michael mack · * sales-weighted basket of emerging market currencies excl. brl, uah, rub • chf...

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Basel, April 28, 2015 Michael Mack Chief Executive Officer

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  • Basel, April 28, 2015

    Michael Mack Chief Executive Officer

  • 2

    2014: strong sales performance

    • Integrated sales up 7% excluding glyphosate

    • Double digit growth in emerging markets for fifth consecutive year

    • ELATUS™ sales in Brazil exceed $300m

    Full year integrated sales: 6% CER

    Growth target achieved despite lower crop prices

    Stocks-to-use ratio* %

    Crop price index* May 2001 = 100

    * basket of corn, wheat, soybean and rice

    29

    24

    20

    22 21

    19 19

    22

    24 23

    22 21

    22 ~23

    0

    100

    200

    300

    400

    500

    10%

    15%

    20%

    25%

    30%

    35%

    01 02 03 04 05 06 07 08 09 10 11 12 13 14 E

  • 3

    ELATUS™: Syngenta’s largest and most successful launch

    Peak sales potential raised from >$500m to $1bn

    Yield advantage vs. competitor products

    1'500 2'000 2'500 3'000

    Control

    Standard

    Competitor SDHI

    Treatment

    Kg/ha

    Soybean yield

    • >1,000 sales people reaching ~90,000 customers

    • Market share gain in fungicides

    • Expected Solatenol™ approvals – 2015: corn, wheat, specialty in USA – 2016: cereals in EU

  • 4

    2014 financial highlights

    Group sales: $15.1bn 3%

    Sales including Lawn and Garden: 5% CER Volume +2% Price +3%

    * Fully diluted basis, excluding restructuring and impairment

    • EBITDA up 1% at $2.9bn, margin 19.3% – adverse currency and mix effects

    • EPS* up 1% at $19.42

    • Free cash flow before acquisitions $1.2bn

    • Dividend up 10% to CHF 11.00 per share

  • 5

    Increasing cash return to shareholders

    0

    2

    4

    6

    8

    10

    12

    14

    0

    10

    20

    2008 2009 2010 2011 2012 2013 2014

    Dividend per share USD

    Earnings per share* $

    * Fully diluted basis, excluding restructuring and impairment 2014 dividend at end-January exchange rates

    • Proposed dividend increase: +10% in CHF

    • Net debt to equity 27% (2013: 24%)

    • Flexibility for acquisitions

    • Tactical share buybacks

    • Commitment to progressive dividend policy

    Dividend per share $

  • 6

    Currency movements: dollar strength End quarter % change vs. dollar indexed to December 31, 2012

    * Sales-weighted basket of emerging market currencies excl. BRL, UAH, RUB

    • CHF ~13% costs, ~1% sales

    • EUR ~20% sales: balanced exposure

    • Developed market currencies hedged

    • Emerging markets: raising prices to offset currency impacts

    • Estimated currency headwind in 2015: $130m excluding CIS

    Russian ruble

    Brazilian real

    Ukrainian hryvnia

    -80

    -60

    -40

    -20

    0

    20

    CHF

    EUR

    RUB

    BRL

    UAH

    GBP Emerging Markets*

    2014 2015 2013

  • 7

    Accelerating Operational Leverage program to drive margin

    EBITDA contribution

    Annual cash outflows

    $m

    ~265*

    230 200 200 200

    ~475

    ~730

    ~1,000 ~1% ~3% ~4% ~5%

    2015 2016 2017 2018

    EBITDA margin contribution

    50 250 425 600 Working capital release

    * Includes existing program savings: $75 million in 2015

    R&D Global operations Commercial

    ● Simplified marketing structure ● Integrated demand and production

    management ● Field development rationalization ● Outsourcing of standard activities

    ● Seeds production cost optimization ● Procurement and manufacturing

    fixed cost reductions

  • 8

    Integrated offers: global strategy adapted by region

    ● Focus on reinforcing crop protection leadership

    ● Seeds: focus on distinctive traits ● Integrated offers:

