Nufarm Limited · ASX:NUF

Nufarm — H1 2012 Earnings Presentation

30 slides from Nufarm's earnings presentation, Mar 27, 2012

  1. Slide 1: Interim Results, 6 months to January 31, 2012

    For personal use only Interim Results 6 months to January 31, 2012 27 March, 2012

  2. Slide 2: Doug Rathbone, Managing Director

    For personal use only Doug Rathbone Managing Director

  3. Slide 3: Delivering to plan

    2012 Interim results For personal use only Delivering to plan  Operating EBIT* up by 12%  Strong improvement in headline profit  Gross margin expansion  Balance sheet focus maintained  Dividend reinstated * EBIT before material items 3

  4. Slide 4: Summary of business conditions

    2012 Interim results For personal use only Summary of business conditions  Excellent seasonal conditions in Australia  Strong market conditions in Brazil (season; grower economics; credit environment)  'Quiet' selling period in North America and Europe  Increased business risk in some European m

  5. Slide 5: More positive change in the business

    2012 Interim results For personal use only More positive change in the business  Continued renewal at the Board level  New talent and additional bench strength in executive team and other areas of management  Refinancing completed, providing funding certainty and stability  Business efficiency p

  6. Slide 6: Paul Binfield, Chief Financial Officer

    For personal use only Paul Binfield Chief Financial Officer

  7. Slide 7: Group financial performance overview

    2012 Interim results For personal use only Group financial performance overview Half year ended 31 January 2012 2012 2011 %  Sales ($’m) 862.7 900.6 4.2  Gross profit ($’m) 231.8 220.8 5.0  Gross profit margin 26.9 24.5 9.6  (%) EBITDA1 ($’m) 70.1 62.0 13.2  EBIT 1 ($’m) 37.8 33.9 11.8  OPAT 2

  8. Slide 8: Re-classification of FX gains/(losses)

    2012 Interim results For personal use only Re-classification of FX gains/(losses) FX gains/(losses) re-classified as financing expense, since they largely relate to gains/(losses) on financing balances $’m 2011 2012 Extract from FY11 Restatement of 2011 segment note period in FY12 segment note Reven

  9. Slide 9: Constant currency results

    2012 Interim results For personal use only Constant currency results Half year ended 31 January 2012 2012 2012 Actuals at FX impact Actuals 2011 exchange rates Sales 862.7 922.2 (59.5) EBITDA 1 70.1 73.6 (3.5) EBIT 1 37.8 40.1 (2.3) OPAT 2 23.9 24.6 (0.7) 1 Before material items 2 Reported profit fo

  10. Slide 10: Material items

    2012 Interim results For personal use only Material items 31 January 2012 31 January 2011 Pre-tax After-tax Pre-tax After-tax ($’m) ($’m) ($’m) ($’m) Financing costs (9.9) (7.0) (10.9) (7.7) associated with prior debt facility Restructuring costs (2.2) (1.5) (5.1) (4.9) in EU Intangible write-off (2

  11. Slide 11: Significant progress optimising capital structure

    2012 Interim results For personal use only Significant progress optimising capital structure Key measures Capital structure initiatives 2012 2011 Three year syndication facility in  place Net debt (A$’m) 656.5 649.2 Debtor securitisation completed  and operational Net interest expense 19.7 23.0 (A

  12. Slide 12: Brian Benson, Group General Manager Agriculture

    For personal use only Brian Benson Group General Manager Agriculture

  13. Slide 13: Regional business performance

    2012 Interim results For personal use only Regional business performance Revenue Sales by region $m 350 300 250 200 150 100 50 309 313 71 82 155 175 184 173 144 158 0 Aust/NZ Asia Nth America Sth America Europe 2012 2011 13

  14. Slide 14: Sales revenue by region

    2012 Interim results For personal use only Sales revenue by region 2012 2011 North North America America 18% 19% Europe South South Europe 17% America America 18% 21% 19% Australia/NZ Asia Asia 8% Australia/NZ 9% 36% 35% 2012 1H: $863m 2011 1H: $901m 14

  15. Slide 15: Major product segments

    2012 Interim results For personal use only Major product segments Fungicides 10% Insecticides 10% Herbicides 67% Seed technologies 4% Other 9% (equipment; adjuvants; PGR's; industrial) % of total revenues 15

