Adama Ltd. Class A · SZSE:000553
Adama Ltd. Class A — Q4 2019 Earnings Presentation
25 slides from Adama Ltd. Class A's earnings presentation, 2020
Slide 1: Business Update Q4 and FY 2019
Business Update Q4 and FY 2019
Slide 2: Legal Notice
Legal Notice This presentation is for marketing and information purposes only. By this presentation, neither ADAMA Ltd. nor Adama Agricultural Solutions Ltd. (together the “Company” or “ADAMA”) intend to give, and the presentation does not constitute, professional or business advice or an offer or r
Slide 3: Record Q4 Provides Strong Close to a Tough Year
Record Q4 Provides Strong Close to a Tough Year Fourth Quarter Full Year Sales EBITDA Sales EBITDA $1,035m $147m $4.0bn $656m +7% +16% +3% +3% Record Record high high 3
Slide 4: Executive Summary: All-time Q4 record sales, gross profit and EBITDA
All-time Q4 record sales, gross profit and EBITDA Sales Gross Profit EBITDA Net Income Volumes +10% In line with Q4’18 EBITDA margin +1.0 p.p. $3m below Q4’18 Jingzhou disruption: -$42m Jingzhou disruption: -$16m Jingzhou disruption: -$26m Jingzhou disruption: -$20m 1,035 Executive Summary 963 Q4 20
Slide 5: Executive Summary: Full Year record sales and EBITDA
Full Year record sales and EBITDA, despite Jingzhou impact Sales Gross Profit EBITDA Net Income Volumes & Prices +2.5% Gross margin -1.3 p.p. EBITDA margin in-line with 2018 Net Income margin -0.9 p.p. Jingzhou disruption: -$204m Jingzhou disruption: -$80m Jingzhou disruption: -$111m Jingzhou disrup
Slide 6: Strong Q4 drives FY Sales and EBITDA +3%
Strong Q4 drives FY Sales and EBITDA +3%, despite $200m missing sales from Jingzhou old site Q4 2019 Q4 2018 % % Jingzhou FY 2019 FY 2018 % % Jingzhou Adjusted, (million) Change Change Old Site Change Change Old Site CER Disruption CER Disruption Sales 1,035 963 +7% +10% -42 3,997 3,881 +3% +5% -204
Slide 7: Working capital build-up driven by strong growth momentum
Working capital build-up driven by strong growth momentum Strong Q4 Operating Cash Flow Controlled working capital build-up to accommodate Strong Balance Sheet generation growth momentum Despite working capital build-up Net debt / EBITDA ratio of 1.6x 1,055 Executive Summary +82 -66 +324 +231 656 +1
Slide 8: Investments to support business growth, acquisitions and capital projects
Investments to support business growth, acquisitions and capital projects 49 1,055 Executive Summary 102 151 Executive Summary 301 457 330 324 Net Debt Net After- Net Acquisitions Fixed Capex Intangible Dividend Net Debt Dec-18 Tax Working (incl. debt) (Relocations Capex payment Dec-19 Operating C
Slide 9: Regional Update
A, ADAMA Regional Update
Slide 10: Robust Q4 Performance Across Most Regions
Robust Q4 Performance Across Most Regions Sales change by region – Q4 2019 vs. Q4 2018 USD terms Q4 2019 Constant Exchange Rates Sales Region ($m) 14.1% 214 Europe 16.4% Regional Update 5.0% 365 Latin America 10.2% North America 10.5% 226 10.4% Asia Pacific 10.3% 136 11.5% of which, China $59m (6.1)
Slide 11: Continued Growth in a Challenging Market
Continued Growth in a Challenging Market Sales change by region – FY 2019 vs. FY 2018 USD terms FY 2019 Constant Exchange Rates Sales Region ($m) (2.6)% 1,031 Europe (3.7)% Regional Update 9.3% 1,022 Latin America 14.2% North America 6.9% 786 7.0% Asia Pacific 3.6% 633 7.2% of which, China $314m (3.
