ANNUAL GENERAL MEETING - Syngenta · Annual General Meeting | Basel, April 26, 2016 Large products...

ANNUAL GENERAL MEETING BASEL, APRIL 26, 2016

Annual General Meeting | Basel, April 26, 2016

JOHN RAMSAY

1

CHIEF EXECUTIVE OFFICER


Currency headwinds: US dollar strength

New products success

Improved profitability: 140bps EBITDA margin improvement to 20.7%

AOL saving target exceeded: $300m

Earnings per share $17.78

Free cash flow $0.8bn

Proposed dividend CHF11.00 per share

2015 HIGHLIGHTS

Reported sales

11%

EBITDA margin

140bps

Sales

1% CER

2


0

2

4

6

8

10

12

14

16

18

15

17

19

21

23

25

27

29

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CP sales Seeds sales Reported EBITDA % of Sales CER EBITDA % of Sales

OUR LONG-TERM PERFORMANCE

%

of sales

Sales

$bn

Group sales CAGR: +6%

Seeds sales CAGR: +9%

CP sales CAGR: +5%

EBITDA as reported

EBITDA at CER

3


4

6

8

10

12

14

16

17

19

21

23

25

27

2010 2011 2012 2013 2014 2015

Sales Reported EBITDA % of Sales CER EBITDA % of Sales

OVERCOMING SHORT-TERM CHALLENGES

%

of sales

Sales

$bn

Currency; R&D

investment; Seeds operating

performance

4


REFINING OUR STRATEGY

THINK LIKE A

GROWER

5


INNOVATE – WHAT DO WE MEAN?

THINK LIKE A

GROWER

Develop innovative Crop Protection, Seeds, and Traits products

Pursue selected value-adding solutions

6


Cumulated Sales $bn 2005-2014

Cumulated R&D expenses $bn 2005–2014

Sales / R&D

SYNGENTA R&D IS THE MOST PRODUCTIVE IN THE INDUSTRY

Source: Phillips McDougall, Syngenta estimates

117 11.0 10.7

51 4.8 10.5

95 9.7 9.8

113 11.8 9.6

80 8.3 9.6

54 7.0 7.7

Period of investment in Seeds platform

Early investment technologies

Sustained returns on Crop Protection R&D

7


DIFFERENTIATE – WHAT DO WE MEAN?

THINK LIKE A

GROWER

Deliver superior offer: tailored to our markets, integrated where value-adding

Redefining the value we bring to society

8


Ertragsgarantie

Mehr

RENTABILITÄT

im Gerstenanbau

Zuverlässig

höherer ERTRAG

Garantierte

Leistung

sonst GELD

ZURÜCK

Ergebnisse, denen

Sie VERTRAUEN

können

Für Wintergerstesorten mit der

HYVIDO™ Hybridtechnologie

* Ertragsmessung erfolgt auf Referenzfeldern

BRINGING PRODUCTS TO MARKET IN A NEW WAY


REDEFINING THE VALUE WE BRING TO SOCIETY

10

http://www.google.ch/url?sa=i&rct=j&q=&esrc=s&source=imgres&cd=&cad=rja&uact=8&ved=0ahUKEwjhqPGsnYbMAhWM7xQKHZm8AcMQjRwIBw&url=http://about.puma.com/de/nachhaltigkeit/beschaffung/externe-audits&psig=AFQjCNHHJI0UYrqX9xmbPVxp223AYBGhzg&ust=1460451876128952

http://www.google.ch/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiAm83P04bMAhXBPBQKHVWfB6AQjRwIBw&url=http://www.wid.org/images/other-logos/Horizontal_RGB_600.jpg/image_view_fullscreen&bvm=bv.119028448,d.ZWU&psig=AFQjCNFGvpH8YIUaO3AHB-IFZ_w-I_a25A&ust=1460466422583880


LEVERAGE – WHAT DO WE MEAN?

THINK LIKE A

GROWER Drive operational excellence

Leverage external resources

11


MARGIN IMPROVEMENT SUPPORTED BY AOL

*Includes $75m from previous program

$m 2015 2016 2017 2018

EBITDA contribution

Annual cash outflows

300*

~230

~300 ~200

~120

~600

~830

~1,000

~1% ~3% ~4% ~5% EBITDA margin contribution

Working capital release

R&D Commercial

200

Global operations

300 450 600

2015: savings target exceeded

2016: savings target raised

Working capital benefit

12


OUTPERFORM – WHAT DO WE MEAN?

THINK LIKE A

GROWER Improve profitability and cash flow

Grow market share

13


Large products in smaller segments

PRODUKT INDICATION CROP STATUS LAUNCH YEAR PEAK

SALES

Fungicide Vegetables, specialty crops STAGE 3 2016 >$150m

Lead 4 Insecticide Vegetables, specialty crops STAGE 3 2021 >$250m

Lead 5 Seedcare Cereals, corn, soybean STAGE 1 (late) 2021 >$400m

Lead 6 Seedcare Multiple crops STAGE 1 (late) 2022 >$200m

Lead 7 Seedcare Multiple crops STAGE 1 (late) 2022 >$100m

INDUSTRY-LEADING PIPELINE: PEAK SALES POTENTIAL >$4 BILLION

Classification: INTERNAL USE ONLY

New blockbusters in the larger markets

PRODUKT INDICATION CROP STATUS LAUNCH YEAR PEAK

SALES

ADEPIDYN™ Fungicide Cereals, corn, soybean, specialty crops, vegetables STAGE 3 2016 >$750m

Lead 1 Insecticide Multiple crops STAGE 3 2021 >$750m

Lead 2 Herbicide Multiple crops STAGE 2 2023 >$600m

Lead 3 Fungicide Cereals, soybean STAGE 1 (late) 2022 >$600m

Lead 8 Herbicide Multiple crops STAGE 1 (late) 2024 >$500m


2015 OUTPERFORMANCE – PROFITABILITY

Change in % pts

2014 2015

+1.4% 15.3% 16.6%

Competitor 1 -4.8% 24.4% 19.6%

-1.2% 19.4% 18.1%

-4.0% 20.8% 16.8%

-1.6% 20.4% 18.7%

-0.1% 10.3% 10.2%

AGRIBUISINESS

-1.6% 19.1% 17.2% Weighted average EBIT* margin of top 6 companies

15

Competitor 2

Competitor 3

Competitor 4

Competitor 5


0

2

4

6

8

10

12

14

0

5

10

15

20

25

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

EPS Dividend

0

200

400

600

800

1'000

1'200

1'400

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

Dividend payout Share repurchase

DIVIDEND PAYOUT & CASH RETURN TO SHAREHOLDERS

16

Dividend CAGR +28%

Dividend payout

EPS CAGR +16%

EPS $

Dividend $

Cash return to shareholders

$m


-100

0

100

200

300

400

500

600

700

SHAREHOLDER RETURNS: LONG-TERM OUTPERFORMANCE

Source: Bloomberg. Calculated on a monthly basis; dividends reinvested in equity

Syngenta

1/4/16

583%

SMI

1/4/16

43%

17

%

ANNUAL GENERAL MEETING - Syngenta · Annual General Meeting | Basel, April 26, 2016 Large products...

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