ERIK FYRWALD CHIEF EXECUTIVE OFFICER 2016 HIGHLIGHTS Reported - - PowerPoint PPT Presentation
ERIK FYRWALD CHIEF EXECUTIVE OFFICER 2016 HIGHLIGHTS Reported sales CER Sales 5% 2% Volume -4%, price +2% Sales up 1% ex Brazil sales terms change and non-recurring corn trait royalty New products success EBITDA margin maintained:
2016 HIGHLIGHTS
1
* Fully diluted basis, excluding restructuring and impairment
Reported sales 5% CER Sales 2%
Volume -4%, price +2% Sales up 1% ex Brazil sales terms change and non-recurring corn trait royalty New products success EBITDA margin maintained: 20.8% AOL (Accelerating Operational Leverage) savings target exceeded: $320m Earnings per share* $17.03 Free cash flow ahead of target: $1.4bn
NEW PRODUCTS PEAK SALES POTENTIAL >$2.9 BILLION
2
Reported sales $m
Sales of new products (launched within last 5 years)
100 200 300 400 500 600 700 800 2013 2014 2015 2016
CER 2016 sales growth +31%
ACURON™ success in US corn market: sales more than doubled Carboxamide technology platform expanding: launch of ELATUS™ PLUS in France, MIRAVIS™ (ADEPIDYN™) in Argentina ACURON™ success in US corn market: sales more than doubled Expanding in Argentina Combined 2016 sales: $741m
EVOLUTION OF PROFITABILITY
3
GP % EBITDA %
5 year performance: gross profit margin % and EBITDA margin %
30% 40% 50% 2012 2013 2014 2015 2016 15% 20% 25% 30%
GP % GP % ex 2015 corn trait royalty EBITDA % EBITDA % ex 2015 corn trait royalty
47.5% 49.2% 20.7% 20.8%
AOL efficiencies 170 bps improvement in gross margin as reported Determined action on price in Latin America and CIS Mix improvement including reduction in solo glyphosate Adjusted EBITDA margin: 130 bps improvement
2016 performance
ACCELERATING OPERATIONAL LEVERAGE (AOL)
4
Planned savings
R&D Global operations Commercial
EBITDA contribution Annual cash charges $m ~230 ~220 ~260 ~140
~620 ~860 ~1,000
2015 2016 2017 2018 200 500 600 600 Working capital release
Global
– Seeds production cost
– Procurement and manufacturing fixed cost reductions – Rationalization of logistics and function costs – Supply chain redesign
Commercial
– Simplified marketing structure – Field force effectiveness – Integrated demand and production management – Enhanced pricing platforms
R&D
– Field development rationalization – Infrastructure and
– Outsourcing of standard activities 300
OUR CORPORATE GOALS
5
Profitably grow market share
Meet our financial commitments
Realize AOL savings Improve seeds performance Increase cash conversion
Drive simplification Improve the customer experience
More sales force face time New digital approaches Ongoing innovation Decision-making faster, closer to market
6
2 4 6 8 10 12 14 16 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Crop Protection (including Professional Products) Seeds (including Flowers)
SALES EVOLUTION
7
$bn
Group sales CAGR:
+5%
Seeds sales CAGR:
+8%
CP sales CAGR:
+4%
Source: Company results
1 2 3 4 5 6 7 8 9 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Emerging market sales
EXPANSION IN EMERGING MARKETS
8
Sales in $bn
34%
2005
53%
2016
Emerging market sales
% of total group
Source: Company results, Syngenta estimates
DIVIDEND PAYOUT & CASH RETURN TO SHAREHOLDERS
2 4 6 8 10 12 14 5 10 15 20 25 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 EPS Dividend
9
Dividend CAGR** +25% Dividend payout EPS CAGR
+15%
EPS* $ Dividend $
Cash return to shareholders
$m
* Fully diluted basis, excl. restructuring and impairment. CAGR as reported. ** 2001-2015 period Dividend paid in Swiss Francs. Numbers include dividend and par value reduction Source: Company results
200 400 600 800 1'000 1'200 1'400 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Dividend payout Share repurchase