ISAGRO: "SMALL GLOBAL PLAYER" OF AGROPHARMA

Transcription

1 ISAGRO: "SMALL GLOBAL PLAYER" OF AGROPHARMA

2 The growing need for food is a challenge to agriculture WORLD POPULATION: GROWING BIOFUELS: GROWING World Population (Billion) Ethanol production (Billion liters) LIMITED NEW ARABLE LANDS STRATEGIC EXIGENCY: TO INCREASE PRODUCTIVITY PER HECTARE IN A SUSTAINABLE WAY SOCIAL/ ENVIRONMENTAL ISSUES Source: USDA 2

3 Agropharmaceuticals have a key role in agriculture The pharmaceutical products for crop protection/yield enhancement Unavoidable losses: ~ 40% Losses avoided thanks to agropharma: ~ 30% Production without agropharma: ~ 30% Actual production (60%) Potential agricultural production (100%) World market value (2012): US$ 47 billion Time-to-market for new molecules: years Sources: Phillips McDougall and Agrofarma 3

4 The agropharma market: global Breakdown by geographic area US$ 47 billion NAFTA 18% Europe 27% and by product type Fungicides 26% Insecticides 25% Others 3% Center & South America 24% Africa & Middle East 4% Asia 27% Herbicides 46% Source: Phillips McDougall 4

5 for being based on Innovation Players (Data 2011) "Role" of innovation (Data 2011) With "Innovative Research" (based on specialty products) Mkt share % Without "Innovative Research" (based on generic products) Mkt share % Patented product 24% Bayer Syngenta > 15 Maktheshim-Agan Nufarm 5-15 BASF Monsanto Dow DuPont 5-15 Arysta FMC Cheminova UPL 2-5 Sumitomo Nippon Soda Mitsui Nihon Nohyaku 2-5 0,8-2 ISAGRO 0,5 Chemtura Sipcam-Oxon 0,8-2 Off-patented Products still sold only by discoverer 25% Generic products 51% Source: Phillips McDougall 5

6 in which also a "small" player but with Innovative Research can compete MARKET: HIGHLY SEGMENTED (COUNTRY/CROP/DISEASE) Local/multi-local players, without innovative research but with distribution, have a strategic interest to access innovative products Mkt share ISAGRO 2011 Brazil/Cotton/Ramularia Japan/Sugar beet/cercospora leafspot Italy/Olive/Various fungal diseases Italy/Grape/Downy mildew USA/Sugar beet/cercospora leafspot USA/Soybean/Various diseases Spain/Olive/Various fungal diseases Brazil/Soybean/Asian rust 48% 40% 54% 12% 20% 12% 10% 4% 6

7 Isagro: "Small global player" SMALL vs. COMPETITORS, GLOBAL FOR BEING BASED ON INNOVATION CORE-BUSINESS ISAGRO 2012E REVENUES: ~150 m of which: 80% EX-ITALY FUNGICIDES: 65% OF SALES ALONE AND/OR IN PARTNERSHIP SALES IN > 70 COUNTRIES EMPLOYEES: 620 of which: 310 EX-ITALY INNOVATIVE RESEARCH DEVELOPMENT CHEMICAL SYNTHESIS (active ingredients) FORMULATION (finished products) INT L MARKETING AND LOCAL DEVELOPMENT DISTRIBUTION (on local basis) 1 R&D CENTER AND 1 FIELD TRIAL CENTER (ITALY), 1 PILOT PLANT (INDIA) 5 MANUFACTURING PLANTS (4 IN ITALY AND 1 IN INDIA) DIRECT PRESENCES IN: DIRECT PRESENCES IN COLOMBIA, INDIA, SPAIN AND USA 7

8 with a history of growth to 2000 Revenues 67 mln Employees ~150 ISAGRO S.p.A. to today Revenues ~ 150 mln Employees % 50% 100% Isagro Italia Isagro Ricerca Isagro BioFarming 63% 100% 51% AgriFormula Isagro Hellas ISAM From 1993 Revenues 45 mln Employees ~120 ISAGRO S.r.l. (ORIGINATED BY MONTEDISON, M.B.O. FROM ENICHEM AGRICOLTURA) Isagro is also present in Argentina, Australia, Chile and South Africa with companies locally entitled of the Group s registrations 8

9 and five strategic guidelines 1 INNOVATIVE RESEARCH IN AUTONOMY 2 DEVELOPMENT OF NEW MOLECULES/PRODUCTS (in partnership if with global commercial potential/high investments) 3 DEVELOPMENT OF GENERICS FOR MIXTURE, INITIALLY FOR THE INDIAN MARKET (leveraging on Isagro s industrial and distribution presence in India) 4 NEW PROJECTS FOR DIRECT DISTRIBUTION 5 SELF-FINANCED INVESTMENTS AND POLICY OF PORTFOLIO OPTIMIZATION (with acceleration of Industrial Debt reduction) 9

10 Results, status and perspectives Results Status and perspectives million REVENUES NET FINANCIAL POSITION * Estimate (Source: Interim Results Report as of 09/30/12) ** Actual as of Sep. 30 th, ~150* 63** GROWTH OF REVENUES FROM NEW REGISTRATIONS OF PROPRIETARY PRODUCTS 2012: SEVERE DROUGHT EU/USA WITH LOWER SALES OF FUNGICIDES (fungicides represent 2/3 of sales for Isagro vs. 1/4 for the Market) 2013: CARRIED-OVER" EFFECT FROM 2012 DROUGHT (important unsold stock of fungicides along distribution chain as of 2012-end) : RECOVERY IN GROWTH TREND OF REVENUES (confirmation of 2015 sales target: 200 million) 10

11 Disclaimer Estimates, considerations, statements and opinion, except for what referring to actual figures, are to be considered as data, estimates, considerations, statements and opinion regarding future, and have been elaborated and stated on the basis of available information and/or on the basis of those information considered the most reliable and/or the most reasonable. Such data, estimates, considerations, statements and opinion could prove to be incomplete and/or wrong and they incorporate elements of risk of uncertainty, beyond the company control. For such reasons, actual results may prove to differ versus data, estimates, considerations, statements and opinion contained in such presentation. Such data, estimates, considerations, statements and opinion are not to be considered as a proposal of investment, under any circumstances, in Isagro s shares. Any reference to Isagro products is to be considered exclusively as general information about the group activity and is not to be intended, under any circumstances, as invitation to employ or propose the employment of such products. 11

12 Contacts For information: ISAGRO S.p.A. Ruggero Gambini Chief Financial Officer & IR Manager Alessandro Zacchera Assistant to IR Manager & Junior Strategic Planner tel. (+39)