Nufarm Limited · ASX:NUF
Nufarm — FY2021 Earnings Presentation
41 slides from Nufarm's earnings presentation, Nov 17, 2021
Slide 1: ASX cover letter: electronic lodgement of FY21 documents
17 November 2021 Nufarm Limited ACN 091 323 312 103-105 Pipe Road The Manager Laverton North VIC 3026 Company Announcements Office Australia ASX +61 3 9282 1000 20 Bridge Street nufarm.com SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir/Madam In accordance with ASX Listing Rules the following document
Slide 2: Nufarm announces FY21 results
Nufarm Limited ACN 091 323 312 17 November 2021 103-105 Pipe Road Laverton North VIC 3026 Australia ASX Release – Company Announcement +61 3 9282 1000 nufarm.com Nufarm announces FY21 results Strong operational performance delivers 51% growth in underlying earnings and substantial cash generation Nu
Slide 3: CEO commentary on FY21 results
Nufarm Managing Director and CEO, Greg Hunt, said, “2021 has been a successful year for Nufarm. We delivered solid financial results and continued to take actions that will positively shape the future of our company. “Our much-improved financial performance was driven by revenue and underlying EBITD
Slide 4: Webcast details and 2022 investor strategy day
The webcast of the results announcement will also be available live at: https://webcast.openbriefing.com/8070/. If you wish to view the presentation live via the webcast it is recommended that you log in 10 to 15 minutes prior to start time. An archived version will be available at the same link on
Slide 5: Nufarm FY21 Results
Nufarm FY21 Results Greg Hunt, CEO Paul Townsend, CFO Brent Zacharias, Group Executive Nuseed 17 November 2021
Slide 6: Disclaimer
Disclaimer General This presentation has been prepared by Nufarm Limited. The information contained in this presentation is for informational purposes only as at the date of this presentation on 17 November 2021. The information contained in this presentation is not investment or financial product a
Slide 7: Agenda
Agenda OVERVIEW CEO, Greg Hunt FY21 FINANCIAL RESULTS CFO, Paul Townsend OPERATIONAL PERFORMANCE CEO, Greg Hunt SEED TECHNOLOGIES Group Executive Nuseed, Brent Zacharias OUTLOOK CEO, Greg Hunt Q&A 3
Slide 8: Overview
Pi Grervew y _/CEO, Greg Hunt
Slide 9: Safety - a critical priority
FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED FY21 OVERVIEW RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES OUTLOOK Q&A Safety - a critical priority Lost Time Injury Frequency Rate (LITFR)^ Sustaining our safety focus Nufarm Compared to US Pesticide Manufacturing Industry* 4.5 •
Slide 10: Improved revenues, margins and cash generation
FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED FY21 OVERVIEW RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES OUTLOOK Q&A Improved revenues, margins and cash generation Financial highlights Segment highlights Improved seasonal conditions, soft commodity prices and Strong financial
Slide 11: Earnings growth across all business segments
FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED FY21 OVERVIEW RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES OUTLOOK Q&A Earnings growth across all business segments Revenue up 10% uEBITDA1 up 51% AUD‘m AUD’m Proforma Total crop Seed tech - Total crop Seed tech 2 Proforma Sep-20
Slide 12: Product and geographical diversification
FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED FY21 OVERVIEW RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES OUTLOOK Q&A Product and geographical diversification Revenue by product type Revenue by product type Revenue by segment uEBITDA1 by segment Other Fungicides Corporate 6% S
Slide 13: ESG operational areas of focus
FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED FY21 OVERVIEW RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES OUTLOOK Q&A ESG operational areas of focus Crop protection Seed technologies Turning world-leading scientific breakthroughs into Creating crops that positively impact glob
