Nufarm Limited · ASX:NUF
Nufarm — FY2005 Earnings Presentation
39 slides from Nufarm's earnings presentation, Oct 4, 2005
Slide 1: Hii
Hii a i p PL Te I NNN Me iy yy Lo 7 Woy Teh I) i) i i i i) i i) i shh |) MN i | / LD V7 a. yy, A a y 7 Pe emo py Lo UE ee a
Slide 2: Doug Rathbone, Managing Director
ian ‘nh lh Doug Rathbone Managing Director
Slide 3: Full year results highlights
ye 2 mths to July on 2004 12 mths to July 31 Group revenues up 5% Operating profit up 35% Earnings per share up 29% Full year dividends up 13% Return on funds employed 51 87 billio _ “bt 2cents _ / 26 cents _ a - $103. 5 5 milion _ $1.58 billion $76.5 million 47.3 cents 23 cents 15.7%
Slide 4: Group revenues and operating profit
bi 3 Wii, __w_w_ww_CvT_=—_ a, Group Revenues Operating Profit $m $m tet 2003 2004 2005 2003 2004 2005 2003 2004 2005
Slide 5: Return on Average Funds Employed
iii | cn Return on Average Funds Employed 18.0 to 17.0 16.0 + % 18.0 +a 40+ 13.0 | 88 We 2001 2002 2003 2004 2005 NN
Slide 6: Kevin Martin, Chief Financial Officer
onion siti Kevin Martin Ghief Financial Officer ATTA Pn)
Slide 7: Group Sales
iii i m Group LW i (Il) ar LOUIE _ LAAT Ti Sales 1,800 1,600 ASM 4 400 1,200 +— 1,000 S : a 2001 2002 2003 2004 2005
Slide 8: Group EBITDA
iii i Group Mini ASM 260 240 220 200 180 EBITDA 2003 2004 2005
Slide 9: Earnings per Share
iii i m Group LW i (Il) ar LOUIE _ LAAT Ti Earnings per Share 2001 2002 2003 2004 2005
Slide 10: Return on Average Funds Employed
iN “Nufar th i (Il) ar 0 Min | Return on Average Funds Employed 18 >—— 17 16 - — % 54 14 1934-168 2001 2002 2003 2004 2005
Slide 11: YN ’ | 2001 2002 2003 2004 2005
YN ’ | 1 2001 2002 2003 2004 2005
Slide 12: Operating result bridge 2004 to 2005
ii iin ll Result 2004 76.2 LESS Business disposed in 2005 _(5.0) 71.2 ADD Agripec 19.1 90.3 Core business improvement _13.2 103.5 Non-operating items 0.8
Slide 13: Gross margin and operating result
Dinnio iii : C nu inci i) Gross margin $ flat between years — Lower gross profit % (41% to 38%): — Asia; — Argentina; and — Higher glyphosate tech costs Cost savings across Group Crop protection sales 1,580,789 1,452,861 Operating result per segment note 191,915 163,468 Percentage 12.1% 11.3% Exclud
Slide 14: Agripec profit contribution
| i TM Mili 1sthalf 2°¢half Full yr Operating profit before tax 25.9 11.6 37.5 Goodwill (4.0) (3.8) (7.8) Profit before tax 21.9 7.8 29.7 Tax (3.5) (3.6) (7.1) Profit after tax 18.4 4.2 22.6 Interest after tax (0.2) (3.3) (3.5) Profit share to Nufarm after tax 18.2 0.9 19.1
Slide 15: Net working capital
yin | llr : Lidinteitcen | Net working capital July 2004 266.7 LESS sold business (17.7) 249.0 July 2005 317.5 68.5 Australia 60.0 Americas 20.0 Europe (12.0)
Slide 16: Funds from operations
ya | fo INN NL i Funds from operations 2004 203.0 LESS Securitisation utilisation movement 2004 increase 63 2005 decrease _6 (69.0) LESS working capital movement 2005 (68.0) 66.0 NET all other differences (3.0)
Slide 17: Group Gearing
iii i Group ~ Mini Group Gearing 2001 2002 2003 2004 2005
Slide 18: AIFRS transition: applies July 2006
ya =» Applies July 2006 = Restate balance sheet 2005 ~ Opening balance sheet August 2004 - Restate July 2005 profit =» No impact on cash flow =» No major impact on balance sheet = Increase future operating earnings compared to AGAAP
Slide 19: AGAAP to AIFRS operating result
th AGAAP July operating 103.5 PLUS non-operating items __ 0.8 104.3 AIFRS adjustment Goodwill amortisation 18.4 Staff share payments (0.7) Reverse intangible write-off _ 2.8 AIFRS headline result 124.8 Non-operating items _(3.4) OPERATING RESULT 121.4
Slide 20: AIFRS impact on July 2005 balance sheet
a Pche Impact on July 2005 Balance Sheet Recognise defined benefit pension plan (17.9) Staff share-based payments 0.6 Intangible asset amortisation 18.4 Adjustment to minority interests (0.2) Adjustment to tax assets _(0.5) 0.4 Net equity AGAAP 616.6 Net equity AIFRS 617.0
Slide 21: Doug Rathbone, Managing Director
ian ‘nh lh Doug Rathbone Managing Director
Slide 22: Major Drivers
