Nufarm Limited · ASX:NUF

Nufarm — FY2003 Earnings Presentation

32 slides from Nufarm's earnings presentation, Oct 10, 2003

  1. Slide 1: 2003 Year End Results

    2003 Year End Results Doug Rathbone Managing Director

  2. Slide 2: 2003 results summary

    2003 12 mths to July 31 2002 12 mths to July 31 Group revenues up 2% Operating profit up 13% Earnings per share up 13% Full year dividends up 11% Operating cash flow Net debt to equity $1.46 billion $64.3 million 41.3 cents 20 cents $218 million 98% $1.43 billion $56.8 million 36.7 cents 18 cents $5

  3. Slide 3: Income

  4. Slide 4: Group revenues 1999-2003

    1600 1400 = 12 2 00 1000 800 1999 2000 2001 2002 2003

  5. Slide 5: Nufarm Group EBITDA

    ASM 220 200 180 160 140 120 100 NUFARM GROUP EBITDA

  6. Slide 6: Nufarm Group Earnings Per Share

    NUFARM GROUP Earnings Per Share 45.0 40.0 35.0 30.0 25.0 20.0 + 1 - 1 1999 2000 2001 2002 2003

  7. Slide 7: Return on Average Funds Employed

    15.0% 14.5% 14.0% 13.5% 13.0% 12.5% 12.0% 11.5% 11.0% 10.5% 10.0% NUFARM GROUP Return on Average Funds Employed 1999 2000 2001 2002 2003

  8. Slide 8: Kevin Martin, Chief Financial Officer

    ne Hin i af Kevin Martin Chief Financial Officer

  9. Slide 9: Analysis of sales / profit growth

    ® Analysis of sales / profit growth Result 2002 Industrial chemicals Crop Protection Other Sales 1,429 <163> 182 1,448 10 1,458 <0.6> 64.3

  10. Slide 10: Revenues by division

    Fr tna tegaereca Revenues 2002 2003 $1.43 billion Crop Protection Industrial

  11. Slide 11: Divisional operating profit

    ing Profi , interest and corporate charges) | Operat ivisiona D (pre tax 2003 2002 $146 illion 7m ion Industria Crop Protect

  12. Slide 12: Sales & Divisional Operating Profit

    Sales & Divisional Operating Profit Crop Protection Industrial $m 1400 1400 150 1200 1200 L 405 1000 1000 + 100 800 800 - r 75 600 +— 600 . r 50 400 400 200 + 200 1 25 ié) : 0 0 2001 2002 2003 2001 2002 2003

  13. Slide 13: Cashflow

    ign » Cashflow Operating cashflow + 168 Debtors securitisation 75 Working capital reduction 102 Net other <9> Investing cashflow +14 182 Dividends <28> 154

  14. Slide 14: Working Capital

    J 4 il ie Ni ‘ill ial: a Go ® Working Capital \ Trade receivables 29.6 4 Inventories <23.6> “ Payables 94.9 Other receivables 1.1

  15. Slide 15: Financial performance: sales, EBITDA, NPAT

    Fine NPAT Compound growth 10.3% I EBITDA Compound growth 9.6% 1.6 1.4 1.3 Sales Compound growth 5.4% 1998 1999 2000 2001 2002 2003 ~@— sales -l- ebitda —t—npat

  16. Slide 16: Doug Rathbone, Managing Director

    a) te A NIN af Doug Rathbone Managing Director

  17. Slide 17: Major Drivers

    Major Drivers: Drought / drought recovery in Australia Solid, organic growth in the Americas, NZ, Asia Lower sales in France; margin pressure on methyls Good progress re branded products strategy Margin improvement

  18. Slide 18: Growing the crop protection business

    A 00 000 0 nN i a es wn = ATTN =" To grow Nufarm's crop protection business via both geographic and product portfolio expansion

  19. Slide 19: Nufarm Sales by Geography - 2003

    A i ne Te wil) Nufarm Sales by Geography - 2003 Americas - 25% Europe - 25% New Zealand - 7% ee ee Australia — 39% Asia - 4%

  20. Slide 20: Regional markets - Sales

    fc ee | 2001 2002 2003 Regional markets - Sales (AUD) The Americas Europe $m 600 $m 500 400 300 200 2001 2002 2003 2001 2002 2003 Asia $m 600 500 400 300 200 2001 2002 2003

  21. Slide 21: Building the brand

    1 rer ei eae ie i Cie ig Building the brand Total Crop Protection business

  22. Slide 22: Brand

    ye vesini TT ne Brand

  23. Slide 23: Retained businesses

    Retained businesses - Sales V 7% - Profit - flat Chior alkali * Lower world indicator price for caustic soda SEAC * Lower sales and margins Fine & Performance * 30% sales increase for US based business. * Challenging conditions in some markets and higher costs

  24. Slide 24: Acquired business contribution

    Sales - 9 months = $87 million After tax (and restructuring costs) profit contribution = $2.6 million Positive market acceptance of dual branding strategy Manufacturing consolidation under review

  25. Slide 25: Glyphosate market share

    2002 2003 @ Roundup brands @ Nufarm brands @ Total Market Record glyphosate season (volume up 6% on 2002) Nufarm increases market share Significant swing to premium brands (Roundup PowerMAX)

  26. Slide 26: Roundup brand share

    Roundup 60% + 80% Successful Roundup + 40% . 2 PowerMAX launch lifted oo | 30% z market share and a . | oom * volumes dramatically + 10% + 0% aia RUP BRANDS TOTAL —@=RUP Brandshare

  27. Slide 27: Puma

    Zi Nn a Puma > # Sales targets exceeded =" Cologne base established for German business =" New/ other / mixture product sales = Competitive product to be launched

  28. Slide 28: Sales 2001-2003

    lana 90000 soon 2001 - 2003 70000 « Total sales up 88% 60000 oon. « US sales doubled s 50000 soona # Major increases in France, Austria, Indonesia 30000 # New sales in South America, 20000 Canada, Germany 10000 U T 2001 2003

  29. Slide 29: Acquisition criteria

    = Must deliver strategic growth opportunities # Must meet 15.5% EVA hurdle

  30. Slide 30: Strategic priorities

    # Increase proportion of branded product sales =" Continued drive for margin improvement =" Further strengthening of the balance sheet

  31. Slide 31: Growth objective: approx. 10% profit growth per year

    + Growth objective: average approx. 10% profit growth per year Sales & Operating Profit after Tax 1600 80 44293 1458.8 1400 1323.2 + 70 1213.0 1200 + + 60 1000 800 1 50 600 + 40 400 200 30 1999

  32. Slide 32: Nufarm

Nufarm — FY2003 Earnings Presentation on 6ix