Slide 14: ESG reporting and governance
FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED FY21 OVERVIEW RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES OUTLOOK Q&A ESG reporting and governance Sharpened specific Climate Change actions with tighter alignment into the Group Strategy process The Company has set a target of
Slide 15: FY21 Financial performance
FY21 Financial performance CFO, Paul Townsend
Slide 16: Result highlights
FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED FY21 OVERVIEW OUTLOOK Q&A RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES Result highlights Results Summary FY21 FY20 Change $AUD’m Reported Proforma From continuing operations (excluding material items) Revenue 3,216 2,934 Up 10% uE
Slide 17: Disciplined expense management despite supply chain headwinds
FY21 OVERVIEW FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED OUTLOOK Q&A RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES Disciplined expense management despite supply chain headwinds Key underlying SG&A movements • Increase in freight and warehousing costs associated with ongoing
Slide 18: Maintaining discipline while retaining flexibility
FY21 OVERVIEW FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED OUTLOOK Q&A RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES Maintaining discipline while retaining flexibility Capital Management Framework Sustained financial resilience throughout operating cycles to support growth an
Slide 19: Substantial free cash flow generation
FY21 OVERVIEW FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED OUTLOOK Q&A RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES Substantial free cash flow generation FREE CASH FLOW BRIDGE AUD$’m NWC and other net assets • Significant cash flow generation of $257 million over the year •
Slide 20: Diligent management of working capital and CAPEX
FY21 OVERVIEW FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED OUTLOOK Q&A RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES Diligent management of working capital and CAPEX NET WORKING CAPITAL CAPEX SUMMARY AUD$’m Completion of sale of AUD$’m LATAM business Change in financial repor
Slide 21: Streamlined balance sheet provides optionality
FY21 OVERVIEW FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED OUTLOOK Q&A RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES Streamlined balance sheet provides optionality NET DEBT, LEVERAGE* & LIQUIDITY SUMMARY DEBT PROFILE Completion of sale of AUD$’m 30 Sep 21 30 Sep 20 South Amer
Slide 22: Operational performance
Operational performance CEO, Greg Hunt
Slide 23: APAC
FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED FY21 OVERVIEW OUTLOOK Q&A RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES APAC Higher volumes and improved product mix deliver earnings growth FY21 OVERVIEW 3 YEAR FINANCIAL PERFORMANCE AUD$’m • Improved conditions, strong commodity
Slide 24: North America (USD)
FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED FY21 OVERVIEW OUTLOOK Q&A RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES North America (USD) Lower channel stocks and tight supply FY21 OVERVIEW 3 YEAR FINANCIAL PERFORMANCE USD$’m • Improved market conditions and higher commodity p
Slide 25: Europe (Euro)
FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE SEED FY21 OVERVIEW OUTLOOK Q&A RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES Europe (Euro) Earnings growth and positive momentum FY21 OVERVIEW 3 YEAR FINANCIAL PERFORMANCE EUR €’m Europe Revenue Table heading Europe uEBITDA • Acquired p
Slide 26: Seed Technologies
Seed Technologies Group Executive Nuseed, Brent Zacharias
Slide 27: Seed Technologies
FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE FY21 OVERVIEW RESULTS PERFORMANCE RESULTS RESULTS RESULTS SEED TECHNOLOGIES OUTLOOK Q&A Seed Technologies Fundamentally improving the utility and Delivering VALUE BEYOND YIELD® value of crops FY21 OVERVIEW 3YR FINANCIAL PERFORMANCE AUD$m Table hea