ya ll): Major Drivers: ad Revenue and profit growth in major overseas markets sd ‘Robust’ performance from Australian business = Significant contribution from Agripec / Brazil sd Margin pressure — higher input costs, but good cost control sd Non core business divestments complete
Slide 23: Sales by region
yl i itll PUM Ml NUD a nanan ae a Americas - 28% i a Europe - 23% New Zealand — 4% Australia — 41% Asia — 4% Total sales - $1,581 million TTA YN MN
Slide 24: Regional Markets Review: Australia
| | i i Regional Markets Review Australia $m Sales (AUD) = Seasonal impacts - Good summer cropping - Top season in the West ~ Late break in other regions 700 600 500 ® Full year of BASF products - Strong growth in horticulture ~ Excellent position in cereal fungicides 400 300 200 ® Margin pressure ~
Slide 25: Regional Markets Review: New Zealand
cian WM Aa — oo ection a )))) pF | ic i icon tn Regional Markets Review New Zealand $m Sales (AUD) 100 ® Dry autumn restricted agchem inputs into pasture 80 ® Increased competition at supply end 60 ® Significant consolidation in distribution ~ PGG Wrightson with 50% share 40 20 2004 2005 STN NN
Slide 26: Regional Markets Review: North America
| | $m 500 400 300 200 100 Regional Markets Review North America Sales (AUD) 2004 2005 NTI HNN = Product mix and margin growth drives higher profit in Canada ® 15% sales growth in US (local currency) = Volume and market share gains in US ~ Ag: excellent support from distribution channei ~ Turf: stro
Slide 27: Regional Markets Review: South America
NN isl nen Regional Markets Review South America (excludes Agripec) $m 100 80 4 60 + 40 + Sales (AUD) 20 4 2004 2005 ® Increased business in South America ~ Argentina: broader product portfolio; margin pressure - U46 brand triples phenoxy sales in Brazil - Growth in Chile; Colombia
Slide 28: Regional Markets Review: Agripec / Brazil
ye | sic | Regional Markets Review Agripec / Brazil = Net profit contribution is significant = Management integration and reporting systems now in place =® Excellent platform for growth in Brazil
Slide 29: Brazil economic and seasonal impacts
boniiih ’ ll Impacts Aug — Dec 2004 Jan — July 2005 -USD exchange rate: R2.37 Soybean price: R32 per bag Collections at historic lows Economic | * USD exchange rate: R3.05 » Soybean price: R53 per bag " No credit issues 13% decrease in corn~ Seasonal _| * 6.4% increase in soybean plantings plantings
Slide 30: Regional Markets Review: Europe
| CN ee Crop Prot Regional Markets Review Europe $m 500 ® Sales up 18% in France; excellent progress on realignment of 400 business 300 ® Strong growth in Germany driven by higher fungicide sales 200 ® Broader product range in UK 400 ® Drought in Spain/Portugal, but marginal growth for Nufarm ie} 20
Slide 31: Regional Markets Review: Asia
oii Nini | ION DU | i } si on Pro re Protectio aa, i Woo ro Hun il Regional Markets Review Asia $m 100 ® Lower sales into Asia from other regional businesses 80 ® Increased sales generated by 60 Asian businesses ® Margins in Indonesia impacted by “ changes to regulatory system 20 0 STN NN
Slide 32: In summary
| iy " TM Mili In summary: « Strong result reflects benefits of expanding global platform « Margins slipped and are a key focus going forward » Nufarm in an excellent position to capitalise on future growth opportunities
Slide 33: Brian Benson, Group General Manager, Agriculture
Nil i) ih: cn Brian Benson Group General Manager, Agriculture
Slide 34: Growth strategy firmly in place
NN i ni UT Cro TM Mili Growth strategy firmly in place « Building the platform = Expanding the portfolio * Driving margin improvement « Establishing the brand =» People /management structures
Slide 35: Growth and diversification 2005-2010
rowth & di Wii i a hennemil Nee UU 9% Herbicides [{] insecticides 2 Fungicides/PGR's 2005 — 2010 - Double insecticide $ sales - Three fold increase in fungicide $ sales TTA MMMM
Slide 36: 2006 product introductions
a | | 2006 product introductions ~% of 'new' ‘sales to 2010 31% | 33% | 36%
Slide 37: Doug Rathbone, Managing Director
ian ‘nh lh Doug Rathbone Managing Director
Slide 38: Outlook
i I) iamannttte = Stronger contributions anticipated from all regions * Agripec well placed to deliver growth
Slide 39: } | Mines |
} | Mines | i i ‘iia Wy, i ie TT 7 “ ie if a ith We | ue — Winco