20 slides from Adama Ltd. Class A's earnings presentation, Nov 10, 2015
Slide 1: Business Update Q3 and YTD 2015
Business Update Q3 and YTD 2015 November 10, 2015
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 volume growth, despite market challenges, leads to market share gains
Strong volume growth, despite market challenges, leads to market share gains Revenues in constant currencies up est. 9.5% in the third quarter and 6% year-to-date Strong volume growth in all key geographies: up 6% in the third quarter and 4.8% year-to-date Market share gains worldwide Impact
Slide 4: Financial Highlights
Financial Highlights YTD YTD Change Change Change Change Adjusted, ($ million) Q3 2015 Q3 2014 2015 2014 USD CER USD CER Sales 2,414.0 2,547.1 (5.2%) 6.0% 696.1 761.5 (8.6%) 9.5% Gross Profit 774.3 840.7 (7.9%) 206.2 247.9 (16.8%) As % of Sales 32.1% 33.0% 29.6% 32.6% Operating Expenses 502.3 540.1
Slide 5: 9M 2015: Growth in revenues and improvement in all key profitability metrics at constant currency
9M 2015: Growth in revenues and improvement in all key profitability metrics at constant currency 9M Sales +6.0% at CER 9M Gross Margin +3.9pp at CER EBITDA margin +4.7pp at CER 2,700 2,547 2,547 2,414 1,080 996 50.0% 980 45.0% 880 841 40.0% 780 35.0% 700 40.0% 36.9% 579 680 33.0% 30.0% 600 35.0% 58
Slide 6: Q3 2015: Growth in revenues and improvement in all key profitability metrics at constant currency
Q3 2015: Growth in revenues and improvement in all key profitability metrics at constant currency Q3 Sales +9.5% at CER Gross Margin +6.9pp at CER EBITDA margin +9.1pp at CER 761 834 696 761 380 70.0% 329 60.0% 330 50.0% 280 250 50.0% 248 199 45.0% 40.0% 200 40.0% 230 39.5% 35.0% 30.0% 150 30.0% 32.
Slide 7: Tight focus on operating expenses and working capital management
Tight focus on operating expenses and working capital management Operating expense Inventory improvement improvement $38m $32m 1,231 1,199 600 25.0% 540 24.0% 550 23.0% 502 500 22.0% 21.0% 450 21.2% 20.8% 20.0% 19.0% 400 18.0% 350 17.0% 16.0% 300 15.0% 9M'14 9M'15 Sept 2014 Sept 2015 Operating Expen
Slide 8: 9 Month Regional Sales Performance 2015 vs. 2014
9 Month Regional Sales Performance 2015 vs. 2014 Sales change by region Based on local currency, est. Region Based on USD Europe 2.3% (6.0%) North America 4.9% 3.8% Latin America 14.9% (10.8%) Asia Pacific 1.8% (9.5%) India, Middle East & Africa 7.4% (1.0%) Total 6.0% (5.2%) -5% 0% 5% 10% 15% 20% 8
Slide 9: Q3 Regional Sales Performance 2015 vs. 2014
Q3 Regional Sales Performance 2015 vs. 2014 Sales change by region Based on local currency, est. Region Based on USD Europe (3.9%) (15.5%) North America 13.2% 12.9% 17.6% Latin America (17.2%) 8.3% Asia Pacific (8.0%) 18.3% India, Middle East & Africa 8.1% Total 9.5% (8.6%) -5% 0% 5% 10% 15% 20% 9
Slide 10: 2015 Q3 and Year-to-Date Business Summary
2015 Q3 and Year-to-Date Business Summary Strong volume growth, despite market challenges, leads to market share gains Continuing tough global AgChem and currency market conditions, compounded by sharply deteriorating macroeconomic environment in Brazil, impacted our financial performance during t
Slide 11: 2015 Q3 and Year-to-Date Business Summary (cont’d.)
2015 Q3 and Year-to-Date Business Summary (cont’d.) Relentless focus throughout the year on operating expense reduction resulted in lower YTD expense-to-sales ratio of 20.8% compared to 21.2% last year, as well as YTD EBITDA of $398m and margin of 16.5%, in line with 2014 Net Income: • Q3 Net In
Slide 12: Highlights by Region
Highlights by Region Europe Strong volume growth and market share gains, with strong performances especially in Spain and Ukraine, driving increase of 2.3% in revenues in constant currency terms in year-to-date In the third quarter, sales in Europe impacted by a decrease in oilseed rape and suga
Slide 13: Highlights by Region (cont’d.)
Highlights by Region (cont’d.) Asia Pacific Strong volume increase driving growth in local currencies, despite El Niño causing challenging weather conditions Sector outperformance sees market share gains in Australia Good result in New Zealand, notwithstanding poor seasonal weather conditions
Slide 14: 9M Sales Bridge Analysis
9M Sales Bridge Analysis FX Effect: 122 31 (286) 2,547 2,414 Est. sales growth excluding FX: 6.0% +4.8% +1.2% -11.2% 9M 2014 Quantity Price FX 9M 2015 Variance Variance 14
Slide 15: Q3 Sales Bridge Analysis
Q3 Sales Bridge Analysis FX Effect: 30 (138) 42 761 696 Est. sales growth excluding FX: 9.5% +5.5% +3.9% -18.1% Q2 2014 Quantity Price FX Q2 2015 Variance Variance 15
Slide 16: 9M Gross Profit Bridge Analysis
9M Gross Profit Bridge Analysis 75 (222) 41 40 841 774 33.0% 32.1% 9M 2014 Quantity Price Cost FX 9M 2015 Variance Variance Variance 16
Slide 17: Q3 Gross Profit Bridge Analysis
Q3 Gross Profit Bridge Analysis 37 (123) 30 14 248 206 32.6% 29.6% Q3 2014 Quantity Price Cost FX Q3 2015 Variance Variance Variance 17
Slide 18: 9M EBITDA Bridge Analysis
9M EBITDA Bridge Analysis 77 (5) (181) 41 40 426 398 16.7% 16.5% 9M 2014 Quantity Price Cost Operating FX 9M 2015 Variance Variance Variance Expenses 18
Slide 19: Q3 EBITDA Bridge Analysis
Q3 EBITDA Bridge Analysis 5 (107) 37 30 14 113 92 14.8% 13.2% Q3 2014 Quantity Price Cost Operating FX Q3 2015 Variance Variance Variance Expenses 19
Slide 20: Slide 20