Slide 1: Nufarm FY24 Full Year Results
Nufarm FY24 Full Year Results 15 November 2023
Slide 2: Disclaimer
Disclaimer General This presentation has been prepared by Nufarm Limited. The information contained in this presentation is for informational purposes only as at the date of this presentation on 14 Nov 2024. The information contained in this presentation is not investment or financial product advice
Slide 3: FY24 Results Overview
FY24 Results Overview CEO, Greg Hunt
Slide 4: Key messages
Key messages Reduced working capital and debt. Clear plans for reducing costs and improving returns. Underlying EBITDA Significant reduction • EBITDA at midpoint of revised guidance range given on 15 August. in working capital • Net working capital 30% below prior year. $313m • Net debt 25% below pr
Slide 5: Achievements in FY24
Achievements in FY24 Navigating competitive CP pricing. Investing in innovation and continuing to scale growth platforms. • Strong demand for Nufarm products. Crop Protection • Increased price competition impacted results, particularly in North America. • Strong uptake of new product pipeline. • Imp
Slide 6: Segment performance
Segment performance $m FY24 FY23 Change North America Crop Protection Europe Crop Protection Revenue - Underlying Crop protection APAC 865 971 -11% • Strong demand for Nufarm products. • Nufarm volume and margins held well in the North America 1,266 1,260 1% Europe 808 857 -6% • Selling prices and m
Slide 7: Near term priorities
Near term priorities1 Focused on reducing cost, improving return on capital and supporting growth platforms. • Reducing costs Sustainably • $50m annualised savings in overhead costs by end FY25. reducing cost • Reducing inventory • 25-day year on year reduction in inventory by end FY25. Improving re
Slide 8: Financial Performance
Financial Performance CFO, Paul Townsend CFO, Paul Townsend
Slide 9: Financial summary
Financial summary Strong focus on reducing net debt and leverage. AUDm FY24 FY23 Change % Revenue 3,346 3,481 (4)% Underlying gross profit 895 1,021 (12)% Underlying gross profit margin 26.7% 29.3% (2.6)ppt uEBITDA 313 439 (29)% uEBIT 107 251 (57)% Underlying Net Profit after Tax (4) 122 (103)% Stat
Slide 10: Revenue bridge
Revenue bridge Strong crop protection volume growth, revenue declined 4% due to lower selling prices. • Crop protection (CP) • Strong growth in volume. • Revenue negatively impacted by a reduction in selling prices. • Stronger contribution from foundational Revenue $m products drove negative mix imp
Slide 11: Operating Cash Flow
Operating Cash Flow Operating cash flow $472m. Net working capital down 30% YoY. • Net working capital 30% reduction on prior year, NWC Balance reflecting inventory reduction, normalisation of $m payables and strong receivables collections. • Net working capital reduction of $710m on 1H, reflecting
Slide 12: Net working capital
Net working capital Inventory down 20% on prior year. Actions underway to drive further reduction in inventory days. Trade & Other Receivables • Inventory down 20% YoY. Actions underway to drive Inventories Trade & Other Payables further sustainable reduction in inventory days. 1,707 1,662 • Normali
Slide 13: Capital expenditure
Capital expenditure Disciplined capital investment targeting licence to operate, projects with near-term payoff and growth platforms. • Targeted investments to address HSE and plant reliability (Wyke) and growth (Chicago Heights, Capital Expenditure $m Laverton 2,4-D). • Strong near-term payoff – re
Slide 14: Net debt
Net debt Net debt down 25% YoY. Net leverage 2.0 x. Strong achievement in the face of cyclically lower EBITDA. • Net debt $635m, down $215m or 25% on prior year. 3.6 x Net Leverage 2.4 x • Net Leverage at 2.0x FY24 EBITDA. 1.9 x 2.0 x • Reduction in debt driven primarily by management of net working
Slide 15: Outlook
Outlook CEO, Greg Hunt 1. For forward looking statements refer to the disclaimer on page 2 of this presentation.
