ISAGRO, TODAY. From 2011 turnaround to the growth before us. STAR Conference. Milan, March 28 th, 2012

Transcription

1 ISAGRO, TODAY From turnaround to the growth before us STAR Conference Milan, March 28 th, 2012

2 ISAGRO, TODAY FROM TURNAROUND TO THE GROWTH BEFORE US Strong growth, with investments for: In synthesis: CONSOLIDATION IN CORE-BUSINESS AND DEVELOPMENT OF NEW PRODUCTS/REGISTRATIONS (financed through IPO/Capital increase/operating cash flows and employing financial leverage) Extraordinary operations for: FOCUSING ON CORE-BUSINESS WITH STRATEGIC ALLIANCE IN R&D AND CONSEQUENT NFP REDUCTION FOR 2/3 AND PROFIT OF 10 M (with revenues growth of 8% vs and confirmation of new registrations development program) Progressive harvesting from previous investments for: INCREMENTAL SALES FROM NEW REGISTRATIONS OF PROPRIETARY PRODUCTS, WITH OPERATING LEVERAGE EFFECT ON RESULTS (whose investments are substantially completed) 2

3 AGRICULTURE: GROWING DEMAND AND NEED FOR SOLUTIONS THAT INCREASE PRODUCTIVITY WORLD POPULATION BIOFUELS CAGR 1.3% CAGR 13% World population (billion) Ethanol production (liters/billion) LIMITED NEW ARABLE LAND Source: USDA STRATEGIC NECESSITY: TO INCREASE PRODUCTIVITY PER HECTARE IN A SUSTAINABLE WAY SOCIAL/ ENVIRONMENTAL ISSUES 3

4 AGROPHARMA AND THEIR KEY ROLE FOR AGRICULTURE Pharmaceuticals for crop health and yield World market: ~ US$ 45 billion Time-to-market of a new molecule: years Unavoidable losses: ~ 40% Losses avoided thanks to agropharma: ~ 30% Production without agropharma: ~ 30% Source: Agrofarma and Phillips McDougall production (60%) Potential production (100%) 4

5 ISAGRO: SMALL GLOBAL PLAYER OF AGROPHARMA IN PARTNERSHIP WITH CHEMTURA ISAGRO CORE-BUSINESS SMALL FOR ITS SIZE, GLOBAL BECAUSE BASED ON INNOVATION ALONE AND/OR IN PARTNERSHIP SALES IN > 70 COUNTRIES IN : REVENUES: 144 M (75% ex-italy) EMPLOYEES 620 (50% ex-italy) INNOVATIVE RESEARCH DEVELOPMENT CHEMICAL SYNTHESIS (active ingredients) FORMULATION (finished products) INTERNATIONAL MARKETING AND LOCAL DEVELOPMENT DISTRIBUTION (on local basis) 1 R&D CENTER (ITALY), 1 PILOT PLANT (INDIA) 4 PRODUCTION PLANTS (3 IN ITALY AND 1 IN INDIA) DIRECT PRESENCE IN: DIRECT PRESENCE IN: USA, INDIA, SPAIN AND COLOMBIA 5

6 ABLE TO SUCCESSFULLY COMPETE WORLDWIDE, SEGMENT BY SEGMENT COMPETITION TAKES PLACE WORLDWIDE, SEGMENT BY SEGMENT: MARKET SPACE FOR SMALL OPERATORS BUT WITH EFFICIENT PROPRIETARY PRODUCTS (Isagro s s market shares in some country/crop/disease - ) Brazil/Cotton/Ramularia Japan/Sugar beet/cercospora leafspot Italy/Olive/Various fungus diseases Italy/Grape/Downy mildew USA/Sugar beet/cercospora leafspot USA/Soybean/Various diseases Spain/Olive/Various fungus diseases Brazil/Soybean/Asian rust 48% 40% 53% 11% 23% 7% 8% 3% 6

