19 slides from Adama Ltd. Class A's earnings presentation, May 28, 2017
Slide 1: Business Update Q1 2017
Business Update Q1 2017 May 28, 2017
Slide 2: Legal notice
Legal notice This presentation is for marketing and information purposes only. By this presentation, ADAMA Agricultural Solutions Ltd. (the “Company”) does not intend to give, and the presentation does not constitute, professional or business advice or an offer or recommendation to perform any trans
Slide 3: Another strong start of year for Adama
Another strong start of year for Adama Delivers record high profits and profitability, with robust volume growth Sales $843m Gross Profit $311m (+5.2%) Volumes: +3.7% Gross margin +2.2 pp Record Q1 EBITDA $180m Record Q1 Net Income $114m (+4.5%) (+13.3%) EBITDA margin +1.1pp Net income margin +1.8 p
Slide 4: Financial highlights
Financial highlights % Change % Change Adjusted, ($ million) Q1 2017 Q1 2016 CER USD Sales 843 853 -0.6% -1.2% Gross Profit 311 296 +5.2% As % of Sales 36.9% 34.7% Operating Expenses 175 167 Operating Income (EBIT) 136 129 +5.8% As % of Sales 16.2% 15.1% Net Income 114 101 +13.3% As % of Sales 13.6%
Slide 5: Q1 2017: Strong start to the year marked by significant increase across all profit metrics
Q1 2017: Strong start to the year marked by significant increase across all profit metrics Sales Gross Profit Record EBITDA Record Net Income -0.6% CER; -1.2% USD Gross profit +5.2% EBITDA +4.5% Net income +13.3% 853 848 CER Gross margin +2.2pp EBITDA margin +1.1pp Net margin +1.8pp 843 USD Q1 2017
Slide 6: Strong reduction in inventory, significantly improved working capital and reduced leverage
Strong reduction in inventory, significantly improved working capital and reduced leverage Significant reduction in Drives lower working capital Sharply reduced leverage inventory levels levels -$74m -$97m -$248m 1,744 1,647 57.2% 1,201 53.8% 1,150 2.5x 1,076 953 1.8x Mar 2016 Mar 2017 Mar 2016 Mar
Slide 7: Regional Update
A Regional Update ADAMA
Slide 8: Full year regional sales performance Q1 2017 vs. Q1 2016
Full year regional sales performance Q1 2017 vs. Q1 2016 Sales change by region Constant currency terms Region USD terms (2.3%) Europe (6.4%) 10.1% North America 10.0% (9.3%) Latin America 1.1% 2.5% Asia Pacific 4.5% (2.7%) India, Middle East & Africa (4.2%) (0.6%) Total (1.2%) -10% -5% 0% 5% 10% 8
Slide 9: Regional highlights Europe
Regional highlights Europe Soft demand for crop protection as a result of: − Weaker yields in 2016 in Western Europe − Delayed start to the season in Western Europe − High inventory levels in the distribution channels in a number of countries Strong performance from sugar beet portfolio in all m
Slide 10: Regional highlights North America
Regional highlights North America US crop protection: − Continued its strong momentum from 2016, building on an improved portfolio mix − Sales of cotton portfolio increased, taking advantage of growth in the cotton market with products such as COTORAN® and DIREX®, herbicides for broadleaf weeds, a
Slide 11: Regional highlights Latin America
Regional highlights Latin America Brazil: − Robust growth, outperforming the market, with significant volume growth complemented by an improved portfolio − Strong sales of our comprehensive insecticide portfolio for corn, with products such as VORAZ®, a differentiated formulation for caterpillar c
Slide 12: Regional highlights Asia Pacific
Regional highlights Asia Pacific Significant volume growth, primarily in Australia and parts of south-east Asia, recovering from El-Niño Several new product registrations obtained, including: − COUNTDOWN™, a differentiated cereal herbicide for resistance management in Australia − NARKIS®, a uniq
Slide 13: Regional highlights India, Middle East & Africa
Regional highlights India, Middle East & Africa India: farmers were faced with unfavorable weather conditions as well as disruption to their cash availability, putting pressure on sales South Africa: Robust performance, benefiting also from positive currency movements and favorable weather condi
Slide 14: Marker-BDI 100 best employers in Israel
Marker-BDI 100 best employers in Israel 14
Slide 15: Bridge Analysis
A Bridge Analysis ADAMA
Slide 16: Q1 sales bridge analysis
Q1 sales bridge analysis +3.7% 32 -36 853 -5 843 Q1 2016 Quantity Price FX Q1 2017 Variance Variance 16
Slide 17: Q1 gross profit bridge analysis
Q1 gross profit bridge analysis 24 -36 30 -3 311 296 36.9% 34.7% Q1 2016 Quantity Price Cost FX Q1 2017 Variance Variance Variance 17
Slide 18: Q1 EBITDA bridge analysis
Q1 EBITDA bridge analysis 24 -36 31 -6 -5 172 180 21.3% 20.2% Q1 2016 Quantity Price Cost Operating FX Q1 2017 Variance Variance Variance Expenses 18
Slide 19: Slide 19