20 slides from Adama Ltd. Class A's earnings presentation, Aug 16, 2016
Slide 1: H1 and Q2 2016 Business Update
H1 and Q2 2016 Business Update August 16, 2016
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: Clear business growth, strong increase in profit and profitability: H1 2016
Clear business growth, strong increase in profit and profitability against a tough market H1 2016 Sales Gross Profit EBITDA Net Income +3.5% (CER); -3.3% ($) Gross margin +1.0pp EBITDA margin +1.1pp Net margin +0.9pp 500 600 1,779 CER H1 2016 1,718 H1450 2015 500 1,661 USD 400 400 568 567 34.1% 350
Slide 4: Clear business growth, strong increase in profit and profitability: Q2 2016
Clear business growth, strong increase in profit and profitability against a tough market Q2 2016 Sales Gross Profit EBITDA Net Income +0.1% (CER); -5.1% ($) Gross margin +1.5pp EBITDA margin +1.2pp Net margin +0.8pp 500 852 CER 190 180 851 Q2 2016 450 160 Q2180 2015 808 USD 400 170 140 350 160 120
Slide 5: Improved inventory management and collection drive strong cash flow: H1 2016
Continued improvement in inventory management and collection focus drive strong cash flow generation H1 2016 Significant reduction in Strong improvement in Strong free cash flow inventory levels operating cash flow generation -$127m +$104m +$123m 1,190 1,063 192 114 88 June 2015 June 2016 H1'15 H1'1
Slide 6: Improved inventory management and collection drive strong cash flow: Q2 2016
Continued improvement in inventory management and collection focus drive strong cash flow generation Q2 2016 Significant reduction in Strong improvement in Strong free cash flow inventory levels operating cash flow generation -$127m +$91m +$82m 1,190 1,063 184 138 93 56 June 2015 June 2016 Q2'15 Q2'
Slide 7: Financial highlights
Financial highlights % Change %Change % Change %Change Adjusted, ($ million) H1 2016 H1 2015 Q2 2016 Q2 2015 CER USD CER USD Sales 1,661 1,718 +3.5% -3.3% 808 851 +0.1% -5.1% Gross Profit 567 568 -0.2% 271 273 -0.9% As % of Sales 34.1% 33.1% 33.5% 32.1% Operating Expenses 339 345 -1.9% 172 176 -2.5%
Slide 8: H1 2016 business summary
H1 2016 business summary Continued volume growth and increased profits and profitability, in face of tough AgChem and currency conditions, due to improved product offering mix and cost reduction, coupled with OPEX containment Sales growth in the half-year of 3.5% at constant exchange rates ‒ Secon
Slide 9: H1 sales bridge analysis
H1 sales bridge analysis In USDm 77 -17 -118 1,718 1,661 +4.5% -1.0% -6.8% Sales growth excluding FX +3.5% H1 2015 Quantity Price FX and H1 2016 Variance Variance Hedging Gap 9
Slide 10: H1 gross profit bridge analysis
H1 gross profit bridge analysis In USDm 77 -102 -17 41 568 567 34.1% 33.1% H1 2015 Quantity Price Cost FX and H1 2016 Variance Variance Variance Hedging Gap 10
Slide 11: H1 EBITDA bridge analysis
H1 EBITDA bridge analysis In USDm -1 78 -92 -17 41 306 315 18.9% 17.8% H1 2015 Quantity Price Cost Operating FX and H1 2016 Variance Variance Variance Expenses Hedging Gap 11
Slide 12: Q2 sales bridge analysis
Q2 sales bridge analysis In USDm 19 -18 851 -44 808 +2.2% -2.1% -5.2% Sales growth excluding FX +0.1% Q2 2015 Quantity Price FX and Q2 2016 Variance Variance Hedging Gap 12
Slide 13: Q2 gross profit bridge analysis
Q2 gross profit bridge analysis In USDm 45 -39 273 10 271 -18 33.5% 32.1% Q2 2015 Quantity Price Cost FX and Q2 2016 Variance Variance Variance Hedging Gap 13
Slide 14: Q2 EBITDA bridge analysis
Q2 EBITDA bridge analysis In USDm 46 1 -35 10 -18 143 139 17.6% 16.4% Q2 2015 Quantity Price Cost Operating FX and Q2 2016 Variance Variance Variance Expenses Hedging Gap 14
Slide 15: Regional sales performance H1 2016 vs. H1 2015
Regional sales performance H1 2016 vs. H1 2015 Constant currency terms Region USD terms Europe (2.2%) (9.6%) 8.0% North America 7.2% 7.3% Latin America (5.7%) 12.6% Asia Pacific 6.6% 6.5% India, Middle East & Africa 0.4% 3.5% Total (3.3%) -5% 0% 5% 10% 15% 15
Slide 16: Regional sales performance Q2 2016 vs. Q2 2015
Regional sales performance Q2 2016 vs. Q2 2015 Constant currency terms Region USD terms (7.0%) Europe (13.4%) 5.0% North America 4.3% 4.7% Latin America (3.7%) 10.8% Asia Pacific 5.8% (1.8%) India, Middle East & Africa (6.2%) 0.1% Total (5.1%) -5% 0% 5% 10% 15% 16
Slide 17: Regional highlights
Regional highlights Europe Sales lower by 2.2% in H1 and by 7.0% in Q2, at CER, with reduced volumes, mainly in the quarter, as a result of extended cold and rainy weather and a decrease in selling prices in several countries, partly passing on to customers some of the benefit of the products’ sig
Slide 18: Regional highlights (cont'd.)
Regional highlights (cont’d.) Latin America Growth of 7.3% in H1 and 4.7% in Q2, at CER, due to increased prices and volume growth, despite extreme weather conditions in Brazil (drought in the north, floods in the south), high inventory levels in the distribution channels, and continuing challengi
Slide 19: Regional highlights (cont'd.)
Regional highlights (cont’d.) Asia Pacific Growth of 12.6% in H1 and 10.8% in Q2, at CER, driven by significant volume growth, especially in the countries of the Pacific and in North East Asia, achieved through focus on customer proximity, improved product portfolio and focus on key customers and
Slide 20: ADAMA
ADAMA