2018 Half Year Results Basel, July 24, 2018 Classification: PUBLIC - - PowerPoint PPT Presentation

Basel, July 24, 2018

2018 Half Year Results

Classification: PUBLIC

2 Half Year Results 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.

3 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, 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
• Free cash flow before acquisitions $178m

(2017: $21m)

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* Sales at reported rates, adjusted for Sugar Beet and anti-trust divestments

4 Half Year Results July 24, 2018 Classification: PUBLIC

54 170 33 11 28 165

Half 1 2018 Crop Protection sales* vs. prior year

* Excludes sales to Seeds, adjusted for anti-trust divestments [ ] Reported, unadjusted (includes supply agreements for divested products)

+8%

China

5,404

Other 2018

4,999

2017 Europe & AME

(56)

North America Latin America Asia Pacific Currency

$m

CER vs PY ACT vs PY

6%

• 3%

4% 4% 18% 7% 5% 15% 7% 8% 5% 23%

[5,498]

5 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 Latin America +18% ACT, +23% CER Asia Pacific +7% ACT, +5% CER Strong channel support New product momentum Growth in Seedcare Competitive market pricing in Canada Unfavorable weather conditions across the region East impacted by high inventories and low liquidity Robust volume growth in Brazil Grower economics impact sales in Mexico Argentina recovering from Q1 drought Volatile currencies Normalized channel inventory in South Asia Good pricing in ANZ Vietnam high channel inventory China +15% ACT, +7% CER Strong early demand in China for rice insecticides and fungicides Favorable weather for cereal herbicides

* Excludes Sales to Seeds, variance versus prior year All variances adjusted for anti-trust divestments

6 Half Year Results July 24, 2018 Classification: PUBLIC

18 12 15 2 3 57 1,737

Currency

+5%

2018 Other** China Asia Pacific 2017

1,652

Latin America

(22)

North America Europe & AME

Half 1 2018 Seeds* sales vs. prior year

* Adjusted for Sugar Beet divestment ** Includes Flowers [ ] Reported, unadjusted (includes supply agreements for divested business)

CER vs PY ACT vs PY

$m

10% 3% 2% 2%

• 13%
• 13%

12% 12% 37% 30% 5% 2%

[1,751]

7 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 Latin America -13% ACT, -13% CER Asia Pacific +12% ACT, +12% CER Duracade 2017 one-off, offset by Monsanto change of control Reduced corn and soybean acres Aggressive market pricing Canola exit in Canada Sunflower continued momentum Vegetables slow start driven by adverse weather Difficult in-season market conditions in Ukraine Area reduction; 17/18 second corn season High market inventories; aggressive pricing Strong sunflower growth in Argentina Corn recovery in ASEAN and accelerated growth in South Asia Vegetables strong growth in India Divestment of non-core assets in India China +37% ACT, +30% CER Relatively low sales base Robust vegetables growth

* Excluding Flowers, variances vs. prior year All variances adjusted for Sugar Beet divestment

8 Half Year Results July 24, 2018 Classification: PUBLIC

Oil / Glyphosate / Raw Mats / Logistics (67) Inflation (40) (97) (1) 111 (107) 76 43 2017 EBITDA Divestments 1,578 2017 EBITDA adjusted Price Volume/Mix COGS / Inflation Savings / Other 1,675 2018 EBITDA 1,700 FX

EBITDA progression: H1 2018

+8% $m

9 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

10 Half Year Results July 24, 2018 Classification: PUBLIC

1,700 (1,429) (165) 178

FCF c/f Acquisitions

(1,188)

Acquisitions

(1,366)

FCF b/f Acquisition Financing, Tax, Other Restructuring & Disposals

373

CAPEX

(301)

Working Capital EBITDA

Half 1 2018 free cash flow vs. prior year

vs. PY Includes $450m US Litigation Settlement Includes mandatory divestment proceeds of $408m

$m

Net Debt ($bn) H1 2018 7.4 Q4 2017 1.6 H1 2017 2.8

25 (478) (107) 710 7 157 (1,352) (1,195)

11 Half Year Results July 24, 2018 Classification: PUBLIC

Change in Net Debt

(1.2) (4.7) (1.6) 1.2 (7.4) (2.8) 0.1 $bn H1 2018 FCF H1 2018 Y/E 2017 FX/Other Dividends Paid FCF H2 2017 H1 2017 Dividends Paid FX/Other

Net debt on track for April road show indication

12 Half Year Results July 24, 2018 Classification: PUBLIC

ADEPIDYNTM: delivering unprecedented benefits to growers

• Best in class broad spectrum

SDHI fungicide

• Step change in efficacy against

leaf spots and difficult to control diseases (i.e. Fusarium Head Blight, Botrytis)

• Successfully launched in

Argentina, Australasia, North America

• Peak sales >$500m
• IP protection to 2034

Crops Diseases

Significant improvement in seed quality UNTREATED MIRAVIS Duo

The soybean story

Significant improvement in yield (kg/ha) MIRAVIS Duo Competitor

278 501

13 Half Year Results July 24, 2018 Classification: PUBLIC

• Crop by crop history

analysis

• Integrates satellite data,

drones

• Crop health assessment
• Knows where to scout
• Tracks all activities in

field

• Oversees activities on

dashboard

• Monitors financial

performance of the farm

• Real- time data to field

workers i.e. machinery performance, fuel use

• Strong early adoption
• Flagship product: tablet

based field scouting tool for growers

• Monitors pest outbreaks
• Reduces spraying costs
• Manages & schedules

farm operations

Meeting grower needs through digital innovation

Strider: an integrated farm management system

14 Half Year Results July 24, 2018 Classification: PUBLIC