Nufarm Limited · ASX:NUF
Nufarm — H1 2006 Earnings Presentation
29 slides from Nufarm's earnings presentation, Mar 28, 2006
Slide 1: Interim Results, 6 months to January 31, 2006
| “= il i Iho mT mm Ii \ i vy a Nufarm interim Results 6 months to January 31, 2006
Slide 2: Doug Rathbone, Managing Director
ian ‘nh lh Doug Rathbone Managing Director
Slide 3: First half highlights
Piinni i | In First half: = Solid performance = Agripec in line with expectations = Balance of core businesses up 30% = Timing issues have an impact - seasonality = Encouraging recovery in margins Current picture: =» Sales momentum now building = Europe slow off the mark = Ready to capitalise on pos
Slide 4: Corporate objectives — unchanged and on track
a Corporate objectives — unchanged and on track Retain focus on crop protection Expand / strengthen geographic footprint Expand product portfolio Improve ‘quality’ of earnings
Slide 5: Group Sales
a i — 1H20060 41H 2005 mm Group Sales _ 640 659 Operating profit oe . 36.2 Non operating items 3.9 Reported result 40.1 Agripec contribution 22.2 Interim dividend 9.0 cents
Slide 6: Kevin Martin, Chief Financial Officer
ian ‘nh lh Kevin Martin Chief Financial Officer
Slide 7: AIFRS
a AIFRS » AIFRS January 2005 and January 2006 = No major differences at August, 2004 and July, 2005 to items presented in October « AIFRS is positive to Nufarm Business structure =" Nuturf sold August, 2005 = Colombia acquired December, 2005 * Product acquisitions
Slide 8: Profit after tax AGAAP to AIFRS reconciliation
a add Profit after tax AGAAP Amortisation of goodwill Amortisation of intangibles Amortisation Agripec goodwill Reverse intangible asset write off Net all other Profit after tax AIFRS 28.3
Slide 9: Reconciliation of core business result
1 it ciliation Ja CONCH MAT Jan ‘06 Jan '05 Continuing operations headline result 28.5 25.6 add Non operating items AB 10.6 33.3 36.2 Less Agripec result -14.9 -22.2 ‘Core business result’ 18.4 14.0
Slide 10: Equity accounting result
YN | | Equity accounting result 18.3 22.4 interest - 3.4 - 0.2 Net result 14.9 22.2
Slide 11: Working capital and capital notes
bi i) TM Mili = Capital notes current liability in 2006 * Working capital up $140m Capital note F/X receivable Acquisitions Inventory build USA Receivables 43m 10m 42m 35m
Slide 12: Doug Rathbone, Managing Director
ian ‘nh lh Doug Rathbone Managing Director
Slide 13: Markets review: Australia
bi i) TM Mili Australia: Summer cropping strong; in particular horticulture » New products (‘Opus’) and seed treatment opportunities * Hot/dry through January/February — WA the exception = Competition is vigorous = Strong operational focus
Slide 14: Markets review: New Zealand
a larkets revie’ OT New Zealand: « Crop protection sales/profit up on p.c.p. = Successful launch of ‘Roundup Transorb' «" Margin pressure from increased competition
Slide 15: Markets review: Asia
Piinni Ain | attain. iil Asia: « Improved sales and profit contribution «" Broader product range, improved margins in Indonesia « Profitable early sales in Japan TTT INN)
Slide 16: North America: USA
| | North America: USA Sales and profit up Late start due to dry conditions in Southern States Early purchasing commitments deferred after pricing adjustments Margin improvement in phenoxies New product launches in Ag / Turf Excellent relationships with distribution
Slide 17: North America: Canada
iti Mkets ¢ AT North America: Canada = Sales well ahead of budget (partly a timing issue) = Smooth transition / launch of ‘Assert’
Slide 18: Markets review: Latin America
‘i HAA wih) « Sales up strongly on p.c.p. « Glyphosate pricing in Argentina a negative = Some registration delays in Chile =" Agrogen acquisition completed in Colombia TTT INN)
Slide 19: Calendar year sales — total industry and Agripec
a Calendar year sales — total industry — USD Real 2005 $4.1b 17% $9.8b 123% 2004 $4.4b $12.8b industry view: On farm sales approx. $3.6b - $3.8b in both years Calendar year sales —.net Agripec — USD Real 2005 $181m 16% $424m 120% 2004 $192m $530m Increased market share ina falling market
Slide 20: Exchange rate — Brazilian real vs USD
a 28 27 26 25 24 23 22 2.1 2/01/2005 27/02/2005 24/04/2005 19/06/2005 14/08/2005 9/10/2005 4/12/2005 —BRL/USD Exchange rate — Brazilian real vs USD (2 January 2005 to 25 December, 2005) NT,
Slide 21: Exchange rate — Brazilian real vs USD
a Exchange rate — Brazilian real vs USD (2 January 2005 to 26 March 2006) “ANS, “ \ . \A : a. 21 : T T T ‘ T ‘ 2/01/2005 6/03/2005 8/05/2005 10/07/2005 11/09/2005 13/11/2005 15/01/2006 19/03/200¢ —BRL/USD
Slide 22: 2005 calendar year Agripec
| | Wi i 2005 calendar year Agripec response / position NUF 2005 2H Drought conditions in south. ‘Collections’ campaign to reduce risk of non payments. Qi High Stock levels in payment. distribution. Low soybean prices. Some payment Q2 Increased late/non extensions/ incentives but retained strict cre
Slide 23: Agripec
We TE: Wie ] ATT hag AT A it ii Ii cao Cc Agripec « Portfolio enhancement — good pipeline = Plant improvements = Systems improvement SAnTTON TTT I
Slide 24: Europe - General
a MN TE latkets r Europe - General = Late start due to prolonged cold conditions « Improved manufacturing efficiencies following plant restructures.
Slide 25: Germany and United Kingdom
a MN TE latkets r Germany = Increased sales of fungicides - New mixture products United Kingdom « Sales and profit continue to improve «» Important progress with product registrations
Slide 26: France
a =» Seasonal conditions much improved ....... « But sectors still recovering from impact of severe drought - market down 15% France = Corn and vines segments under pressure =" Head office costs continue to be addressed
Slide 27: Eastern Europe
a MN TE latkets r Eastern Europe = Increased penetration in target markets =» Growing sales of copper fungicides » Excellent medium term growth prospects
Slide 28: Outlook
ian ‘nh lh Outlook Selling activity accelerating ... but Europe is late Maintain focus on margin recovery Agripec likely to be in line with previous guidance Strong result required from balance of the business Forecast 10% NPAT is achievable
Slide 29: an Le
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