Simply. Grow. Together

Transcription

1 Simply. Grow. Together

2 Legal notice This presentation is for marketing and information purposes only. By this presentation, the ADAMA Group does not intend to give, and the presentation does not constitute, professional or business advice. The accuracy, completeness and/or adequacy of the content of this presentation, as well as any estimation and/or assessment included in this presentation, if at all, is not warranted or guaranteed and Adama disclaims any intention and/or obligation to comply with such content. Adama may make improvements and/or changes in the features or content presented herein at any time. Adama shall not be liable for any loss, claim, liability or damage of any kind resulting from your reliance on, or reference to, any detail, fact or opinion presented herein. This presentation contains proprietary information of Adama and may not be reproduced, copied, disclosed or utilized in any way, in whole or in part, without the prior written consent of Adama. 2

3 Who we are No. 1 6 $3.5bn $60bn The world s leading provider of off-patent crop protection products The sixth largest agrochemicals company in the world In annual sales of the Combined Company In the $60bn global crop protection and non-crop markets 3x Long-term historical growth of 3x the global industry s growth 100 Sales in over 100 countries with direct presence in all key Ag markets >270 Active Ingredients, building blocks for differentiated offering Only Integrated China-Global value chain 3

4 Our history Agan Chemicals founded Makhteshim Chemical Works founded 1982 Agan listed on TASE Makhteshim listed on TASE 1998 Merger of Makhteshim and Agan Listed on TASE 2011 ChemChina acquires 60% ownership 2014 Launch of global brand ADAMA; New leadership, organizational structure 2016 ChemChina acquires 100% ownership 2017 Adama and Sanonda combine to create only integrated Global- China Crop Protection leader Publicly traded on Shenzhen Stock Exchange 1958 Sanonda founded 1993 Sanonda listed on Shenzhen Stock Exchange 2005 ChemChina becomes largest shareholder in Sanonda 4

5 THE CROP PROTECTION SECTOR 5

6 Growing population and food consumption per capita are driving increased demand for food 2.3B 33% More mouths to feed by 2050 Growth expectation of the per capita Cal/day consumption from 1960 to % Required increase In food production Source: UN Department of Public Information

7 However, per capita availability of arable land and water is decreasing 10M 40% Hectare of arable land are lost every year Projected growth in the global demand for water by 2050 Limited resources to support the growing demand Source: Food and Agriculture Organization

8 The challenge GROWING MORE FOOD WITH LESS RESOURCES 8

9 Why is crop protection essential? Untreated Protected 9

10 Crop protection products are vital to protect and enhance yield 43% 51% 54% 46% 56% 65% 57% 49% 46% 54% 44% 35% Wheat Rice Maize Potatoes Soybeans Cotton Incremental yield with crop protection Field without crop protection 10

11 Company Overview

12 Track record of strong, consistent growth in sales and profits Track Record of Profitable Growth Sales $mm Diversified geographic reach India, Middle East & Africa 2,835 3,076 3,221 3,064 3,331 3,523 Asia Pacific 17% 14% $3.5bn 30% Europe North America 18% 21% Latin America EBITDA $mm $mm Well balanced product portfolio Intermediates & Ingredients 7.5% $3.5bn 92.5% Crop Protection

13 13 Adama has consistently delivered above-industry growth Off-patent Industry Leader Sales , Indexed (1998 = 100) Global Crop Protection Market Adama

14 From China Forward Our North Star Building the Hybrid Offering Reaching the Many 14

15 Total Market Size ($bn) Reaching the Many Our extensive global presence and direct farmer reach Global Reach and Strength in Emerging Markets Direct presence in each of the top-20 markets which constitutes >80% of the global market Adama presence: Top-10 growth markets Brazil USA China Japan France Germany India Canada Argentina Italy Spain Australia UK Mexico Poland Russia Korea Vietnam Thailand Indonesia /2 Approximately 60 subsidiaries in close to 45 countries Sales in over 100 countries Almost half of our sales in high-growth markets Source: Phillips McDougall 15

16 Reaching the Many: Placing the farmer in the center of our market and offering approach Using digital as a means to reach growing yet fragmented markets such as India and China 16

17 Innovative AgTech and digital solutions deployed worldwide More than 20 solutions in 11 countries 17

18 Building the Hybrid Offering The Industry s most comprehensive product portfolio Extensive, Differentiated Offering For all needs Providing solutions: For all major crops In all markets Herbicides Insecticides Corn Cotton North America Latin America Oil Seed Rape Soybean Fungicides Growth regulators Seed Dressings Cereal Africa APAC Europe Over 270 active ingredients and over 1,000 end-use products 18

19 Building the Hybrid Offering Providing farmers with an extensive, differentiated portfolio, focused on simplicity OUR HYBRID PORTFOLIO SINGLE MODE OF ACTION / FIRST-TO-LAUNCH SPECIALTIES Costcompetitive Key Basics Effective, Advanced R&D Unique Mixtures and Formulations Innovative/ Novel Delivery Increasing profitability R&D Pipeline Sales FTL Specialties

20 From China Forward Our Unique China Opportunity

21 From China Forward Our partnership with ChemChina 2010 Agreement Signed 2011 Transaction Closed 2017 Integration & Flotation: Combination with Sanonda Acquiring and integrating selected AgChem operations of ChemChina Re-floating the combined business

22 From China Forward Adama has Become the Only Integrated Global-China Player Bringing the World to China Integration Flotation Combination and full integration with Sanonda Combined Company is publicly traded from Day 1 Name of Combined Company to change to ADAMA Shares included on SZ-HK Stock Connect, providing access to international investors Bringing China to the World Immense strategic and competitive edge RMB 1.5 billion (USD 240 million) in new equity raised from China s leading institutional investors 22

23 The China crop protection market opportunity China is the world s third largest crop protection market, and one of the fastest growing 6% CAGR 2X global market growth 3 rd largest market globally $6.2bn 4 th largest market globally $3.2bn $4.8bn Highly fragmented and underpenetrated market: No single player above 10% market share Multinational players together only account for ~23% of the market

24 Bringing our A-game into a huge and growing market Creating direct dialogue with our customers Dozens of farmer meetings throughout 21 provinces 21 Provinces East Inner Mongolia West - Actual in Plan in Plan in

25 Launch Pad for Differentiated Offering Capitalizing on unique R&D and production capabilities Global R&D Center in Nanjing Global Formulation Center in Huai An Multi-purpose Synthesis Plant in Huai An is in final design stage Construction of the state-of-the-art global formulation center in Huai An was completed by year-end 2017, now in pilot/testing phase

26 Integrated, end-to-end value chain Jingzhou Operational Hub Building strong positions in global markets Selling through Adama s commercial network in Key global markets US INDIA AUSTRALIA SOUTH AFRICA VIETNAM COLOMBIA BRAZIL (coming) Key basic AIs ACEPHATE PARAQUAT METHOMYL Obtaining new Adama registrations based on Sanonda sources Paraquat - Colombia Key products Acephate: #1 producer globally Capacity: 20kt Backward integrated to DMPAT Paraquat: Among top global producers Capacity: 24 kt Backward integrated to Pyridine 26

27 Operational optimization Increasing supply chain flexibility and efficiency Existing routes Direct shipping routes Europe Europe 27

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