Nomura Global Chemical Industry Nomura Global Chemical Industry Leaders Conference John Ramsay Chief Financial Officer Rome, 23 March 2012
Safe harbor This document contains forward-looking statements, which can be identified by terminology such as ‘expect’, ‘would’, ‘will’, ‘potential’, ‘plans’, ‘prospects’, ‘estimated’, ‘aiming’, ‘on track’ and similar expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ subject to risks and uncertainties that could cause the actual results to differ materially from these statements. We refer you to Syngenta's publicly available filings with the U.S. Securities and Exchange Commission for information about g g these and other risks and uncertainties. Syngenta assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. This document does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any ordinary shares in Syngenta AG, or Syngenta ADSs, nor shall it form the basis of, or be relied on in connection with, any contract there for. 2
2011 Syngenta highlights ● New strategy announced in February Innovate I t Integrate ● Commercial integration ahead of schedule Future F t Farmer ● Launch of first fully integrated offers integrated offers ● R&D organization fully aligned aligned Outperform Outperform ● New crop-based pipeline: >$22bn post 2015 >$22bn post-2015 3
Financial highlights ● Sales $13.3bn, up 14% - up 12% CER; +11% volume, +1% price 12% CER 11% l 1% i ● EBITDA up 18%* to $2.9bn ● Net income $1.6bn, up 14% ● EPS**: up 18% at $19.36 EPS**: up 18% at $19 36 ● Free cash flow: $1.5bn ● Dividend up 14% to CHF 8.00 per share ● CFROI 14% above target ● CFROI 14%, above target * At constant exchange rates ** ** Fully diluted basis excluding restructuring & impairment Fully diluted basis, excluding restructuring & impairment 4
Crop Protection performance ● Sales: $10.2bn, up 12%* - volume +11%: growth across all regions volume +11%: growth across all regions - price +1%: improving trend - Europe +11%: developed and emerging market growth E 11% d l d d i k t th - double digit Latin America, emerging Asia ● EBITDA**: $2.5bn (2010: $2.2bn) - margin 24.4%: up 0.6%* g p - operational leverage benefits * At constant exchange rates ** ** Excluding restructuring & impairment Excluding restructuring & impairment 5
New products: continued rapid adoption $m Successful launch in Brazil, 600 high adoption rate in cotton high adoption rate in cotton CAGR CAGR +55% 500 Continued success on cereals notably France and Iberia 400 Significant growth in Brazil; g g 300 expansion on vegetables, rice in Asia 200 Expanded use on potatoes Expanded use on potatoes in Europe 100 Additional European and 0 LATAM registrations 2006 2007 2008 2009 2010 2011 Gro th at constant e change rates Growth at constant exchange rates 6
Seeds margin acceleration Seeds EBITDA ● Continued trait and germplasm sales $bn sales $bn margin %* margin % development across all crops 20 3 ● Emerging market expansion Emerging market expansion 15 15 2 ● Sustained R&D investment: 10 ~13% of sales 13% of sales 1 5 ● Licensing success 0 0 2007 2008 2009 2010 2011 * 2008 2008 - 2009 restated to reflect pension accounting adjustment 2009 restated to reflect pension accounting adjustment 7
Evolution of currencies and raw materials % change vs. dollar indexed to 31 December 2007 ● 2011 negative net currency EBITDA impact: $52m EBITDA impact: $52m 40 ● Emerging markets volatility 20 20 CHF CHF ● Swiss franc stabilization; Oil* Euro weakness 0 BRL EUR EUR Emerging ● Currency and raw -20 Asia** materials impact 2012: GBP East East $300m - $350m negative -40 Europe** - more than offset by price -60 60 increases, cost savings 2008 2009 2010 2011 * Price movement ** ** B Basket of currencies k t f i 8
Savings program ahead of schedule: commitment maintained $m 2011 2012 2013 2014 2015 650 650 575 450 COGS Annualized savings 300 net of inflation 112 112 SG&A SG&A Annual cash outflows Annual cash outflows (88) (88) (187) (187) (85) (85) (40) (40) ● Integrated commercial organization: $150m ● Integrated supply chain: $300m ● Global procurement: $200m ● Global procurement: $200m ● 2011 income statement charge: $149m 9
