Agria investor presentation apr 2012 web final
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Transcript of Agria investor presentation apr 2012 web final
Agria is:
An International Agriculture Company.
Operating 3 Businesses: International Seeds China Seeds and Operating 3 Businesses: International Seeds, China Seeds and Agriservices.
Helping farmers increase productivity through innovativeHelping farmers increase productivity through innovative agricultural best practices and advanced technologies.
Exploiting international agricultural trade opportunities betweenExploiting international agricultural trade opportunities between China and global markets, including New Zealand, Australia and South America.
A publicly traded company listed on the New York Stock Exchange (NYSE) under ticker GRO.
Agria’s 3 Operating Business
China Seeds
• Edible corn seed, field corn seed and vegetable seeds
International Seeds
• Leading seeds supplier in the southern hemisphere
Agriservices
• New Zealand’s pre-eminent rural services business facilitating purchase of major inputs and sale of• Strong R&D capabilities including
partnership with China Academy of Agricultural Sciences (CAAS)
• Proprietary rights to market leading variety of ‘sticky’ edible corn seed
• New Zealand 60% forage seed market share
• Australia 40% forage seed market share
purchase of major inputs and sale of major outputs for NZ farmers
• Key inputs sold include agrichemicals, feed and seeds both through on-farm sales
i d i idvariety of sticky edible corn seed and best new variety of field corn seeds
• Sales to large scale farmers, food manufacturers and distributors in 30 provinces in China
• South America growing market share
• Portfolio of grasses, legumes, brassicas and herbs seeds
• Unique and defendable IP tailored
representatives and a nationwide chain of over 100 retail stores
• Leading livestock broker with national network of sales agents and yards for sheep, beef, dairy and deer provinces in China
• Production bases in Gansu and Xinjiang provinces
• Turnover RMB 61 million; operating profit RMB 20 million for six months
• Unique and defendable IP tailored to specific climates
• Globally leading R&D both in-house and through nine partnerships with research institutes in five countries
farmers, processors and importers/exporters
• Procurement, freight, sales and export of New Zealand Wool
Additi l i t fpended June 2011 • Also incorporates grain and animal
nutrition businesses
• Turnover NZD 420 million; operating profit NZD35 million for 12 months ended June 2011 (note 1)
• Additional services to farmers including irrigation and pumping solutions, real estate agents, agriculture training provision
• Turnover NZD 821 million; months ended June 2011 (note 1) operating profit NZD 26 million for 12 months ended June 2011 (note 1)
Note 1: Financials for international seeds and Agriservices sourced from PGW annual accounts. Agria only consolidated these businesses from 30 April 2011.
International Seeds – Financial Overview
Year ended 30 Jun 2010 Year ended 30 June 2011
NZD million USD million NZD million USD million
Revenue
- Seeds and grain 255 209 268 220
- Agrifeeds 44 36 56 46
- South America 85 70 96 79
- Total 385 316 420 344
EBITDAEBITDA
- Seeds and grain 32 26 28 23
- Agrifeeds 5 4 5 4
- South America 4 3 4 3
T t l 41 34 38 31- Total 41 34 38 31
Operating profits 38 31 35 29
Notes:1. The NZD results are extracted from PGG Wrightson’s filings.2. Agria started consolidating PGG Wrightson following completion of the partial offer in April 2011, therefore the results prior to that
date do not appear in Agria’s results3. USD figures are provided for reference only and are translated at exchange rate of NZD 1: USD 0.82
China Seeds – Financial Overview
Year ended 31 Dec 2010 (audited) 6 months ended 30 June 2011 ( )(unaudited)
RMB million USD million RMB million USD million
Revenue
- Edible corn seeds 29 4.4 27 4.1
- Field corn seeds - - 34 5.3
- Total 29 4.4 61 9.4
Gross profit
- Edible corn seeds 12 2 6 15 2 3Edible corn seeds 12 2.6 15 2.3
- Field corn seeds - - 12 2.9
- Total 12 2.6 27 4.2
Gross margin
Edibl d 40% 55%- Edible corn seeds 40% 55%
- Field corn seeds - 37%
- Total 40% 45%
Operating costs (note 3) (7) (1.1)
Operating profit 20 3.1
Notes:1. Agria changed its fiscal year end in 2011 in order to align year ends with its largest subsidiary, PGG Wrightson. 2. The next set of audited full year results will be for the year ended 30 June 20123. Prior to the 6 months period ended 30 June 2011, Agria did not separate operating costs between it’s China seeds division and
central overheads
Agriservices – Financial Overview
