Pgg Wrightson Limited · NZX:PGW
Pgg Wrightson — Merger or Acquisition (October 2009)
26 slides from Pgg Wrightson's merger presentation, Oct 16, 2009
Slide 1: Announcement and briefing: Strategic partnership with Agria Corporation
PGG Wrightson Announcement and briefing Strategic partnership with Agria Corporation 16 October 2009
Slide 2: Keith Smith, Chairman
PGG Wrightson Keith Smith Chairman
Slide 3: Overview
Overview Announcement of an important new partnership with Agria Corporation, in two parts Cornerstone shareholding by way of this placement Strategic Co-operation Agreement to explore new business opportunities Continued priority on existing customers and business platform New equity supports recap
Slide 4: Equity investment by Agria Corporation
Equity investment by Agria Corporation Equity placement – 13 percent of PGW’s share capital 88 cents per share – NZ$36 million Placement conditional on certain key events Announcement on rights issue early November Both parties’ aspiration is for Agria to be a significant shareholder in PGG Wrightso
Slide 5: Strategic partnership through Co-operation Agreement
Strategic partnership through Co-operation Agreement Highly complementary business platforms and capabilities Agreement to work together to create value for both companies Advancement of agricultural technology Development of new markets Creates strategic options for PGW to participate in China with
Slide 6: Tim Miles, Managing Director
PGG Wrightson Tim Miles Managing Director
Slide 7: Why Agria?
Why Agria? Conducted robust cornerstone process Strong preference Value add to stakeholders Long-term partnership Agria Here for the long term Link our customers to world’s largest market Provide financial resources, access to intellectual property and talent Value creation opportunities via Co-oper
Slide 8: Some initial thoughts regarding co-operation
Some initial thoughts regarding co-operation Develop and commercialise seed cultivars Livestock Establish livestock trading in China Fulfil demand for livestock in China Examine development of a rural services business in China Examine additional funding options through third party sources to aid gr
Slide 9: Agria Corporation, Xie Tao, Chief Executive Officer
Agria Corporation Xie Tao Chief Executive Officer
Slide 10: Key highlights
Key highlights The first China originated agribusiness to reach an international stage of development Substantial cash balances earmarked for investment Newly strengthened management team Extensive relationships throughout China’s agriculture sector Diversified investments in crop seed, animal breed
Slide 11: Questions and Discussion
Questions and Discussion PGG Wrightson Agria Corporation
Slide 12: Appendix: Agria Corporation Overview
APPENDIX Agria Corporation Overview
Slide 13: Business overview
Business overview A leading China-based agri-solutions provider focusing on R&D, production and sale of upstream agricultural products Corn Seeds Sheep Breeding Other Proprietary Sheep Includes Blackberries Generic Semen and Embryos Raspberries Dates White bark pine 12
Slide 14: Large Scale, Diversified business
Large Scale, Diversified business… Strategic Production Locations Corn seeds Shanxi Shanxi: Production Base Sheep breeding Favorable climate and Total: 63 Production Bases geographic conditions for growing Agria products Hainan: Winter Propagation Base Enables Agria to harvest an additional generati
Slide 15: Extensive Sales and Distribution
… with Extensive Sales and Distribution … Corn Seeds 12 Provinces • Shanxi, Inner Mongolia, Hebei, Henan, Shaanxi, Heilongjiang Shandong, Liaoning, Hubei, Hunan, Jilin Heilongjiang, Jilin and Liaoning Sichuan Inner Mongolia Ningxia Hebei Shanxi Sheep Breeding Shandong Gansu Henan Shaanxi 7 Provinces
Slide 16: Marketing and Customer Support
… and Marketing and Customer Support … # of Distributors Ultimate Customers # of Provinces 40 distributors Corn Seeds Farmers 12 70 sales outlets Breed Improvement and Reproductive Breeding companies Sheep Stations (BIRS) 7 Breeding Veterinary stations Farmers (260+) Plantation nursery Local governm
Slide 17: Overview of CNAAS
Overview of CNAAS CNAAS is China’s largest agricultural organization and a key partner of Agria Established in 1957 and controls one of the largest seed banks in the world through its extensive nature of branches and subsidiaries One of the most important research groups in the country owning 39 res
Slide 18: Agria's co-operation with CNAAS
Agria’s co-operation with CNAAS CNAAS has chosen Agria to effect the commercialisation of its research and technology through Agria making a majority equity investment in Zhongnon (China Agricultural Seed Company) and A strategic co-operation agreement between CNAAS and Agria Key features of the arr
Slide 19: Strengthened Management Team
Strengthened Management Team Alan Lai Xie Tao Chairman CEO Combination of international management experience and local knowledge Chris Frank Zhao John Layburn Boddington COO CIO Designate CFO 18
Slide 20: Appendix: PGG Wrightson Overview
APPENDIX PGG Wrightson Overview
Slide 21: The consummate rural platform in New Zealand
The consummate rural platform in New Zealand New Zealand wide network of supply stores and livestock yards Pipfruit Grain Strength in all areas of Key agricultural services Fruitfed stores supported by leading PGW Rural Supplies stores brands Annual turnover of NZ$1.3 billion across all PGW Sheep bu
Slide 22: Leading farmer relationships and IP
Leading farmer relationships and IP Market leadership ♦ Market leader across all major segments with 90,000 across a diverse range Consummate rural customers throughout New Zealand 1 of business units has business platform ♦ Relationship and advice based service model complemented established PGW as
Slide 23: Growth strategy overview
Growth strategy overview Key focus is driving ♦ Current portfolio includes businesses 1. Core Inputs and services Streamline portfolio • Rural Supplies • Livestock value from current of businesses which have become non-strategic, • Fruitfed PGW NZ Assets some have been exited e.g. livestock portfoli
Slide 24: A diversified base of businesses
A diversified base of businesses PGW has leading market positions across its business units Seed & Grain Rural Supplies Livestock Fruitfed Agri-feeds ♦ Producer and seller ♦ Leading supplier of ♦ Sales agent for ♦ Leading horticulture ♦ Leading importer of of temperate forage goods and services shee
Slide 25: A diversified base of businesses
A diversified base of businesses PGW has leading market positions across its business units Funds management & Finance Real estate Insurance Irrigation & Pumping South America ♦ Leading non-bank ♦ Rural Real Estate ♦ Broker of rural ♦ Design, construction, ♦ South America is a rural lender with brok
Slide 26: Announcement and briefing: Strategic partnership with Agria Corporation
PGG Wrightson Announcement and briefing Strategic partnership with Agria Corporation 16 October 2009