2. 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
materially from these statements. We refer you to Syngenta's publicly available
filings with the U.S. Securities and Exchange Commission for information about
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
3. 2013 Syngenta highlights
● Integrated sales up 6%*: 2010-2013 CAGR 9%
● Emerging markets maintaining double digit growth*
● Commercial integration benefits across territories
● Lower royalty income, non-recurring Seeds costs
● Earnings per share** 12% lower
● 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
3
4. Integrated strategy: first three years
● Field force integration in all territories
● Global crop teams established
● Launch of integrated offers; scope increasing
● Sustained sales growth through period of implementation
● Operating cost efficiency; investments in growth and R&D
● 2020 sales target by crop raised from >$22bn to $25bn
Foundation for profitable growth
4
5. On track for 2020 target
Sales*
$bn
$25bn
Vegetables
Rice
DFC
Corn
$14bn
Specialty
Cereals
Sugar cane
Soybean
2013
2020
* Excluding Lawn and Garden
Source: Syngenta estimates
5
● Crop targets based on business
projections and pipelines
● Expanding seeds business:
opportunities for further
crop protection growth
● Global offers, new business
models and collaborations
16. Global crop offers
2013 sales: $14bn* +6%
Rice
+16%
Soybean
+11%
Sugar cane
+15%
Vegetables
+4%
Cereals
+12%
Diverse
field
crops
+11%
Corn**
0%
Specialty
crops
-1%
● Soybean: leading weed, insect
control, seed care; fungicide
transition; Brazil seeds platform
● Sugar cane: original concept delayed;
launch of
,
; expanding CP market
● Cereals:
sales >$400m;
new SDHIs;
hybrid barley
success in 8 countries
● Specialty: >40 crops; lower cotton
acres in 2013; value chain
relationships
* Excluding Lawn and Garden
** +7% excluding $256 million corn rootworm trait royalty income in 2012
Growth at constant exchange rates
16
17. 2013 integrated business performance by region
Europe, Africa and Middle East:
sales +7%
Latin America: sales +10%
● Good volume growth in high margin
products
● Price increases offset currency
depreciation
● Focused price action in CIS,
SE Europe
● Strong growth in TOUCHDOWN:
low margin
● Italy and Iberia: share gain
● Fungicides sales below target
$bn
5
4
3
2
1
0
32.8%
34.3%
$bn
27.1%
25.6%
2012
2013
4
3
2
1
0
2012
2013
Sales
Operating income
Operating margin
Sales growth at constant exchange rates. Operating income and margin exclude restructuring and impairment.
17
18. Latin America: positioned for outperformance
● History of share gain
Sales
$bn
4
CAGR
+19%
● 2013 growth below market: Fungicides
transition, risk management
3
●
registration in Brazil
expected Q1 2014
2
CAGR
+10%
1
0
● Leading corn traits, new soybean seed
platform established in Brazil
2008 2009 2010 2011 2012 2013
Seeds
Crop protection
Growth at constant exchange rates
18
● New sugar cane model developing
● Targeting double digit annual growth
through 2020
19. Iberia: consistent share gain
Crop protection market share
%
Sales CAGR
+2%
16.0
16.5
16.4
17.2
● Incentives shifted from volume to
market share
● Sales force capability: distributor/
grower facing, campaign expert
2010
2011
2012
2013
Market CAGR
0%
Seeds market share
%
Sales CAGR
+4%
17.9
18.4
19.2
● Vegetables: demand creation
through entire value chain
- Integrated Crop
Management
15.8
● Cereals: focus on selective
herbicides and fungicides
2010
2011
2012
Market CAGR
0%
Sales CAGR at constant exchange rates
Source: Syngenta
19
2013
- platform for
launch
20. CIS and South East Europe: customer and crop focus
● F2F approach for agro-holdings and
large farms
Thousands
Sales
$bn
1.5
● Technology adaptation directly on the
farm
1
CAGR
+23%
● Full IMI offer in sunflower
● Early plant solution for corn
0.5
CAGR
+19%
0
2010
2011
2012
Seeds
Crop protection
Growth at constant exchange rates
20
● Breakthrough innovation:
2013
- Gro’N’Tec vegetable crop stress
management programs
-
offer to address grower
pain points
21. Crop protection sales up 8 percent
Sales
$bn
10
● Selective herbicides +5%: corn and
cereal herbicides Europe, USA
CAGR
+6%
Selective
herbicides
8
Non-selective
herbicides
6
Fungicides
4
Insecticides
2
Seed care
0
2008 2009 2010 2011 2012 2013
Growth at constant exchange rates
Excludes ‘Other’ (2013: $152 million)
21
● Non-selective herbicides +26%:
TOUCHDOWN growth led by Brazil
● Fungicides +1%: SEGURIS in
EAME, AMISTAR technology
adoption in Asia; lower sales in
Brazil
● Insecticides +7%: Brazil pest
pressure drives DURIVO demand
● Seed care +12%: VIBRANCE
successful launch North America;
CRUISER expansion Brazil, China
22. Crop protection: new products
$m
● Sales up 85%
600
●
500
: up >60% in Brazil,
almost tripled in USA
●
400
: successful launch in
Germany
300
●
200
: new launches in
North America, Australasia,
Central Europe; sales >$120m
100
● Combined peak sales potential:
>$850m
0
2009
2010
2011
Growth at constant exchange rates
22
2012
2013
23. Crop protection potential and pipeline: key launches
Launch year
Peak ● Peak sales potential: >$2bn
sales
●
: step change in control of
>$500m
soybean rust
2014
/ Solatenol™
>$400m
●
>$200m
●
>$250m
/ cyantraniliprole
● Bicyclopyrone: expanding corn herbicide
leadership
2015
bicyclopyrone
2016
oxathiapiprolin
>$100m
: early season insect control
: breakthrough biological
soybean cyst nematode control
● Oxathiapiprolin: fungicide tailored for
Specialty crop use
2018
New
fungicide >$300m
23
● New fungicide: fourth broad spectrum
SDHI
25. Global crop offers
2013 sales: $14bn* +6%
Rice
+16%
Soybean
+11%
Sugar cane
+15%
Vegetables
+4%
Cereals
+12%
Diverse
field
crops
+11%
Corn**
0%
Specialty
crops
-1%
● Corn: herbicide leadership; rapid
emerging market seeds growth;
,
advances
● DFC: sunflower strength, new
integrated solutions
● Vegetables: expanding opportunity
for integration
● Rice:
protocols,
Devgen integration,
* Excluding Lawn and Garden
** +7% excluding $256 million corn rootworm trait royalty income in 2012
Growth at constant exchange rates
25
26. 2013 integrated business performance by region
North America: sales -2%
Asia Pacific: sales +11%
● Lower trait royalty income:
underlying growth +5%
● Sales growth acceleration: double
digit in emerging markets
● Strong selective herbicide demand:
glyphosate resistance
● Rice protocols and corn seed
expansion
● Seeds production costs/inventory
write-down
● Strong performance in high margin
ASEAN countries
$bn
34.8%
27.9%
4
3
2
1
0
$bn
27.6%
27.9%
2012
2013
2
1
0
2012
2013
Sales
Operating income
Operating margin
Underlying: excludes $256 million corn rootworm trait royalty income in 2012
Sales growth at constant exchange rates. Operating income and margin exclude restructuring and impairment.