Year ended 30 Jun 2010 Year ended 30 June 2011
NZD million USD million NZD million USD million
Revenue
- Merchandising 542 444 566 464
- Livestock 87 71 140 115
- Other agriservices 66 54 115 94
- Total 695 570 821 673
EBITDAEBITDA
- Merchandising 22 18 24 20
- Livestock 13 11 16 13
- Other agriservices (8) (7) (10) (8)
T t l 27 22 30 25- Total 27 22 30 25
Operating profits 24 20 26 21
Notes:1. The NZD results are extracted from PGG Wrightson’s filings.2. Agria started consolidating PGG Wrightson following completion of the partial offer in April 2011, therefore the results prior to that
date do not appear in Agria’s results3. USD figures are provided for reference only and are translated at exchange rate of NZD 1: USD 0.824 Merchandising comprises rural supplies and fruitfed4. Merchandising comprises rural supplies and fruitfed5. Other agriservices comprises the business units detailed in this presentation and the regional overhead 6. There was a reclassification of certain costs during 2011 which transferred costs from Agriservices to Central costs
International Seeds Structure
Corporate
NZ Australia SouthAmerica International R & D Production
Turf
Contract growersJoint
ventures
Our International Seeds division also comprises grain and animal nutrition businesses and is part of PGG Wrightson, our New Zealand listed subsidiary
Market Leader in Temperate Forage SeedsMarket Leader in Temperate Forage Seeds
Key features Business unit revenue (FY10)
13% Leading seeds supplier in the Southern Hemisphere
Clear leadership in forage seeds across current focus markets:– New Zealand c.60% market share of forage seeds– Australia c.40% market share of forage seeds– South America growing market share
26%
32%
5%
South America growing market share
Unique and defendable IP tailors proprietary seed varieties to specific temperate climatic conditions
Commodity seeds also an important component, establishing customer relationships and preserving market position
Source: PGW
24%
NZ Forage AUSA TurfInternational
Approximately 400 staff, including 30 focused on R&D activities
Unit revenue split (NZ$m)
Source: PGW
World’s top 12 seed companies250250300
0 51.01.52.02.53.03.54.04.55.0
Sale
s U
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50
100
150
200
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(NZ$
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s US$
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200
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Source: PGWSource: ETC Group
0.00.5
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sant
o
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rain
LOL
KWS
Baye
r
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ta
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PGW
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Seed Pasture and turf seed
2007 2008 2009NZ Forage Au ForageTurf InternationalOther
2008 2009 2010NZ Forage Au ForageTurf InternationalOther
0.0
Mon
sant
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Pasture and turf seed Seed
0FY08 FY09 FY10
NZ Forage AUSA TurfInternational
pNote:1 LOL is Land O’ Lakes
Extensive Product Portfolio Caters to a Range ofExtensive Product Portfolio Caters to a Range of Pastoral Requirements and Climatic Conditions
B d d t tf li t i d ithi t i Volume by product (NZ) Broad product portfolio across categories and within categories
Helps meet diverse customer requirements and account for specific geographic requirements
PGW Seeds strong in all forage product categories – c. 85% market share in NZ brassica market
Volume by product (NZ)
42%
14%
9%
6%
Seed coating and branded products create opportunities for additional margin
Developing food seed proposition (pea, beans)
12%15%
2%
9%
Key seed product overview
12%
Perennial Ryegrass Hybrid Ryegrass Italian RyegrassOther Grasses White Clover Other legumesBrassicas
Category Product Type s DescriptionForage grasses • Perennial ryegrass • Core to pastoral farming systemForage grasses • Perennial ryegrass
• Hybrid ryegrass• Italian ryegrass• Tall fescue
• Core to pastoral farming system• Grasslands Innovation is core development partner
Forage Legumes • Clovers• Lucerne
• Assists with p asture renewal• Grasslands Innovation is core development partner
• Lotus• Fulla
Forage Brassicas • Swede• Turnip• Rape• Kale
• Supplementary feed• Forage Innovation is core development partner
Forage Herbs • Chicory• Plantain
• Enhances forage nutritional quality• Various develop ment partners
Cl M k t L d i N Z l d F S dClear Market Leader in New Zealand Forage Seed
Key features New Zealand processing and distribution sites
