth strategy Trading update 19
Slide 20: Trading update
Trading update For personal use only • Australia Earnings recovery expected, driven by lower cost base and disciplined pricing, however, dependent on seasonal rainfall • North America Business to benefit from expanded portfolio and stronger channel support • Latin America Market conditions still cha
Slide 21: Investment highlights
Investment highlights For personal use only 1 Global manufacturing, marketing and distribution platform 2 Diversified business across geographies and products. Established positions in key agricultural markets and segments 3 Valuable differentiated product portfolio with proven expertise in bringing
Slide 22: Grow a better tomorrow.
Grow a better tomorrow. ©) @ s Oy rz) ce ‘Ss Oo ip) — @) oF = © LL er Nufarm — Growa better tomorrow.
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