Nufarm Limited · ASX:NUF

Nufarm — H1 2009 Earnings Presentation

26 slides from Nufarm's earnings presentation, Mar 31, 2009

  1. Slide 1: Interim Results 6 months to January 31, 2009

    For personal use only Interim Results 6 months to January 31, 2009 March, 2009

  2. Slide 2: Doug Rathbone, Managing Director

    For personal use only Doug Rathbone Managing Director

  3. Slide 3: 2009 Interim results - Highlights

    2009 Interim results - Highlights For personal use only  Record operating profit on strong revenue growth and margin expansion  North America and Europe provide 'stand-out' results  South America feels impact of global financial crisis  Full year outlook remains positive for overall group result

  4. Slide 4: Summary

    2009 Interim results - Summary For personal use only 1H 2009 1H 2008 $m $m Group Sales 1,235 990 + 25% Operating EBIT 120.2 82.3 + 46% Operating NPAT 65.2 35.4 + 84% Non operating items 0.5 (30.8) Reported result 65.7 4.6 Interim dividend 12.0 cents* 12.0 cents * unfranked

  5. Slide 5: Kevin Martin, Chief Financial Officer

    For personal use only Kevin Martin Chief Financial Officer

  6. Slide 6: Comparison of Exchange rates

    2009 Interim results Comparison of Exchange rates For personal use only Balance sheet Income Statement (Spot rate) (Average rate) 2009 - Jan 2008 - Jan 2009 2008 USD 0.638 0.889 0.727 0.879 EUR 0.498 0.601 0.533 0.61 GBP 0.437 0.447 0.448 0.434 BRL 1.476 1.584 1.476 1.596 Impact of selected financia

  7. Slide 7: Sales and segment profit by region

    2009 Interim results For personal use only Sales $'000,000s Australasia Europe NA SA Total Segment result 2008 365,455 183,583 189,928 250,879 989,845 Translation adj to 2009 rates 4,800 36,000 46,000 24,600 111,400 Restated 2008 370,255 219,583 235,928 275,479 1,101,245 Stated result 2009 341,701 2

  8. Slide 8: Foreign exchange loss

    2009 Interim results For personal use only Foreign exchange loss $'000,000s 2009 2008 Total Australasia 26,245 577 25,668 Europe (25,363) (3,615) (21,748) North America (3,016) 99 (3,115) South America (46,428) (3,911) (42,517) Total (48,562) (6,850) (41,712) Australia/Europe  Internal loan funding

  9. Slide 9: Working Capital

    2009 Interim results For personal use only Working Capital $ millions Total Inventory January 08 870 590 Adj to Jan 09 f/x rates 134 81 AH Marks/Etigra 18 34 Adjusted 2008 1,022 705 Increase in inventory July 2008 354 354 1,376 1,059 Other 184 258 Reported figures 1,560 1,317

  10. Slide 10: Funding

    2009 Interim results For personal use only Funding January $m Loans at January 2008 949 Translation impact 82 Adjusted total 1,031 Reported amount January 2009 1,571 Increase 540 Increase in working capital 535

  11. Slide 11: July 2009 Forecasts

    2009 Interim results For personal use only July 2009 Forecasts Forecast January July July 2009 2008 2009 Operating profit ($m) 65 220 163 Inventory ($m) 1,317 750 843 Net debt ($m) 1,571 850 900 Gearing ratio 106% 50-55% 69%

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

    For personal use only Brian Benson Group General Manager Agriculture

  13. Slide 13: Segment review - Australia

    2009 Interim results – Segment review For personal use only Six months in review - AUSTRALIA 2009 1H 2008 1H  Excellent summer cropping Australasia conditions $m $m Sales 342 365  Higher sales into horticulture Segment profit 81.4 49.2 segment  Increased fallow spraying in some regions Australasi

  14. Slide 14: Segment review - North America

    2009 Interim results – Segment review For personal use only Six months in review - NORTH AMERICA 2009 1H 2008 1H United States North America $m $m  Insecticide/fungicide sales increase Sales 357 190  Strong contribution from integrated Etigra business Segment profit 52.3 5.8  'Nuprid' range and s

  15. Slide 15: Segment review - South America

    2009 Interim results – Segment review For personal use only Six months in review - SOUTH AMERICA 2009 1H 2008 1H Brazil North America $m $m  Credit issues impact demand; margins; Sales 282 251 and risks  Sales (local currency) slightly down on Segment profit (18.9) 48.4 p.c.p. – but well down on b

  16. Slide 16: Segment review - Europe

    2009 Interim results – Segment review For personal use only Six months in review - EUROPE 2008 1H 2007 1H  Volume growth driven by improved Europe $m $m distribution penetration Sales 255 184 Segment profit 28.2 1.0  Positive impact of new and higher margin products  Germany, France, Italy, Spain

  17. Slide 17: New products

    2009 Interim results For personal use only New products Net sales & gross profit GP Sales 1st half 06 1st half 09 Fungicides Herbicides Insecticides

  18. Slide 18: Geographic growth strategy

    2009 Interim results For personal use only Geographic growth strategy Eastern Europe growth Net sales & gross profit Sales GP 1st Half 06 1st Half 09 EasternPoland Austria, Europeetc Hungary Hungary Romania Romania General (new) (new)

  19. Slide 19: Glyphosate

    2009 Interim results Glyphosate For personal use only First half dynamics  Carry-over stocks (mostly on farm) from last season  Deferred buying due to 'fertiliser' affect  Chinese 'tech' pricing depressed as suppliers quite stocks  Variable pricing − Brazil prices down due to local market pressu

  20. Slide 20: Outlook for full year

    For personal use only Outlook for full year Doug Rathbone Managing Director

  21. Slide 21: Outlook for 2009 full year result - Australia

    Outlook for 2009 full year result For personal use only AUSTRALIA  Most cropping regions well placed for Autumn/Winter plantings  Strong economic incentive for growers to seek maximum yields  Concentrated glyphosate sales will test supply chain capabilities

  22. Slide 22: Outlook for 2009 full year result - North America

    Outlook for 2009 full year result For personal use only NORTH AMERICA  Strong demand anticipated  Broader product offerings and improved distribution relationships  ETIGRA on target to meet/exceed full year targets

  23. Slide 23: Outlook for 2009 full year result - South America

    Outlook for 2009 full year result For personal use only SOUTH AMERICA  Credit related risks remain  Priority is to 'maintain' operations and support long term growth plans  Full year result will be below half year result

  24. Slide 24: Outlook for 2009 full year result - Europe

    Outlook for 2009 full year result For personal use only EUROPE  Growth momentum is strong and sustainable  Much improved distribution access in key markets  New and higher margin products  Long winter should encourage herbicide sales  Grower terms of trade are positive

  25. Slide 25: Outlook for 2009 full year result - General

    Outlook for 2009 full year result For personal use only General  Fundamental demand drivers in agriculture are still in place  Growers in most regions well placed to capitalise  North America and Europe will be 'star' performers over the 12 months Forecast operating NPAT: Approximately $220 milli

  26. Slide 26: A great time to be in the business of agriculture

    For personal use only A great time to be in the business of agriculture Nufarm Limited Head office: 103-105 Pipe Road, Laverton North, Vic. Australia. Tel: 61 3 9282 1000 Fax: 61 3 9282 1111 www.nufarm.com

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