Nufarm Limited · ASX:NUF
Nufarm — 1H 2011 Earnings Presentation
29 slides from Nufarm's earnings presentation, Mar 29, 2011
Slide 1: Interim Results, 6 months to January 31, 2011
For personal use only Interim Results 6 months to January 31, 2011 29 March, 2011
Slide 2: Doug Rathbone, Managing Director
For personal use only Doug Rathbone Managing Director
Slide 3: 2011 Interim results - Summary
2011 Interim results - Summary For personal use only 1H 2011 1H 2010 $m $m Group Sales 900 887 Operating NPAT (exc material items) 22.7 (4.2) Material items (18.3) (35.8) Reported result 4.4 (40.0) 3
Slide 4: Summary
2011 Interim results – summary For personal use only Significant improvement on first half of FY2010 Increased sales of products in higher value segments Margin expansion in most segments Standout performance from Australia; important progress in Brazil 4
Slide 5: Brian Benson, Group General Manager Agriculture
For personal use only Brian Benson Group General Manager Agriculture
Slide 6: Geographic split
Geographic split For personal use only Group revenue North North America Europe America 18% 23% 19% Europe South South 19% America America 25% Australasia 19% 44% Australasia 33% 2011 1H: $900m 2010 1H: $887m Reweighting of glyphosate Excellent conditions in Australia 6
Slide 7: Six months in review - Australasia
2011 Interim results – Segment review For personal use only Six months in review - AUSTRALASIA Australia 2011 1H 2010 1H Australasia $m $m Season good in Eastern & Southern States. WA dry Sales 395 292 Flood impacts Segment profit 49.7 12.3 Sugar, rice, cotton all strong Strong early demand
Slide 8: Six months in review - North America
2011 Interim results – Segment review For personal use only Six months in review – NORTH AMERICA 2011 1H 2010 1H United States North America $m $m Fall season was dry limiting some turf and Sales 175 204 ornamental sales. Spring/Autumn has started early in south → strong phenoxy demand Segment pro
Slide 9: Six months in review - South America
2011 Interim results – Segment review For personal use only Six months in review – SOUTH AMERICA Brazil 2011 1H 2010 1H South America $m $m Late, dry season – La Nina Sales 173 220 Continue to balance segment focus Segment profit 7.5 0.2 New sales structure in place with broader coverage Low
Slide 10: Diversifying the business in Brazil
2011 Interim results – Segment review Diversifying the business in Brazil For personal use only Sales by crop Growth in corn, cotton and sugarcane Other Soybeans Other Soybeans 52% 48% 31% 69% Successful entry to pasture market Positions in citrus, vegetables, coffee 2011 (forecast) 2006 Sales
Slide 11: Six months in review - Europe
2011 Interim results – Segment review For personal use only Six months in review – EUROPE 2011 1H 2010 1H Europe $m $m Dry autumn and early winter Sales 158 171 Product mix: tech vs branded Segment profit 4.3 19.2 Pricing environment very competitive French market down 15% Fungicides Whole
Slide 12: Major products: Glyphosate
2011 Interim results – Major products For personal use only Glyphosate First six months: 2011 2010 As expected, pricing remains very competitive Group sales $205m $285m Other parties 'liquidated' some high cost inventory in Brazil GM contribution $30.7m $17.7m Imports of Chinese formulated Ave
Slide 13: Major products: Other herbicides
2011 Interim results – Major products For personal use only Other herbicides First six months: 2011 2010 2,4-D volumes up – prices firming Excellent first half program on Group sales $367m $316m trifluralin GM contribution $110.6m $105.1m Glyphosate resistence driving sales of phenoxies and di
Slide 14: Major products: Fungicides
2011 Interim results – Major products For personal use only Fungicides First six months: 2011 2010 Cotton products very strong in Australia, USA and Brazil Group sales $115m $91m Strong disease pressure in Australia – multiple applications GM contribution $37.0m $25.4m Seed treatment fungicide
