Nufarm Limited · ASX:NUF
Nufarm — H1 2008 Earnings Presentation
29 slides from Nufarm's earnings presentation, Mar 27, 2008
Slide 1: Interim Results, 6 months to January 31, 2008
For personal use only Interim Results 6 months to January 31, 2008 March, 2008
Slide 2: Doug Rathbone, Managing Director
For personal use only Doug Rathbone Managing Director
Slide 3: Interim results to January 31, 2008
Interim results to January 31, 2008 For personal use only Î Substantial increase in sales and profit Î Strong global demand for crop protection Î Australia poised for a significant 'rebound' – but 'break' still to come Î Brazil shows recovery from farm credit crisis – Strong result from Agripec Î Ou
Slide 4: 1H 2008 vs 1H 2007 results summary
Interim results 2008 For personal use only 1H 2008 1H 2007 $m $m Group Sales 990 580 Operating EBIT 82.3 28.4 Operating NPAT 35.4 12.0 Non operating items (30.8) 3.9 Reported result 4.6 15.9 Interim dividend 12.0 cents 11.0 cents
Slide 5: Kevin Martin, Chief Financial Officer
For personal use only Kevin Martin Chief Financial Officer
Slide 6: Preview - months to Jan 31, 2008
Preview - 6 months to Jan 31, 2008 For personal use only 1ST Half 1st Half Proforma1 % A$m % change 1ST Half 2007 2008 2007 change inc. Agripec Group sales 989.8 580.2 70% 753.2 31% Operating EBITDA 106.4 46.1 130% 71.6 49% Operating EBIT 83.3 24.9 234% 49.4 69% Operating NPBT 43.4 1.2 3,517% 26.4 6
Slide 7: Non operating items
Interim results 2008 - non operating items For personal use only Operating Brazil soy Profit on Due diligence 2008 (A$m) NSS MTM Total result beans plant sale costs Operating profit before 83.3 (34.3) (10.9) 0.5 (1.5) 37.1 interest Net interest costs (39.9) (39.9) Profit before tax 43.4 (34.3) (10.9
Slide 8: Sales roll forward
Sales roll forward For personal use only 1st Half 2007 (A$m) 580.2 Add Brazil 206.7 Australasian sales increase 128.5 European sales increase 20.6 North America sales increase 48.9 South America excl Brazil 4.9 1st Half 2008 (A$m) 989.8
Slide 9: Segment profitability
Segment profitability For personal use only North South Australia Europe Total America America Results before Associates 2007 22,048 4,080 (357) 2,071 27,842 Adjust for material items (3,436) (3,436) Operating results 2007 22,048 644 (357) 2,071 24,406 Improved performance 26,114 596 6,150 (700) 28,
Slide 10: Working capital
Working capital For personal use only 2008 2007 Debtors 903,953 545,270 Inventory 590,685 630,797 Creditors 624,150 444,667 870,488 731,400 Net working capital 2007 731,400 Add Agripec 217,782 Less reduction in working capital non Agripec (78,694) Net working capital 2008 870,488
Slide 11: Doug Rathbone, Managing Director
For personal use only Doug Rathbone Managing Director
Slide 12: Six months in review - Australia
Interim results 2008 For personal use only Six months in review - AUSTRALIA 2008 1H 2007 1H Slow start - dry conditions persist Australasia until December $m $m Sales 365 237 Dramatic improvement in summer Segment profit 49.2 22.5 cropping Very strong/early demand for glyphosate, with flow-on
Slide 13: Six months in review - North America
Interim results 2008 For personal use only Six months in review - NORTH AMERICA 2008 1H 2007 1H US market sees volume and value North America $m $m expansion Sales 190 141 Segment profit 5.8 (0.3) Earlier buying patterns reflect confidence Co-marketing deals in Canada North provide new opportu
Slide 14: Six months in review - South America (ex Brazil)
Interim results 2008 For personal use only Six months in review - SOUTH AMERICA (ex Brazil) Nufarm Argentina shows strong South America 2008 1H 2007 1H margin gains (ex Brazil) $m $m Sales 32.0 29.4 Nufarm Chile negatively impacted by Operating EBIT 5.3 2.1 seasonal and currency issues
Slide 15: Six months in review - Agripec / Brazil
Interim results 2008 For personal use only Six months in review - AGRIPEC / BRAZIL Crop protection sales in Brazil: calendar years USD Increased plantings of all major $5.3b crops $4.5b $4.2b $3.9b Good growing season 2004 2005 2006 2007 Growers capitalise on high crop Source: AENDA prices A
