Michael Mack Chief Executive Officer 2012 overview Strong sales - - PowerPoint PPT Presentation

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Michael Mack Chief Executive Officer 2012 overview Strong sales - - PowerPoint PPT Presentation

Jan 15, 2023 141 likes •332 views

Michael Mack Chief Executive Officer 2012 overview Strong sales momentum: +10% CER developed market growth 8%; emerging 11% Commercial integration complete Double-digit Seeds growth in all regions enabling integrated offers

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Michael Mack

Chief Executive Officer

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2012 overview

  • Strong sales momentum: +10% CER

– developed market growth 8%; emerging 11%

  • Commercial integration complete
  • Double-digit Seeds growth in all regions

– enabling integrated offers – investment in new capacity

  • Sales target upgraded: $25bn in 2020 for 8 key crops
  • Acquisitions expanding technology breadth
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2012 financial highlights

  • Sales $14.2bn, up 7%

– up 10% CER; +7% volume, +3% price

  • EBITDA $3.2bn, up 17%*

– CER margin 23.2% (2011: 21.9%)

  • EPS $22.30**, up 15%
  • Pre-acquisition free cash flow: $0.9bn
  • Dividend up 19% to CHF 9.50 per share
  • CFROI above target at 15%

* At constant exchange rates ** Fully diluted basis, excluding restructuring & impairment

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Seeds portfolio: full year highlights

1 2 3 2007 2008 2009 2010 2011 2012

Thousands

  • Corn: strong global growth
  • Diverse field crops

– sunflower: CIS, SE Europe – hybrid barley: >300,000 hectares in northern Europe

  • Vegetables: difficult economic

environment, strong Q4 in all regions

% at constant exchange rates

Sales $bn

Corn and Soybean DFC Vegetables CAGR +14%

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Innovation in crop protection

200 400 600 800 2007 2008 2009 2010 2011 2012

  • New product sales: +36%
  • Global growth in : : Canada

sales almost doubled

  • : : strong adoption Brazil
  • : new launches;

Brazil up 80%

  • : sales doubled
  • : first sales in N. America

* % at constant exchange rates

Sales $m

CAGR +44%*

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Acquisitions expanding technology breadth

1 2 3 4 Variety 1 Variety 2 Variety 3 Pasteuria Leading competitor

Yield difference from Cruiser Maxx Beans in nematode affected areas %

  • Established presence in key Asian rice

markets

  • Strong near-term pipeline and breeding

program

  • RNAi: spray and transgenic applications
  • Biological platform for nematode

control

  • Unique proprietary production process
  • Soybean cyst nematode control: US

launch 2014

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Increasing cash return to shareholders

  • Leveraging strong balance

sheet

  • Tactical share buybacks
  • Commitment to sustainable

dividend increases

2 4 6 8 10 10 20 2007 2008 2009 2010 2011 2012

Dividend per share $

CAGR +17% CAGR +14%

Earnings per share* $

* Fully diluted basis, excluding restructuring & impairment 2008, 2009 restated to reflect pension accounting adjustments

Dividend per share $

CAGR +17%

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Long term growth objective raised

  • Corn: from $4bn to $5.5bn
  • Cereals: from $2.5bn to $2.8bn
  • Rice: from $1.5bn to $2bn

Specialty

Sales* $bn

* Excluding Lawn & Garden Source: Syngenta estimates

$25bn

2012 2020

Vegetables Soybean Sugar cane

Rice

DFC

Cereals Corn

2020 target upgrades

$13.4bn

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The challenge of feeding more people sustainably

Population pressures

80 million more mouths to feed every year

2 billion more mouths to feed by 2050 Resource pressures

One person consumes 2000 liters of water a day

Farming uses 70 percent of the world’s fresh water Labor pressures

Farmers are a shrinking population

More than half the world’s population now lives in cities Land pressures

We lose a soccer field of farmland every second

We have to produce more food from less land

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Poorer populations exposed to rising food prices

10 20 30 40 50 Switzerland United States France Brazil China India Pakistan Egypt

Source: US Department of Agriculture, Swiss Federal Office for Statistics, Syngenta

Spending per person per week on food*

Selected countries, 2011, % of total household spending

$19 $7 $5 $9 $23 $63 $43 $72

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Targeting global growth: emerging market focus

Asia Pacific Sales* $bn

* Excluding Lawn & Garden Source: Syngenta estimates

$13.4bn $25bn 2012 2020 North America Europe, Africa Middle East Latin America

  • Emerging markets growing at >10% pa
  • Leveraging technology across regions
  • Tailored models
  • Developed markets ~5% pa
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12 SOURCE: FAO; World Bank; AMIS

Brazil 65 Russia 74 China 172 India 192 Africa, Middle East 240 Harvested area (mHa)

Syngenta’s commitment

  • Reach > 5 million farmers and enable

productivity gains of 50 percent

  • Cumulative investment > $500 million
  • > 700 new employees
  • Build a $1 billion business by 2022

Improving land productivity: the Africa opportunity

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Land pressure: preserving the environment

Operation Pollinator™

  • Field margins to create natural

habitats

  • 7x increase in bumblebees,

12x butterflies

  • Improve crop yields through better

pollination

  • Targeting 250,000 hectares by 2020
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Resource pressure: more efficient water use

Multiple technologies:

  • Irrigation combined with genetics,

crop protection and enhancement

– Remote crop monitoring

  • : water optimized

hybrids

– Season-long defense against drought – 17% yield advantage in severe and extreme drought

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Labor pressure: rice example

  • Manual planting of rice: labor

intensive and problematic

  • : healthy seedlings raised in

trays

  • Mechanized planting: convenient and

labor saving

  • Agronomy protocol to maximize yield
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Raising productivity in sustainable ways

  • Strong rural economies
  • Land stewardship
  • Better incomes
  • Increased output, higher quality

LAND PEOPLE TECHNOLOGY

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