c.60% market share of forage seeds
107 staff (75 operational, 7 customer service, 16 field, 2 branded products, 7 management)
Two brands competing in the market but focussed on different channels to market
HamiltonSeed coating operations 1,468m2
channels to market
– PGG Wrightson Seeds
– Agricom
Two distribution centres; seven processing centres
three sites have seed cleaning operations but PGW also
HastingsSeed processing operation 1,275m2
GisborneSeed processing operation
– three sites have seed cleaning operations but PGW also contracts out seed cleaning at 50 non-PGW centres
Palmerston NorthSeed distribution & processing centre 3,555m2MastertonSeed processing centre 1,437m2
Christchurch / RollestonHead OfficeSeed distribution & processing centre 5,400m2
InvercargillSeed processing 2,912m2
AshburtonSeed cleaning and processing 4,525m2
#1 Market Position in Australian Forage Seeds#1 Market Position in Australian Forage Seeds
Key features
c 40% market share of forage seeds
Australian processing and distribution sites
c.40% market share of forage seeds
82 FTEs
Two proprietary brands:
– Wrightson Seeds Australia Keithprocessing, storage, distribution
– Agricom
Two seed distributors
– AusWest Seeds
– Stephens Pasture Seeds
Brisbane-AusWestdistribution
Armidale-AusWestdistribution
Expanding production capability with Keith Seeds acquisition
MelbourneHead Office, coating and mixing
Forbes/Orange-AusWestdistribution, coating, processing
distribution
Mt Gambier-SPSdistribution
Ballarat-SPSresearch, distribution, coating
Leading Provider of Turf Seeds to Stadia and Sports ClubsKey features
Supplies turf for stadia sports clubs and golf
Australasian Turf sites
Supplies turf for stadia, sports clubs and golf courses
Generally sell direct to consumer in New Zealand and through distributors in Australia
Strong synergies with Production, R&D and L i ti it i b dLogistics capacity in broader company
15 staff
AucklandOffice & Dispatch site
Mt Stewart Office & Dispatch site
ChristchurchOffice & Dispatch site
MelbourneOffice & Dispatch site
Office & Dispatch site
Expanding Presence in South AmericaExpanding Presence in South America
Key features South American sites
MontevideoWrightson PAS Head Office
Porto AlegreNZ Ruralco office
South America’s leading supplier of proprietary and commodity forage seed products with three key brands: Alfalfares in Argentina, and Wrightson PAS and Agrosan in Uruguay
all three businesses distribute to rural retailers and also sell direct to farmers
MontevideoAgrosan Head Office
OmbuesAgrosan Branch
#1 market position in Uruguay through Wrightson PAS and Agrosan with approximately 65% of the US$80m market
strong market position in Argentina through 51% ownership of Alfalfares and 50:50 ACA joint venture
67 staffMercedesAgrosan Branch
Buenos AiresAlfalfares Head Office
67 staff
PehuajoAlfalfares Branch
Leading New Zealand Grain Trader and Arable Seed S liSupplier…
Key features Customers New Zealand’s largest grain brokerage and marketing service
providing an outlet to market for domestic grain growers Key to model is contracts with domestic grain growers and
relationships with major grain users– field representatives in New Zealand’s key cropping areas
have strong relationships with growers
Acts as a broker for large grain users leveraging extensive grower relationships
For smaller clients PGW trades grain by purchasing and reselling to pig, poultry, small manufacturers and farm end users
Business includes:– production in New Zealand’s key cropping areas– cereal seed marketing– wheat and barley research and new variety development– drying and storage facilities – 120kT grain drying capacity
and 60kT grain storage capacity in the North Island
Geographical representation and key growing regions
and 60kT grain storage capacity in the North Island– specialist agronomic staff
Employs 25 staff in New Zealand and shares network of 15 Arable Representatives with the Seeds Division
Te AwamutuSilos for grain storage Walton
Palmerston NorthGrain drying and storage x2
Grain drying and storage
HastingsGrain drying and storage
Grain drying and storage
Grain drying and storage x2
Grain growing regions
Upper North Island:Grain trading (Hamilton)
L N th I l d
South Island:Grain trading (Ashburton, Christchurch)Cereal seedA bl t
Source: PGW
Lower North Island:Grain trading (Fielding)
Arable teamAgronomy / R&D
St t i R h & D l t P t hiStrategic Research & Development Partnerships• China National Academy of Agricultural Sciences
– Established in 1957 CNAAS is the largest agricultural research organization in ChinaEstablished in 1957, CNAAS is the largest agricultural research organization in China.