  16. Slide 16: Major product segments

    2012 Interim results For personal use only Major product segments Fungicides 10% Other Herbicides 43% Insecticides 10% Seed technologies 4% Glyphosate Other 9% 24% (equipment; adjuvants; PGR's; industrial) % of total revenues 16

  17. Slide 17: Regional segment review: Australia / New Zealand

    2012 Interim results – Regional segment review For personal use only Australia / New Zealand Australia 2012 1H 2011 1H $m $m  Above average and widespread rainfall Sales 309 313  Lower insect pressure and fungal disease  More profitable mix in herbicide segment Operating EBIT 40.8 29.6  Cost sav

  18. Slide 18: Regional segment review: Asia

    2012 Interim results – Regional segment review For personal use only Asia 2012 1H 2011 1H $m $m  Long dry season in Indonesia Sales 71 82  Diversifying into additional crop segments Operating EBIT 9.0 9.2  Some margin pressure on 'Roundup'  Increased focus on product diversification Herbicides F

  19. Slide 19: Regional segment review: North America

    2012 Interim results – Regional segment review For personal use only North America USA 2012 1H 2011 1H $m $m  Mild winter and early spring Sales 155 175  Dry conditions persist in Southern states  Very strong sentiments/planting Operating EBIT 0.4 4.8 intentions, but no early buying  IVM segment

  20. Slide 20: Regional segment review: South America

    2012 Interim results – Regional segment review For personal use only South America Brazil 2012 1H 2011 1H $m $m  Strong season, despite dry conditions in south Sales 184 173  Increased grower investment in key inputs Operating EBIT 11.2 1.3  Marginal improvement in glyphosate pricing Fungicides 1

  21. Slide 21: Regional segment review: Europe

    2012 Interim results – Regional segment review For personal use only Europe 2012 1H 2011 1H $m $m  Relatively dry autumn Sales 144 158  Mild winter, but late severe cold snap Segment profit (0.4) 6.2  Value pressure in horticultural segment  Increased business risk in some Fungicides 12% country

  22. Slide 22: Herbicides

    2012 Interim results For personal use only Herbicides First six months: 2012 2011  Glyphosate segment largely stable, but continued margin pressure in Australia Group sales 584.5 580.5 Average GM 25% 25%  Strong demand and positive pricing environment for phenoxy herbicides  Picloram mixtures con

  23. Slide 23: Insecticides

    2012 Interim results For personal use only Insecticides First six months: 2012 2011  Lower insect pressure in Australia and Europe Group sales 83.8 97.2  Successful transition to Average GM 38% 35% 'replacement' chemistry in Brazil  Continued growth in imidacloprid and other new insecticides  Ne

  24. Slide 24: Fungicides

    2012 Interim results For personal use only Fungicides First six months: 2012 2011  Lower fungal disease pressure in Australia and south America Group sales 87.8 108.2  Delayed season in Europe Average GM 30% 32%  Azoxystrobin registrations approved in Europe  Cost pressures in copper fungicides

  25. Slide 25: Seed technologies

    2012 Interim results For personal use only Seed technologies First six months: 2012 2011  Later phasing of high value seed and seed treatment sales in USA Group sales 32.7 34.5 Average GM 50% 48%  First half costs reflect investment in management structure and Seeds 2000 acquisition  Demand for c

  26. Slide 26: Doug Rathbone, Managing Director

    For personal use only Doug Rathbone Managing Director

  27. Slide 27: Outlook

    2012 Interim results For personal use only Outlook  Positive seasonal conditions expected in Australia; second half shaping up as similar to H2 2011  Average conditions expected in most other markets  Europe remains a 'watch out', with some seasonal pressures and higher business risk in some mark

  28. Slide 28: Strategic Direction: Portfolio transition is well underway

    2012 Interim Results Strategic Direction For personal use only Portfolio transition is well underway  Optimising our product mix 2011 ─ Downsizing of glyphosate Glyphosate ─ Expansion into other product 20% segments Other Products  Focus on higher value, more 80% defendable products and market seg

  29. Slide 29: Innovation, Discipline: Focus on value and returns

    2012 Interim results For personal use only INNOVATION DISCIPLINE Focus on value and returns 29

  30. Slide 30: For personal use only

    For personal use only

Nufarm — H1 2012 Earnings Presentation on 6ix