2011 Full Year Results

Transcription

1 2011 Full Year Results Basel: February 8, 2012

2 Safe harbor This document contains forward-looking statements, which can be identified by terminology such as expect, would, will, potential, plans, prospects, estimated, aiming, on track and similar expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially from these statements. We refer you to Syngenta's publicly available filings with the U.S. Securities and Exchange Commission for information about these and other risks and uncertainties. Syngenta assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. This document does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any ordinary shares in Syngenta AG, or Syngenta ADSs, nor shall it form the basis of, or be relied on in connection with, any contract there for. 2

3 Delivering outperformance Strong performance in first year of integrated strategy $1.2bn volume growth across combined business: share gain Crop Protection price momentum: +4% Q4 Margin target exceeded in Seeds Record free cash flow Increased cash return to shareholders 3

4 2011 market background Agriculture robust despite economic uncertainty Record global output; US production lower Crop prices volatile but supported by demand growth Chinese corn and soybean imports rising Emerging market productivity drive continues 4

5 2011 Syngenta highlights Innovate Integrate Future Farmer Outperform New strategy announced in February Commercial integration ahead of schedule Launch of first fully integrated offers R&D organization fully aligned New crop-based pipeline: >$22bn post

6 John Ramsay Chief Financial Officer

7 Financial highlights Sales $13.3bn, up 14% - up 12% CER; +11% volume, +1% price EBITDA up 18%* to $2.9bn Net income $1.6bn, up 14% EPS**: up 18% at $19.36 Free cash flow: $1.5bn Dividend up 14% to CHF 8.00 per share CFROI 14%, above target * At constant exchange rates ** Fully diluted basis, excluding restructuring & impairment 7

8 Reported sales up 14 percent $m (34) 13,268 Currency Intersegment sales/other , Volume: $1.2bn Crop Protection Seeds Price

9 Crop Protection performance Sales: $10.2bn, up 12%* - volume +11%: growth across all regions - price +1%: improving trend - Europe +11%: developed and emerging market growth - double digit Latin America, emerging Asia EBITDA**: $2.5bn (2010: $2.2bn) - margin 24.4%: up 0.6%* - operational leverage benefits * At constant exchange rates ** Excluding restructuring & impairment 9

10 New products: continued rapid adoption $m Successful launch in Brazil, CAGR +55% high adoption rate in cotton Continued success on cereals notably France and Iberia 400 Significant growth in Brazil; 300 expansion on vegetables, rice in Asia 200 Expanded use on potatoes in Europe Additional European and Growth at constant exchange rates 10 LATAM registrations

11 Crop Protection: full year pricing positive % variance vs. prior year* 30 Q4 volume: continued strong performance Q4 price: positive all regions Full year price +1% 5 0 Further price realization for coming season Volume * At constant exchange rates Price 2011

12 Seeds performance Sales: $3.2bn, up 12%* - volume +9%; price +3% - Latin America sales +34% - US portfolio success: corn +31% EBITDA**: $544m (2010: $357m) - margin 17.1%: up 5.0% at CER - gross margin expansion * At constant exchange rates ** Excluding restructuring & impairment 12

13 Seeds margin acceleration Seeds sales $bn EBITDA margin %* Continued trait and germplasm development across all crops Emerging market expansion 10 Sustained R&D investment: ~13% of sales * restated to reflect pension accounting adjustment 13 Licensing success

14 Operating income up 17 percent $m * (135) (70) 546 (204) (91) , % , % Volume Price Savings * Including $20m in respect of program Excluding restructuring & impairment 14 Growth Cost investments inflation Other Currency 2011

15 Savings program ahead of schedule: commitment maintained $m 2011 Annualized savings net of inflation 112 Annual cash outflows (88) COGS SG&A (187) (85) (40) Integrated commercial organization: $150m Integrated supply chain: $300m Global procurement: $200m 2011 income statement charge: $149m 15

16 Evolution of currencies and raw materials % change vs. dollar indexed to 31 December negative net currency EBITDA impact: $52m 40 CHF * Price movement ** Basket of currencies 16 Swiss franc stabilization; Euro weakness Oil* BRL EUR Emerging Asia** GBP East Europe** 0-60 Emerging markets volatility Currency and raw materials impact 2012: $300m - $350m negative - more than offset by price increases, cost savings

17 Earnings per share up 18 percent $m Operating income 2,296 1,970 Net financial expense (165) (141) Taxation (356) (317) Tax rate 17% 17% Restructuring* (190) (136) Net income 1,599 1,397 Earnings per share** $19.36 $16.44 * Net of tax ** Fully diluted basis, excluding restructuring & impairment 17

