Q4 2014 INTERIM REPORT PRESENTATION - Agrinos Q4 Interim...Q4 2014 INTERIM REPORT PRESENTATION CEO D...
Transcript of Q4 2014 INTERIM REPORT PRESENTATION - Agrinos Q4 Interim...Q4 2014 INTERIM REPORT PRESENTATION CEO D...
Q4 2014 INTERIM REPORT PRESENTATIONCEO D Ry Wagner and CFO John Janczak
April 2015
CEO D. Ry Wagner and CFO John Janczak
Bringing Prosperity to the Grower, the Crop and the Soil TM
Bringing Prosperityospe ty
Bringing Prosperity to the Grower, the Crop and the Soil TM2
Cautionary Statement onForward-looking Statements
Certain statements in this document constitute "forward looking statements '' All statements other than statements of historical facts included in this
Forward looking Statements
Certain statements in this document constitute forward-looking statements. All statements other than statements of historical facts included in this
document, including those regarding our future financial position and results, business strategy, plans and objectives of management for future
operations, including development plans and statements on industry growth are forward-looking statements. These statements may be identified by
words such as "expects," "looks forward to," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," "project" or words of similar meaning.
Such forward looking statements involve known and unknown risks uncertainties and other factors which may cause our actual results businessSuch forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, business
strategy, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future
business strategies and the environment in which we will operate in the future. Factors that could cause our actual results, performance or achievements
to differ materially from those in the forward looking statements include among others changes in the political economic or regulatory conditions in theto differ materially from those in the forward-looking statements include, among others, changes in the political, economic or regulatory conditions in the
markets in which we operate, and currency exchange fluctuations.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of
activity, performance or achievements.
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HighlightsConsolidation, corporate development activities and financing
• Q4 sales revenue and cash collection reflect current business seasonality
• Global R&D facility opened in Davis California and Senior R&D staff hired• Global R&D facility opened in Davis, California and Senior R&D staff hired
• Transition of key corporate functions to the U.S. complete, and strengthening of the Board of Directors initiated
• Additional financing completed via successful Convertible Bond Issue and subscription right conversions
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Financial Review
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Financial Summary Q4 2014
• Q4 recognized sales revenue of USD 1.9m, reflecting the current business seasonality. No sales revenue recognized in Mexico.
• Q4 analytically restated sales revenue of USD 3.8m, driven by deployed volume of approx. 287,000 units in Mexico
• EBITDA pre earn-out: USD – 7.9m in Q4 vs USD -2.9m in Q3
• Number of employees reduced from 152 to 137 during the quarter. USD 0.3m charged to P&L as redundancy costs related to reduction in manning and moving of certain corporate functions to the US.
• Cash collection of USD 1.7m in Q4. Cash position ended at USD 20.6m, a increase of USD 11.6m during the quarter. Additional financing of USD 17.3m bond issue and USD 2.0m subscription rights conversion off set by net loss before depreciation of USD 5.7m.
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Q4 Sales Revenue 36% above Q4 2013; FY 2014 55% above FY 2013FY 2014 55% above FY 2013
7
Group sales revenueQuarterly and accumulative per year, USD million
6.7
1.9
4 55
5.56
6.5
4.8
1.4
0.6
3.1
4.5 4.2
33.54
4.5
0.7
1.1 3.9
1.3
2.0
11.52
2.5
1.3 0.3 0.3
00.51
2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4
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Profit and LossCondensed and Unaudited
USD YE 2014 Q4 2014 YE 2013
Sales revenue 6,670,499 1,868,979 4,392,522
• Q4 recognized sales revenue of USD 1.9m – no sales
revenue recognized for sales to distributors in Mexico
• Cost of goods sold of USD 1.0m reflects the low sales volume
Salaries and personnel costs impacted by the provisions of
Other operating revenue 865,604 298,237 4,942,853Operating revenue 7,536,103 2,167,216 9,335,375
Cost of goods sold -2,419,994 -1,021,489 -906,676Salaries and personnel costs -11,114,067 -2,838,081 -14,128,392
• Salaries and personnel costs impacted by the provisions of
USD 0.3m for reduction in mannaing and moving of corporate
functions to the US
• R&D expenses amounted USD 0.9m in the quarter.
