25 slides from Adama Ltd. Class A's earnings presentation, 2018
Slide 1: Business Update Q2 and H1 2018
Business Update Q2 and H1 2018 Adama Agricultural Solutions Ltd., one of the world's leading crop protection companies, and Hubei Sanonda Co., Ltd. have combined, creating the only integrated, publicly traded Global-China crop protection company. The Combined Company is to be renamed
Slide 2: Legal notice
Legal notice This presentation is for marketing and information purposes only. By this presentation, Hubei Sanonda Co., Ltd. (the “Company” or “ListCo”) and Adama Agricultural Solutions Ltd (“Adama Solutions”) (together, “ADAMA” or “the Combined Company”) does not intend to give, and the presentatio
Slide 3: Second consecutive quarter of record sales exceeding $1 billion
Second consecutive quarter of record sales exceeding $1 billion Q2 2018 H1 2018 Adjusted, ($ million) Q2 2018 Q2 2017 % Change (ex. ‘17 EU H1 2018 H1 2017 % Change (ex. ‘17 EU hedge) hedge) Sales 1,023 937 +9.2% 1,036 2,045 1,859 +10.0% 2,084 Gross Profit 342 333 +2.4% 354 694 663 +4.6% 732 As % of
Slide 4: Strong volume growth of improved mix at higher prices Q2 2018
Strong volume growth of improved mix at higher prices Q2 2018 Sales Gross Profit EBITDA Net Income Record sales +9.2% Record GP +2.4%, up $8m $2m lower than record $9m lower than record +10.6% excl. 2017 EU $21m higher excl. 2017 $11m higher excl. 2017 EU $4m higher excl. 2017 EU hedge impact EU hed
Slide 5: Strong volume growth of improved mix at higher prices H1 2018
Strong volume growth of improved mix at higher prices H1 2018 Sales Gross Profit EBITDA Net Income Record sales +10.0% Record GP +4.6%, up $31m $8m lower than record $43m lower than record +12.1% excl. 2017 EU $69m higher excl. 2017 $30m higher excl. 2017 $4m lower excl. 2017 EU hedge impact EU hedg
Slide 6: Accommodating growth momentum while containing working capital; strong cash flow reducing leverage
Accommodating growth momentum while containing working capital; Strong cash flow generation driving reduced leverage Build-up of working capital to …While maintaining collection Leverage further reduced support strong growth… discipline, supply chain efficiency $156m Operating Cash Flow generated 1,
Slide 7: Regional Update
Regional Update
Slide 8: Strong regional performance; recovery in Europe
Strong regional performance; recovery in Europe Q2 2018 vs. Q2 2017 Sales change by region USD terms Region Constant currency terms Europe 7.5% 11.9% Excl. 2017 5.4% 9.8% EU Hedge North America 11.1% 10.4% Latin America 14.7% 22.5% of which, China Asia Pacific (1.8)% USD: +19.6% (5.7)% CER: +12.0% 1
Slide 9: Strong growth on all fronts
Strong growth on all fronts H1 2018 vs. H1 2017 Sales change by region USD terms Region Constant currency terms Europe 2.3% 7.9% Excl. 2017 (0.7)% 4.9% EU Hedge North America 12.5% 11.8% Latin America 16.8% 21.8% 11.6% of which, China Asia Pacific USD: +36.6% 6.2% CER: +27.4% 19.4% India, Middle Eas
Slide 10: Regional highlights: Europe
Regional highlights Europe • Q2 increase driven by solid volume growth, somewhat offset by softer pricing in local currencies • H1 revenues in line with last year − Recovery in Q2 almost completely made up for late start of the season due to extended winter in Q1 • Northern Europe: fast development
Slide 11: Regional highlights: North America
Regional highlights North America • Strong demand-driven growth supporting increased volumes of an improving portfolio mix and higher selling prices US • Strong demand for differentiated products drove volume growth • Supported a generally stronger pricing environment, exacerbated by industry-wide s
Slide 12: Regional highlights: Latin America
