Nufarm Limited · ASX:NUF
Nufarm — Investor Presentation (December 2019)
22 slides from Nufarm's investor presentation, Dec 3, 2019
Slide 1: Nuseed Investor Presentation
Nufarm Limited ABN 090 323 312 103-105 Pipe Road Laverton North Vic 3026 For personal use only Australia +61 3 9282 1000 nufarm.com 3 December 2019 Nuseed Investor Presentation Nuseed Group Executive, Brent Zacharias, will today and tomorrow deliver a presentation to investors on the Nuseed seed pla
Slide 2: Value Beyond Yield
High yields are just the start. For personal use only VALUE BEYOND YIELD™ December 3, 2019 1
Slide 3: Disclaimer
Disclaimer General This presentation has been prepared by Nufarm Limited. The information contained in this presentation is for informational purposes only. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for ma
Slide 4: The golden era of opportunity for agriculture
new The agriculture industry has markets been built from a and value commodity and yield For personal use only mindset. There is ENTIRELY NEW exceptional SUSTAINABLE opportunity PLANT-BASED for SOLUTIONS agriculture to meet new global challenges. INPUT TRAITS OUTPUT TRAITS WITH AGRONOMIC WITH NEW CO
Slide 5: Delivering plant-based solutions
—— INPUT TRAITS OUTPUT TRAITS * Grower/agronomic benefits * End-use/consumer benefits VALUE BEYOND YIELD” Go (oe (a eo” “(DELIVERING PLANT-BASED SOLUTIONS x Qe » 1 A wy i Entirely n qWORLD CLASS R&D GLOBALSEEDS —&stnamatots VERINg Newmar SOLUTIONS Global germplasm BUSINESS ——* Proprietary * Industry
Slide 6: Plant traits & new markets
PLANT TRAITS & NEW MARKETS For personal use only Start with top performing varieties and hybrids Input traits with agronomic benefits Output traits for specific end-use benefits Sunflower Sorghum Create new market and value chain opportunities Carinata 5 Canola
Slide 7: Core crop overview
CORE CROP OVERVIEW For personal use only Canola Carinata Sorghum Sunflower ● #1 canola seed position in Australia ● Proprietary global position ● Top 3 position globally ● Global leader in the high value food ingredient segment ● Novel industrial oil ● Strength in food, feed and fuel ● Top 5 positio
Slide 8: Canola trait pipeline
Discovery Development Regional Testing Pre-Launch For personal use only INPUT TRAITS Elite Blackleg Resistance COMMERCIAL Clubroot Resistance 2020 TruFlex® LAUNCH TT Hybrid COMMERCIAL OUTPUT TRAITS Monola® COMMERCIAL High Oil High Oleic / Ultra Low Linolenic Omega-3 Oil COMMERCIAL Omega-3 Advanced O
Slide 9: Sorghum trait pipeline
For personal use only INPUT TRAITS Discovery Development Regional Testing Pre-Launch Ultra-early Grain COMMERCIAL Anthracnose SCA Tolerance COMMERCIAL Herbicide Tolerance OUTPUT TRAITS Bio Energy Improved Feed Human Nutrition COMMERCIAL 8 8
Slide 10: Sunflower trait pipeline
For personal use only INPUT TRAITS Discovery Development Regional Testing Pre-Launch Elite Stacked Disease COMMERCIAL Resistance Elite Orobanche Resistance Ultra Early COMMERCIAL OUTPUT TRAITS Ultra High Oleic & Low Sat XXL Elite Confection COMMERCIAL Onyx/Black Confection COMMERCIAL 9 9
Slide 11: Nuseed Omega-3 canola
NUSEED OMEGA-3 CANOLA For personal use only First plant-based solution to global omega-3 nutrient demand A globally sustainable plant-based aquafeed source Relieve pressure on wild fish stocks Nuseed Value Chain US commercial production for Aquaterra™, Nuseed’s proprietary aquafeed ingredient Nutrit
Slide 12: Market development work complete
Market Development Work Complete Nofima Study* For personal use only Chile Production Trials Fresh water and sea water tank trials to ~1.5 kg with Scaled Production pilots with 5 farm / feed partners and replacement of fish and canola oil >1 Million salmon fed Aquaterra diets Aquaterra™ oil in feed
Slide 13: First to commercialize land based omega-3
First to Commercialize Land Based Omega-3 For personal use only • 2019 harvest complete of ~35k acres in US • LOI stage of contract discussions with prospective customers • 1st Commercial scale crush targeted 1Q20 • 1st Commercial volume offtake - anticipated by 2Q20 • Advancing scale-up for 2021+ w
Slide 14: Unconstrained market growth potential
Scale, regulatory approvals & genetics: Unconstrained market growth potential Impact to cost & resulting margin generation 200%+ current world supply Material reduction in cost of For personal use only goods & resulting margin improvements 2020 2029 First Sales Base Canola Oil Value 2019 2029 Market
Slide 15: Omega Intellectual Property Estate
Omega 3 Intellectual Property Estate MORE THAN For personal use only ▪ Nuseed commercialisation enabled ▪ Protection of our technology blueprint ▪ Competitive barriers ▪ First jury verdict (USA 2019) 6 90 80 IP ESTATE PATENTS PATENTS FAMILIES PENDING 2009 2012 2005 2013 2016 Related to First product
Slide 16: Omega-3 canola as value beyond yield example
Omega-3 canola represents a compelling example of the value beyond yield strategy in action For personal use only Omega-3 canola model is a unique product targeting multiple downstream markets with significant supply constraints High value proposition with captive customer base Significant R&D inves
Slide 17: Carinata
Carinata: Nuseed acquired technology (from Agrisoma Nov 2019) For personal use only • Certain assets including proprietary germplasm, patents, regulatory data and key personnel • Nuseed has been testing and developing the crop over the last 2 years in South America under sustainable certification sy
Slide 18: Carinata enables best in class GHG reduction
VALUE Carinata enables BEYOND YIELD™ best in class GHG reduction CARINATA VALUE DRIVERS For personal use only • Fossil-free fuel solution 1 2 3 • Carbon reduction + sequestration 1. 2. Data from Certificates in compliance with EU regulations Data from Uruguay production • Best in class Green House G
Slide 19: Carinata supply and biofuel growth
NEAR TERM 2021 MEDIUM TERM 2024-2025 >50,000 HECTARES >250,000 HECTARES >40,000 MT OIL >200,000 MT OIL FIRST GENERATION SECOND GENERATION BIODIESEL ADVANCED BIOFUELS ARGENTINA CARINATA SUPPLY For personal use only Industry process technology: Industry process technology: Regulatory approved • Fatty
Slide 20: Nuseed around the world
NUSEED AROUND THE WORLD For personal use only GLOBAL CAPABILITIES + DEDICATION AND EXPERTISE + STRATEGIC ALLLIANCES ACCELERATED GLOBAL GROWTH MARKET EXPANSION 19
Slide 21: Key highlights
KEY HIGHLIGHTS For personal use only 1 Attractive scaled platform with an established, global footprint and capability 2 Market leading positions in key crops 3 Significant product pipeline The unique Omega-3 canola product represents a significant opportunity 4 to address a market in growing defici
Slide 22: Nufarm and Nuseed
For personal use only Nufarm and Nuseed ▪ Nuseed is a wholly-owned subsidiary of Nufarm Limited (ASX: NUF) ▪ Nufarm has manufacturing and marketing operations throughout Australia, New Zealand, Asia, the Americas and Europe and sells products in more than 100 countries around the world 21