10th Phillip Capital Agribusiness Conference

Nearer term objectives

Longer term vision

Doug Rathbone

Managing Director

Sydney

April 11, 2013

10th Phillip Capital Agribusiness Conference


2011: Comprehensive strategic review of the business

Utilised '3 Horizons' framework

Nearer term objectives; longer term vision

2

Resetting the base

Horizon 1: Short term

Clear strategic growth plan

Building a disciplined and entrepreneurial

company

Horizon 2: Medium term

Securing a sustainably profitable

industry position

Horizon 3: Long term

3

Protect / enhance value of our core

positions

Invest in new growth

opportunities

Generate improved returns

Growing into higher value and more defendable product and market

segments

Corporate growth strategy


Key strategic initiatives

4

Ensure cost competitiveness and improved efficiencies

Differentiate

Expand/diversify product portfolio

Support growth of seeds platform

Define, communicate and adhere to return targets and KPIs

Reinforce/ enhance brand values

Build the strength and capabilities of the organisation


5

Specific regional and business

strategies

Corporate strategy framework


6



Stable capital structure

Now attending to regional facilities

Improved capital management

Good progress, but more can be done

Stronger organisation

Executive team; regional management; information services; risk

management; purchasing & supply chain; chemistry innovation

New disciplines around performance management; linked to relevant

KPI's


Resetting the base

7



Increasing the rigour, visibility and accountability around

R&D investment/activity

Rebalancing the portfolio

Growth into insecticides/fungicides

Investing in people and infrastructure to support high value

growth platforms

Seeds

Seed treatment

Resetting the base



company


8

Longer term objectives


Implementation and demonstrated success of regional

business strategies

Diversification of business

By product and market segments

Step-out of seeds strategy to 4th target crop/market

Resetting the base



company



industry position


Established 'niche' player in seed treatment

9



Expanded, higher value product portfolios

Established positions in additional crop/market segments

Topline and market share growth


industry position


EBIT margins consistently achieving 15%

REGIONAL BUSINESSES

10



Balanced geographic footprint

Balanced product portfolio


industry position


BUSINESS DIVERSIFICATION

Positions established in strategic growth markets

eg. India

Larger presence in target high value market segments

Turf and ornamental

Seeds

Seed Treatment

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Capturing the value of a rich pipeline


industry position


SEEDS

12

Seeds: Monola


The seed:

− Trait enhanced – modified oil

− Australia adapted – drought, herbicide, disease

− Identity preserved production system

The oil:

− Low Saturated Fat (<7%), Trans fat free (<0.1%)

− High Oleic (>68%), High stability (2x canola)

− Heart Foundation approved

The opportunity:

− Supply large multinational restaurants and

general food industry

− Healthier, highly functional oil

13

Seeds: Food grade sorghum trait


The seed:

− Adapted sorghum from a feed grain to a premium hard milling grain

The food:

− Designed for milling white food grade flour (gluten free)

The opportunity:

− Use our technology and innovation to convert sorghum to a premium food grade

crop and share in the value Hybrids commercial in USA, Mexico, South America,

Africa

http://www.google.com.au/imgres?imgurl=http://4.bp.blogspot.com/_IMBzZlqbL3g/SY8AJkCsxXI/AAAAAAAACk8/0Z3AF_LTzxg/s400/carrie5.jpg&imgrefurl=http://gingerlemongirl.blogspot.com/2009/03/lessons-and-tips-for-gluten-free-bread.html&usg=__4h6wvi6aJClK8u1T9E1Kfor2RNU=&h=300&w=400&sz=25&hl=en&start=20&zoom=1&um=1&itbs=1&tbnid=ao3AjRmz1otkOM:&tbnh=93&tbnw=124&prev=/search?q=bread+baking&um=1&hl=en&safe=vss&sa=N&rls=com.microsoft:*&biw=1260&bih=642&tbm=isch&ei=CVXUTYOOMc3RrQexs-GJAw

http://www.google.com.au/imgres?imgurl=http://www.flourmillmachine.com/images/flour-milling-machines.jpg&imgrefurl=http://www.flourmillmachine.com/large-scale-flour-mill-equipment.html&usg=__emnL6NbO2rvBDPM24GAqUrj-pAA=&h=600&w=800&sz=54&hl=en&start=3&zoom=1&um=1&itbs=1&tbnid=93SLVtrgwy5k7M:&tbnh=107&tbnw=143&prev=/search?q=flour+milling+image&um=1&hl=en&safe=vss&sa=N&rls=com.microsoft:*&biw=1260&bih=642&tbm=isch&ei=b1vUTYfLG4jSrQeUvpmKAw

14

Seeds: Confection sunflower


The seed:

− Breeding program develops hybrids that demonstrate desired consumer

characteristics (size, colour, texture) and agronomics (yield)

The food:

− Harvested grain is processed and sold as snack food in global markets

The opportunity:

− #1 snack food in China (1kg / person p.a.)

− Significant markets in Europe and America

15

Seeds: High energy feed


The seed:

− Brown mid rib trait in forage and grain sorghum. Retains sorghum's high water use

efficiency

The food:

− Low lignin, high palatability, more digestible for improved feed conversion….more

milk, more meat

The opportunity:

− Change the way animals are fed in a water limited environment

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Securing a sustainably profitable industry position

SEED TREATMENT

The opportunity

Global market value ~USD2.5B growing at ~13% CAGR

Driven by

- Crop acres

- Traits and genetics

- Agronomic and technology change

Our offer

Portfolio expansion and unique blends

Formulatoins

'Custom blend'. Product and service bundle providing our customers with a

simple efficient solution to their seed treatment needs

Our ambition

Doubling our S.T. registrations to 122 by 2016

Increasing S.T. revenues to $90m by 2017

Expand gross margin to >50% by 2017

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Summary:


We are strongly focused on executing our strategic growth plan

Current seasonal pressures in Australia underline the importance/value of a

diversified geographic platform and a continued move into higher value

product and market segments

Shorter term objectives closely tied to long term vision

Good progress and significant change in the business

Commitment to increased discipline

Stronger focus on innovation across all areas of the business

Appropriate changes to and strengthening of the organisation

10th Phillip Capital Agribusiness Conference

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