Mike Mack Chief Executive Officer 2011 market background - - PowerPoint PPT Presentation

Mike Mack

Chief Executive Officer

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2011 market background

• Agriculture robust despite economic uncertainty
• Record global output; US production lower
• Crop prices volatile but supported by demand growth
• Emerging market productivity drive continues
• Chinese corn and soybean imports rising

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Grain import growth reflects domestic productivity challenges

• Grain trade compensates local gaps
• China:
• Almost one quarter of global

feed demand

• Insufficient arable land
• Africa: a ‘sleeping agricultural giant’

20 40 60 80 100 120 140 1990 1995 2000 2005 2010 2011 China Africa

Imports of major crops* mt

*major crops are corn, soybeans, wheat, rice Source: USDA

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2011 Syngenta highlights

• New strategy announced in

February

• Commercial integration

ahead of schedule

• Launch of first fully

integrated offers

• R&D organization fully

aligned

• New crop-based pipeline:

>$22bn post-2015

Future Farmer Integrate Innovate Outperform

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Financial highlights

• Sales $13.3bn, up 14%
• up 12% CER; +11% volume, +1% price
• EBITDA up 18%* to $2.9bn
• Net income $1.6bn, up 14%
• EPS**: up 18% at $19.36
• Free cash flow: $1.5bn
• Dividend up 14% to CHF 8.00 per share
• CFROI 14%, above target

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

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New products: continued rapid adoption

100 200 300 400 500 600

2006 2007 2008 2009 2010 2011

$m

CAGR +55%

Growth at constant exchange rates

Successful launch in Brazil, high adoption rate in cotton Continued success on cereals notably France and Iberia Additional European and LATAM registrations Significant growth in Brazil; expansion on vegetables, rice in Asia Expanded use on potatoes in Europe

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Seeds margin acceleration

• Continued trait and germplasm

development across all crops

• Emerging market expansion
• Sustained R&D investment:

~13% of sales

• Licensing success

Seeds sales $bn EBITDA margin %*

* 2008 - 2009 restated to reflect pension accounting adjustment

5 10 15 20

1 2 3 2007 2008 2009 2010 2011

8 Share repurchase

Sustained cash generation, increased return to shareholders

• 2011: cash return $903m
• 2012: increase in dividend,

share repurchase

• cash return ~$1bn
• Flexibility for growth

investments, acquisitions

Uses of cash $bn

Capex Dividend Acquisitions & intangibles 0.5 1 1.5 2 2005 2006 2007 2008 2009 2010 2011 Free cash flow

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• Corn: LATAM traits roll-out
• Vegetables: novel seed care

concepts

• Soybean: integrated rust

solutions

• Cereals: ,

expansion

• Sunflower: integrated

broomrape control

• ,

expansion

* Excluding Lawn & Garden Growth at constant exchange rates Source: Syngenta estimates

Developing our crop offers

Cereals +9% Specialty crops +11% Rice +11% Corn +19% Sugar cane +21% Diverse field crops +19%

2011 sales: $12.4bn*

Soybean +13% Vegetables +5%

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Specialty

Expanding our leadership position in key crops

• Crop-based pipelines
• Redefining markets: new

segments create additional value

• Outperforming the competition
• 0.5% annual average share gain
• Superior value creation potential

Sales $bn

Source: Syngenta estimates

$12.4bn >$22bn

2011 Post 2015 Corn Vegetables Soybean Cereals Sugar cane Rice DFC

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Lawn & Garden: first integrated business

• Professional market focus:

2011 sales $847 million

• 12% market share ex fertilizer
• Chemistry, growing media,

genetics

• Value chain account

management

• Strategic partnerships

A growing market

Flowers Fertilizer Growing Media Controls Consumer % 63 12 9 16 $43bn Professional % 27 27 16 30 $9.3bn

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Key components:

Complete toolbox: local crop solutions

Crop cycle

Seedlings 15-20 days Vegetative 40-45 days Reproductive 30 days Ripening 30 days Seed

3325, 5251, 5231, 6301, 6302

Seed care Herbicides Insecticides Fungicides

Land and water management

Growth opportunities: , additional crops, new products, crop enhancement

Rice example

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: integrated program for rice

Grower benefits

30% yield advantage $270 extra profit per hectare 150% return on investment

14 1 2 3 4 2011 2015 Post 2015

Specialty crops: multiple opportunities

• Leveraging blockbuster

chemistry

• Value creation across the

chain

• Integrated offers, new

business models driving growth

2011 sales: $2.2bn 5 crop segments ~70% of sales

Crop protection portfolio & pipeline Integrated offers, new business models

38 other crops Citrus & Pome, Grapes, Plantation Potato, Cotton

Source: Syngenta estimates

15 2010 Post 2025

Expanding the market: yield and beyond

• Market under single product

paradigm:

• mid single digit growth
• Integrated solutions and

adjacencies:

• address current needs in new

ways

• solve unsolved problems
• expand available markets

Estimated market size

Syngenta market share Source: Syngenta estimates

High single digit growth potential

~$70bn >$200bn

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