15 slides from Adama Ltd. Class A's earnings presentation, Aug 11, 2015
Slide 1: Business Update H1 and Q2, 2015
Business Update H1 and Q2, 2015 August 11, 2015
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: Financial Highlights
Financial Highlights Adjusted, ($ million) Q2 2015 Q2 2014 Change H1 2015 H1 2014 Change Sales 851.3 875.9 (2.8%) 1,718.0 1,785.7 (3.8%) Gross Profit 273.3 279.7 (2.3%) 568.1 592.7 (4.2%) As % of Sales 32.1% 31.9% 33.1% 33.2% Operating Expenses 176.2 180.2 (2.2%) 345.5 362.6 (4.7%) As % of Sales 20.
Slide 4: H1 2015 Business summary
H1 2015 Business summary Continued robust performance in face of tough currency and Ag market conditions H1 sales of $1.7bn, only 3.8% below last year (2.0% increase in constant currency) H1 season, driven by the northern hemisphere, delivered strong volume increase, well ahead of all key peers
Slide 5: H1 2015/14 Sales Performance
H1 2015/14 Sales Performance Sales change by region Based on local currency Region Based on USD Europe 4.1% (3.1%) North America 2.3% 1.0% Latin America (2.1%) (5.6%) Asia Pacific (0.6%) (10.0%) India, Middle East & Africa 1.3% (6.1%) Total 2.0% (3.8%) -3% -2% -1% 0% 1% 2% 3% 4% 5% 5
Slide 6: Q2 2015/14 Sales Performance
Q2 2015/14 Sales Performance Sales change by region Based on local currency Region Based on USD Europe 4.6% (4.3%) North America 2.9% 1.8% 1.1% Latin America (2.8%) 10.0% Asia Pacific (1.6%) 1.1% India, Middle East & Africa (6.6%) Total 3.6% (2.8%) -5% 0% 5% 10% 15% 6
Slide 7: Highlights by Geography
Highlights by Geography Europe – Dry and cold weather in Northern Europe slightly reducing application on farm, especially fungicides and insecticides – Decline in major row crops reducing demand for herbicides – Improved business with increase in quantities sold North America – US delivered sta
Slide 8: H1 2015: Growth in revenues and improvement in all key profitability metrics at constant currency
H1 2015: Growth in revenues and improvement in all key profitability metrics at constant currency H1 Sales +2.0% at CER H1 Gross Profit +5.2% at CER EBITDA margin +30bps +2.0% -3.8% +5.2% 1,821 1,786 1,786 1,718 34.3% 33.2% 624 593 17.8% 17.5% 313 306 H1'14 H1'15 H1'14 H1'15 H1'14 H1'15 H1'14 H1'15
Slide 9: Q2 2015: Growth in revenues and improvement in all key profitability metrics at constant currency
Q2 2015: Growth in revenues and improvement in all key profitability metrics at constant currency Q2 Sales +3.6% at CER Gross Profit +9.6% at CER EBITDA margin +30bps +3.6% -2.8% +9.6% 908 876 876 33.9% 851 31.9% 307 280 16.4% 16.1% 141 139 Q2'14 Q2'15 Q2'14 Q2'15 Q2'14 Q2'15 Q2'14 Q2'15 Q2'14 Q2'15
Slide 10: H1 2015 Inventory and working capital management contributing to significant improvement in free cash flow
H1 2015 Inventory and working capital management contributing to significant improvement in free cash flow Inventory improvement Working capital improvement Clear Cash Flow $33mm $30mm improvement - 2.7% - 1.5% Δ +96mm Δ +73mm 1,977 1,947 96 1,223 73 1,190 June 2014 June 2015 June 2014 June 2015 Ope
Slide 11: H1 Sales Bridge Analysis
H1 Sales Bridge Analysis 80 (45) (103) 1,786 1,718 H1 2014 Quantity Price FX H1 2015 Variance Variance 11
Slide 12: Q2 Sales Bridge Analysis
Q2 Sales Bridge Analysis 61 (29) (57) 876 851 Q2 2014 Quantity Price FX Q2 2015 Variance Variance 12
Slide 13: H1 Gross Profit Bridge Analysis
H1 Gross Profit Bridge Analysis 27 (34) 38 (56) 593 568 33.2% 33.1% H1 2014 Quantity Price Cost FX H1 2015 Variance Variance Variance 13
Slide 14: Q2 Gross Profit Bridge Analysis
Q2 Gross Profit Bridge Analysis (19) 26 (34) 20 280 273 31.9% 32.1% Q2 2014 Quantity Price Cost FX Q2 2015 Variance Variance Variance 14
Slide 15: Slide 15