ISAGRO AS OF DECEMBER 31 ST, 2017

Transcription

1 ISAGRO AS OF DECEMBER 31 ST, 2017 SpA Shareholders Meeting Milan, April 24 th, 2018

2 EXECUTIVE SUMMARY IN A YEAR PRESENTING UNFAVORABLE CONDITIONS At Market level Drought in South Europe (particularly in Italy) Sales of top 5 players in line with 2016 in local currency At Company level Higher than expected stock returns in India Still depressed Tetraconazole sales in Brazil for resistance Low revenues from M/L Agreements (1.5 m in 2017 vs. 5.9 m in 2016) Non recurring charges (-1.1 m EBITDA and -1.6 m EBIT) 2

3 P&L EXECUTIVE SUMMARY WE NARROWED THE ECONOMIC AND FINANCIAL GAP Cash-flow Net Financial Debt reduced by 6.5 m (Memo: D/E 0.47) Agropharma sales +4% vs (Memo: total Revenues in line with 2016 due to lower M/L Agreements) EBITDA +7%, excluding M/L Agreements (Memo: total EBITDA decreasing due to lower M/L Agreements) Net result 0+ (Memo: non recurring charges offsetting M/L Agreements) Net Working Capital financed for around 12 m by Equity 3

4 EXECUTIVE SUMMARY WHILE GOING ON IMPLEMENTING OUR INDUSTRIAL PROJECT R,I&D activities Registration dossier of Fluindapyr (SDHi) submitted in Brazil in early 2018 and to be submitted in EU by this year-end 34 new registrations obtained worldwide Commercial activities Pre-launch of Dominus (fumigant) in Middle-East Start-up of direct sales in Brazil Discovery Projects for both Chemicals and Bio-Products with new Nematicide completing Phase 1 (pre-development) Growth Project for Asia initiated in 4Q

5 ISAGRO AS OF DECEMBER 31 ST, 2017 Agenda 1 FACTS & FIGURES 2 BACK-UP RESULTS AS OF DECEMBER 31 ST, 2017 ISAGRO IN THE STOCK MARKET 5

6 KEY ECONOMIC FIGURES Consolidated data ( million) Memo 140 REVENUES Memo EBITDA M/L Agreements Services Agropharma RESULT BEFORE TAXES 6.9 Memo Including (1.6) m non recurring charges M/L Agreements Memo 2013 (4.3) Agropharma & Services NET RESULT

7 REVENUES VARIATION Consolidated data ( million) Agropharma Sales +5.3 m (+4%) 8.1 (1.2) 2.0 (3.1) ITALY Rest of EU ASIA (0.5) RoW (1.0) Services (4.4) AMERICAS M/L Agreements

8 EBITDA VARIATION Consolidated data ( million) EBITDA excl. M/L Agreements and non recurring +1.9 m (+18%) Incremental operating Added Value* (0.6) Labour* (0.9) Expensed R,I&D 1.6 Allowances (4.4) (1.1) M/L Agreements Non recurring** * Excluding net non recurring charges ** Becoming (1.6) m at Result before taxes level 8

9 NET FINANCIAL DEBT Consolidated data ( million) Net Fin. Debt Dec. 31, 2016 TOTAL FREE CASH FLOW 6.5 M Free Cash-flow for ΔNWC 7.4 Net Fin. Debt Dec. 31, 2017 D/E 0.52 Free Cash-flow excluding ΔNWC (0.9) Decreased receivables 6.1 Decreased inventory 1.9 Optimization of stocks Decreased payables (0.6) Ordinary variations D/E 0.47 Memo Net working capital (46.2) 58.5 (52.7) vs. (2.9) of 2016 Out of which 4.0 factoring no recourse 9

10 PERSPECTIVES FOR 2018 AND MID TERM results are encouraging for the project of pursued growth of the Company 2018 results are expected to improve vs thanks mostly to the growth of Asia and higher initial revenues from new M/L Agreements Mid Term Confirmation of the target of 200 m consolidated Revenues by , to be achieved through the development of sales of both Chemicals and Bio-Products, also considering opportunities of external growth 10

11 MESSAGES TO INVESTORS In the rolling 12-month period (Apr. 17 Apr. 18) Ordinary Shares +39% and Growth Shares +21% Current market cap (63 M) < Equity book value (99 M) < N.A.V. Unjustified spread (currently 36%) between Ordinary and Growth Shares ( Azioni Sviluppo ) Memo: Growth Shares yield a 20% extra-dividend vs. Ordinary Shares and are automatically converted into Ordinary Shares if the Controlling Subject loses control and in any case of compulsory public offer 11

12 ISAGRO AS OF DECEMBER 31 ST, 2017 Agenda 1 FACTS & FIGURES 2 BACK-UP RESULTS AS OF DECEMBER 31 ST, 2017 ISAGRO IN THE STOCK MARKET 12

