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SEED TECHNOLOGIES
Investor Day
28 May 2013
Melbourne, Australia
INTRODUCTION &
SEED TECHNOLOGIES REVIEW
Robert Reis
Group Executive, Corporate Strategy & External Affairs
Agenda
Introduction & Seed Technologies Review 10:00 am
Nuseed Global Overview 10:10 am
Innovation 11:00 am
R&D Model & Capabilities 11:45 pm
Omega 3 12:15 pm
Lunch 1:00 pm
Nuseed Regional Business Overview 1:30 pm
Seed Treatment 3:00 pm
Summary & Close 3:30 pm
Seed Technologies Platform
• Seed
• Traits
• Seed treatment
Seed Technologies increasingly
relevant to Nufarm’s future
• 15% of group EBIT in 2012
• Ambition: double contribution in next 3-4 year period
• Strong platforms for organic growth
• Highly targeted acquisition opportunities
5
Segment
Sales (A$)
$10 m Sales
$-2M EBIT
$121 m sales
53% GM
$30.6M EBIT
2004 2008
2012
NUSEED GLOBAL OVERVIEW
Brent Zacharias
General Manager, Nuseed Group
Global Company
Global Management Team
Brent Zacharias
General Manager, Nuseed Group
Andy Thomas
President, Americas & Emerging Markets
Keith Wehri
Global Supply Chain Leader
Ernst Topitschnig
General Manager, Europe
Bill Swann
General Manager, New Technologies &
Emerging Markets
Travis Rankin
General Manager, Australia
Daniel Hinderliter
General Manager, South America
Carlito Los
General Manager, Brazil
Brent Whittaker
Global Market Development Manager
Errol Corsan
R&D Director, Canola & Sorghum
James Gerdes
R&D Director, Sunflower & Trait
Development
Malcolm Devine
Innovation Lead
Gary Barber
Global Financial Controller
Danielle Moore
Corporate Communications
Manager
With us today… Brent Zacharias
General Manager, Nuseed Group
Brent provides strong visionary leadership for Nuseed’s global strategy
and overall business success. From global headquarters in Chicago he is
responsible for the direction, management and growth of Nufarm’s seed
business, giving guidance and focus to the Leadership Team.
Andy Thomas
President, Americas & Emerging Markets
Andy leads our US, Mexico and China businesses, from our Chicago
head office. He also provides strategic direction for our European
operations and emerging markets to ensure alignment and full leverage
of our pipeline and capabilities.
Errol Corsan
R&D Director, Global Canola & Sorghum
Errol leads Nuseed’s global research and development activities for our
sorghum and canola crops. Based in Brisbane, he is responsible for
relevant trait advancement strategies, breeding and development teams,
breeding sites and the Horsham Innovation Centre, Victoria.
Dr James Gerdes, PhD
R&D Director, Global Sunflower & Trait Development
Jim is responsible for leading the breeding and development teams at
each of the global sunflower breeding sites, development of the
sunflower trait advancement strategy, and providing leadership to the
Woodland Innovation Centre in California.
Brent Whittaker
Global Market Development Manager
Brent leads Nuseed’s market development strategies and activities for all
our crops across the globe. Based in Toowoomba, he is responsible for
strategic acquisition, business development and seamless integration
leveraging his strong relationships and networks.
Danielle Moore
Corporate Communications Manager
Danielle leads Nuseed’s corporate communication and brand strategies.
Based in Melbourne, she is responsible for the development and
execution of corporate level communication activities and provides
direction and support to each region.
Gary Barber
Global Financial Controller
Gary provides global leadership and support to regional Nuseed finance
teams, ensuring a consistent and coordinated approach across all
financial activities. Based in Chicago, he is also responsible for
facilitating seed-specific process improvement initiatives.
Daniel Hinderliter
General Manager, South America
Daniel is responsible for Nuseed’s business strategies and operations in
Argentina, Brazil and across South America. His focus is to create and
further develop a growth platform for the company and lead development
of the business across the region. He is based in Argentina.