– Comprises 39 research institutes and employs over 5,000 scientists and research engineers
– Covers all major areas of the agricultural sector including advanced research in the development of both horticulture and livestock.
Through its network of research institutes CNAAS controls one of the largest seed banks in the world– Through its network of research institutes, CNAAS controls one of the largest seed banks in the world.
– In 2009 Agria entered into a strategic co-operation framework agreement with the China National Academy of Agricultural Sciences (“CNAAS”) providing for future co-operation across the spectrum of agricultural research.
– Agria has also entered into an investment agreement with CNAAS and its affiliates, under which Agria will invest RMB35 million into Zhongnong, a company previously wholly owned by CNAAS and its affiliates with priority rights toRMB35 million into Zhongnong, a company previously wholly owned by CNAAS and its affiliates with priority rights to accept the transfer of all existing and future cultivated seed varieties owned by CNAAS and its affiliates for the purposes of commercialization.
– Through this arrangement we have already secured the rights to Zhong Dan 909
Illustrative R&D pipeline
Selection
Approval
Breeding1-5 years
Commercialisation1-3 years
Testing2-3
years
Attractive Commercial Product PortfolioAttractive Commercial Product Portfolio
• Edible corn seeds - sticky
– North China market focusNorth China market focus
– Key product: JKN2000 – market leading position with 13% market share
– Pipeline products: Jin Tian Nuo2000B, Jin Ke Tian183 and Jin Ke Tian158
> Won three of top four positions at China’s 7th National Edible Corn Conference held in Beijing in 2011
> Competition comprised 160 edible corn seed varieties - group of leading corn seed experts from China’s research institutes and international companies evaluated edible corn seed varieties based on field performance and taste and awarded recommendations to the top four performing varieties entered
• Edible corn seeds - sweet
S th Chi k t f– South China market focus
– Under development
• Field corn seeds
– Key product Zhong Dan 909 – advanced attributes - high yield, antiviral, anti-insect, lodging resistance
– Launched in October 2011 following agreement with China National Academy of Agricultural Sciences (“CNAAS”) for the Agria to be licensed rights to its commercialization
– Zhong Dan 909 had recently been awarded nationally approved status by the Ministry of Agriculture in China. For the past two years it has been ranked as the number one field corn variety in national certification tests hosted by Ministry of Agricultureof Agriculture
– The qualities of Zhong Dan 909 make it suitable for sale in the central part of China which is one of the largest corn seed markets in China, representing approximately 40% of national yield for field corn
– Previously Agria’s field corn activities were focused around our 49% owned associate Ganxin in which we invested in 20102010
Strong Relationships with the Chinese GovernmentStrong Relationships with the Chinese Government
• Government grantGovernment grant
– In September 2011, we received first stage of a grant for RMB6 million
– Grant made by Science and Technology division of the Beijing Government one of the most prolific research funders in China
• Use of grant• Use of grant
– Funding of joint R&D into adaptation of six grass seed varieties that were originally developed in conjunction with our subsidiary PGG Wrightson in New Zealand with a view to the seed varieties’ application in China
– China has in total 390 million hectares of natural grassland (four times the area used for arable farming) but much of this is of very low productivity. y p y
– By working jointly with our and our partners’ scientists in China, those in New Zealand and our subsidiary PGG Wrightson, aim is to develop high technology content grasses to allow for the increase of productivity of this grass land.
– The R&D project also intends to develop GAP (Good Agricultural Practice) in the development of grass seed technology by following the high standards set in New Zealand
– Helps Agria to secure a pipeline of next generation seed technologies for future commercialization.
