Nufarm Limited · ASX:NUF
Nufarm — H1 2004 Earnings Presentation
9 slides from Nufarm's earnings presentation, March 2004
Slide 1: Interim Results
Interim Results 6 months to January 31, 2004 Doug Rathbone Managing Director 03-04 Interim • Thanks for your attendance and ongoing interest in the company….. • Taking into account the strong seasonality of Nufarm’s earnings, we are reporting a very solid result for the 6 months to January 31. • We
Slide 2: Headline Results
Headline Results 1H 2004 1H 2003 $m $m Operating profit (loss) (1.87) (3.99) Group Sales 530.9 509.6 Crop Protection Sales 471.4 375.1 Segment profit* 26.8 16.4 Chemicals Sales 59.2 133.4 Segment profit* 2.1 8.0 * Earnings before interest, tax, head office management charges • The half year result r
Slide 3: Headline Results
Headline Results 1H 2004 1H 2003 FY 2003 Working capital $362.5m $492.9m $336.5m Net debt to equity 113% 188% 98% Rolling 12 month ROFE 13.8% 10.5% 14.5% Interim dividend 8 cents 7 cents • The strong seasonality of the business has an impact on the balance sheet at the half year…. • However, we have
Slide 4: Seasonality of earnings
Seasonality of earnings Business mix - 6 months to January 31 2003 2004 74% 26% 89% 11% Crop Protection Industrial chemicals Major planting / cropping periods Europe: March - May Nth America: March - June Australia: May - July Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec • Consistent with the
Slide 5: 1H Results - major drivers: Crop Protection
1H Results - major drivers Crop Protection 500 50 25% increase in revenues 471.4 63% increase in segment profit 400 40 375.0 Significantly better conditions in 300 30 Australia 26.7 200 20 Continued growth in other markets 16.4 100 10 Southern Europe / France restructure 0 0 2003 2004 Sales
Slide 6: 1H Results - major drivers: Industrial Chemicals
1H Results - major drivers Industrial Chemicals 500 50 Impact of sale of Fernz trading business 400 40 Fine/performance chemicals 300 30 behind expectations 200 20 Chlor alkali plants performing 133.3 solidly 100 59.1 10 8.0 0 0 2.1 2003 2004 Sales Segment Profit 6 months to January 31 • The r
Slide 7: Key events
Key events BASF acquisitions - Global phenoxy herbicides business - Fungicides for Germany / Austria - Australian distribution business Capital raising - Institutional placement $40m - Share Purchase Plan $18m • Since the beginning of the year, we have announced three separate deals with BASF. -
Slide 8: GM issue - implications for Nufarm
GM issue - implications for Nufarm Background: Major 'input' trait is herbicide (glyphosate) resistant 'Roundup Ready' Has significantly increased application of Roundup Has required glyphosate management programs Has reduced application of a limited number of other chemistries GM issue - im
Slide 9: Outlook for full year
Outlook for full year February/March crop protection sales are strong Continued growth in USA, Germany, other markets Restructuring in France Approx 15% NPAT growth on 2003 • Turning to the outlook for the full year………. • As we enter the peak selling period for our crop protection businesses,