20 slides from Adama Ltd. Class A's earnings presentation, Nov 20, 2016
Slide 1: Business Update Q3 and YTD 2016
Business Update Q3 and YTD 2016 November 20, 2016
Slide 2: Legal notice
Legal notice This presentation is for marketing and information purposes only. By this presentation, ADAMA Agricultural Solutions Ltd. (the “Company”) does not intend to give, and the presentation does not constitute, professional or business advice or an offer or recommendation to perform any trans
Slide 3: Strong growth, record Q3 profit and profitability
Strong growth, record Q3 profit and profitability Sales Gross Profit EBITDA Net Income +6.5% Gross margin +5.5pp EBITDA margin +4.6pp Net margin +5.2pp 741 Q3 2016 696 Q3 2015 260 206 35.1% 132 29.6% 92 17.8% 33 13.2% 4.5% -0.7% -5 Sales Gross Profit ($mm) EBITDA ($mm) and Net Income ($mm) ($mm) and
Slide 4: Strong profit increase and reduction in inventories lead to robust cash flow generation
Strong profit increase and reduction in inventories lead to robust cash flow generation Significant reduction in … drives strong Q3 operating …and robust YTD operating inventory levels… cash flow… cash flow -$116m +$66m +$170m 1,199 1,083 361 191 169 103 Sept 2015 Sept 2016 Q3'15 Q3'16 9M'15 9M'16 I
Slide 5: Strong improvement in free cash flow
Strong improvement in free cash flow Strong Q3 free cash flow …adds to dramatic improvement generation… in YTD free cash flow +$59m +$182m 234 120 61 52 Q3'15 Q3'16 9M'15 9M'16 Free Cash Flow Free Cash Flow ($mm) ($mm) Note: To aid comparability, cash flow figures for 9M 2015 are shown adjusted for
Slide 6: Financial highlights
Financial highlights % Change %Change % Change %Change Adjusted, ($ million) Q3 2016 Q3 2015 9M 2016 9M 2015 CER USD CER USD Sales 741 696 5.6% +6.5% 2,402 2,414 +4.1 -0.5% Gross Profit 260 206 +26.3% 827 774 +6.8% As % of Sales 35.1% 29.6% 34.4% 32.1% Operating Expenses 175 157 +11.6% 514 502 +2.3%
Slide 7: Regional sales performance Q3 2016 vs. Q3 2015
Regional sales performance Q3 2016 vs. Q3 2015 USD terms Region Constant currency terms 1.7% Europe 4.8% 5.9% North America 5.8% 4.0% Latin America (3.1)% 6.1% Asia Pacific 4.5% 20.5% India, Middle East & Africa 23.2% 6.5% Total 5.6% -5% 0% 5% 10% 15% 20% 25% 7
Slide 8: Record results: robust worldwide sales growth and strong increase in profit and profitability
Record results: robust worldwide sales growth and strong increase in profit and profitability Q3 sales up 6.5% to $741 million, with growth across all regions - Significant 8.4% increase in volumes in Q3, up 5.6% YTD - 9M sales of $2.4 billion, up 4.1% in constant currencies and in line with last
Slide 9: Financial Bridge Analysis
A Financial Bridge Analysis ADAMA
Slide 10: Q3 sales bridge analysis
Q3 sales bridge analysis In USDm 58 -19 741 6 696 +8.4% -2.7% +0.9% Q3 2015 Quantity Price FX and Q3 2016 Variance Variance Hedging Gap 10
Slide 11: Q3 gross profit bridge analysis
Q3 gross profit bridge analysis In USDm 40 6 260 27 -19 206 35.1% 29.6% Q3 2015 Quantity Price Cost FX and Q3 2016 Variance Variance Variance Hedging Gap 11
Slide 12: Q3 EBITDA bridge analysis
Q3 EBITDA bridge analysis In USDm 42 -15 132 5 27 -19 92 17.8% 13.2% Q3 2015 Quantity Price Cost Operating FX and Q3 2016 Variance Variance Variance Expenses Hedging Gap 12
Slide 13: 9M sales bridge analysis
9M sales bridge analysis In USDm 136 -36 -112 2,414 2,402 +5.6% -1.5% -4.6% Sales growth excluding FX +4.1% 9M 2015 Quantity Price FX and 9M 2016 Variance Variance Hedging Gap 13
Slide 14: 9M gross profit bridge analysis
9M gross profit bridge analysis In USDm 116 -95 68 -36 827 774 34.4% 32.1% 9M 2015 Quantity Price Cost FX and 9M 2016 Variance Variance Variance Hedging Gap 14
Slide 15: 9M EBITDA bridge analysis
9M EBITDA bridge analysis In USDm 118 -16 -86 68 -36 446 398 18.6% 16.5% 9M 2015 Quantity Price Cost Operating FX and 9M 2016 Variance Variance Variance Expenses Hedging Gap 15
Slide 16: Regional Highlights
A Regional Highlights ADAMA
Slide 17: Regional highlights
Regional highlights Europe Sales up by 4.8% in the quarter, in CER, with significant higher-margin volume growth aided by expectation of good harvests in Eastern Europe as well as increased demand for fungicides in southern Europe. Sales in 9M lower by 0.8%, in CER, reflecting the extended cold
Slide 18: Regional highlights (cont’d.)
Regional highlights (cont’d.) Latin America Sales lower by 3.1% in Q3 in CER, with the Company performing strongly in Brazil, while containing sales due to credit considerations and partly passing on to customers some of the benefit of the products' significantly reduced cost. Sales up by 2.9% i
Slide 19: Regional highlights (cont’d.)
Regional highlights (cont’d.) Asia Pacific Sales up by 4.5% in Q3 and by 10.5% in 9M, in CER, driven by significant volume growth. Consistent focus on strengthening the quality of the business and driving demand for an increasingly differentiated portfolio yielded good results in the Pacific and
Slide 20: ADAMA
ADAMA