7 WITH A HISTORY OF GROWTH From 1993 ~ 45 M REVENUES ~ 120 EMPLOYEES (all in Italy) ISAGRO S.R.L. to 144 M REVENUES 620 EMPLOYEES (50% ex-italy) (MONTEDISON HISTORY, M.B.O. FROM ENICHEM AGRICOLTURA) * Company operating in the R&D of biology and molecular genetics 7

8 EXTRAORDINARY OPERATIONS STRATEGIC STRENGTHENING AND FINANCIAL SOUNDNESS Issues What we have done RESEARCH & DEVELOPMENT Oversized compared to commercial development capacity Sales potential from proprietary products not adequately exploited Alliance with Chemtura Agrosolutions, for: sharing of Innovative Research costs JV 50/50 (ISEM S.r.l.) for codevelopment of some products DIRECT DISTRIBUTION Oversized compared to proprietary products High debt to finance N.W.C. supporting sales mainly of third parties products (with low margins) Redefinition of distribution strategy, involving: divestment of 50/50 distribution JVs in ITA, BRA and ARG acquisition of 100% in distribution JV in COL REDUCTION OF CONSOLIDATED NFP FOR 91 MILLION AND GENERATION OF IMPORTANT CAPITAL-GAINS 8

9 RESULTS: REVENUES +8%, PROFIT 10 M THANKS TO EXTRAORDINARY OPERATIONS, WITH A DIVIDEND OF 0,10 EURO MILLION % REVENUES % EBITDA (EXCLUDING NON-RECURRING ITEMS) Proprietary products 81% Proprietary Products 83% 2010 Business Plan 2010 Business Plan Dividend proposal 0,10 per share (as in B.P.) (4) NET RESULT NET FINANCIAL POSITION (AND DEBT/EQUITY RATIO) -62% Business Plan 2010 Business Plan 9

10 2012 FORECAST: IN LINE WITH THE PLAN AT EBITDA/EBIT LEVEL, WITH HIGHER COST OF DEBT EURO MILLION REVENUES EBITDA EBIT 2012 Business Plan Forecast EBITDA excl. non-recurring items Mainly due to lower price/cost of copper, impacting on revenues (and on N.W.C.) but not on absolute margins Focus: Timing for the release of new registrations Co-development agree- ment for a new fungicide 10.3 NET RESULT 3.8 1,4 Due to the strong increase in the cost of money 57 NFP 78 PFN 70 Mainly due to lower N.W.C. supporting the sales of copper products 10

11 6 95 NEW REGISTRATIONS: FUEL FOR GROWTH Number of new registrations (cumulated from Jan. 1, 2008) Revenues from new registrations ( million) Investments for completion of new registration program ( million) Memo: revenues from new registr. of BP (March 2008) CONFIRMATION OF -14 BUS. PLAN, WHICH INCLUDED A 2-YEAR DELAY VS. THE BUS. PLAN OF MARCH year delay E 2013E 2014E 2015E 14.9* * Includes 2007 investments 11

12 DISCLAIMER Estimates, considerations, statements and opinion, except for what referring to actual, are to be considered as data, estimates, considerations, statements and opinion regarding future, and have been elaborated and stated on the basis of available information and/or on the basis of those information considered the most reliable and/or the most reasonable. Such data, estimates, considerations, statements and opinion could prove to be incomplete and/or wrong and they incorporate elements of risk of uncertainty, beyond the company control. For such reasons, actual results may prove to differ versus data, estimates, considerations, statements and opinion contained in such presentation. Such data, estimates, considerations, statements and opinion are not to be considered as a proposal of investment, under any circumstances, in Isagro s shares. Any refer to Isagro products is to be considered exclusively as general information about the group activity and is not to be intended, under any circumstances, as invitation to employ or propose the employment of such products. 12

13 CONTACTS For information: ISAGRO S.p.A. Ruggero Gambini Corporate Director Finance, Control & IR Alessandro Zacchera Assistant to IR Manager & Junior Strategic Planner tel. (+39)