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. First half 2013 highlights
● Continuing business momentum
● Underlying integrated sales up 7 percent*
- growth across all regions
● Emerging markets: rapid expansion
- sales up 11 percent*
● Lower royalty income, higher seeds production costs
● Continued progress on integrated offers
● On track for market share gain
Underlying: excludes $256 million corn rootworm trait royalty income in 2012
* At constant exchange rates
3
4. First half 2013: integrated business update by region
North America: +4%*
Europe, Africa & Middle East: +6%
● Corn plantings near record
● Dynamic growth in CIS, SE Europe
levels
● Late season delayed
applications
● Crop protection sales +9%
● France: expansion of leading herbicides
● EU North: cold wet weather delayed
season, reduced disease pressure
Latin America: +12%
● Low season
● Buoyant glyphosate market
● Grower sentiment remains strong
* Excludes $256 million corn rootworm trait royalty income in 2012
Growth at constant exchange rates
4
Asia Pacific: +8%
● Sales momentum building
● Early monsoon in India
● Strong growth in Thailand,
Indonesia, China
7. Financial highlights
● Sales $8.4bn, up 2%
● Underlying integrated sales up 7%*
- +4% volume, +3% price
● EBITDA 3% lower at $2.2bn; underlying up 9%
-
margin 26.0% (H1 2012: 24.9% underlying)
● Net income $1.4bn, 5% lower
● EPS**: 7% lower at $15.92; underlying up 9%
Underlying: excludes $256 million corn rootworm trait royalty income in 2012
* At constant exchange rates
** Fully diluted basis, excluding restructuring and impairment
All 2012 and 2011 data in this presentation reflect a change in pension accounting where applicable
7
9. Underlying operating income up 11 percent
$m
2250
Seed production $100m
Glyphosate
85*
$70m
Other
(196)
$26m
198
2000
1,942
(256)
(65)
23.5%
130
100
(110)
1,875
22.3%
47
1750
1,686
21.1%
1500
1st half CRW Under- Volume, Price Savings COGS Cost Growth Cur2012 royalty lying
mix
inflation invest- rency
ments
Underlying: excludes $256 million corn rootworm trait royalty income in 2012
Excluding restructuring and impairment
* Including $5m in respect of previous program
9
Other
1st half
2013
10. Regional performance: northern hemisphere
Europe, Africa and Middle East
1st half, $bn
4
40.2%
3
40.8%
● High margin portfolio
● Weather constrained EU North
2
● Profitable expansion in CIS,
South East Europe
1
0
2012
2013
North America
1st half, $bn
3
39.3%
34.8%
● Lower royalty income
2
● Higher seeds production costs
1
● Operational efficiency savings
0
2012
2013
Sales
Operating income
Operating margin
Excluding restructuring and impairment
10
11. Regional performance: Latin America, Asia Pacific
Latin America
1st half, $bn
15.8%
16.5%
1
● Low season
● Sugar cane and seed care expansion
● Strong demand for TOUCHDOWN
0
2012
2013
Asia Pacific
1st half, $bn
30.3%
27.8%
1
● Higher GRAMOXONE sales
● Emerging market expansion
● Increasing growth investments
0
Sales
2012
2013
Operating income
Operating margin
Excluding restructuring and impairment
11
12. Lawn and Garden: streamlining improves profitability
1st half
$m
● Comparable sales growth +4%*
500
13.2%
21.2%
- impact of divestments: $(92)m
- impact of acquisitions: $16m
250
● Focus on elite genetics and high value
chemistry
0
Sales
2012
EBITDA
* At constant exchange rates
12
2013
EBITDA margin
● On track for full year 20% EBITDA
margin by 2015
13. Crop protection portfolio: first half sales up 7 percent
1st half sales
$bn
6
● Selective herbicides +4%: corn and
cereal herbicides USA, Europe
CAGR
+7%
Selective
herbicides
● Non-selective herbicides +26%:
TOUCHDOWN volume and price
● Fungicides +4%: SEGURIS in
Germany; AMISTAR in Brazil,
Asia Pacific
4
Non-selective
herbicides