    - Water+ Intelligent Irrigation - AGRIEDGE EXCELSIOR®

    ● High yield soybean solutions; ELATUS™

    ● Integrated pest management; new AVICTA® registration

    ● Further share gain in sugar cane

    Latin America

    Global leader in CP

    Broad seeds portfolio

    Crop-based strategies

    Marketing excellence

    ● SDHI fungicides gaining ground: Solatenol™ launch to come

    ● HYVIDO® barley expansion: paving the way for hybrid wheat

    ● Market leadership in sunflower seeds pulling crop protection sales

    ● Ongoing focus on higher margin products

    ● Rice and vegetables protocols tailored to smallholder needs

    ● Corn: Start Right solution, traits expansion

    Europe, Africa, Middle East

    Asia Pacific

    2014: share gain in

    3 of 4 regions* * Preliminary data

    North America

  • 9

    Long term market growth potential

    2001

    2002

    2003

    2004

    2005

    2006

    2007

    2008

    2009

    2010

    2011

    2012

    2013

    2014

    2015

    65

    60

    55

    50

    45

    40

    35

    30

    0

    Crop Protection market size $bn

    2004-2006: 1% CAGR

    2006-2008: 14% CAGR

    2008-2010: (2)% CAGR

    2010-2012: 9% CAGR

    • 2001 - 2005: low crop prices, low investment

    • Emerging market productivity drive gathered pace from 2006

    • Growing need to manage resistance

    • Exceptional crop production levels in 2013 and 2014

  • 10

    Integrated sales by crop

    Key crops Sales (bn)

    2014 CER % change vs. 2013

    Pipeline target

    Cereals 1.9 +12% ~2.8

    Corn 3.4 -4% ~5.5

    DFC 1.4 +1% >2.2

    Rice 0.6 +2% ~2.0

    Soybean 3.0 +18% ~4.0

    Specialty 2.1 +7% ~4.0

    Sugar cane 0.3 -2% ~2.0

    Vegetables 1.7 +5% >3.0

    Integrated sales 14.4 +6% 25.0

    $25bn target: achievement expected post 2020

    • 5 of 8 crops on track for pipeline target in 2020

    • Cereals, Soybean: strong 2014 performance driven by innovation

    • Corn: acreage decline in 2014. Longer term traits expansion, resistance management, emerging markets

    • DFC, Vegetables: diverse seeds portfolio, integrated offers

    • Rice, Specialty, Sugar cane: targets stretched based on progress to date

  • 11

    New and pipeline products: $700m increase in peak sales

    Cereals and DFC Corn Rice Soybean

    Vegetables and Specialty Peak sales

    SEGURIS >$150m

    ~$500m

    CLARIVA >$200m

    ~$1,000m

    >$400m

    >$250m

    Oxathiapiprolin >$100m

    New fungicide >$300m

    Already launched Launches to come

    Solatenol™

  • 12

    Emerging markets are key to future growth

    0

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    0

    3'000

    6'000

    9'000

    EM sales Emerging EAMEEmerging APAC Latin AmericaEM sales % of total sales

    Sales $m

    % of total sales

    CAGR +12%

    • >50% sales in emerging markets

    • Managing volatility key to business success: currencies, credit

    • Significant yield gaps vs. developed markets

    – technology adoption, intensification

    • Broad portfolio and tailored offers

    – APAC: rice, vegetables

    – Eastern Europe: cereals, sunflower

    – Latin America: soybean, specialty, sugar cane

  • 13

    Michael Mack��Chief Executive Officer2014: strong sales performanceELATUS™: Syngenta’s largest and most successful launch2014 financial highlightsIncreasing cash return to shareholdersCurrency movements: dollar strengthAccelerating Operational Leverage program to drive marginIntegrated offers: global strategy adapted by regionLong term market growth potentialIntegrated sales by cropNew and pipeline products: $700m increase in peak salesEmerging markets are key to future growthSlide Number 13