Nufarm Limited · ASX:NUF
Nufarm — Shareholder Meeting (December 2006)
36 slides from Nufarm's shareholder meeting presentation, Dec 7, 2006
Slide 1: Chairman's Address
ba Chairman's Address Annual General Meeting of Shareholders - Melbourne Thursday, December 7, 2006 at 10.00 am GDW Curlewis Ladies and Gentlemen In the 2006 financial year the company’s operating performance was good in all geographical areas with the exception of the investment in Brazil. The fact
Slide 2: Managing Director's Address
AS Nufarm Managing Director’s Address to the Annual General Meeting of Shareholders - Melbourne Thursday, December 7, 2006 at 10.00 am D J Rathbone Thank you Mr Curlewis. lt is pleasing to see a number of our shareholders here this morning and | would like to welcome you — and other associates and p
Slide 3: Agripec challenges and wholly owned business growth
Clearly, it has been a very challenging period for Agripec — and the industry in general — in Brazil and underlines the need for caution when expanding into developing markets around the world. Having said that, we remain very confident in the quality of the Agripec business and we continue to work
Slide 4: Chile regulatory issues and European performance
Regulatory issues were also significant in Chile in that 12 month period, with a significant disruption to the local system causing a delay in the approval of a number of new Nufarm products. The European businesses benefited from increased sales of higher margin products and greatly improved manufa
Slide 5: Gearing, dividend and 2007 business tracking
2006 year saw gearing up slightly (at 81% versus the 78% posted in 2005). Your Board approved an increase in the final dividend; a fully franked 20 cents compared to the previous year's 17 cents. This moved the full year dividend up 15% to 30 cents. | would now like to update shareholders on how bus
Slide 6: Brazil soybean plantings and interim outlook
As has been forecast, plantings of soybean ~ where Agripec has its largest sales exposure — are likely to be down on last year. The early seasonal conditions, however, are quite reasonable...and there has been some recovery in certain commodity prices — including soy ~ that will be of benefit to Bra
Slide 7: Guidance and $250 million hybrid issue
The current seasonal challenges in Australia ~ and the economic pressures in Brazil — underline the importance of having a global business. You can be assured that management will be looking to extract the best possible results from those markets where selling conditions are positive and the company
Slide 8: Thanks to employees and board
Before concluding, | would like to take the opportunity today to thank all Nufarm employees for their continued commitment to the business, and their efforts over the past 12 months. We operate in a competitive environment and — as is now apparent ~ we must work hard to ensure the business can cope
Slide 9: Cll pe
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Slide 10: Lee Sy Lo A GCI Were DA ay LO AO ee
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Slide 11: Le Ly eee ae oo
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Slide 12: Agripec contribution down; strong growth from wholly owned businesses
2006 in review =" Agripec contribution down =" Strong growth from wholly owned businesses
Slide 13: Tax paid operating profit
2006 in review Tax paid operating profit 2006: $121.1m (Agripec $1.9m) 2005: $121.7m (Agripec $26.9m)
Slide 14: Brazil
2006 in review Nufarm Brazil *" Volatile currency =" Credit squeeze " Risk management measures " Industry sales down =" Reduced margins
Slide 15: Brazil: Agripec response
2006 in review Nufarm Brazil Agripec response ... — Incentives offered to secure payment — Sales not made while payments outstanding
Slide 16: Brazil
2006 in review Brazil =" Agripec portfolio continuing to expand " Well placed to take advantage of recovery =" Substantial growth potential in Brazil
Slide 17: 26% NPAT growth in wholly owned business
2006 in review we Nufarm =" 26% NPAT growth in wholly owned business =" Strategy continues to pay dividends ae &g Geographic expansion Portfolio expansion
Slide 18: North America
2006 in review North America " Sales up 20% — Stronger pricing — New products
Slide 19: North America: glyphosate and Nuprid
2006 in review Wy Wig Uy 7 iy yO Dr yyy Yi oo is Ge iy my e Oe > 7 " Glyphosate and phenoxies performed strongly yy Wy Vy Uy si e =" 'Nuprid' launched ahead of schedule World's largest selling insecticide (Imidacloprid)
Slide 20: Latin America
2006 in review 8 Nufarm [) Latin America =" Agrogen acquisition in Colombia = Higher sales in Argentina " Regulatory delays in Chile
Slide 21: Europe
2006 in review Gy Vey =" Strong profit performance Wey i 7 — Higher margin oy product mix 4g — Restructuring benefits
Slide 22: Europe highlights
sums Cy) iy i Lis _ iy 7 ee MMe 7 a, ps a iy oy) ye iy Yi Ly y Y Wee Wey Gas yy ey y Le 7 7) WY, Da ie oe 7 oe ye ig Hd y) WM Ma We es ae i He Hy ee i We Wy ee, ee Lo if 2 eg LL Ma DD Mane te gs We ae, Sales growth in Germany New products Acquisition in Italy Market share gains
Slide 23: Asia and New Zealand
2006 in review Asia =" Sales up 10% New Zealand " Flat sales in challenging seasonal conditions
Slide 24: Australia
oe . Ly, iy 77 yi ye 7 Wy Yj, Zy: iy, Lae 1 U9 PAS y ay iy ” Pp 0/ ay a Wy Wii, ae y iy ee ys _ | 7 Wy yy, Australia " Late season = Improved profit
Slide 25: Earnings per share, ROFE, gearing and dividend
2006 in review Earnings per share — 60.3 cents (on continuing operations) ROFE —- 17.8% Gearing - 81% Full year dividend - 30 cents
Slide 26: Full year dividends
2006 in review Cents per share 35 _ Soran Full Year dividends 30 25 20 15 10 2001 2002 2003 2004 2005
Slide 27: Trading update Quarter 1, 2007
7 2006 in review ir a tI | Trading update | Quarter 1, 2007 | ~~
Slide 28: 2007 update: Drought in Australia
2007 update we Nufarm Drought in Australia " Reduced summer cropping =" Impact on 1H sales
Slide 29: 2007 update: Gradual recovery in Brazil
2007 update Gradual recovery in Brazil =" Signs of increased confidence " Reasonable season " More stable currency
Slide 30: Interim profit guidance
2006 in review wie Nufarm | Interim profit guidance $12 - 15m — me Se -
Slide 31: 2007 update: North America and Europe
2007 update we Nufarm =" North America and Europe tracking well =" Some pricing pressure in USA =" Europe ahead of budget
Slide 32: Full year profit guidance is unchanged
2006 in review r Full year profit guidance is unchanged Approx 8% NPAT growth q Nufarm
Slide 33: Re-based performance
Re-based performance Base = 100 Nufarm vs S&P/ASX 200 (12 months rolling from 5 December 2005 to 5 December 2006) 120 80 75 5-Dec 4-Jan 3-Feb 5-Mar 4-Apr 4May 3-Jun 3-Jul 2-Aug 1-Sep 1-Oct 31-Oct 30-Nov ow Nufarm mmm S&P/ASX 200
Slide 34: 2007 update: Seeds a new growth platform
2007 update Seeds represent a new growth platform
Slide 35: Le Ly eee ae oo
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Slide 36: Cll pe
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