– It will also serve to strengthen the PGW brand in China
Compelling Portfolio of Complimentary Businesses, Primarily Serving New Zealand Farmers
Rural Supplies 91 rural supply stores and on-farm technical advice
Fruitfed Supplies 18 retail stores and technical support for horticulture and viticulture
Livestock National agent platform buying and selling livestock for clients
Wool Procurement, logistics, sales and export of wool
Agr
Real Estate Specialty rural real estate agents in New Zealand
Irrigation & Pumping Design and installation for agriculture and horticulture
iservice
Insurance Marketing of insurance products brokered by Aon
Agriculture New Zealand Provider of agriculture training
es
South America Rural supplies business
Our Agriservices business is part of PGG Wrightson our New Zealand listed subsidiaryOur Agriservices business is part of PGG Wrightson, our New Zealand listed subsidiary
R l S liRural SuppliesKey features• Provider of goods and services to the rural sector • Approximately 40,000 customer accounts across New Zealand
Customers
– key product categories include agri-chemicals, stockfeed, seed and fencing
• On-farm technical sales representatives account for c.70% of revenue, providing advice and technical assistance together with supply orders
• Majority of revenue derived from sheep and beef (or mixed land use farms) and dairy
• Majority of customers are owner-operated farmers, but with share of corporate farmers (e.g. Landcorp) increasing
with supply orders
• Remaining 30% of revenue through a national network of 91 retail stores
• Approximately 350 employees with approximately c.70% in-store employees and the remainder technical sales representatives and support staff
Geographical representation
Upper South Island# Stores: 6
Northland# Stores: 10
South Auckland/Waikato# Stores: 12
Bay of Plenty / King Country# Stores: 6
Canterbury# Stores: 17
Otago# Stores: 12
S thl d
East Coast# Stores: 5
Southland# Stores: 10Taranaki/ Manawatu / Wairarapa
# Stores: 13
F itifi d S liFruitified SuppliesKey features Customers
• Leading horticulture service and supply business, providing grower clients with agronomic advice, technical expertise and an extensive product range
• Fruitified provides input materials for orchards including chemicals, fertilisers, pollination products and frost protection products
• Customers are primarily in:
– Viticulture
– Pipfruit
– Vegetables; andproducts
• 18 national retail outlets supported by 60 technical field staff that provide advice on soil, irrigation design, pest and disease identification, treatment plans and monitoring systems
– kiwifruit
Geographical representation
KerikeriMotueka
Blenheim
Christchurch
Katikati
Kumeu
Motueka
Pukekohe
Te Puke
Richmond Whangarei
Amberley
AlexandraCromwell
Gisborne
Hastings
Ohakune
Palmerston NorthLevin
LivestockLivestock
Key features Customers
• Sales agent for sheep, beef, dairy and deer farmers, meat processors and livestock importers and exporters
• Major service is trading livestock through auctions, private on farm sales, online or direct to meat processors
• Strong adviser relationship with agents offering genetics,
• Represent farmers trading stock to other farmers (“store”) or matching farmers to meat processors (“prime”), such as Silver Fern Farms, Alliance, Bernard Matthews, Affco, ANZO, etc
• Trading occurs between farmers before slaughter based on available pasture i.e. dry high country farms sell lambs to those with available grass for fatteningstocking, animal evaluation, valuation and strategic advice to
help facilitate a transaction through PGW
• PGW has 273 agents supported by 48, owned or co-owned sales yards and has just developed a web based platform in New Zealand
with available grass for fattening
• Sheep and beef are key markets with PGW’s market share, sold through saleyards, being 63% and 60% respectively
Geographical representation - stock yard infrastructure
Kaikohe
Coroglen
Dargiville
Frankton
a o e
Kauri
MorrinsvillePaeroa
RangiuruTe Awamutu Tirau
Tuakau
Wellsford
BlenheimBrightwater
Canterbury Park
CheviotCulverdenHawarden
Sheffield
Tinwald
Katikat
ReporoaMahoenui
Tekapo
Ross
Haast
Awakino
DannevirkeFeildingFordell Hunterville
Inglewood
Levin
M t t
Matawhero
RaetihiStortford Lodge
StratfordTaihape
Taumarunui Taupo
Te KuitiTirau
Allanton
BalcluthaCharlton
Invercargill
Milton
Owaka
Palmerston
Temuka
WaiarekaWaipiataWairoa
Tuatapere
Cromwell
Omarama
Tekapo
Hakataramea
Masterton
PGW 100% ownershipPGW investment (<100%) Non-PGW stock yards
Wairarapa
Large and Growing South American Presence
• PGW established a presence in the stock and station sector through the acquisition of a number of small retail operators, which followed the establishment of New Zealand Farming System Uruguay (NZFSU) in 2005.
