2018 Half Year Results Basel, July 24, 2018 Classification: PUBLIC
Cautionary statement regarding forward-looking statements Some of the statements contained in this document are forward-looking statements. These statements are based on current expectations, assumptions, estimates and projections, and involve known and unknown risks, uncertainties and other factors that may cause results, levels of activity, performance or achievements to be materially different from any forward-looking statements. These statements are generally identified by words or phrases such as "believe", "anticipate", "expect", "intend", "plan", "will", "may", "should", "estimate", "predict", "potential", "continue" or the negative of such terms or other similar expressions. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results and the timing of events may differ materially from the results and/or timing discussed in the forward-looking statements, and you should not place undue reliance on these statements. Syngenta disclaims any intent or obligation to update any forward-looking statements as a result of developments occurring after the period covered by this document or otherwise. 2 Half Year Results July 24, 2018 Classification: PUBLIC
2018 H1 Financial Performance ● Sales $7.25 billion: up 5%, 7%* adjusted for divestments ─ Volumes up 4% excluding divestments, Image placeholder pricing maintained ● EBITDA $1.7 billion: up 1%, 8% excluding divestments ─ Margin 23.4%: 0.8% lower due to divestments ● Net Income up 32% including divestment gains Image placeholder ● Free cash flow before acquisitions $178m (2017: $21m) * Sales at reported rates, adjusted for Sugar Beet and anti-trust divestments 3 Half Year Results July 24, 2018 Classification: PUBLIC
Half 1 2018 Crop Protection sales* vs. prior year +8% $m [5,498] 165 5,404 28 11 33 170 (56) 54 4,999 ACT vs 6% 4% 18% 7% 15% 8% PY CER -3% 5% 4% 23% 7% 5% vs PY 2017 Europe & AME North America Latin America Asia Pacific China Other Currency 2018 * Excludes sales to Seeds, adjusted for anti-trust divestments [ ] Reported, unadjusted (includes supply agreements for divested products) 4 Half Year Results July 24, 2018 Classification: PUBLIC
Half 1 2018 Crop Protection sales*: +8%; +5% at CER North America +4% ACT , +4% CER EAME +6% ACT , -3% CER China +15% ACT , +7% CER Strong channel support Unfavorable weather conditions Strong early demand in China for across the region rice insecticides and fungicides New product momentum East impacted by high inventories Favorable weather for cereal Growth in Seedcare and low liquidity herbicides Competitive market pricing in Canada Latin America +18% ACT , +23% CER Asia Pacific +7% ACT , +5% CER Robust volume growth in Brazil Normalized channel inventory in South Asia Grower economics impact sales in Mexico Good pricing in ANZ Argentina recovering from Q1 Vietnam high channel inventory drought Volatile currencies * Excludes Sales to Seeds, variance versus prior year All variances adjusted for anti-trust divestments 5 Half Year Results July 24, 2018 Classification: PUBLIC
Half 1 2018 Seeds* sales vs. prior year +5% $m 57 [1,751] 1,737 12 (22) 3 2 15 18 1,652 ACT vs 37% 10% 2% -13% 12% 5% PY CER 2% -13% 12% 30% 2% 3% vs PY 2017 Europe & North Latin Asia Pacific China Other** Currency 2018 AME America America * Adjusted for Sugar Beet divestment ** Includes Flowers [ ] Reported, unadjusted (includes supply agreements for divested business) 6 Half Year Results July 24, 2018 Classification: PUBLIC
Half 1 2018 Seeds sales*: +5%; +2% at CER North America +2% ACT , +2% CER EAME +10% ACT , +3% CER China +37% ACT , +30% CER Relatively low sales base Duracade 2017 one-off, offset by Sunflower continued momentum Monsanto change of control Robust vegetables growth Vegetables slow start driven by Reduced corn and soybean acres adverse weather Aggressive market pricing Difficult in-season market conditions in Ukraine Canola exit in Canada Latin America -13% ACT , -13% CER Asia Pacific +12% ACT , +12% CER Area reduction; 17/18 second corn Corn recovery in ASEAN and season accelerated growth in South Asia High market inventories; aggressive Vegetables strong growth in India pricing Divestment of non-core assets in Strong sunflower growth in Argentina India * Excluding Flowers, variances vs. prior year All variances adjusted for Sugar Beet divestment 7 Half Year Results July 24, 2018 Classification: PUBLIC
EBITDA progression: H1 2018 +8% $m 43 1,700 111 (107) (97) 1,675 76 (1) 1,578 Oil / Glyphosate / Raw Mats / Logistics (67) Inflation (40) 2017 Divestments 2017 EBITDA Price Volume/Mix COGS / Savings / FX 2018 EBITDA adjusted Inflation Other EBITDA 8 Half Year Results July 24, 2018 Classification: PUBLIC
Net Income $m 2018 2017 Operating Income 1,403 1,416 Net financial expense (151) (77) Taxation (229) (204) Tax rate 18% 15% Restructuring* 206 (210) Net Income 1,229 928 All items except restructuring and net income exclude restructuring and impairment. Net income as attributable to Syngenta shareholders; includes income from associates of $1m (2017: $2m) and net of non-controlling interests of $1m (2017: -$1m) * Net of tax 9 Half Year Results July 24, 2018 Classification: PUBLIC
Half 1 2018 free cash flow vs. prior year $m Net Debt ($bn) 1,700 Includes $450m US H1 2018 7.4 Litigation Settlement Q4 2017 1.6 H1 2017 2.8 Includes mandatory divestment proceeds of $408m 178 (1,429) (165) (301) 373 (1,366) (1,188) EBITDA Working CAPEX Restructuring Financing, FCF b/f Acquisitions FCF c/f Capital & Disposals Tax, Other Acquisition Acquisitions vs. (478) (107) 710 7 157 (1,352) (1,195) 25 PY 10 Half Year Results July 24, 2018 Classification: PUBLIC
Change in Net Debt Net debt on track for April road show indication $bn 1.2 (1.2) 0 0 (1.6) (4.7) (2.8) 0.1 (7.4) H1 2017 FCF H2 Dividends FX/Other Y/E 2017 FCF H1 Dividends FX/Other H1 2018 2017 Paid 2018 Paid 11 Half Year Results July 24, 2018 Classification: PUBLIC
ADEPIDYN TM : delivering unprecedented benefits to growers Crops Diseases ● Best in class broad spectrum SDHI fungicide ● Step change in efficacy against leaf spots and difficult to control diseases (i.e. Fusarium The soybean story Head Blight, Botrytis) Significant improvement in seed quality Significant improvement in yield (kg/ha) ● Successfully launched in Argentina, Australasia, North America 501 278 ● Peak sales >$500m ● IP protection to 2034 UNTREATED MIRAVIS Duo MIRAVIS Duo Competitor 12 Half Year Results July 24, 2018 Classification: PUBLIC
Meeting grower needs through digital innovation Strider: an integrated farm management system ● ● ● ● Flagship product: tablet Real- time data to field Tracks all activities in Crop by crop history based field scouting tool workers i.e. machinery field analysis for growers performance, fuel use ● ● Oversees activities on Integrates satellite data, ● ● Monitors pest outbreaks Strong early adoption dashboard drones ● ● ● Reduces spraying costs Monitors financial Crop health assessment performance of the farm ● ● Manages & schedules Knows where to scout farm operations 13 Half Year Results July 24, 2018 Classification: PUBLIC
14 Half Year Results July 24, 2018 Classification: PUBLIC
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