Travis Rankin
General Manager, Australia
Travis leads Nuseed’s Australian operations from our Melbourne office.
He leads the region’s strategic direction and the development of
downstream growth in the healthy oils platform, including Monola and
Omega 3 projects.
Bill Swann
General Manager, New Technologies & Emerging Markets
Based in Melbourne, Bill provides leadership across the business to drive
success of key pipeline technologies that deliver value beyond yield, including
the expansion of key products across all geographies. He also focuses on
developing emerging markets in Africa, Middle East and West Asia.
Terry Hughes
Global Commercial Manager, Seed Treatment
Terry is responsible for Nufarm’s global seed treatment strategy across
various units and geographies, with the aim to expand our seed
treatment product portfolio. Based in Chicago, he provides a strong focus
to further enhance the company's seed treatment knowledge base.
Different thinking
FROM A NEW KIND
of seed company…
Committed to enhancing
THE VALUE OF CROPS THROUGH
seeds with greater purpose.
Innovations in canola,
sorghum, sunflowers
• More than yield
• Use seed technology
to solve problems
• New ways to add value
through the entire process
Worldwide resources.
Local knowledge.
• Worldwide resources
• Regional knowledge
• Anticipate consumer demand and
the opportunity it creates for farmers
and processors
• Concentrate on select core crops
with exceptional potential
• Deliver innovations that make a difference
Advancing invention
to market innovation
• Changing rural lives in China
• Green bio-energy
• High quality gluten-free
sorghum flour
• Productivity step change
in Africa
• Healthy oil alternatives
• Land produced DHA-rich
Omega 3 oils
• More beef, pork, chicken
and milk
• Saving water
• Healthful sunflower snack
foods
Commitment, focus, capabilities
• Our commitment
– Global scale, local impact
– Apply the highest levels of innovation,
science and investment to ensure results
• Our focus
– Deliver top yielding hybrids stacked with leading disease,
stress, herbicide and productivity traits
– Enhance crops beyond yield with targeted output trait
research and development
– Invest to deliver local crop adaptation, productivity
and quality
World leading sunflowers
• Critical role in healthful food alternatives
• Deliver solutions that enhance production
and benefit both the grower and end-use
consumer
• Lead global product and market
development in new segments
• $1,500M market in seed and treatment
• Strong seed and end use market growth
Revolutionary sorghum
• Recognize the incredible potential of sorghum
• Apply modern breeding techniques to the
worlds 6th largest crop
• Hybrids with high energy availability
for feed and fuel applications
• Creating a premium food use product category
• $400M existing global seed market value
• Exceptional growth potential with introduction
of hybrid technology, agronomic traits, and
beyond yield concepts
• Long term approach – key role in global
agri-food
Canola on the cutting edge
• Impressive range of products
• Key role in innovating Monola®
• Development of DHA-rich
omega 3 oil in canola plants
• $1B global seed-trait-treatment market
• Opportunity to significantly lift
market value in target countries
Growing opportunity
• Unique focus and passion
to go beyond yield
• Tremendous depth of
knowledge and experience
in core crops
• Innovative thinking that is
impacting the industry today
• Looking ahead to add value
in the future
International reach. Local impact.
