Nufarm Limited · ASX:NUF
Nufarm — Debt Investor Presentation (October 2006)
31 slides from Nufarm's debt investor presentation, Oct 10, 2006
Slide 1: ar Pages
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Slide 2: Disclaimer
HN The following disciaimer applies to this document and any information provided regarding the information contained in this document. You are advised to read this disclaimer carefully before reading or making any other use of this document or any information contained in this document. In acceptin
Slide 3: NSS Offer Summary
i) NSS Offer Summary . Information About Nufarm . Financial Information Key Terms a F wO N . Bookbuild & Timing iii
Slide 4: NSS Offer Summary: Nufarm
Nufarm Security: Perpetual, subordinated, unsecured, Redeemable, Exchangeable notes called Nufarm Step-up Securities (NSS) Issuer: Nufarm Finance (NZ) Limited Guarantor: Nufarm Limited (subordinated, unsecured) Issue amount: Floating rate Distribution Payments NSS offer semi-annual, floating rate, n
Slide 5: Information About Nufarm
i) 1. NSS Offer Summary 2 Information About Nufarm 3. Financial Information 4. Key Terms 5. Bookbuild & Timing iii
Slide 6: Nufarm
i iis i ~ Nufarm Nufarm A development, manufacturing and marketing company with a proven capability to manage brands and grow businesses in global markets iii
Slide 7: Providing essential tools to protect crops
i = Providing essential tools to ee protect crops against damage caused by weeds (herbicides), pests (insecticides) and disease (fungicides) | my « Major input to agriculture / food production « Global sales of US$33 billion (2005)* * Phillips McDougall data iii
Slide 8: Global ranking on 2005 sales
HII) i TL i i Nuf 0: HNIC ALUN Bayer - 1 Syngenta - 2 BASF - 3 Dow- 4 Monsanto - 5 DuPont- 6 MAL- 7 (7 Sumitomo - 8 Nufarm - 9 Arysta - 10 (7777) FMC - 11 Cheminova - 12 [ 0 1000 2000 3000 4000 5000 6000 7000 8000 Global Tanking on year 2005 sales - US$M ips McDougall (3-06) Source - Phil
Slide 9: Founded in 1916
Y)| = Founded in 1916 « Listed on the Australian Stock Exchange (ASX: NUF) with a market capitalisation of around A$1.7 billion and is included in the S&P/ASX 200 * A global manufacturer and supplier of crop protection products * Over 2,500 global product registrations « Truly global player in the c
Slide 10: Manufacturing in 14 countries
@ Belvedere, UK ® Botlek, Netherlands @ Cologne, Germany @ Gaillon, France ®@ Paris, France @ Barcelona, Spain ® Lisbon, Portugal @ Linz, Austria Fortaleza* ‘SA Paulo Welshpool (,, Lytton / Brendale Santiago Kwinana > Dubb: Buenos Aires Kemerton . poe °y Adelaide Yo Sydne ‘Auckland Laverton Manufact
Slide 11: Sales by region
il ii il NMA hE i —aa Up 2006 F al | | : I | ; ! : : | | ! | | ie i ll Hn Americas - 32% (2005 — 28%) Europe - 23% (unchanged) New Zealand - 3% (2005 - 4%) Australia — 38% (2005 ~ 41%) Asia - 4% (unchanged) Total sales - A$1.68 billion imi
Slide 12: Business strategy
| IN siness s' TUL Strong marketing skills relating to brand management, market segmentation, product differentiation, and customer relationships Focused on the supply of off-patent crop protection products, the largest and fastest growing segment of the industry when measured in global sales To ach
Slide 13: Financial Information
i) 1. NSS Offer Summary 2. Information About Nufarm 3. Financial Information 4. Key Terms 5. Bookbuild & Timing iii
Slide 14: Headline results
iii) Headline results _ 2006 : 2005 tn mths to July 31 12 mths to July 31 Group revenues up 6.5% A AS 68 billion A$1.57 billion Operating profit down 0.6% / asia. . million : A$121.7 million Earnings per share : 60.3. 3 cents / . 60.5 cents Full year dividends up 15% =| : conte : | : 26 cents Return
Slide 15: Industry business conditions challenging
yi | i i oe Industry business conditions challenging » mixed seasonal conditions » cost pressures in some areas » competition remains strong =» Wholly owned businesses generated strong profit growth =» Tough market conditions in Brazil — contribution from Agripec significantly lower = Benefits from
Slide 16: Reconciliation of reported profit
Ol i e IAIN) 2006 2005 econci Ili, Reported profit Discontinued operations Transfer significant items Total result LESS minority interest 2 SONNE Operating Material Total A$000 non-operating A$000 items A$000 103,165 103,165 10,152 8,415 18,567 8,368 (8,368) 0 121,685 47 121,732 (579) (579) 121,106
Slide 17: Gearing and interest cover
