Adama Ltd. Class A · SZSE:000553

Adama Ltd. Class A — Merger or Acquisition (June 2017)

30 slides from Adama Ltd. Class A's merger presentation, June 2017

  1. Slide 1: Adama Becoming the Only Integrated Global-China Crop Protection Company

    Adama Becoming the Only Integrated Global-China Crop Protection Company June 2017

  2. 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

  3. Slide 3: Adama combines with Sanonda to become the only integrated Global-China player

    Adama combines with Sanonda to become the only integrated Global-China player Realizes its strategic vision Accomplishing our two key strategic objectives in one coordinated step Integration Flotation  Fully integrated combined Adama-Sanonda Creating  Combined company to be publicly traded from Da

  4. Slide 4: Key business drivers

    Key business drivers China market access Launch pad for differentiated offering 3rd largest market in the world Innovation and operations hub well underway Competitive cost position Operational optimization Leading positions in backward-integrated products Enhancing global supply chain 4

  5. Slide 5: Adama Combining with Sanonda

    Adama Combining with Sanonda

  6. Slide 6: A unique transaction, first ever of its kind

    A unique transaction, first ever of its kind On June 1st 2017, the M&A Panel of the China Securities Regulatory Commission (CSRC) unconditionally approved Adama’s combination with Sanonda  Pro forma combined company valuation (as of June 2nd 2017): ‒ Enterprise value: $5.7 billion – 10.2x 2016 pro

  7. Slide 7: Our envisioned combined, publicly-traded structure

    Our envisioned combined, publicly-traded structure INSTITUTIONAL & CNAC RETAIL INVESTORS Renamed ADAMA (formerly Sanonda) 100% Adama Agricultural Solutions Ltd. China North Europe IMA North America China Sanonda Selected Chinese Businesses Operations 100% South Europe APAC Brazil Latin America Huai’

  8. Slide 8: The combined company

    The combined company Following the combination  Access to capital: The company's shares will be listed on the Shenzhen Stock Exchange, with access to RMB- and HKD-denominated capital  Brand: The combined company will operate under the ADAMA name and brand  Leadership: Will be led by Adama’s globa

  9. Slide 9: Sanonda Overview

    Sanonda Overview A leading Chinese crop protection producer  2016 sales: $277m  Key products: Acephate, Paraquat and Glyphosate  Serves both domestic and global crop protection markets  ~1,750 employees Sanonda’s advanced new site  Publicly traded on Shenzhen Stock Exchange Including 200kt chlo

  10. Slide 10: The China Opportunity

    A The China Opportunity ADAMA

  11. Slide 11: 1. China Market Access

    1. China Market Access Launching our direct sales platform in China

  12. Slide 12: The China crop protection market opportunity

    The China crop protection market opportunity China is the world’s third largest crop protection market, and one of the fastest growing 8% CAGR $6.8bn 2X global 3rd largest market market globally growth 2020 $5.4bn 4th largest market globally Highly fragmented and 2015 underpenetrated market: $3.2bn

  13. Slide 13: China's agrochemical market: vast, diversified and highly fragmented

    China’s agrochemical market Vast, diversified and highly fragmented >200,000,000 1,000,000 22,000 Farms Shops Distributors Consolidation of both farms and Highly complex One of the biggest and fastest AgChem producers distribution channels growing markets Source: CCM, Kleffmann Group 13

  14. Slide 14: Adama China: Rolling out our nationwide reach

    Adama China Rolling out our nationwide reach Integrating the domestic sales of 4 Buildup of Adama platform CNAC entities  Reach: 19 provinces by end of 2016  Reach: Countrywide  Portfolio: > 200 products  Portfolio: Complementary portfolio of key  People: >120 on board basic products  People:

  15. Slide 15: Commercial build-up already underway

    Commercial build-up already underway Creating direct dialogue with Dozens of farmer meetings Reaching the Many our customers throughout 19 provinces 15

  16. Slide 16: 2. Launch pad for differentiated offering

    2. Launch pad for differentiated offering China innovation and operations hub well underway

  17. Slide 17: New R&D center in Nanjing

    New R&D center in Nanjing Fully operational Becoming an integral and important part of Adama’s global R&D infrastructure Accelerating introduction of advanced products into Adama’s worldwide portfolio 17

  18. Slide 18: State-of-the-art platform to introduce differentiated crop protection solutions

    State-of-the-art platform to introduce differentiated crop protection solutions Global formulation and packaging center in Huai’An In advanced construction 18

  19. Slide 19: 3. Competitive cost position

    3. Competitive cost position

  20. Slide 20: Direct Access to Cost-Competitive AIs

    Direct Access to Cost-Competitive AIs Increasing product procurement from Sanonda Building leading positions in global markets Key basic Selling through Adama’s commercial network in AIs Key global  PARAQUAT markets  ACEPHATE  USA  METHOMYL  INDIA  AUSTRALIA Obtaining new Adama  SOUTH AFRICA

  21. Slide 21: Adama selling Sanonda-sourced products through its global platform

    Adama selling Sanonda-sourced products through its global platform Spraytop® 250SL (Paraquat) in Methomex (Methomyl) 20SL Parazone® 3SL (Paraquat) in Australia in Colombia USA 21

  22. Slide 22: 4. Operational optimization

    4. Operational optimization

  23. Slide 23: Operational optimization

    Operational optimization China operations to increase supply chain flexibility and efficiency  Our China operations to Existing routes optimize China and global formulation, inventories and logistics  Supply chain efficiency Europe drivers:  Shorten global supply lines  Higher inventory turns an

  24. Slide 24: The A-Share Market

    A The A-Share Market ADAMA

  25. Slide 25: China has some of the largest equity markets globally

    China has some of the largest equity markets globally, both in terms of size and liquidity China has 3 of the 8 biggest exchanges in the world… … with more combined trade than the NYSE Market cap of top 15 Stock Exchanges Value of trading of top 15 Stock Exchanges 19.6 ($trn), 31 Dec 2016 ($trn) – 2

  26. Slide 26: Chinese equities have outperformed

    Notwithstanding higher volatility, Chinese equities have outperformed Shenzhen A-Shares +72% Shanghai A-Shares +53% Dow Jones +26% S&P 500 +25% Euro Stoxx 50 +10% FTSE 100 +10% 26

  27. Slide 27: Chinese AgChem companies have delivered strong returns over the long run

    Chinese AgChem companies have delivered strong returns over the long run 27

  28. Slide 28: Chinese equity markets are becoming more accessible to global investors

    Chinese equity markets are becoming more accessible to global investors:  Since 2003, Qualified Foreign Institutional Investors (QFII) can invest directly into the Chinese A-share market: − Over 300 global institutional investors already qualified − Total quota of almost $90bn  With the launches i

  29. Slide 29: Shenzhen-Hong Kong Connect

     Shenzhen-Hong Kong Connect launched 5 Dec 2016  All investors that can trade on the Hong Kong exchange will be able to trade Shenzhen-listed companies on the SZ-HK Connect through a Hong-Kong broker  Adama (post-Sanonda combination) expected to be included on SZ-HK Connect 29

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