Slide 15: Major products: Insecticides
2011 Interim results – Major products For personal use only Insecticides First six months: 2011 2010 Imidacloprid: Seasonal factors limited sales opportunities in European markets Group sales $105m $91m excellent sales performance in southern hemisphere GM contribution $39.1m $29.4m growing in fol
Slide 16: Major products: Seeds and seed treatment
2011 Interim results – Major products For personal use only Seeds and seed treatment High cotton/corn prices soften demand for Our core crops standard grain sorghum in Americas Strong demand for specialty sorghum hybrids BMR trait and food grade milling trait Chinese demand for elite confectio
Slide 17: Kevin Martin, Chief Financial Officer
For personal use only Kevin Martin Chief Financial Officer
Slide 18: Profit reconciliation
2011 Interim results For personal use only Profit reconciliation $'000s 2011 2010 PBT Tax NPAT PBT Tax NPAT Headline result 1,800 2,581 4,381 (59,299) 19,324 (39,975) Material items 23,611 (5,352) 18,259 51,837 (16,091) 35,746 Operating result 25,411 (2,771) 22,640 (7,462) 3,233 (4,229) Profit befor
Slide 19: Material items
2011 Interim results For personal use only Material items $'000s Debt restructuring costs 10,933 Restructuring costs 5,064 NSS related F/X 5,954 Other 1,660 23,611 19
Slide 20: Profit before tax improvement
2011 Interim results For personal use only Profit before tax improvement $'000s Gross profit 55,180 Higher expenses (26,466) EBITDA improvement 28,714 D&A 590 EBIT improvement 29,304 Interest 3,569 32,873 20
Slide 21: Summary of Working Capital
2011 Interim results For personal use only Summary of Working Capital $m 2011 2010 2009 Receivables 848 899 1,045 Inventory 646 726 1,318 Payables (483) (505) (805) Net Working Capital 1,011 1,120 1,558 21
Slide 22: Net debt
2011 Interim results For personal use only Net debt $m 2011 2010 2009 Receivables 848 899 1,045 Inventory 646 726 1,318 Payables (483) (505) (805) Net Working Capital 1,011 1,120 1,558 Net Debt 648 1,030 1,571 22
Slide 23: Financing Update
2011 Interim results For personal use only Financing Update Syndicated loan facility of $900 million to be renewed by December 2011 Rabo mandated to organise a $300 million multi jurisdiction receivable securitisation facility 23
Slide 24: Doug Rathbone, Managing Director
For personal use only Doug Rathbone Managing Director
Slide 25: Nufarm/Sumitomo Chemical strategic alliance
2011 Interim results For personal use only Nufarm/Sumitomo Chemical strategic alliance Nufarm distribution of Sumitomo chemistry Brazil, Canada, Indonesia, Germany, Netherlands, UK Sumitomo distribution of Nufarm chemistry Mexico Manufacturing & logistics agreement Australia April 2010: Sumitomo G
Slide 26: Outlook for balance of FY 2011
2011 Interim results For personal use only Outlook for balance of FY 2011 First half performance important stepping stone to profit recovery − No more impact from high cost glyphosate inventories − Higher sales in other product segments − Margin expansion − Business improvement initiatives Major
Slide 27: Strategic direction: rebalancing the portfolio
2011 Interim results For personal use only Strategic direction Nufarm is rebalancing the portfolio Other herbicides 2008 2011 Insecticides Glyphosate Glyphosate 40% 25% Other Other Fungicides Products Products 60% 75% Seed treatments % total revenues % total revenues Focus on higher value Seeds segm
Slide 28: Strategic direction
2011 Interim results For personal use only Strategic direction More discipline and focus − Improved systems and management reporting − Appropriate organisational changes − Close attention to costs and increased efficiencies Product and market segment diversification − 'Reweighting' of glyphosate
Slide 29: For personal use only
For personal use only