Slide 16: Outlook
Outlook1 • Well positioned for growth in crop protection as industry conditions improve. • Solid demand. • Pricing remains competitive. • Stable AI prices - do not expect the same deflationary impact from falling AI prices as seen in FY24. • Targeting growth in canola, sorghum and sunflower seeds. •
Slide 17: Outlook
Outlook1 • Management is focused on reducing cost and working capital, improving return on funds employed and supporting our growth platforms. • Achievement of our FY26 revenue aspirations of $3.8 to $3.9b in crop protection will be largely dependent on a return to long term average pricing. 2 • We
Slide 18: Q&A
Q&A
Slide 19: Appendices
Appendices
Slide 20: Non-IFRS disclosures & definitions
Appendix 1: Non-IFRS disclosures & definitions1 Term Definition Gross profit margin Gross profit as a percentage of revenue Underlying gross profit Gross profit excluding the impact of material items Underlying gross profit margin Underlying gross profit as a percentage of revenue Underlying SG&A Sa
Slide 21: Segment table
Appendix 2: Segment table Revenue - Underlying 2021 2022 2023 2024 Change Change ($000s) $000 $000 $000 $000 $000 % Crop protection APAC 858,407 1,038,424 970,504 864,600 (105,904) -11% North America 1,112,423 1,350,190 1,259,811 1,266,262 6,451 1% Europe 806,485 894,931 857,214 808,131 (49,083) -6%
Slide 22: Underlying and statutory profit
Appendix 3: Underlying and statutory profit Continuing Operations 12 months ending 30 Sep 2024 12 months ending 30 Sep 2023 Underlying Material items Total Underlying Material items Total $000 $000 $000 $000 $000 $000 Revenue 3,345,909 - 3,345,909 3,480,611 - 3,480,611 Cost of sales (2,450,887) (54,
Slide 23: Material items
Appendix 4: Material items 2024 2024 2023 2023 $000 $000 $000 $000 pre-tax after-tax pre-tax after-tax Material items by category: Idle plant capacity (47,246) (34,482) - - Non-core asset disposals 23,431 23,431 - - Asset rationalisation and restructuring (18,756) (17,130) (12,705) (12,705) Deferred
Slide 24: Material items continued
Appendix 4: Material items continued 2024 2024 2023 2023 $000 $000 $000 $000 pre-tax after-tax pre-tax after-tax Material items by category: Idle plant capacity (47,246) (34,482) - - Non-core asset disposals 23,431 23,431 - - Asset rationalisation and restructuring (18,756) (17,130) (12,705) (12,705
Slide 25: Cash flow
Appendix 5: Cash flow Underlying Material items Total group 2024 $000 $000 $000 Cash flows from operating activities Net operating cash flows 519,637 (47,246) 472,391 Cash flows from investing activities Net investing cash flows (253,244) 45,787 (207,457) Cash flows from financing activities Net fin
Slide 26: Free cash flow
Appendix 6: Free cash flow Free cash flow driven by NWC reduction $m • Operating cash flow generation is highly correlated with changes in Net Working Capital & underlying EBITDA • NWC cash inflow driven by lower inventory • Net free cash flow generated of $189m, post application to dividends & grow
Slide 27: Segment Information & reconciliation
Appendix 7: Segment Information & reconciliation Revenue - Underlying 2024 2023 Change Change ($000s) $000 $000 $000 % Crop protection APAC 864,600 970,504 (105,904) (11%) North America 1,266,262 1,259,811 6,451 1% Europe 808,131 857,214 (49,083) (6%) Total Crop protection 2,938,993 3,087,529 (148,5
Slide 28: Constant currency results
Appendix 8: Constant currency results 12 months ended Sep 2024 Sep 2024 Sep 2023 Constant Reported 1 Reported currency Constant A$ million currency % Change Revenue 3,345.9 3,323.5 3,480.6 -5% Underlying EBITDA 312.7 314.3 439.4 -28% Underlying EBIT 107.3 112.6 251.0 -55% Average exchange rates FY24
Slide 29: Capital Management Principles
Appendix 9: Capital Management Principles Maintaining discipline while retaining flexibility Capital Management Framework Sustained financial resilience throughout operating cycles to support growth & optimise returns to shareholders Principle Optimising financial Maintaining financial Optimising re
Slide 30: Global crop protection product development pipeline
Appendix 10: Global crop protection product development pipeline Our crop protection pipeline crops, segments and geographies – selected products Estimated Project Stage Evolution Estimated Global Launch Market Value Year1 1. Business Case 2. Develop POC 3. Dossier Preparation 4. Registration & TTM
Slide 31: FY24 Portfolio Solutions Milestones & Updates
Appendix 11: FY24 Portfolio Solutions Milestones & Updates Foundational Innovative Biological Emerging Integrated Solutions Solutions Solutions Solutions Solutions Joust/Gauntlet® MOA IBI-Ag Precision application Precinct® Fungicide containing Agreement signed with MOA Australian GRDC and Nufa