Strong balance sheet: key ratios 2011 2010 Average trade Average trade 37% 37% 39% 39% ● Reduction in trade working working capital capital: inventory, receivables Collection ratios: management a age e t % sales collected EAME 2011 ● Strong balance sheet 2010 GIIPS* CIS ● CFROI ahead of target 100 % 50 60 70 80 90 Gearing 15% 20% CFROI 14% 13% * G * Greece, Italy, Ireland, Portugal, Spain It l I l d P t l S i 10
Sustained cash generation, increased return to shareholders Uses of cash $bn ● 2011: cash return $903m 2 ● 2012: increase in dividend, 1.5 share repurchase share repurchase - cash return ~$1bn 1 ● Flexibility for growth 0.5 investments, acquisitions 0 ● Progressive dividend policy 2005 2006 2007 2008 2009 2010 2011 Share repurchase Free cash flow Dividend Capex Acquisitions & intangibles & intangibles 11
Financial objectives ● EBITDA margin: continued strong profitability - 22-24% by 2015 ● CFROI: maintain high return on investment ● CFROI: maintain high return on investment - continuing to exceed 12% ● Cash return to shareholders: - prioritizing continuous dividend growth - tactical share buybacks 12
Developing our crop offers 2011 sales: $12.4bn* ● Corn: LATAM traits roll-out Corn +19% ● Vegetables: novel seed care Vegetables concepts +5% Specialty Specialty ● Soybean: integrated rust S b i t t d t crops solutions +11% ● Cereals: ● Cereals: , expansion Rice +11% ● Sunflower: integrated ● Sunflower: integrated Soybean Soybean +13% broomrape control Diverse field crops ● , ● Sugar cane g Cereals Cereals +19% +19% +21% +9% expansion * Excluding Lawn & Garden Growth at constant exchange rates Source: Syngenta estimates 13
Expanding our leadership position in key crops Sales $bn >$22bn ● Crop-based pipelines Specialty ● Specialty crops: further opportunities Rice in multiple crops p p DFC ● Redefining markets: new $12.4bn Cereals segments create additional value segments create additional value Sugar cane Sugar cane ● Outperforming the competition Soybean - 0.5% annual average share gain Vegetables ● Superior value creation potential Corn Post 2011 2015 Source: Syngenta estimates 14
Complete toolbox: resistance management across crops Weed management in soybean Insect management in corn Pre and post emergent herbicides: Insecticides: Seed treatments: Traits: Seeds: Seeds: RR, RR2Y: GT traits Traits: HPPD trait: new mode of action N America soybean herbicides US corn insect control portfolio $m $m 400 CAGR: +18% 200 200 200 100 CAGR +32% CAGR: +32% 0 0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Touchdown All other herbicides Source: Syngenta estimates 15
Complete toolbox: local crop solutions Rice example Seedlings Vegetative Reproductive Ripening 15-20 days 40-45 days 30 days 30 days C Crop cycle l 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 16
TEGRA™: integrated solution for rice An integrated crop solution offering growers a new and smarter way to grow rice y g The smallholder solution: revolutionary mechanical transplanting system Preferred retailers place direct High quality Integrated technology in farmer orders treated seeds seedling tray Agronomy protocol to Transplant franchisees offer Nursery franchisees raise maximize yields maximize yields seedlings-in-the-field seedlings in the field healthy seedlings healthy seedlings 17
A smallholder solution that delivers Realizing the full potential of the crop Grower benefits 30% yield advantage Yield kg/ha 4,000 $270 $270 extra profit per hectare kg/ha kg/ha Farmer Future practice practice potential potential 150% return on investment Farmer practice Healthy seedling and Healthy seedling and planting technology Seed care and crop protection 18
Expanding the market: yield and beyond ● Market under single product Estimated market size paradigm: p g >$200bn >$200bn - mid single digit growth ● Integrated solutions and I t t d l ti d adjacencies: - address current needs in new address current needs in new ~$70bn ways - solve unsolved problems solve unsolved problems - expand available markets 2010 2010 P Post 2025 t 2025 Syngenta market share High single digit growth potential Source: Syngenta estimates Source: Syngenta estimates 19
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