Nufarm Limited · ASX:NUF
Nufarm — Investor Day (May 2018)
13 slides from Nufarm's investor day presentation, May 2018
Slide 1: European acquisitions
European acquisitions
Slide 2: Stable European crop protection market expected to grow
Stable European crop protection market expected to grow 18 16.4 15.5 15.6 15.4 15.1 14.2 13.6 12 6 0 2012 2013 2014 2015 2016 2017 2021 (forecast) A$b Source: Kleffmann Agriglobe & Phillips McDougall 38
Slide 3: European market - unique features
European market Tight - unique features Stable and regulatory regime a barrier to growing entry market Better margins Niche, high and higher Lower value crops returns working capital requirement Strong and Less high consistent volume cash flows row crops 39
Slide 4: Neonicotinoids - Europe
Neonicotinoids - Europe Situation • EU standing committee voted on April 27th for restricted use of Neonicotinoids (Neonics) to permanent greenhouses only • Sales for outdoor uses up to end September 2018 • Field level use outdoor allowed up to end December 2018 • Imidacloprid FY17 gross margin cont
Slide 5: Nufarm has evolved over 20 years to establish a strong position in Europe
Nufarm has evolved over 20 years to establish a strong position in Europe Nufarm entered Continued Started European - Launch of One Embedded One Acquisitions: Europe and grew acquisitions e.g. wide business Nufarm strategy - Nufarm organisation Century and FMC through a series improvement focus on P
Slide 6: Nufarm's focused strategy in Europe is proving successful
Nufarm’s focused strategy in Europe is proving successful and creating positive momentum for the acquisitions Poland 66% Germany 53% France 5% Cereals Corn Pasture, turf Soybean Trees, nuts, vines & ornamentals & vegetables 42 FY17 vs FY16 branded sales in local currency
Slide 7: Dependability and service at the heart of Nufarm's customer experience
Dependability and service at the heart of Nufarm’s customer experience A partner for growth With these foundations in place we are a valued Easy to do Technical business with support partner for growth. & advice Quality Competitively Supplied products positioned reliably 43
Slide 8: Acquisitions are a strong strategic fit
Acquisitions are a strong strategic fit Rationale By country / region By crop Other • Acquiring brand and Other Germany 10% 18% product registrations 21% Corn 8% • Forced asset sales Hungary Cereals 44% Century 4% Oilseed Spain • Enhance position as leading 15% rape 15% off-patent company Romania 8%
Slide 9: New portfolio after acquisitions (2018) in place for growth
New portfolio after acquisitions (2018) in place for growth Herbicides Insecticides MAVRIK® 20 EW Fungicides ORIUS® AMPERA® PGR Calma® ST BBCH 10-12 BBCH30-32 BBCH 39 BBCH 59 BBCH 65 BBCH 73 45
Slide 10: Our integration programme is driving the changes we need to deliver results
Our integration programme is driving the changes we need to deliver results Portfolio Channel Supply chain People solutions partnerships excellence and culture • Registrations being • Brands that customers value • Closing inventory • Sales organization transferred and need transferred with ongoing e
Slide 11: Acquisitions make Europe the largest regional contributor to Nufarm's earnings
Acquisitions make Europe the largest regional contributor to Nufarm’s earnings FY17 Sales FY17 EBITDA 18% 31% • Europe EBITDA margin 22.5% • Group EBITDA margin 12.5% FY17 Sales - pro forma with FY17 EBITDA - pro forma with acquisitions acquisitions With pro forma acquisitions: • Europe EBITDA margi
Slide 12: The early indications from the market are extremely positive
The early indications from the market are extremely positive - we are confident that we will deliver Increased Increased Increased relevance revenues profitability “Nufarm’s range is now more important & large. We see changes in the professionalism of the sales people.” French Distributor “Nufarm’s
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