Adama Ltd. Class A · SZSE:000553
Adama Ltd. Class A — Q1 2022 Earnings Presentation
17 slides from Adama Ltd. Class A's earnings presentation, April 2022
Slide 1: Q1 2022 Review
§Q1:2022 — Review / April 2022 / 77>
Slide 2: Legal Notice
Legal Notice This presentation is for marketing and information purposes only. By this presentation, neither ADAMA Ltd. nor Adama Agricultural Solutions Ltd. (together the “Company” or “ADAMA”) intend to give, and the presentation does not constitute, professional or business advice or an offer or r
Slide 3: General Performance Overview
General Performance Overview
Slide 4: Q1 General Market Update
Q1 General Market Update • Continued strong demand for crop protection and elevated prices in Q1 in most regions, driven by high crop prices of most major commodity crops and concerns over tight supply, supported by Ukraine-Russia conflict • Ukraine-Russia conflict – farmers in Ukraine are attemptin
Slide 5: Q1: record, price-driven sales growth driving significant increase in profits
Q1: record, price-driven sales growth driving significant increase in profits Adjusted Q1 Highlights $ million Q1 2022 Q1 2021 %▲ ▪ Sales ̶ Sales up 28% to all-time quarterly record-high $1.4bn Sales 1,420 1,109 +28% ̶ 18% higher prices, 14% volume growth Gross Profit ▪ Gross Profit 414 322 +29% ̶ U
Slide 6: Regional Sales Performance
Regional Sales Performance Q1 2022 vs. Q1 2021 % Sales growth by region Absolute Sales change (USD $m) CER USD Total $m 5.7% Europe 12 357 3.6% 31.5% Latin America 57 234 32.5% 49.9% North America 95 284 50.4% 62.8% of which, China: of which, Asia Pacific +87.7% CER; +90.6% USD China +$112m 388 60.8
Slide 7: Q1 2022 Regional Highlights (USD)
Q1 2022 Regional Highlights (USD) +50% +50% +4% +6% +91% +88% Q1 CER Q1 CER Q1 CER North America Europe China • Robust demand in the Consumer & • Strong performance in France, Romania • Non-Ag: strong demand for raw materials Professional business, allowing for price and Poland, more than offseting
Slide 8: Detailed Financial Review
A, ADAMA Detailed Financial Review
Slide 9: Q1 Sales +28%, driven by markedly higher prices
Q1 Sales +28%, driven by markedly higher prices Sales bridge analysis 195 -35 1,420 151 1,109 +28% +14% +18% Q1 2021 Quantity Variance Price FX Q1 2022 Variance 9 NOTE: FX includes currency effect on sales, net of hedging
Slide 10: Q1 GP +29%: margin increase – higher prices more than offset cost pressures
Q1 GP +29%: margin increase – higher prices more than offset logistics, procurement cost pressures and negative FX GP bridge analysis 195 -116 -27 414 322 41 29.0% +52 29.2% Q1 2021 Quantity Price Cost FX Q1 2022 Variance Variance Variance xx% = % of Sales 10 NOTE: Quantity variance includes mix eff
Slide 11: Q1 EBITDA +28%: higher pricing more than offsets logistics & procurement pressures
Q1 EBITDA +28%: higher pricing more than offsets logistics & procurement pressures and FX EBITDA Bridge analysis 195 -106 -53 -24 33 201 157 +28% Q1 2021 Quantity Price Cost Operating FX Q1 2022 Variance Variance Variance Expense xx% = % of Sales 11 NOTE: Quantity variance includes mix effect; FX in
Slide 12: Supporting future growth in light of uncertain supply conditions
Supporting future growth in light of uncertain supply conditions Increase in working capital levels supporting sales Cash Flow Strong Balance Sheet growth Inventory up in anticipation of further volume growth, potential Net debt / EBITDA ratio of 2.4x Q1 2022 supply shortages and cost increases Q1 2
Slide 13: Outlook
ADAMA Outlook
Slide 14: 2022 Outlook
2022 Outlook ▪ Crop prices are expected to remain elevated ▪ Strong global demand for crop protection as farmers are looking to secure availability pre-season, although high fertilizer prices may dampen demand to some extent ▪ Ukraine- Russia: East-European geopolitical uncertainty impacting supply
Slide 15: Thank You
Thank You
Slide 16: Adjusted vs. Reported P&L
Adjusted vs. Reported P&L $ million Q1 2022 Q1 2021 %▲ Q1 2022 Q1 2021 %▲ Adjusted Adjusted Reported Reported Sales 1,420 1,109 +28% 1,420 1,109 +28% Gross Profit 414 322 +29% 360 305 +18% % of Sales 29.2% 29.0% 25.4% 27.5% EBITDA 201 157 +28% 203 138 +48% % of Sales 14.2% 14.2% 14.3% 12.4% Net Inco
Slide 17: Adjusted vs. Reported Financial Results
Adjusted vs. Reported Financial Results The financial results in this presentation are presented on an “Adjusted” basis, and differ to some extent from the “Reported” financials contained in the formal financial statements of the Company. ADAMA’s approach on the use of adjustments: – Adjusted result