Adama Ltd. Class A · SZSE:000553

Adama Ltd. Class A — ADAMA Agricultural Solutions — Q4 2015 Earnings Presentation

21 slides from Adama Ltd. Class A's earnings presentation, Mar 15, 2016

  1. Slide 1: Business Update Q4 and FY 2015

    Business Update Q4 and FY 2015 March 15, 2016

  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: Significant improvement in both profits and profitability in Q4 capping a strong year

    Significant improvement in both profits and profitability in Q4 capping a strong year Strong finish sees Adama deliver market leading performance in a challenging year  Sales of $650 million in Q4 and $3,064 million in 2015: ‒ Growth of 12.6% in Q4 and 7.4% in the full year, at constant exchange ra

  4. Slide 4: Financial highlights

    Financial highlights % Change %Change % Change %Change Adjusted, ($ million) Q4 2015 Q4 2014 FY 2015 FY 2014 CER USD CER USD Sales 650 674 +12.6 -3.6 3,064 3,221 +7.4 -4.9 Gross Profit 195 185 +5.8 970 1,025 -5.4 As % of Sales 30.0% 27.4% 31.6% 31.8% Operating Expenses 165 174 -5.4 667 712 -6.4 Oper

  5. Slide 5: Q4 2015: Significant growth in revenues in constant currencies; improvement in all key profit and profitability metrics

    Q4 2015: Significant growth in revenues in constant currencies; improvement in all key profit and profitability metrics Sales Gross Profit Operating Profit (EBIT) EBITDA -3.6% ($); +12.6% (CER) Gross margin +2.6pp EBIT margin +3.2pp EBITDA margin +3.9pp 100 674 140 650 90 250 80 120 195 200 185 70 1

  6. Slide 6: FY 2015: Sector-leading growth in revenues at constant currency; Significant improvement in EBITDA margin

    FY 2015: Sector-leading growth in revenues at constant currency; Significant improvement in EBITDA margin even in a tough year Sales Gross Profit Operating Profit (EBIT) EBITDA -4.9% ($); +7.4% ( CER) Gross margin -0.2pp EBIT margin +0.2pp EBITDA margin +0.6pp 700 800 3,221 1,400 3,064 600 700 1,200

  7. Slide 7: Tight focus on operating cost control, inventory and receivables management

    Tight focus on operating cost control, inventory and receivables management Operating expense Inventory reduction Receivables reduction reduction -$45m; down 0.3pp -$57m -$42m 1,241 1,185 750 712 932 700 667 650 600 890 22.1% 550 21.8% 500 450 400 350 300 FY'14 FY'15 Dec 2014 Dec 2015 Dec 2014 Dec 2

  8. Slide 8: 2015 Business highlights

    2015 Business highlights • Further portfolio differentiation and increased direction of R&D and registration resources towards value-added, unique and differentiated products Portfolio • Launch of innovative, proprietary products such as NIMITZ™ and BREVIS™ in Transformation several key countries in

  9. Slide 9: China commercial and operational integration

    China commercial and operational integration Launching our direct sales in China through a leading commercial China market access platform  Launch of direct sales and recruitment of dozens of new sales people  Adama becoming the sole Chinese commercial platform for marketing formulated products of

  10. Slide 10: Quarterly regional sales performance Q4 2015 vs. Q4 2014

    Quarterly regional sales performance Q4 2015 vs. Q4 2014 Sales change by region Constant currency terms Region USD terms Europe 7.6% -5.8% North America 9.7% 9.4% 20.2% Latin America -9.9% 14.4% Asia Pacific 4.0% 0.1% India, Middle East & Africa -5.9% Total 12.6% -3.6% -5% 0% 5% 10% 15% 20% 25% 10

  11. Slide 11: Full year regional sales performance FY 2015 vs. FY 2014

    Full year regional sales performance FY 2015 vs. FY 2014 Sales change by region Constant currency terms Region USD terms Europe 2.9% -6.0% North America 6.0% 5.2% Latin America 16.6% -10.5% Asia Pacific 4.1% -7.0% India, Middle East & Africa 5.8% -2.1% Total 7.4% -4.9% -5% 0% 5% 10% 15% 20% 11

  12. Slide 12: Regional highlights

    Regional highlights Europe  Growth of 7.6% in Q4 and 2.9% in the full year, at CER, driven by the significant volume growth stemming from the launch of new products and deepening of commercial activities, despite very dry weather conditions in certain countries  Results negatively impacted by redu

  13. Slide 13: Regional highlights (cont’d.)

    Regional highlights (cont’d.) Latin America  Strong growth of 20.2% in Q4 and 16.6% in the full year, at CER, despite the challenging conditions in the region, including El Niño and macroeconomic crisis in Brazil  US dollar-denominated sales impacted by significant depreciation of currencies in th

  14. Slide 14: Regional highlights (cont’d.)

    Regional highlights (cont’d.) India, Middle East & Africa  Growth of 0.1% in Q4 and 5.8% in the full year, at CER, due to significant volume growth driven by launch of differentiated products in 2014 and 2015, and expansion in main focus markets, despite the drought in several key countries, such a

  15. Slide 15: Q4 Sales bridge analysis

    Q4 Sales bridge analysis FX Effect: 674 -109 47 650 38 Sales growth excluding FX: 12.6% -16.1% +4.6% +6.9% Q4 2014 FX Price Quantity Q4 2015 Variance Variance 15

  16. Slide 16: Q4 Gross profit bridge analysis

    Q4 Gross profit bridge analysis 185 34 195 -89 28 38 27.4% 30.0% Q4 2014 FX Price Quantity Cost Q4 2015 Variance Variance Variance 16

  17. Slide 17: Q4 EBITDA bridge analysis

    Q4 EBITDA bridge analysis 35 -2 -75 28 38 76 53 7.8% 11.7% Q4 2014 Price Quantity Cost Operating FX Q4 2015 Variance Variance Variance Expenses 17

  18. Slide 18: FY15 Sales bridge analysis

    FY15 Sales bridge analysis FX Effect: 3,221 -395 170 3,064 68 Sales growth excluding FX: 7.4% -12.3% +2.1% +5.3% FY14 FX Price Quantity FY15 Variance Variance 18

  19. Slide 19: FY15 Gross profit bridge analysis

    FY15 Gross profit bridge analysis 1,025 -311 109 970 78 68 31.8% 31.6% FY 2014 FX Price Quantity Cost FY 2015 Variance Variance Variance 19

  20. Slide 20: FY15 EBITDA bridge analysis

    FY15 EBITDA bridge analysis 113 -8 -257 78 68 480 474 14.9% 15.5% FY14 Price Quantity Cost Operating FX FY15 Variance Variance Variance Expenses 20

  21. Slide 21: Slide 21

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