Subsequent acquisitions have been successfully integrated and are
Irrigation
S
Business descriptionBusiness name
• Subsequent acquisitions have been successfully integrated and are well positioned to take advantage of improving market conditions. The group represent a significant participant in Uruguay’s agriculture sector, and also form an established platform for future growth into larger South American markets such as Argentina and Brazil.
Vet Supplies
Livestock, Real Estate, Wool
• These entities have mixed ownership structures ranging from complete ownership to minority shareholdings.
Agria Asia and PGW - Structure
Agria Corporation Ngai TahuNew Hope
80.81% 11.95% 7.24%
Agria Asia
Agria Singapore
100%
NZ$34m Convertible
redeemable note
Acquisition debt (at acquisition):Bank debt NZ$53mLivestock Improvement Corporation NZ$10m
Agria Singapore
50.01%
(at acquisition)
Notes:CRN was redeemed for NZ$34m cash in December 2011
PGG Wrightson
AgriservicesInternational Seeds
Our Diverse Strategic Investment Partners Are Able to H l D i th S f PGG W i ht d E lHelp Drive the Success of PGG Wrightson and Explore Other Opportunities.
New Hope
• One of China’s first private companies established in 1982 and has grown to become one of China's largest
Ngai Tahu
• Investment company representing the largest group of indigenous iwi people in the South Island of New Zealand
LIC
• Livestock Improvement Corporation is a co-operative owned by individual dairy farmers of New Zealandbecome one of China s largest
agricultural and food corporations
• New Hope’s revenue for 2009 was approximately US$10 billion. The company employs more than 60,000 staff and continues to grow rapidly.
the South Island of New Zealand
• Founded by Government Act in 1996 for protecting and advancing the Ngai Tahu iwi’s collective interests and ensure that the benefits of the settlement are enjoyed by Ngāi Tahu Whānui now
farmers of New Zealand
• Farm improvement company providing a diverse range of products and services to the dairy, beef and deer industries both in New Zealand and around the world. g p y
• It is involved in
•agribusiness and food (accounting 85% of revenue)
•chemicals and resources
j y y gand in the future
• Significant business interests throughout New Zealand including:
• Substantial property and land investments
• Origins, which date back to the early 1900s, lie in animal performance management tailored to an innovative and wide range of products and services that deliver profit to a wide range of li k f• finance and investment
• real estate and infrastructure.
• The agribusiness and food sector of New Hope is the largest animal feed producer and one of the largest
investments
• Seafood operations
• Tourism attractions
livestock farmers
• Current operations include:
• Beef, deer and dairy animal recording,
• Dairy herd testing and milkproducer and one of the largest suppliers of meat, egg and dairy products in China.
•In addition, New Hope is the largest shareholder of MinSheng Bank (China’s seventh largest commercial bank)
• Dairy herd testing and milk analysis laboratories,
• Progeny testing for the dairy and deer industries,
• DNA analysis across species –b f d i t d ig ) beef, dairy, goats and pigs, artificial breeding for the beef, dairy and deer industries.
Collaborating to Further Enhance PerformanceCollaborating to Further Enhance Performance
• Representative office for PGG Wrightson
– PGW is in the process of establishing a representative office in Beijingp g p j g
• Live Export
– Strong demand from China dairy producers for high quality milking cows
– Under Chinese regulations, cows can only be imported from New Zealand, Australia or Uruguay
– Agria uniquely positioned to source livestock from these markets and arrange logistics for import to China and sale to major dairy– Agria uniquely positioned to source livestock from these markets and arrange logistics for import to China and sale to major dairy companies
• Sale of grass seeds
– Import of PGG Wrightson’s existing high quality grass seed for the China market
– Support from Beijing government through grant for research into adapting varieties to be more suitable for range of differentpp j g g g g p g gChinese climatic conditions
• China sourcing for merchandising
– Facilitation of sourcing of products from China for sale through agriservices division
PGW Full Year Results
Year ended 30 Jun 2010 Year ended 30 June 2011
NZD million USD million NZD million USD million
Revenue
- Agritech 385 316 420 344
- Agriserives 695 570 821 673
- Other 12 10 3 2
- Total 1,091 895 1,243 1,019
EBITDA N tEBITDA
- Agritech 41 34 38 31
- Agriservices 27 22 30 25
-Other (10) (8) (19) (16)
