ADAMA Ltd. Class A · SZSE:000553
ADAMA Ltd. Class A — Q1 2023 Earnings Presentation
16 slides from ADAMA Ltd. Class A's earnings presentation, April 2023
Slide 1: Q1 2023 Review
Q12023 Review / April 2023 | 7>
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: General Performance Overview
General Performance Overview
Slide 4: Update – Crop Protection Industry Impacts
Update – Crop Protection Industry Impacts Customer Slower sales pace Market selling prices “Wait & See” than expected softening approach China AI & raw High Channel material prices inventories declining 4
Slide 5: Q1: Sales Impacted by Channel Inventory and Exchange Rates
Q1: Sales Impacted by Channel Inventory and Exchange Rates Adjusted Q1 Highlights $ million Q1 2023 Q1 2022 %▲ ▪ Sales ̶ Sales down 11% (-7% in CER**) to $1.26 bn, 1% higher Sales 1,259 1,420 (11%) prices, 8% decrease in volume. ̶ The decline in constant exchange rates was mostly due to Gross Profit
Slide 6: Regional Sales Performance
Regional Sales Performance Q1 2023 vs. Q1 2022 % Sales growth by region Absolute Sales change (USD $m) Total $m CER USD 1 430 9.1% Europe, Africa & Middle East 0.3% (73) 211 -25.1% North America -25.7% -2.5% (1) 233 Latin America -0.5% of which, -12.1% of which, China: (88) China -$55m Asia Pacific
Slide 7: Q1 2023 Regional Highlights
Q1 2023 Regional Highlights (USD) -26% -25% +0% +9% -23% -16% North America Q1 CER EAME Q1 CER China Q1 CER • Consumer & Professional – negative weather • The sales in EAME increased in the first quarter • Raw material, intermediates and fine conditions, inflationary pressure on consumer in constant
Slide 8: Detailed Financial Review
Detailed Financial Review
Slide 9: Q1 Sales: Impacted by channel inventory and exchange rates
Q1 Sales: Impacted by channel inventory and exchange rates Sales bridge analysis -11% 1,420 -116 +21 -66 1,259 -8% +1% Q1 2022 ∆ Volumes ∆ Prices FX Q1 2023 Notes – • Numbers in million $; 9 • Denotes adjusted figures unless otherwise noted; • Parts may not sum due to rounding; • FX includes currenc
Slide 10: Q1 Gross Profit: Decline in sales, high-cost inventory, partially compensated by prices
Q1 Gross Profit: Decline in sales, high-cost inventory, partially compensated by prices GP bridge analysis +21 -33 414 -18 -44 340 Q1 2022 ∆ Volumes ∆ Prices ∆ Cost FX Q1 2023 Notes – • Numbers in million $; 10 • Denotes adjusted figures unless otherwise noted; • Parts may not sum due to rounding; •
Slide 11: Q1 EBITDA: Decline in EBITDA despite lower OPEX
Q1 EBITDA: Decline in EBITDA despite lower OPEX EBITDA Bridge analysis 201 -19 +20 -34 +28 -32 165 Q1 2022 ∆ Volumes ∆ Prices ∆ Cost ∆ Operating FX Q1 2023 Expense Notes – • Numbers in million $; 11 • Denotes adjusted figures unless otherwise noted; • Parts may not sum due to rounding; • Volumes inc
Slide 12: Slowdown in New Procurement of Inventory, Good Collections
Slowdown in New Procurement of Inventory, Good Collections Working Capital Cash Flow Balance Sheet Inventory up due to build up in previous quarters, following Net debt / EBITDA ratio of 3.4x lower market demand, despite slowdown in new procurement Q1 2023 2,373 Q1 2022 Receivables down reflecting g
Slide 13: Thank you
Thank you
Slide 14: Appendix
Appendix 14
Slide 15: Adjusted vs. Reported P&L
Adjusted vs. Reported P&L $ million Q1 2023 Q1 2022 %▲ Q1 2023 Q1 2022 %▲ Adjusted Adjusted Reported Reported Sales 1,259 1,420 (11%) 1,259 1,420 (11%) Gross Profit 340 414 (18%) 310 368 (16%) % of Sales 27.0% 29.2% 24.6% 25.9% EBITDA 165 201 (18%) 166 203 (18%) % of Sales 13.1% 14.2% 13.2% 14.3% Ne
Slide 16: Adjusted vs. Reported Financial Results
Adjusted vs. Reported Financial Results The financial results in this presentation are presented on an “Adjusted” basis, and differ to some extent from the “Reported” financials contained in the formal financial statements of the Company. ADAMA’s approach on the use of adjustments: – Adjusted result