Nufarm Limited · ASX:NUF
Nufarm — UBS Emerging Companies Conference (June 2014)
13 slides from Nufarm's conference presentation, Jun 2, 2014
Slide 1: UBS Emerging Companies Conference - Food and Agribusiness
For personal use only UBS Emerging Companies Conference Food and Agribusiness Doug Rathbone CEO / Managing Director June 2, 2014
Slide 2: Balancing the needs and opportunities of a growing business
UBS Emerging Companies Conference Balancing the needs and opportunities of a growing business For personal use only • Capitalising on the growth opportunity in overseas markets and in our seeds business • Lowering the cost base and improving efficiencies in Australia • Executing on plans to permanen
Slide 3: Capitalising on the growth opportunity - South America
UBS Emerging Companies Conference Capitalising on the growth opportunity For personal use only • South America – Continued market growth, fueled by additional cropping acres and more investment in technology inputs – An expanded presence in Brazil and Argentina supported by a strong product pipeline
Slide 4: Brazil turn-around
UBS Emerging Companies Conference Brazil turn-around For personal use only Brazil key metrics in local FX • EBITDA margin expanding rapidly (BRL in millions) 140 – Strategic focus on higher value segments of the market has lifted the gross profit margin (>100bps 80% from FY11 to HY14) 120 68% – Expe
Slide 5: Capitalising on the growth opportunity - Europe and Asia
UBS Emerging Companies Conference Capitalising on the growth opportunity For personal use only • Europe – Key crop focus (cereals; corn; TNVV; grassland & potatoes) – Leverage leadership position in 'espace vert' segment in France – Differentiating our product portfolio • Asia – Adding rice and vege
Slide 6: Capitalising on the growth opportunity - North America and seeds
UBS Emerging Companies Conference Capitalising on the growth opportunity For personal use only • North America – Clear focus on specific growth segments in US Ag (burn-down; resistance; cotton; horticulture) – Consolidating/growing top three position in high value US turf and specialty segment – Lev
Slide 7: Changes that secure our leadership position in Australia
UBS Emerging Companies Conference Changes that secure our leadership position in Australia For personal use only • A lower, more flexible cost base • Higher utilisation of manufacturing assets • A flatter, more focused management structure • Increased responsiveness to customer needs • More investme
Slide 8: An unrelenting focus on working capital management
UBS Emerging Companies Conference An unrelenting focus on working capital management For personal use only • All management have incentives tied to NWC performance • Extensive S&OP projects in US, EU and Australia • Reduction in stocking points across Australia • Output through plants reduced to man
Slide 9: Progress towards meeting July NWC target
UBS Emerging Companies Conference Progress towards meeting July NWC target For personal use only • Cash collections strong in South America • Expectations high for another good season in Brazil, will drive inventory build • Manufacturing facilities are being managed to support working capital object
Slide 10: Clear balance sheet objectives
UBS Emerging Companies Conference Clear balance sheet objectives For personal use only • Robust capital structure designed to cope with inherent seasonality of agribusiness: ‒ Longer term capital – hybrids and high yield bond ‒ Working capital needs – debtors securitisation and revolver • On track t
Slide 11: Current trading conditions
UBS Emerging Companies Conference Current trading conditions For personal use only • After a long period of dry conditions, good rainfall in key cropping regions is driving strong demand in Australia ‒ Pricing remains competitive, but channel inventories are normalising ‒ Limited impact in current y
Slide 12: Current trading conditions
UBS Emerging Companies Conference Current trading conditions For personal use only • European conditions are generally positive ‒ Early spring in some markets ‒ Lower plant recoveries due to production variances • Key period for collections in South America; demand building for next season ‒ Receiva
Slide 13: Nufarm - Grow a better tomorrow
6A Nufarm — Growa better tomorrow.
Nufarm — UBS Emerging Companies Conference (June 2014) on 6ix