Michael Mack Chief Executive Officer Integrated strategy: first - PowerPoint PPT Presentation

Michael Mack Chief Executive Officer

Integrated strategy: first three years • Commercial integration benefits across territories • Global crop teams established • Launch of integrated offers; scope increasing • Investments in marketing and R&D: sustained sales growth • 2020 sales target by crop raised from >$22bn to $25bn 2

On track for 2020 target Sales* $25bn $bn • Crop targets based on business Vegetables projections and pipelines Rice DFC • Expanding seeds business: Corn $14bn opportunities for further Specialty crop protection growth Cereals • Global offers, new business Sugar cane models and collaborations Soybean 2013 2020 * Excluding Lawn and Garden 3

2013 Syngenta highlights • Integrated sales up 6%*: 2010-2013 CAGR 9% • Emerging markets maintaining double digit growth • Lower royalty income, non-recurring Seeds costs • Earnings per share** 12% lower • Dividend up 5% to CHF10.00 per share • Continued focus on cost and capital efficiency • New EBITDA margin target: 24-26% by 2018 * At constant exchange rates ** Fully diluted basis, excluding restructuring and impairment 4

Continuing track record of operating expense leverage % of sales Sales • Ongoing expense reduction CER $bn 45 16 Expenses – 2013: 70bps at CER 14 40 • Growth investments to drive top- 12 35 line expansion 10 30 8 • Cumulative currency headwinds: 6 25 >300bps adverse EBITDA EBITDA 4 margin impact 20 2 15 0 As reported, excluding restructuring and impairment 5

Accelerating operational leverage $m • Program contributes ~$1bn to EBITDA 2015 2016 2017 2018 margin by 2018 EBITDA ~1% ~3% ~4% ~5% margin – ~5% EBITDA margin improvement contribution ~1,000 – efficiency gains based on long term ~730 EBITDA sales plan contribution ~475 • Working capital release ~265* • Cost: ~$900m Annual cash 200 200 200 200 outflows Working capital 50 250 425 600 release * Includes existing program savings: 2015 $75 million 6

Increasing cash return to shareholders Dividend per share $ Earnings per share* Dividend per share • Proposed dividend increase: $ $ +5% in CHF, +11% in USD** 25 12 CAGR +16% 10 CAGR • Commitment to ongoing 20 +30% increases 8 15 6 • Net debt to equity: 24% 10 4 • Flexibility for acquisitions CAGR 5 2 +20% • Tactical share buybacks 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 * Fully diluted basis, excluding restructuring and impairment ** 2013 converted at end January exchange rates All years restated to reflect pension accounting adjustments 7

Addressing grower challenges Integrate Innovate Integrated offers Leveraging combined for yield, quality and Breakthrough innovation field force convenience Outperform 8

Iberia: consistent share gain Crop protection market share • Sales force capability: distributor/ grower % Sales CAGR facing, campaign expert +2% 17.2 16.5 16.4 16.0 • Vegetables: demand creation through entire value chain 2010 2011 2012 2013 – Integrated Crop Market CAGR 0% Management Seeds market share % Sales CAGR +4% • Cereals: focus on selective herbicides 19.2 18.4 17.9 and fungicides 15.8 – platform for launch 2010 2011 2012 2013 Market CAGR 0% Sales CAGR at constant exchange rates Source: Syngenta 9

ASEAN: demand creation focus • Sales growth 12%* CAGR ASEAN 2013 sales Herbicides 2010-2013 Rice Vegetables Seeds • Crop-driven strategy aligned with Corn government agenda Fungicides Seedcare • Rice focus: driving technology adoption Insecticides • Strong partnerships with local distributors • Capability building programs • Scaling up seeds creating new opportunities * At constant exchange rates 10

Crop protection: new products $m • Sales up 85% 600 • : up >60% in Brazil, almost 500 tripled in USA 400 • : successful launch in Germany 300 • : new launches in North 200 America, Australasia, Central Europe; sales >$120m 100 • Combined peak sales potential: >$850m 0 2009 2010 2011 2012 2013 Growth at constant exchange rates 11

Crop protection potential and pipeline: key launches Peak sales potential: >$2bn Launch year Peak sales 2014 / Solatenol™ >$500m Step change in control of soybean rust / Cyantraniliprole >$400m Early season insect control >$200m Biological soybean cyst nematode control 2015 Bicyclopyrone >$250m Expanding corn herbicide leadership 2016 Oxathiapiprolin >$100m Fungicide tailored for Specialty crop use 2018 New fungicide >$300m Fourth broad spectrum SDHI 12

Securing reliably higher yields for soybean growers Soybean yield Soybean rust: tons/ha $20bn in crop losses since 2001 3.2 4 2.8 tons/ha 2.6 tons/ha 3 tons/ha 2 1 • Intervals between applications are 7-10 0 days longer Standard Competitor SDHI • Greater flexibility and improved efficiency for the grower • Potential on other crops in the EU and North America 13

Sunflower: driving growth through innovation Syngenta sunflower sales Integrated solutions $m driving growth: CAGR 600 +20% • Seeds: IMI hybrids • Seed care Treated with 400 • Early season weed IMI chemistry management 200 • Post emergence weed management • Fungicides 0 2001 2003 2005 2007 2009 2010 2011 2012 2013 • Desiccation Crop Protection Seedcare Seeds Untreated 14

Acquisition of MRI in Zambia • Diverse white corn germplasm portfolio • >1000ha of production fields • Creation of corn seed hub to serve East Africa • Further opportunity in wheat and soybean • Leading distributor of crop chemicals and seeds • Supports commitment to build $1bn business in Africa by 2022 15

We believe … business must play a greater role in helping Farmers growers farm more sustainably 16

Our contribution in action Improving Increasing crop soil and yields through water quality better pollination Creating habitats Ensuring for birds and product safety animals through R&D and training 17

The Good Growth Plan More food More biodiversity More health Less waste Less degradation Less poverty Help Make crops Rescue Empower Help people Look after biodiversity more efficient more smallholders stay safe every worker flourish farmland Increase average productivity Improve the Enhance Reach 20 million Train 20 million Strive for fair of the world’s major crops by fertility of 10 biodiversity on smallholders farm workers on labor conditions 20% without using more land, million hectares 5 million and enable them labor safety, throughout our water or inputs of farmland on hectares of to increase especially in entire supply the brink of farmland productivity developing chain network degradation by 50% countries One planet. Six commitments. 18

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