Depreciation and amortization -2,655,732 -639,752 -3,691,328Other operating expenses -14,471,097 -5,944,215 -75,514,401Earn-out -287,012 -287,012 6,710,264Total operating expenses -30,947,902 -10,730,549 -87,530,533
Operating income 23 411 799 8 563 333 78 195 158
• No earn-out recorded in the quarter due to weak results in the
Mexican market
• EBITDA pre earn-out negative USD 7.9m
Operating income -23,411,799 -8,563,333 -78,195,158
Net financial income / expense (-) 5,076,849 3,691,624 8,341,919
Net income / loss (-) before taxes -18,334,950 -4,871,709 -69,853,239
Tax expense -1,508,619 -1,401,140 916,631
Minority Interest -32,005 -19,837 -445,500
Net income / loss (-) -19,811,564 -6,253,012 -68,491,108
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Balance Sheet - AssetsCondensed and Unaudited
USD 12.31.2014 09.30.2014 12.31.2013
Assets
Goodw ill 6,059,319 7,275,514 8,658,890
• Changes in inventories reflect seasonality of sales in the
quarter
A t i bl i d b USD 0 8 t USD 23 9
Other intangible assets 1,437,192 1,669,214 1,894,907
Deferred Tax Asset 905,883 987,669 1,020,617
Total intangible assets 8,402,394 9,932,397 11,574,414
Land 67,968 74,109 76,480
Buildings 2 936 094 3 092 628 3 145 202• Accounts receivable increased by USD 0.8m to USD 23.9m
during the quarter. The item includes invoiced interest costs
and services in Mexico of USD 1.7m. Accounts receivable
towards the distributors in Mexico ended at USD 21.6m in Q4.
Buildings 2,936,094 3,092,628 3,145,202
Improvements to leased premises 1,230,843 596,668 256,935
Vehicles 670,609 810,200 1,239,757
Machines, f ixtures and f ittings etc. 6,166,190 6,669,466 6,981,277
Accumulated depreciation -3,116,804 -3,163,949 -2,574,223
Total tangible fixed assets 7 954 900 8 079 122 9 125 428
• Other receivables decreased to USD 9.0m during the quarter.
In the receivables figure is VAT of USD 8.1m, of which the
largest part is related to operations in Mexico.
Total tangible f ixed assets 7,954,900 8,079,122 9,125,428
Total non-current assets 16,357,294 18,011,519 20,699,842
Inventories 9,679,505 10,732,164 12,339,969
Accounts receivable 23,948,714 23,196,110 22,058,279
Other receivables 8 962 735 11 762 239 12 822 622Other receivables 8,962,735 11,762,239 12,822,622
Total receivables 32,911,449 34,958,349 34,880,901
Bank deposits, cash etc. 20,570,194 8,909,086 25,066,669
Total current assets 63,161,148 54,599,599 72,287,539
Total assets 79,518,442 72,611,118 92,987,381
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Balance Sheet – Equity and LiabilitiesCondensed and Unaudited
USD 12.31.2014 09.30.2014 12.31.2013
Share capital 97,803 100,607 106,729Premium reserve 131 176 300 148 922 928 157 989 676
• Accounts payable decreased by USD 0.3m to USD 4.1m at
the end of the quarter.
• Other current liabilities ended at USD 22.0m. Included in the
figure is USD 12 3m classified as a deferred revenue accrual
Premium reserve 131,176,300 148,922,928 157,989,676Total paid in capital 131,274,103 149,023,535 158,096,405
Minority interests -545,508 -625,076 -513,503Accumulated P&L -94,407,983 -104,878,266 -95,631,555
Total equity 36,320,612 43,520,193 61,951,347figure is USD 12.3m classified as a deferred revenue accrual,
VAT of USD 6.3m, accrued earn-out of USD 1.0m related to
the acquisition of Bioderpac, and redundancy and closing
costs of USD 3.0m
Deferred tax - - - Total provisions for liabilities - - -
Other non-current liabilities 15,886,991 378,448 630,233Total non-current liabilities 15,886,991 378,448 630,233
Accounts payable 4,136,713 4,455,752 6,450,462Current tax payable 1,154,020 607,005 874,421Other current liabilities 22,020,106 23,649,720 23,080,918Total current liabilities 27,310,839 28,712,477 30,405,801
Total liabilities 43 197 830 29 090 925 31 036 034Total liabilities 43,197,830 29,090,925 31,036,034
Total equity and liabilities 79,518,442 72,611,118 92,987,381
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Cash FlowCondensed and Unaudited
USD YE 2014 Q4 2014 YE 2013Cash flow from operating activitiesProfit/Loss (-) before tax -18,334,950 -4,871,709 -69,853,239
• The net cash flow from operating activities
amounted to USD 11.6m in the quarter. This
was driven by the bond issuance in the amount
of USD 15.3m and USD 2.0m subscription
Depreciation and amortisation 2,655,732 639,752 3,691,328Changes in inventories, receivables and payables -1,543,720 -818,984 63,193,270Changes in other accruals/currency effects -3,752,893 66,431 -31,537,077Net cash flow from operating activities -20,975,831 -4,984,510 -34,505,718
of USD 15.3m and USD 2.0m subscription
rights conversion
• Cash collection of USD 1.7m in the quarter
• Cash position of USD 20.6m at the end of the
Cash flow from investment activitiesInvestments/disposals of tangible fixed assets -627,947 -713,470 -1,636,393Changes in other investments 0 0 0Net cash flow from investment activities -627,947 -713,470 -1,636,393