T t l 57 47 49 40
Notes:1. The NZD results are extracted from PGG
Wrightson’s filings.2. Agria started consolidating PGG
Wrightson following completion of the partial offer in April 2011, therefore the
- Total 57 47 49 40
Operating profits 50 41 39 32
Ass., FV and non-op items 8 7 (47) (39)
Interest and finance costs (36) (30) (28) (23)
results prior to that date do not appear in Agria’s results
3. USD figures are provided for reference only and are translated at exchange rate of NZD 1: USD 0.82
4. PGW describes the International Seeds PBT 22 18 (36) (30)
Income tax (7) (6) 1 1
Profit from continuing operations
15 12 (35) (29)
division as Agritech 5. Other predominantly relates to central
overheads within the PGW business6. There was a reclassification of certain
costs during 2011 which transferred costs from Agriservices to Central costscosts from Agriservices to Central costs
PGW Interim Results
6 mths ended 31 Dec 2010 6 mths ended 31 Dec 2011 Change
NZD million USD million NZD million USD million %
Revenue
- Agritech 187 153 188 154
- Agriserives 426 349 503 412
- Other 4 3 3 2
- Total 617 506 694 569 + 12%
EBITDA N tEBITDA
- Agritech 13 11 12 10
- Agriservices 13 11 21 17
- Other (12) (10) (11) (9)
T t l 14 11 22 18 + 57%
Notes:1. The NZD results are extracted from PGG
Wrightson’s filings.2. Agria started consolidating PGG
Wrightson following completion of the partial offer in April 2011, therefore the
- Total 14 11 22 18 + 57%
Operating profits 10 8 18 15 + 80%
Ass., FV and non-op items (6) (5) (6) (5)
Interest and finance costs (11) (9) (9) (7)
results prior to that date do not appear in Agria’s results
3. USD figures are provided for reference only and are translated at exchange rate of NZD 1: USD 0.82
4. PGW describes the International Seeds PBT (7) (6) 3 2
Income tax - - - -
Profit from continuing operations
(7) (6) 3 2
division as Agritech 5. Other predominantly relates to central
overheads within the PGW business6. There was a reclassification of certain
costs during 2011 which transferred costs from Agriservices to Central costscosts from Agriservices to Central costs
Agria’s Central Costs• Six months to 30 June 2011
– As reported in the transition 20F for the 6 months period ended 30 June 2011 Agria’s central costs amounted toAs reported in the transition 20F for the 6 months period ended 30 June 2011, Agria s central costs amounted to RMB51 million (US$8 million)
– These costs included a portion of the costs incurred in relation to the partial takeover of PGG Wrightson which completed in April 2011
– Additionally these costs include non-cash amortisation of land use rights of RMB10 million (full year charge RMB20 y g ( y gmillion) in respect of leased land on which rents have already been paid in full for the life of the leases
– These costs also include non-cash share amortisation expenses in the period of RMB4 million
Balance Sheet Overview30 June 2011
RMB million USD million
Current assets
- Cash and equivalents 94 15Cash and equivalents 94 15
- Restricted cash 456 71
- AR, inventories and prepayments 2,680 415
- Assets held for sale 2,710 419
- Other current assets 141 22Other current assets 141 22
- Total 6,081 941
Non-current assets
- Property plant and equipment 511 79
- Intangible assets and goodwill 1,237 191Intangible assets and goodwill 1,237 191
- Other non-current assets 207 33
- Total 1,955 303
Current liabilities
- Short-term bank borrowings 486 75g
- Accounts payable and accrued expenses 1,259 195
- Liabilities held for sale 2,233 345
- Other current liabilities 28 5
- Total 4,006 620,
Non-current liabilities
- Long-term bank borrowings 1,229 190
- Other non-current liabilities 137 21
- Total 1,366 211,
Total Equity 2,665 412
Non-controlling interest 1,216 189
Total Company shareholder’s equity 1,449 224
Agria’s Mission Statement
“T b th t l i t ti l i lt“To be the truly international agriculture company based in China”
- Ability to take advantage of the best investment opportunities, irrespective of their geography and access the best teams to realise theirirrespective of their geography and access the best teams to realise their potentials
- Combine best international practice with local acumen to drive forward b i i Chi i ffi i t d li tcore businesses in China in efficient and compliant manner
- Be able to attract talent into senior management team with the rare combinations of international and China leadership abilities
- Exploit trade opportunities between China and investee markets (New Zealand, Australia, South America)
B d d i Chi d i it l k t th t th t t t- Be regarded in China and in capital markets as the team that can extract value from international investments