Slide 12: Regional Performance: Europe
Europe % Variance % Variance % Variance % Variance Q4’18 Q4’19 FY 18 FY 19 USD CER USD CER Sales ($m) 188 214 +14.1% +16.4% 1,058 1,031 -2.6% -3.7% CER: Constant Exchange Rate Highlights Regional Performance ▪ Q4 sales grew strongly driven by significant business growth, more than offsetting impact
Slide 13: Regional Performance: Latin America
Latin America % Variance % Variance % Variance % Variance Q4’18 Q4’19 FY 18 FY 19 USD CER USD CER Sales ($m) 347 365 +5.0% +10.2% 935 1,022 +9.3% +14.2% CER: Constant Exchange Rate Highlights Regional Performance ▪ Strong business growth in Q4 in key countries despite a severe drought across the reg
Slide 14: Regional Performance: North America
North America % Variance % Variance % Variance % Variance Q4’18 Q4’19 FY 18 FY 19 USD CER USD CER Sales ($m) 204 226 +10.5% +10.4% 735 786 +6.9% +7.0% CER: Constant Exchange Rate Highlights Regional Performance ▪ Q4 growth achieved through a combination of business growth alongside higher prices, de
Slide 15: Regional Performance: Asia Pacific
Asia Pacific % Variance % Variance % Variance % Variance Q4’18 Q4’19 FY 18 FY 19 USD CER USD CER Sales ($m) 124 136 +10.3% +11.5% 610 633 +3.6% +7.2% CER: Constant Exchange Rate Highlights Regional Performance ▪ Strong growth in Q4 driven by business growth, somewhat offset by lower prices ▪ FY grow
Slide 16: Regional Performance: India, Middle East & Africa
India, Middle East & Africa % Variance % Variance % Variance % Variance Q4’18 Q4’19 FY 18 FY 19 USD CER USD CER Sales ($m) 100 94 -6.1% -7.6% 543 526 -3.0% +0.6% CER: Constant Exchange Rate Highlights Regional Performance ▪ Sales were lower in the quarter, yet remained steady in FY in CER terms ▪ Im
Slide 17: Outlook
Outlook ❖ Going forward, we face many challenges, both on supply and demand side, including COVID-19 related effects: − Suspension for most of Q1 of the facilities in Jingzhou, resulting in significant idleness costs − The related depreciation of many currencies against the US Dollar, most notably t
Slide 18: Bridge Analysis
ADAMA Bridge Analysis
Slide 19: Q4 Sales – Bridge Analysis
Q4 Sales – Bridge Analysis 134 -42 2 -22 963 1,035 Bridge Analysis Q4 2018 Quantity Jinzhou Price Variance FX Q4 2019 Variance Impact 19 NOTE: FX includes currency effect on sales and hedging
Slide 20: Q4 Gross Profit – Bridge Analysis
Q4 Gross Profit – Bridge Analysis 61 -16 2 -29 -17 312 313 Bridge Analysis 32.4% 30.2% Q4 2018 Quantity Jinzhou Price Cost FX Q4 2019 Variance Impact Variance Variance 20
Slide 21: Q4 EBITDA – Bridge Analysis
Q4 EBITDA – Bridge Analysis Bridge Analysis 69 -26 2 -27 16 -14 147 127 13.2% 14.2% Q4 2018 Quantity Jinzhou Price Cost Operating FX Q4 2019 Variance Impact Variance Variance Expense 21
Slide 22: FY Sales – Bridge Analysis
FY Sales – Bridge Analysis 300 -204 96 -76 3,881 3,997 +2.5% Bridge Analysis FY 2018 Quantity Jinzhou Price Variance FX FY 2019 Variance Impact 22 NOTE: FX includes currency effect on sales and hedging
Slide 23: FY Gross Profit – Bridge Analysis
FY Gross Profit – Bridge Analysis 113 -80 96 -102 1,291 -38 1,280 Bridge Analysis 33.3% 32.0% FY 2018 Quantity Jinzhou Price Cost FX FY 2019 Variance Impact Variance Variance 23
Slide 24: FY EBITDA – Bridge Analysis
FY EBITDA – Bridge Analysis Bridge Analysis 144 -111 96 -96 639 1 -17 656 16.5% 16.4% FY 2018 Quantity Jinzhou Price Cost Operating FX FY 2019 Variance Impact Variance Variance Expense 24
Slide 25: Thank You
ADAMA Thank You