Cash flow from financing activitiesquarter
Cash flow from financing activitiesProceeds from borrowings (current and non-current) 15,065,703 15,317,488 363,241Net proceeds from issuance of shares 2,041,600 2,041,600 26,646,951Net cash flow from financing activities 17,107,303 17,359,088 27,010,192
Net change in cash and cash equivalents -4,496,475 11,661,108 -9,131,919Net change in cash and cash equivalents 4,496,475 11,661,108 9,131,919Cash and cash equivalents at beginning of period 25,066,669 8,909,086 34,198,588Cash and cash equivalents at end of period 20,570,194 20,570,194 25,066,669
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Business Review
Bringing Prosperity to the Grower, the Crop and the Soil TM
The Agrinos Strategy:Focus on 4-Dimensional Approach c s s pp c
Organization – Crops – Geography – Technology
Agrinos is committed to developing these four Agrinos is committed to developing these four dimensions to grow as a company
• We have initiated an Organizational Design that will enable us to rapidly grow in multiple geographies g g p y g p g g paround the world
• We have prioritized our Global Crops and Core Geographies• We have initiated significant investments to better enable our Current Technologies and to set the stage
for the development of New Technologies
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Agrinos Commercial Operations:A leader in Biological Inputs for Crop Productivityg c p s C p c y
USAChina
USA Europe
Mexico
Brazil India
Malaysia/Indonesia
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Plant Date:Harvest Date:
Crop:Location:
Variety:
November 2013August, 2014WheatTri cities WashingtonSoft white wheat
Rates/Application:
Method:
Pre plant Pivot application of HYT A + HYT B
Pivot and SprayApproximately 129 acres
Example Farm Trial ResultsUS WHEAT
Variety: Soft white wheat Approximately 129 acres
147.16150
Washington StateFarm Trial Data
133.61140
145
d (B
U/A
C)
Control
HYTA + HYTB
133.61
125
130
135Yiel
d
Treated
Greater than 3:1 Return on Investment
Grower Standard
125Yield/bu/acTreatment to the Grower
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Creating the R&D Infrastructure for Innovation
• Located in a global center for the development of Biological Solutions: Davis, CA
– Serves to attract and retain strong talent to Agrinos– Linkages to major agricultural and biotech expertise
and collaboration opportunities with the University of California, Davis
– Pilot fermentation capability, microbiology, analytical biochemistry, data analysis to become an internal core competency
• Elected first of two Options to • Elected first of two Options to expand to 19,000 sq. feet by early 2016 in the same facility, with expansion suitable for laboratory space already in place.
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Agrinos Product Development Pipeline: Accelerating InnovationAccelerating Innovation
Market expansion for current product lines
Market introduction of enhancements of current products & testing of new products
2014 2016 2017 20182015
Market introduction of new products
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Outlook and Focus for FY 2015
Focus on core business units to create strong revenue growth driven by• Focus on core business units to create strong revenue growth driven by expansion of the distribution networks
• R&D organization to be expanded and Davis lab to be completed and fully equipped in 2015
• Continue efforts to further strengthen the Board of Directors with focus on expertise in agricultural technologies and markets
• Continue work on strategic partnership development throughout the year
Main forecast assumptions
• Initiate new production of some key products due to increased market demand and decreasing inventory
• Sales revenues expected to be greater than $10 million USD in 2015• Agrinos will not update its sales revenue forecasts in quarterly reports in 2015• Agrinos will not update its sales revenue forecasts in quarterly reports in 2015
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S d O tl kSummary and Outlook
Bringing Prosperity to the Grower, the Crop and the Soil TM
YTD 2014 Development Enables Financing and Implementation of Growth Strategyp gy
• Solid growth via commercial, technological and organizational achievements made YTD 2014• Investments made in support of strategic long-term focus: Bringing R&D professionals and corporate
f Sfunctions together in the U.S• Douglas Ry Wagner announced as CEO, John Janczak as CFO and Nick Adamchak, General Manager
of Ameropa North America, named to the Board of Directors• Successful issuance of convertible bond guaranteed by key shareholders to finance 2015 investments for
growth• Commercial growth in the U.S. and core geographies, and continued development of research and
development operations, will remain key priorities moving into 2015
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