Fungicides
● Insecticides +1%: Americas up;
Europe, Asia Pacific lower
Insecticides
● Seed care +20%: CRUISER
expansion Brazil, Asia Pacific;
VIBRANCE launch
2
0
Growth at constant exchange rates
Excludes ‘Other’ (2013: $50m)
13
Seed care
14. Crop protection portfolio: new products
1st half sales
$m
● Sales more than doubled
300
●
: sales tripled USA,
doubled Brazil
●
: successful launch
200
in Germany
100
●
0
2009
14
2010
2011
2012
2013
new launches in
North America and Australasia:
>$80 million sales
15. : seed care breakthrough
Canola Rhizoctonia trial: plant stand counts
Plants per 6m row
●
: protects
and triggers canola’s genetic
capacity
●
:
stronger roots defend against
soil diseases; insect control
80
60
40
20
0
Cruiser 5FS
Helix Xtra
Cereals trial in Saskatchewan
Emergence counts per 6m row
● North America sales ~$80m
in H1
200
100
● Launch in all regions and
across all major crops by 2016
0
Untreated
Source: Syngenta trials
15
CruiserMaxx
Cereals
16. : first launch based on Pasteuria technology
Soybean cyst nematode damage
● Launch on US soybean for 2014
season: combination with
and
● Breakthrough seed treatment
nematicide
Untreated
Yield advantage in high soybean cyst
environments*
%
Competitor
insecticide/fungicide/
nematicide offer
6
3
0
-3
● Multi-year field trials show
immediate and season-long
protection of root systems
● Rapid and cost effective in vitro
production
Control
2010 2011 2012
2010 2011 2012
● Peak sales potential >$200m
* Syngenta trials: >1000 SCN eggs/100cc soil. Control = fungicide + insecticide only
16
17. Seeds portfolio: first half sales 6 percent lower
1st half sales
$bn
2
● Underlying sales up 6%
CAGR
+8%
Vegetables
DFC
● Soybean: US RR2 transition
1
Corn
and
soybean
0
● Corn:
- North America: lower royalty
income, reduced hybrid
availability
- growth in Asia Pacific,
Latin America, Europe
● Sunflower: strong growth CIS,
South East Europe
● Sugar beet: lower CIS acreage;
sales doubled in China
● Vegetables: returning to growth
Underlying: excludes $256 million corn rootworm trait royalty income in 2012
Growth at constant exchange rates
17
18. Sunflower growth demonstrates leading portfolio
1st half sunflower seed sales
$m
400
300
CAGR
+26%
● Focused portfolio of
products
● Early anticipation of market
trends: IMI integrated offer
200
● Advanced go-to-market
strategy
100
0
2001 2003 2005 2007 2009 2010 2011 2012 2013
Growth at constant exchange rates
18
● Superior germplasm,
blockbuster hybrids
19. Operational efficiency delivering savings
$m
2011
2012
2013
460
2014
2015
575
650
COGS
300
Annualized savings
112
Annual cash outflows
(88)
SG&A
(122)
(103)
(87)
● 2013 savings $460m, on track
● Cash cost of program unchanged at $400m
● Total restructuring including other programs:
- charge before tax: 2013 ~$150m
- cash outflow: 2013 ~$150m
Excluding acquisition and divestment related restructuring and other impairments
19
20. Earnings per share
$m
1st half
2013
1st half
2012
Operating income
1,875
1,942
Net financial expense
(90)
(84)
Taxation
(316)
(294)
Tax rate
18%
16%
Restructuring*
(64)
(79)
Net income
1,409
1,487
Earnings per share
$15.92
$17.03
Excluding restructuring and impairment, EPS on a fully diluted basis
* Net of tax
** Excludes $256 million corn rootworm trait royalty income in 2012
20
● 2012 EPS restated for
adoption of revisions to IAS19:
- H1 impact: $(0.14)
- FY impact: $(0.27)
● Underlying EPS growth +9%**
22. Evolution of working capital
1st half
% sales
● Inventory build in advance of
Latin America season
50
40
● Shortened northern hemisphere
season
30
● Channel inventory discipline
20
2001
2003
2005
2007
2009
2011
2013
Total average trade working capital
Period end inventories
22
● Strong global risk management
