Nufarm Limited · ASX:NUF
Nufarm — Merger or Acquisition (January 2004)
21 slides from Nufarm's merger presentation, Jan 14, 2004
Slide 1: Presentation to investors: Acquisition of BASF phenoxy herbicides business
Presentation to investors Acquisition of BASF phenoxy herbicides business January 14, 2004
Slide 2: Important notice
This presentation is supplied to you in confidence for the purposes of enabling you to evaluate the Offer and determine whether or not you wish to apply for a firm allocation of Ordinary Shares. This presentation must not be reproduced or distributed in any manner outside of your organisation. This
Slide 3: Agenda
2) ; Bs NNN: j ee a # Acquisition of BASF phenoxy herbicides business « BASF fungicides deal * Equity offer and timetable * Conclusion
Slide 4: Acquisition of BASF phenoxy herbicides business
Acquisition of BASF phenoxy herbicides business
Slide 5: Acquisition of the global phenoxy herbicides business of BASF
0 Nag * Acquisition of the global phenoxy herbicides business of BASF (Germany) « Deal includes supply agreement with BASF * Acquisition cost is €42 million, including inventories of approx €10 million ® Funded by mix of debt and equity
Slide 6: BASF business delivers market leading brands in key country markets
BASF business delivers market leading brands in key country markets including Germany, France, UK and Brazil Nufarm has existing businesses/infrastructure in Europe; and has identified Brazil/South America as a strong regional growth market Deal will facilitate higher proportion of branded sales, an
Slide 7: Six active ingredients and two market leading brands
= Six active ingredients (all herbicides): 2,4-D, MCPA , Mecoprop-P, Mecoprop, Dichlorprop-P and Dichlorprop ® Includes ‘optical’ versions of key actives (latest chemistry) * Two market leading brands: ‘Duplosan’ — leads segment in 18 countries ‘U-46’ — leads segment in 25 countries
Slide 8: Major country markets: Germany, Brazil, UK, France
Major country markets: Germany, Brazil, UK, France - Brazil component transfers in November, 2004 Major use in cereal crops, plus pasture, turf Also includes supply agreement with BASF: - Nufarm to supply all phenoxy inputs to BASF mixture products - Estimated additional Euro 3 million in sales
Slide 9: Total (2002) sales of more than €40 million
Total (2002) sales of more than €40 million Western Europe €22.5m South America €9.0m Eastern Europe €4.0m Asia €1.2m Other €4.0m Estimated FY2004 sales - Nufarm Estimated FY2005 sales (with addition of Brazil) — Nufarm Estimated net profit contribution FY2004 Estimated net profit contribution FY200
Slide 10: Total cost - Approx A$70 million
Total cost - Approx A$70 million ® Debt - Existing facilities $25-30 million * Equity - Institutional Placement and Share Purchase Plan $40-45 million
Slide 11: Acquisition of fungicides for European markets
Acquisition of fungicides for European markets
Slide 12: Rights to be acquired from BASF
Rights to be acquired from BASF Deal is subject to approval by German anti-trust authorities Products are cereal fungicides : ‘Sportak’, ‘Sportak Alpha’, ‘Flamenco FS’ 5 year distribution rights (renewable) for Germany, Austria Projected FY2004 sales: €4-6 million Includes distribution rights, trade
Slide 13: Expansion of product portfolio
* Expansion of product portfolio # Leverages Nufarm's position in cereal herbicides ® Provides additional product sales to existing European businesses « Strong brands and market positions
Slide 14: Products used to treat broad spectrum of fungal disease
= Products used to treat broad spectrum of fungal disease s Predominantly used in cereal crops « Fungicides are major crop protection category in European markets
Slide 15: Equity offer and timetable
- A | - Equity offer and timetable
Slide 16: Placement and share purchase plan
Placement ® Institutional bookbuild *» Lead managed by ABN AMRO Rothschild Share purchase plan ® Offered to eligible shareholders in Australia and New Zealand * Up to $5,000 per shareholder * Capped at $10 million
Slide 17: Announcement and trading halt
Announcement and trading halt Institutional placement » Books open * Books close « Placement price announced * Settlement = New shares list Share Purchase Plan = Record Date Wednesday, 14 January Wednesday, 14 January, 9.00 am Wednesday, 14 January, 5.00 pm Thursday, 15 January by 10.00 am Tuesday,
Slide 18: Conclusion
Conclusion
Slide 19: Earnings history
Earnings history Sales NPAT 2001 $1.323 billion $51.1 million 2002 $1.429 billion $56.8 million 2003 $1.458 billion $64.3 million Guidance: - Average 10% compound annual NPAT growth FY2004 - FY2006 - Forecast interim loss of approx. $4m in FY2004 due to seasonality
Slide 20: Meets key strategic objectives of stronger brand positions and geographic expansion
Meets key strategic objectives of stronger brand positions and geographic expansion Strengthens position and enhances margins in our core chemistry Facilitates growth in key European and South American markets EVA and EPS positive in FY2004
Slide 21: Provides additional product sales to existing European businesses
# Provides additional product sales to existing European businesses = Broadens product portfolio and reach into growth market segments « Delivers a number of strong brands and market positions