18 Record free cash flow $m ,905 (421) (575) 2500 (104) 2000 (249) 1500 (19) 1,537 Acquisitions Free cash flow EBITDA Working capital Capex* * Investment in fixed tangible and intangible assets 18 Restructuring Financing, & disposals tax, other

19 Strong balance sheet: key ratios Average trade working capital % 39% Collection ratios: % sales collected EAME GIIPS* Strong balance sheet CFROI ahead of target CIS % Gearing 15% 20% CFROI 14% 13% * Greece, Italy, Ireland, Portugal, Spain 19 Reduction in trade working capital: inventory, receivables management

20 Sustained cash generation, increased return to shareholders Uses of cash $bn : increase in dividend, share repurchase cash return ~$1bn 1 Flexibility for growth investments, acquisitions : cash return $903m Share repurchase Free cash flow Dividend Capex Acquisitions & intangibles Progressive dividend policy

21 Segment reporting to match management structure John Atkin Regions: Europe, Africa, Middle East Latin America Crops: Cereals Soybean Sugar cane Specialty Sales and profitability: - 4 regions: integrated Crop Protection and Seeds - global: Lawn & Garden Sales: product line and crop Davor Pisk Regions: North America Asia Pacific Crops: 21 Corn Diverse field crops Rice Vegetables Effective H1 2012

22 2011 sales in future reporting structure Product line sales: $m Selective herbicides Non-selective herbicides Integrated sales: $m +11% +10% Insecticides North America +10% Latin America +19% +19% +18% Corn & soybean +14% Asia Pacific Diverse field crops +26% +7% Global +1% Lawn & Garden Vegetables +4% 0 +12% +10% Fungicides Seed care Europe, Africa & Middle East Growth at constant exchange rates Product line sales exclude: Professional Products $511m (+5%); Flowers $336m (-3%); Others $111m (-21%)

23 2012 financial outlook Sustained volume growth, higher prices Price increases, cost savings more than offsetting currency, raw material headwinds Increased profitability at constant exchange rates On track for 22-24% EBITDA margin by 2015 Continuing strong cash flow CFROI continuing to exceed 12% 23

24 Mike Mack Chief Executive Officer

25 Developing our crop offers 2011 sales: $12.4bn* Corn: LATAM traits roll-out Corn +19% Vegetables +5% Specialty crops +11% Vegetables: novel seed care concepts Soybean: integrated rust solutions Cereals: Rice +11% Diverse field crops +19% Soybean +13% Cereals +9% * Excluding Lawn & Garden Growth at constant exchange rates Source: Syngenta estimates 25 Sugar cane +21%, expansion Sunflower: integrated broomrape control, expansion

26 Expanding our leadership position in key crops Sales $bn >$22bn Crop-based pipelines Specialty Rice DFC Sugar cane Redefining markets: new segments create additional value Soybean Outperforming the competition Cereals $12.4bn Vegetables Corn 2011 Source: Syngenta estimates 26 Post 2015 Specialty crops: further opportunities in multiple crops - 0.5% annual average share gain Superior value creation potential

27 Lawn & Garden: first integrated business A growing market Consumer Professional $43bn $9.3bn % Flowers Fertilizer Growing Media Controls % Professional market focus: 2011 sales $847 million 12% market share ex fertilizer Chemistry, growing media, genetics Value chain account management Strategic partnerships 27

28 Complete toolbox: resistance management across crops Weed management in soybean Insect management in corn Pre and post emergent herbicides: Insecticides: Seed treatments: Traits: Seeds: Traits: RR, RR2Y: GT traits HPPD trait: new mode of action N America soybean herbicides $m US corn insect control portfolio $m CAGR: +18% CAGR: +32% Touchdown Source: Syngenta estimates All other herbicides

29 Complete toolbox: local crop solutions Rice example Seedlings days Vegetative days Reproductive 30 days Ripening 30 days Crop cycle Seed 3325, 5251, 5231, 6301, 6302 Seed care Herbicides Insecticides Fungicides Land and water management Key components: Growth opportunities:, additional crops, new products, crop enhancement 29

30 Specialty crops: multiple opportunities 2011 sales: $2.2bn 5 crop segments ~70% of sales 38 other crops Leveraging blockbuster chemistry Potato, Cotton Value creation across the chain Citrus & Pome, Grapes, Plantation Crop protection portfolio & pipeline Source: Syngenta estimates 30 Integrated offers, new Integrated offers, business models driving new business models growth Post 2015

31 Future crop communications Bi-annual updates: two crops per event 2012 events - May 11: webcast Cereals and Corn - September 24-26: field trip, India Rice and Vegetables 2013 events: - Specialty crops and Diverse field crops - Soybean and Sugar cane 31

32 2012: outlook Innovate Integrate Future Farmer Outpace an expanding market Increase underlying profitability Continue strong cash flow generation Outperform Accelerate development of integrated offers 32

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