26
27. Canada: cross-crop expansion
Sales
$m
● Leading herbicide offer, best-inclass seed care
CAGR
+9%
600
400
● Strong CRM and in depth grower
knowledge
200
0
● New entry into cereal and canola
seeds; rotation opportunity
2010
2011
2012
2013
Crop protection
Seeds
Incremental value: 2020
Seed
value
Seed care and
crop protection
Total
Canola
~$50m
~$20m
~$70m
Cereals & pulse
<$1m
~$35m
~$35m
Crop
Growth at constant exchange rates
27
● Cereal growers purchasing
Syngenta seed increase crop
protection investment by >150%
28. ASEAN: demand creation focus
ASEAN 2013 sales
Herbicides
Seeds
Rice
Vegetables
Corn
Fungicides
● Sales growth 12%* CAGR
2010-2013
● Crop-driven strategy aligned with
government agenda
Seed care
Insecticides
● Rice focus: driving technology
adoption
● Strong partnerships with local
distributors
● Capability building programs
● Scaling up seeds creating new
opportunities
* At constant exchange rates
28
29. Seeds sales up 1 percent; underlying sales up 9 percent
Thousands
Sales
$bn
● Corn: underlying sales growth in
all regions; US supply challenge
CAGR
+10%
3
Vegetables
2
1
DFC
Corn
and
soybean
● Soybean: North America lower
offset by sharp increase in Brazil
● DFC: leading sunflower hybrids in
CIS, SE Europe; lower sugar beet
acreage
● Vegetables: developed markets
gradually returning to growth
0
2008 2009 2010 2011 2012 2013
Underlying: excludes $256 million corn rootworm trait royalty income in 2012
Growth at constant exchange rates
29
30. US Corn traits: leading insect control offer
●
●
Insect Control Scale:
- = no effect; + = some; ++ = good; +++ =very good; ++++ = excellent
: three year track
record of superior broad lep control
: vital
innovation to beat corn rootworm
resistance
● 2014 campaigns ongoing
: commercial chassis
CRW root damage rating
● Need for alignment of international
regulatory processes
2.25
1.5
0.75
0
Check
Source: Syngenta
30
Agrisure
3000GT
Viptera
3111
Viptera
5222
31. Brazil Soybean seeds: unique integrated approach
Brazil Soybean seed sales
$m
● Fastest breeding cycle for genetic
gain
150
CAGR
+55%
100
● Leveraging leading crop
protection portfolio
50
0
2010
Accelerate
genetic gain
2011
2012
Leverage crop
protection
New market
approaches
Growth at constant exchange rates
31
Integrate
technologies
2013
● Seeds at core of high-yielding
offers including adjacencies
● New business model: switching
licensing business to Syngenta
brand
32. High margin growth across sunflower portfolio
Syngenta sunflower sales
$m
600
CAGR
+20%
● Strong presence in modernizing
markets: CIS
400
● Creating awareness of crop
protection through GTM strategy
200
0
2001 2003 2005 2007 2009 2010 2011 2012 2013
Crop protection
Seed care
Seeds
32
● Seeds: blockbuster hybrids,
superior germplasm
● Developing integrated offers:
IMI, broomrape
37. Accelerating operational leverage: three core components
2018 EBITDA % contribution and equivalent $m savings
~5%
Production
savings and
efficiency
gains
~$400m
Customer
facing
operations
~$400m
R&D
efficiency
37
● Seeds production and planning
● Expand global sourcing
● Syngenta Business Services
Working
capital
release:
$600m
~$200m
● Drive efficiencies in integrated sales force
● Integrated demand and production management
● Pricing excellence in integrated offers
● Simplified management processes, crop focused
synergies
● Integrated technology platform
● Lean operating principles
38. Outlook
2014
● Integrated sales growth similar rate to 2013 despite lower crop prices
● Gross margin improvement: ~$240 million in Seeds cost reduction
● R&D expense at upper end of 9-10% of sales target
● Free cash flow before acquisitions ~$1.5 billion
2015
● EBITDA margin: lower end of 22-24% range
Longer term
● EBITDA margin target: 24-26% by 2018
● CFROI: >12% ongoing
38