Slide 16: Six months in review - Europe
Interim results 2008 For personal use only Six months in review - EUROPE 2008 1H 2007 1H Nufarm France benefits from Europe $m $m broader product offering in cereals Sales 184 163 Segment profit* 1.0 0.6 Nufarm Italy continues to perform strongly *excluding abnormal gain in 2007 Sales/profit g
Slide 17: Current trading conditions: Outlook to year end
For personal use only Current trading conditions Outlook to year end
Slide 18: Outlook - Full year 2008: Australia
Interim results 2008 For personal use only Outlook - Full year 2008 AUSTRALIA Current forecast is for record winter plantings … but weather dependent! Murray Darling basin recovery a longer term proposition Nufarm leadership positions in glyphosate, phenoxies (…and the full range) work strongl
Slide 19: National trends
National trends For personal use only $800 $700 $600 Price ($/tonne) $500 Wheat $400 Barley Canola $300 $200 $100 $0 2003 2004 2005 2006 2007 2008 2008 Quoted Quoted Delivery Season Nov '07 Mar '08 Price based on forward contracts December delivery
Slide 20: Outlook - Full year 2008: Australia Seeds
Interim results 2008 Outlook - Full year 2008 For personal use only AUSTRALIA: Seeds Very strong demand for canola seed Nuseed varieties take leading market shares Roundup Ready® canola launched, with strong grower interest Argentina launch of Nufarm canola varieties
Slide 21: Outlook - Full year 2008: North America
Interim results 2008 For personal use only Outlook - Full year 2008 NORTH AMERICA Ag sector remains very bouyant Core products very well positioned Broader product offering will deliver substantial additional value Increasing opportunities in Canada
Slide 22: Outlook - Full year 2008: Brazil
Interim results 2008 For personal use only Outlook - Full year 2008 BRAZIL Large 'safrinha' crop to capitalise on corn prices Product portfolio expansion gains pace − DuPont deal on sugar cane products − New offerings in pasture segments No problems anticipated with 'collections' as profitabil
Slide 23: Outlook - Full year 2008: Europe
Interim results 2008 For personal use only Outlook - Full year 2008 EUROPE Expanded acreage with suspension of 'set-aside' Demand strong as season gets underway Important new product offerings − Imidacloprid in the UK (seed treatment), Spain, Portugal and Greece − 'Ralon Super Powerplus' in Ge
Slide 24: Outlook: Strategic objectives
Interim results 2008 For personal use only Outlook: Strategic objectives Expand Focused on Build product crop geographic portfolio protection platform Achieved Mostly in place Accelerated activity now underway
Slide 25: Outlook: Portfolio expansion
Interim results 2008 For personal use only Outlook: Portfolio expansion Registrations Registrations Period submitted granted Countries July 2007 to January 2008 202 159 26 Includes Nuprid seed treatment products for US and Europe Proprietary 'suSCon' formulations Additional sources for glyphos
Slide 26: Outlook in summary
Interim results 2008 For personal use only Outlook in summary Global demand drivers are very strong With rain in the right places, Australia will see major turnaround Nufarm business in excellent shape
Slide 27: Acquisition update
Interim results 2008 For personal use only Acquisition update: Î AH Marks Integration plan well underway Additional capacity to come onstream in near term Positive 'customer' response Î Etigra Contract negotiations on target for March-end completion
Slide 28: Full year outlook
Full year outlook For personal use only Guidance: Strongly reaffirmed 2008 Operating NPAT (pre acquisitions): approx $145m 2008 Operating NPAT (post acquisitions): approx $150m
Slide 29: A great time to be in the business of agriculture
For personal use only … a great time to be in the business of agriculture Nufarm Limited Head office: 103-105 Pipe Road, Laverton North, Vic. Australia. Tel: 61 3 9282 1000 Fax: 61 3 9282 1111 www.nufarm.com