Ol HINT calc INT mn Gearing Interest cover 70% 7.00 60% 6.00 50% 5.00 40% 4.00 30% 3.00 20% 2.00 10% 1.00 0% 0.00 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Notes: 1 Gearing in 2006 is calculated before the sale of chlor alkali 2 Gearing = net debt/(net debt + total equity) 3 Interest cover =
Slide 18: FY06 reported and pro forma credit metrics
wih) il | i I i it INNA FY06 Reported FY06 Pro Forma Gearing (net debt/(net debt + total equity) ‘ 45% 25% Net Debt/EBITDA® 2.5x 1.4x Net Debt(excluding Capital Notes)/EBITDA' 4.7x 1.4x Interest Coverage (EBITDA/net finance expense)” 4.7x 6.8x Distribution Coverage ** 4.7x 4.3x (EBITDA/(net finance
Slide 19: Key Terms
1. NSS Offer Summary 2. Information About Nufarm 3. Financial Information 5. Bookbuild & Timing iii
Slide 20: Key Terms: Issuer, security, offer
i na Tana ufarm Issuer Nufarm Finance (NZ) Limited Security Nufarm Step-up Securities (NSS) are perpetual, subordinated, unsecured, Redeemable, Exchangeable notes Term ~ Perpetual unless Redeemed orExchanged == Offer ~ A$250 million of NSS at an Issue Price of A$100, with the ability to accept _ ove
Slide 21: Floating rate distributions
i Nufarm Floating rate NSS offer semi-annual, floating rate, non-cumulative Distribution Payments, based on the Distribution Rate (Market Rate + Margin) Market Rate « The Market Rate is the average mid-rate for bills of a term of six months which is displayed on Reuters page BBSW Margin « For each D
Slide 22: Distribution payments may not be paid
iii Distribution Payments may not be paid * It is possible that Distribution Payments will not be paid. Distribution Payments will not be paid if the Issuer Directors or the Nufarm Directors declare that a Distribution Payment is not payable * Distribution Payments are non-cumulative meaning that, i
Slide 23: Re-marketing process
iii) Re-marketing Prior to a Step-up Date, the Issuer may issue a Re-marketing Process Invitation to Process Holders, notifying them that it would like to change all or some of the following Terms of issue with effect from the Step-up Date the Market Rate the Step-up Percentage the Exchange Discount
Slide 24: Response to re-marketing process invitation
i Response toa A Re-marketing Process Invitation will invite Holders to respond within the requisite Re-marketing period with one of the following Process ® Step-up Notice - indicating the Holder does not wish to continue to hold invitation NSS unless the Step-up Margin applies with effect from the
Slide 25: Result of the re-marketing process
i ic Result of the Re-marketing Process Subject to certain conditions, the Issuer may set a New Margin which, together with the other changed Terms of Issue notified to Holders, will apply with effect from the Step-up Date ® if the Issuer sets a New Margin, the Issuer must Redeem, Exchange or Resell
Slide 26: Redemption, exchange and resale
ii Issuer Redemption, Exchange and Resale Amount payable on Redemption The issuer may Redeem or Exchange * all or some NSS on a Step-up Date, or a Distribution Payment Date after a Step-up Date if the Step-up Margin applies with effect from the Step-Up Date * all (but not some only) NSS at any time
Slide 27: Exchange number
ii TA Nufarm Exchange number Upon Exchange, the Issuer must Exchange the relevant NSS for a number of Ordinary Shares equal to the Exchange Number. The Exchange Number is calculated by dividing » the Issue Price by «the average of the daily volume weighted average sale prices per Ordinary Share sold
Slide 28: Bookbuild & Timing
i) 1. NSS Offer Summary N . Information About Nufarm oo . Financial Information > . Key Terms 5 Bookbuild & Timing iii
Slide 29: Joint Lead Managers and bookbuild
ii Joint Lead Managers bed & Bookrunners OS merrill Lynch UBS Co-Managers Australia New Zealand Bell Potter Securities Limited ABN Amro Craigs Limited Commonwealth Securities Limited ASB Securities Limited Merrill Lynch Private (Australia) Limited First NZ Capital Securities Limited National OnLine
Slide 30: Issue of NSS timetable
| | WII : _ a. I cr oN” GaN Le LN wlient ai Nufarm ii j i Issue of NSS Time & Date Announcement of Offer and Prospectus fodged with ASIC 29 September 2006 Replacement Prospectus lodged with ASIC 10 October 2006 Eligible Capital Notehoider Entitlement Offer Opening Date 414 October 2006 Eligible Capi
Slide 31: Contacts
be * Nufarm Limited > Doug Rathbone, Managing Director, +61 3 9282 1000 >» Kevin Martin, Chief Financial Officer, +61 3 9282 1000 * Merrill Lynch » Paul Harris, Equity Capital Markets, +61 2 9226 5519 >» John Mosse, Syndicate, +61 2 9226 5114 » UBS » Tricia Ho, Hybrid Capital, +61 2 9324 3939 >» And