13 CONSOLIDATED REVENUES million REVENUES BREAKDOWN BY PRODUCT CATEGORY REVENUES BREAKDOWN BY REGION (AGROPHARMA ONLY) Total Revenues = 150 M +34% Americas 22% REVENUES BREAKDOWN 4 18 BY PRODUCT CATEGORY Agropharma: 144 (+4%) Total Revenues = 150 M Agropharma: 139 Rest of Europe 29% Rest of Europe 28% Italy 18% +5% -4% 144 Americas 17% 139-5% -8% RoW 5% Asia 26% Asia 29% Services Revenues from M/L Agreements Third parties agropharma Proprietary agropharma Italy 20% RoW 6% 13

14 CONSOLIDATED P&L million Variances REVENUES % EBITDA % % ON REVENUES 8.4% 10.8% Including: non recurring items (1.1) Depreciation & amortization (9.7) (9.3) -0.4 EBIT n/s Including: non recurring items (1.6) Financial items (0.8) (0.7) -0.1 Gain on forex/commodities RESULT BEFORE TAXES n/s Current and deferred taxes (1.9) (3.9) +2.0 NET RESULT FROM CONTINUING OPERATIONS n/s Net result of discontinued operations (0.2) (0.3) +0.1 NET RESULT n/s 14

15 million CONSOLIDATED BALANCE SHEET 145 D/E: D/E: Net fixed assets 84* Equity 99 Net of Translation Reserve for -8 m Net fixed assets 87** Equity 102 Net of Translation Reserve for -6 m Net current assets 61 NFP 46 Out of which ~45 at M/L term Net current assets 68 NFP 53 Out of which ~40 at M/L term December 31 st, 2017 December 31 st, 2016 * Net of Severance Indemnity Fund for 2.6 m * * Net of Severance Indemnity Fund for 2.7 m 15

16 P&L OF OPERATING COMPANIES million ISAGRO GROUP (consolidated) S.p.A. (holding Co.) Asia (at 100%) Brasil (at 100%) Colombia (at 100%) España (at 100%) USA (at 100%) REVENUES Memo: EBITDA (1.4) 16.2 Memo: (2.2) 0.2 NET RESULT (2.3) (1.6) 2.7 Memo: 2016 (0.7) (2.1) 16

17 BALANCE SHEET OF OPERATING COMPANIES million ISAGRO GROUP (consolidated) S.p.A. (holding Co.) Asia (at 100%) Brasil (at 100%) Colombia (at 100%) España (at 100%) USA (at 100%) NET CURRENT ASSETS NET FIXED ASSETS * NET INVESTED CAP Memo: FINANCED BY: EQUITY Memo: NFP at debt/(credit) 54.7 (10.7) Memo: (9.7) (0.2) 0.1 (0.0) (0.0) 0.0 (1.1) (0.5) * Net of Severance Indemnity Fund 17

18 ISAGRO AS OF DECEMBER 31 ST, 2017 Agenda 1 FACTS & FIGURES 2 BACK-UP RESULTS AS OF DECEMBER 31 ST, 2017 ISAGRO IN THE STOCK MARKET 18

19 UNJUSTIFIED SPREAD BETWEEN ORDINARY AND GROWTH SHARES In the last 12-month period: ~35.2 million Ordinary Shares and ~13.7 million Growth Shares traded 2,40 2,30 2,20 2,10 2,00 1,90 1,80 1,70 1,60 1,50 1, ,30 1,20 1,10 1,00 0, ,80 0,70 0,60 Min. spread 23% (versus floating ~11.4 million Ordinary Shares and ~13.7 million Growth Shares) STAR index Ordinary Shares Growth Shares* Max. spread 41% Spread as of 04/20/18 36% Points *Growth Shares are a new category of special shares, issuable by companies having a Controlling Subject, which against the absence of voting right: grant an extra-dividend vs. Ordinary Shares (20% in the case of ); are automatically converted into Ordinary shares in the ratio 1:1, if the controlling Subject loses control and/or in any case of Compulsory Public Offer. 19

20 MARKET CAPITALIZATION LOWER THAN BOOK VALUE Price as of April 20 th, 2018 (Euro per share) ORDINARY SHARES 1.88 Market Capitalization (Euro/million) 46.2 GROWTH SHARES MARKET CAP 63.3 EQUITY BOOK VALUE 99.3* Market capitalization < Book Value * Book value of net fixed assets significantly lower than realizable market value 20

21 For information: Ruggero Gambini Chief Financial Officer tel. (+39) Erjola Alushaj IR Manager & Financial Planner tel. (+39)

22 «Disclaimer» Estimates, considerations, statements and opinion, except for what referring to actual figures, 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. Any reference to 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. Such data, estimates, considerations, statements and opinion are not to be considered as a proposal of investment, under any circumstances, in s shares. 22