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

Mike Mack Chief Executive Officer

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 2

Grain import growth reflects domestic productivity challenges Imports of major crops* mt 140 ● Grain trade compensates local gaps 120 100 ● China: 80 - Almost one quarter of global 60 feed demand - Insufficient arable land 40 20 ● Africa : a ‘sleeping agricultural giant’ 0 1990 1995 2000 2005 2010 2011 China Africa *major crops are corn, soybeans, wheat, rice Source: USDA 3

2011 Syngenta highlights ● New strategy announced in February Innovate Integrate ● Commercial integration ahead of schedule Future Farmer ● Launch of first fully integrated offers ● R&D organization fully Outperform aligned ● New crop-based pipeline: >$22bn post-2015 4

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 5

New products: continued rapid adoption $m Successful launch in Brazil, 600 high adoption rate in cotton CAGR +55% 500 Continued success on cereals notably France and Iberia 400 Significant growth in Brazil; 300 expansion on vegetables, rice in Asia 200 Expanded use on potatoes in Europe 100 Additional European and 0 LATAM registrations 2006 2007 2008 2009 2010 2011 Growth at constant exchange rates 6

Seeds margin acceleration Seeds EBITDA ● Continued trait and germplasm sales $bn margin %* development across all crops 20 3 ● Emerging market expansion 15 2 ● Sustained R&D investment: 10 ~13% of sales 1 5 ● Licensing success 0 0 2007 2008 2009 2010 2011 * 2008 - 2009 restated to reflect pension accounting adjustment 7

Sustained cash generation, increased return to shareholders Uses of cash $bn 2 ● 2011: cash return $903m 1.5 ● 2012: increase in dividend, share repurchase 1 - cash return ~$1bn 0.5 ● Flexibility for growth investments, acquisitions 0 2005 2006 2007 2008 2009 2010 2011 Share repurchase Free cash flow Dividend Capex Acquisitions & intangibles 8

Developing our crop offers 2011 sales: $12.4bn* ● Corn: LATAM traits roll-out Corn +19% ● Vegetables: novel seed care Vegetables concepts +5% Specialty ● Soybean: integrated rust crops solutions +11% ● Cereals: , expansion Rice +11% ● Sunflower: integrated Soybean +13% broomrape control Diverse field crops ● , Sugar cane Cereals +19% +21% +9% expansion * Excluding Lawn & Garden Growth at constant exchange rates Source: Syngenta estimates 9

Expanding our leadership position in key crops Sales $bn >$22bn ● Crop-based pipelines Specialty ● Redefining markets: new Rice segments create additional value DFC ● Outperforming the competition Cereals $12.4bn Sugar cane - 0.5% annual average share gain Soybean ● Superior value creation potential Vegetables Corn Post 2011 2015 Source: Syngenta estimates 10

Lawn & Garden: first integrated business A growing market ● Professional market focus: 2011 sales $847 million Consumer Professional ● 12% market share ex fertilizer $43bn $9.3bn % % ● Chemistry, growing media, Flowers 63 27 genetics 12 Fertilizer 27 9 Growing Media 16 Controls 16 30 ● Value chain account management ● Strategic partnerships 11

Complete toolbox: local crop solutions Rice example Seedlings Vegetative Reproductive Ripening 15-20 days 40-45 days 30 days 30 days Crop cycle Seed 3325, 5251, 5231, 6301, 6302 Seed care Herbicides Insecticides Fungicides Land and water management Key components: Growth opportunities: , additional crops, new products, crop enhancement 12

: integrated program for rice Grower benefits 30% yield advantage $270 extra profit per hectare 150% return on investment 13

Specialty crops: multiple opportunities 2011 sales: $2.2bn 5 crop segments ~70% of sales ● Leveraging blockbuster 38 other chemistry crops Potato, Cotton ● Value creation across the chain Citrus & Pome, Grapes, ● Integrated offers, new Plantation 4 business models driving Integrated offers, new business models 3 growth 2 Crop protection 1 portfolio & pipeline 0 2011 2015 Post 2015 Source: Syngenta estimates 14

Expanding the market: yield and beyond ● Market under single product Estimated market size paradigm: >$200bn - mid single digit growth ● Integrated solutions and adjacencies: - address current needs in new ~$70bn ways - solve unsolved problems - expand available markets 2010 Post 2025 Syngenta market share High single digit growth potential Source: Syngenta estimates 15

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