Adama Ltd. Class A · SZSE:000553
Adama Ltd. Class A — ADAMA Agricultural Solutions — Q1 2016 Earnings Presentation
14 slides from Adama Ltd. Class A's earnings presentation, May 22, 2016
Slide 1: Q1 2016 Business Update
Q1 2016 Business Update May 22, 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: Q1 2016: Strong growth, increased profits and profitability in the face of tough market conditions
Q1 2016: Strong growth, increased profits and profitability in the face of tough market conditions Sales Gross Profit EBITDA Net Income -1.6% ($); +6.9% (CER) Gross margin +0.7pp EBITDA margin +1.0pp Net margin +0.9pp 500 240 190 926 CER 450 Q1 2016 867 Q1220 2015 170 400 853 USD 350 200 150 295 296
Slide 4: Financial highlights
Financial highlights % Change % Change Adjusted, ($ million) Q1 2016 Q1 2015 CER USD Sales 853 867 +6.9% -1.6% Gross Profit 296 295 +0.4% As % of Sales 34.7% 34.0% Operating Expenses 167 169 -1.2% Operating Income (EBIT) 129 126 +2.6% As % of Sales 15.1% 14.5% Net Income 101 94 +6.8% As % of Sales 1
Slide 5: Q1 2016 Business Summary
Q1 2016 Business Summary Strong volume growth and increased profits and profitability in the quarter, in face of tough AgChem and currency conditions First quarter sales of $853m: ‒ Growth of 6.9% at constant exchange rates, across all geographies, driven by 6.7% increase in volumes, higher prices
Slide 6: Q1 Sales bridge analysis
Q1 Sales bridge analysis FX Effect: 867 -73 59 853 1 Sales growth excluding FX: 6.9 % -8.4% +0.1% +6.8% Q1 2015 FX Price Quantity Q1 2016 Variance Variance 6
Slide 7: Q1 Gross profit bridge analysis
Q1 Gross profit bridge analysis 295 -63 31 296 31 1 34.0% 34.7% Q1 2015 FX Price Quantity Cost Q1 2016 Variance Variance Variance 7
Slide 8: Q1 EBITDA bridge analysis
Q1 EBITDA bridge analysis 32 -2 172 167 -57 31 1 19.2% 20.2% Q1 2015 FX Price Quantity Cost Operating Q1 2016 Variance Variance Variance Expenses 8
Slide 9: Quarterly regional sales performance Q1 2016 vs. Q1 2015
Quarterly regional sales performance Q1 2016 vs. Q1 2015 Sales change by region Constant currency terms Region USD terms Europe 1.2% -6.9% North America 12.0% 10.8% 10.6% Latin America -8.3% 14.5% Asia Pacific 7.5% 19.4% India, Middle East & Africa 10.6% Total 6.9% -1.6% -5% 0% 5% 10% 15% 20% 25% 9
Slide 10: Regional highlights
Regional highlights Europe Growth of 1.2% at CER, due to significant volume growth driven by the launch of new products and the deepening of commercial activity, supported by increased sales of high value-added products Delayed start to the season due to extended cold weather Launches of diffe
Slide 11: Regional highlights (cont’d.)
Regional highlights (cont’d.) Latin America Growth of 10.6% at CER, driven by price increases, mainly in Brazil, and stable volumes Marked growth in Brazil, in both local currency and USD High inventory levels and ongoing challenging conditions in several countries, including El Niño-related f
Slide 12: Adama’s wide portfolio of unique mixtures addresses needs induced by GM seeds
Adama’s wide portfolio of unique mixtures addresses needs induced by GM seeds Galil® Increased use of caterpillar-resistant genetically modified soybean strains in Brazil has resulted in the proliferation of sucking pests Adama was able to offer the farmers GALIL®, a unique insecticide mixture s
Slide 13: Adama continues to progress towards the realization of its strategic goals in China
Adama continues to progress towards the realization of its strategic goals in China, especially the establishment of its commercial and operational activities At the beginning of the year, Adama launched Adama’s new branded products hitting the Chinese market its direct sales in China, appointed i
Slide 14: ADAMA
ADAMA
ADAMA Agricultural Solutions — Q1 2016 Earnings Presentation on 6ix