- higher collection ratios in
southern Europe, CIS,
Argentina
24. 2013 second half outlook
2nd half EBITDA contribution
%
● Second half contribution to
earnings increasing
40
● Latin America fundamentals
positive
● Expanding leadership in
Asia Pacific
20
● Acceleration of underlying sales
growth
● Growth in underlying earnings
0
2008
As reported
24
2009
2010
2011
2012
● Substantial free cash flow
26. Three level approach to integrated strategy
Leveraging
combined
field force
Integrated offers
for yield, quality
and convenience
Breakthrough
innovation
● Latin America corn & ● Canada:
soybean seeds
● Hybrid barley:
● APAC: corn seed
● Chile:
wheat offer
●
● Vietnam: corn, coffee,
watermelon
● US water optimization
● SE Europe, CIS:
seeds & CP driving
market leadership
● Hungary:
26
planting
systems
●
: three models
27. : a cross-crop opportunity in Canada
Canola
● Strong channel support
Year 1
Pulse
Cereals
● Leading CRM database: deep
insight into grower behavior
● Entry into canola seed market
Year 3
Year 2
Total Syngenta incremental value: 2020
Seed
value
Seed care and
crop protection
Total
Canola
~$50m
~$20m
~$70m
Cereals & Pulse
<$1m
~$35m
~$35m
Crop
Source: Stratus Agri-marketing inc. 2012, Syngenta
27
- seed is growers’ first decision
- sales uplift for seed care and
crop protection
28. : launch of integrated wheat offer in Chile
● From single products to
integrated offer
Weed
resistance
management
Disease
resistance
management
Agricultural
Innovation
Center :
technology
transfer platform
for field crops
28
Integrated
wheat demo
trials with
major growers
Commercial
launch of
integrated
Syngenta
wheat solution
● From farm-saved seed
to Syngenta varieties:
● Shifting grower
perception: optimizing
seed use
29. Integrated offer across crops in Vietnam
rice portfolio
● Strong market base
● #1 in both crop protection
and seeds
Watermelon
grafting
Market
leader
25%
share
● Integration driving market
share gain
● Strong partnership with
local distributors
45 day corn
solution
Integrated
coffee offer
29
● Stakeholder engagement
to increase productivity
30. Components
Core offer
: multi-crop, multi-component offer in Hungary
Syngenta genetics and
crop protection programs
Intensification pack:
soil, tillage, agronomic advice
Fertilizers
and
nutrients
Machinery
Profit-based
farm IS
system
Financial
services
Ecotech know-how
30
● Creative team: leveraging
existing range
● Building on grower receptivity
- highest level of corn
investment in Europe
● Bringing agronomic knowledge
and expertise
● Sustainability combined with
productivity
31. Acquisition of Maize Research Institute (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
31
32. Long term drivers: current yield growth rates inadequate
Production
Mt/year
Yield
%
1800
1600
● Need to double global food
production by 2050
3
Required yield
- population, diet, biofuels
1400
1200
2
2x
1000
800
600
1.6%
1.3%
Current yield
0.9%
1
1.0%
400
200
0
● Historical rates of yield
growth would mean
significant shortfalls
0
Soybean
Wheat
Rice
Corn
Required yield gain per year on existing acreage
Weighted average yield change per year
Mean yield change per year (1961 – 2008)
2050 production requirement
2050 projected production
Source: University of Minnesota, PLOS ONE, Syngenta analysis
32
● Four crops produce nearly
two thirds of global calories
● Support for crop prices
● Need for more technology
33. On track for 2020 target
Sales*
$bn
$25bn
● Sales growth at 8 percent CAGR
Specialty
Rice
● Global offers tailored to local needs
DFC
Cereals
$13.4bn
● New business models and
collaborations
Corn
Sugar cane
● Expanding the available market
Soybean
● Continued margin expansion
Vegetables
2012
2020
* Excluding Lawn and Garden
Source: Syngenta estimates
33