Regional highlights Latin America • Strong performance driven by significant volume growth and new product launches, alongside stronger pricing across most countries in the region • Key differentiated products launched: − CRONNOS® TOV: Unique, highly effective three-way mixture fungicide for soybean
Slide 13: CRONNOS TOV: Superior results now proven in the field
CRONNOS® TOV: Superior results now proven in the field ORKESTRA ATIVUM CRONNOS FOX ELATUS VESSARYA 13
Slide 14: CRONNOS TOV: Marketing Campaign
CRONNOS® TOV: Marketing Campaign A New Era for Rust: Cronnos® Truck Over 2,500 visitors to ADAMA Training Camp 120 days so far... Massive dealer engagement 70 cities Over 120,000 people engaged via social media 8.000.000ha / 25% planted area 14
Slide 15: Regional highlights: Asia Pacific
Regional highlights Asia Pacific • Strong growth in China and other countries; price increases across the region − Noteworthy performance in Thailand, Vietnam, Korea, and the Philippines • Severe drought conditions in Australia and Indonesia • Registrations obtained for differentiated products, incl
Slide 16: Huai'an formulation center increasing utilization
Huai’an formulation center increasing utilization 16
Slide 17: Regional highlights: India, Middle East & Africa
Regional highlights India, Middle East & Africa • Significant volume growth and price increases driven by strong demand and favorable weather conditions • Strong performance in India: − Significant growth of differentiated portfolio, benefiting from good monsoon season − Established leading position
Slide 18: Bridge Analysis
Bridge Analysis
Slide 19: Sales Q2 Bridge Analysis
Sales Q2 Bridge Analysis 1,036 Excl. 2017 EU 28 -2 3 12 hedge impact 57 1,023 937 FX incl. negative +6% +3% $12m 2017 EU hedge impact Q2 2017 Quantity Price FX Other Q2 2018 Variance Variance NOTE: FX variance includes FX effect on sales, costs and currency hedging. Other includes quantity variance
Slide 20: Gross Profit Q2 Bridge Analysis
Gross Profit Q2 Bridge Analysis Excl. 2017 EU 28 354 hedge impact 33 -41 -12 2 34.2% 333 342 FX incl. negative 35.6% 33.4% $12m 2017 EU hedge impact Q2 2017 Quantity Price Cost FX Other Q2 2018 Variance Variance Variance NOTE: Quantity variance includes mix effect; FX variance includes FX effect on
Slide 21: EBITDA Q2 Bridge Analysis
EBITDA Q2 Bridge Analysis 28 -42 Excl. 2017 EU 201 hedge impact 33 -9 190 -14 2 19.4% 188 20.2% FX incl. 18.4% negative $12m 2017 EU hedge impact Q2 2017 Quantity Price Cost Operating FX Other Q2 2018 Variance Variance Variance Expenses NOTE: Quantity variance includes mix effect; FX variance includ
Slide 22: Sales H1 Bridge Analysis
Sales H1 Bridge Analysis 2,084 Excl. 2017 EU hedge impact 42 27 25 38 92 1,859 2,045 FX incl. negative +7% +2% $38m 2017 EU hedge impact H1 2017 Quantity Price FX Other H1 2018 Variance Variance NOTE: FX variance includes FX effect on sales, costs and currency hedging. Other includes quantity and pr
Slide 23: Gross Profit H1 Bridge Analysis
Gross Profit H1 Bridge Analysis Excl. 2017 EU 732 hedge impact 59 42 -62 -3 -5 35.1% 663 FX incl. negative 694 $38m 2017 EU 35.7% hedge impact 33.9% H1 2017 Quantity Price Cost FX Other H1 2018 Variance Variance Variance NOTE: Quantity variance includes mix effect; FX variance includes FX effect on
Slide 24: EBITDA H1 Bridge Analysis
EBITDA H1 Bridge Analysis 42 -63 417 Excl. 2017 EU 387 59 -30 hedge impact -11 -5 20.0% 379 21.2% FX incl. 18.5% negative $38m 2017 EU hedge impact H1 2017 Quantity Price Cost Operating FX Other H1 2018 Variance Variance Variance Expenses NOTE: Quantity variance includes mix effect; FX variance incl
Slide 25: ADAMA
ADAMA