Slide 28: Driving meaningful growth
FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE FY21 OVERVIEW RESULTS PERFORMANCE RESULTS RESULTS RESULTS SEED TECHNOLOGIES OUTLOOK Q&A Driving meaningful growth Resulting from our rich global pipeline Our seeds platform is the foundation of our innovation and farm supply chain • Canola capabil
Slide 29: Omega 3 business platform
FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE FY21 OVERVIEW RESULTS PERFORMANCE RESULTS RESULTS RESULTS SEED TECHNOLOGIES OUTLOOK Q&A Omega 3 business platform Important milestones achieved in both aqua and human health segments • Chilean market recovering post Covid-19 • FDA New Dietary Ingr
Slide 30: Carinata business platform
FY21 FINANCIAL OPERATIONAL APAC NORTH AMERICA EUROPE FY21 OVERVIEW RESULTS PERFORMANCE RESULTS RESULTS RESULTS SEED TECHNOLOGIES OUTLOOK Q&A Carinata business platform Advanced feedstock for renewable biofuels • Certification through Roundtable on • Second year of commercial field Sustainable Biomat
Slide 31: Outlook and priorities for FY22
Outlook and priorities for FY22 CEO, Greg Hunt
Slide 32: Focus on long-term growth, cash generation & returns
OPERATIONAL EuMEA APAC NORTH AMERICA SEED FY21 OVERVIEW FY21 RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES OUTLOOK Q&A Focus on long-term growth, cash generation & returns Strategy unchanged • Securing market share gains in crops & markets where we have strong relevance Growing volumes, •
Slide 33: FY22 outlook
OPERATIONAL EuMEA APAC NORTH AMERICA SEED FY21 OVERVIEW FY21 RESULTS PERFORMANCE RESULTS RESULTS RESULTS TECHNOLOGIES OUTLOOK Q&A FY22 outlook • The outlook for soft commodity prices remains positive • Improved seasonal conditions in key grain producing regions resulting in strong demand for crop pr
Slide 34: Q&A
Q&A
Slide 35: Appendices
Appendices
Slide 36: Appendix 1: IFRIC adjustment
Appendix 1: IFRIC adjustment EBITDA - Underlying Sep-21 Sep-21 Sep-20 Sep-20 Sep-20 Sep-20 Statutory (Pre- Statutory Statutory (Pre- Statutory Pre-IFRIC Statutory IFRIC) (Restated) IFRIC) (Restated) ($000s) 12 months IFRIC 12 months 2 months IFRIC 2 months 12 months IFRIC 12 months Crop protection I
Slide 37: Appendix 2: Non-IFRS disclosures and definitions
Appendix 2: Non-IFRS disclosures and definitions Term Definition Underlying EBIT Earnings before net financing costs, taxation and material items. Underlying EBITDA Underlying EBIT before depreciation and amortisation. Underlying net profit after tax Profit/(loss) for the period attributable to the
Slide 38: Appendix 3: Financial Summary
Appendix 3: Financial Summary Continuing Operations (RESTATED) PROFORMA 12 months ending 30 Sep 2021 2 months ending 30 Sep 2020 12 months ending 30 Sep 2020 Underlying Material items Total Underlying Material items Total Underlying $000 $000 $000 $000 $000 $000 $000 Revenue 3,215,651 - 3,215,651 26
Slide 39: Appendix 4: Material items
Appendix 4: Material items 12 months ended 30 September 2021 2 months ended 30 September 2020 Material items by category Pre-tax Post-tax Pre-tax Post-tax $000 $000 $000 $000 Legal costs (392) (392) - - Asset rationalisation and restructuring (2,031) (1,838) (1,926) (961) Transactions related to Sou
Slide 40: Appendix 5: Cash flow
Appendix 5: Cash flow (Restated) Impact of material items on cash flow results 12 months ended 2 months ended 30 Sep 2021 30 Sep 2020 $000 $000 Underlying net operating cash flow 439,807 (119,683) Net operating cash flow - material items (15,616) (10,306) Total net operating cash flow 424,191 (129,9
Slide 41: Appendix 6: Constant currency results
Appendix 6: Constant currency results 12 months ended Sep 2021 Sep 2021 Sep 2020 Constant Reported Constant Proforma currency 1 currency % A$ million Revenue 3,215.7 3,483.8 2,933.5 19% Underlying EBITDA 361.1 397.2 237.2 67% Underlying EBIT 153.1 178.1 40.0 345% Average exchange rates FY21 v FY20 A