2013 Global Agriculture Conference

Transcription

1 Bank of America Merrill Lynch 2013 Global Agriculture Conference Doug Rathbone Managing Director February, 2013

2 Industry growth drivers remain strong Population and wealth demographics Urbanisation Declining arable land mass A requirement for increased yield 2

3 Nufarm has a growing presence in two key technology inputs that help achieve increased yield Crop protection chemistry Seeds 3

4 The crop protection market continues to trend towards off-patent active ingredients Patent and off-patent industry sales revenue (US$ billions) Nufarm is the largest listed crop protection company with a specific focus on value-added off-patent chemistry Source: Phillips McDougall 4

5 Overview of business Established in Australia more than 50 years ago One of Australia's largest ASX-listed agribusinesses 2012 revenues of $2.1 billion 2012 revenue by geography 2012 revenue by product segment North America 23% Asia 6% South America 16% Europe 21% Herbicides 70% Fungicides 10% Insecticides 9% Australia/NZ 34% Other 11% Marketing presence in more than 30 countries Sales in more than 100 countries 5

6 Corporate growth strategy Protect / enhance value of our core positions Invest in new growth opportunities Generate improved returns Growing into higher value and more defendable product and market segments 6

7 Key strategic initiatives Differentiate Reinforce/ enhance brand values Expand/diversify product portfolio Support growth of seeds platform Define, communicate and adhere to return targets and KPIs Build the strength and capabilities of the organisation Ensure cost competiveness and improved efficiencies 7

8 Seed technologies Seed 65% Seed Treatment 35% 2012: $121 million Average GM: 53% Focus on canola, sorghum and sunflower Expanding global platform High value market segments Strong pipeline Significant potential for growth 8

9 Investing in future growth New management resources in key focus areas Global procurement and supply chain Business information services Risk management Regional structures and strategies Move to 'one Europe' Renewed focus on innovation in Australia Diversification into new crops and market segments 9

10 Investing in future growth Innovation in product development New advanced delivery technology eg. Nano Technology Product application management eg. 'Spraywise' Formulation design eg. tank mixing compatibility Packaging improvements eg. Quikpour New production capacity to support growth in target segments New fungicide, insecticide and seed treatment facility, Chicago New 'dry' 2,4-D formulation facility, India 10

11 Investing in future growth seed technologies Additional people resources Global and regional management Breeding and molecular biology Seed treatment Upgraded financial platforms; R&D/analysis systems Optimising 7 global breeding centres and 2 science centres Expanded pre-release testing (>25 countries) Capital investment in processing plants and seed treatment production facilities New Nuseed Australia headquarters, Horsham 11

12 Stable capital base and improving financial metrics $ m % FY10 FY11 FY12 HY bond completed in October 2012 Average net debt: $614m (2011: $672.1m) Net operating cashflow: $166.5m Improved discipline around working capital Average Net Working Capital (ANWC) ($'m) ANWC/Sales (%) 12

13 Key investment highlights Attractive industry dynamics underpinned by strong demand fundamentals Leading positions in targeted markets and segments Diversified business across geographies and by products Differentiated product portfolio with proven expertise in bringing new products to market Global manufacturing, marketing and distribution platform Established strategic alliance and commercial relationships with major industry participants Highly experienced management team 13