• Locations around the world > 250 dedicated staff
• Product testing and sales in >35 countries
• Regional operating units delivering hybrids, traits, production
techniques and seed treatments tailored to individual climates,
soil types and markets
Four pillars of growth
M&A history
Canola:
2004 AgSeed Research
2006 Nutrihealth
2006 Dovuro Seeds
2006 Monsanto Assets
Strategic asset:
• Canola breeding
• Specialty canola traits
• Production & sales infrastructure
• Canola breeding program & RR trait
Sunflowers and sorghum:
2008 Lefroy Seeds
2009 MMR Genetics
2009 Richardson Seeds
2010 Druetto Argentina
2010 Flower Genetics USA
2011 Super Seeds Europe
2011 Seeds 2000 – USA / SA
2012 Atlantica Brazil JV
Strategic asset:
• Sunflower and sorghum germplasm
• Forage sorghum breeding and genetics
• Sorghum production and sales
• Forage and grain sorghum
• Confectionery and oilseed sunflower
• Sunflower germplasm
• Confectionery and oilseed sunflower
• Brazil infrastructure and market access
Nuseed life cycle
Phase I: Emergence
- Nearing completion
- Global footprint
- Proprietary R&D pipeline
Phase II: Growth
- Realization of R&D and M&A investment returns
- Seed treatment synergy
- New trait & hybrid launches
- Crop expansion
Phase III: Evolution
- Delivery of novel traits
- Downstream engagement
- Redefining key crop value
Summary
• Nuseed is a distinct seed and traits company
• Successful track record, profitable growth
• Strong leadership team
• Considerable growth ambition
• Innovation focused – sharing the rewards in partnership
INNOVATION PIPELINE
Brent Zacharias
General Manager, Nuseed Group
Andy Thomas
President, Americas & Emerging Markets
• Invention to market innovation
• Beyond yield impact
• See yield differently
• Market introduction and value capture
Innovation defined
Innovation sources
Native traits from
proprietary germplasm
& molecular discovery
(in house & partnerships)
Unique gene
& trait stacks
(public, licensed, proprietary)
Alternate plant
species gene discovery
(GMO, in partnerships)
Advantages of native traits
• Speed
• Development costs
• Significantly lower regulatory costs
• Higher ROI, lower hurdle rates
Nuseed innovation stages
Discovery & Proof of Concept
Trait Development
Trait Introgression
Hybrid Advancement
Launch
INNOVATION PIPELINE STATUS
Discovery & proof of concept
• Omega 3
– Land based DHA rich oil from elite canola plant source
– Just advanced to trait development in 2013
• Novel input trait 1: sorghum
– Increase in yield and adaptable area
• Novel ‘beyond yield’ trait 1: sunflower
– Unique downstream user attribute
Discovery & Proof of Concept
Trait development
Trait Introgression
Hybrid advancement
Launch
Trait development
• Novel input trait 2: sorghum
– Increase in adaptable area and yield
• Input trait 2 with ‘beyond yield’ stack: sorghum
– Increase in yield and adaptable area with ‘beyond yield’ trait
• Novel ‘beyond yield’ trait 2: sunflower
– Unique downstream user attribute
Discovery & proof of concept
Trait Development
Trait Introgression
Hybrid advancement
Launch
Discovery & proof of concept
Trait development
Trait Introgression
Hybrid advancement
Launch
Trait introgression
• Roundup Ready (second generation): canola – Collaboration with Monsanto
• Input trait stack: oilseed sunflower – Multiple disease resistance, HT, orobanche stack
• Novel input & beyond yield trait stack: confection sunflower – Increase in adaptable area and yield
• Sorghum herbicide tolerance
– Collaboration with third party
– Increase in grower convenience, yield, adaptable area
Discovery & proof of concept
Trait development
Trait Introgression
Hybrid Advancement
Launch
Hybrid advancement and launch
• High brix sorghum hybrids
– Alternative crop for sugarcane ethanol producers
• RR canola hybrids (Australia)
– First year launch, second generation in prelaunch
• Canola and Monola hybrids (Global)
– Hybrids extending to global markets for testing
• Long seeded confection sunflower with unique disease traits (China)
• Wholis sorghum (Global)
– Second generation hybrids testing in multiple global locations
INNOVATION PROJECTS IN
COMMERCIAL RAMP UP STAGE
Monola
The seed:
• Trait enhanced – modified oil
• Australia adapted – drought, herbicide, disease
• Identity preserved production system
The oil:
• Low saturated fat (<7%), trans fat free (<0.1%)
• High oleic (>68%), high stability (2x canola)
• Heart Foundation approved
The opportunity:
• Supply large multinational restaurants
• Healthier, highly functional oil
High energy sorghum
The seed:
• Brown mid rib trait in forage and grain sorghum combined with inherent
high water use efficiency
The feed:
• Low lignin, high palatability, more digestible for improved feed conversion...
more milk, more meat
The opportunity:
• Change the way animals are fed in a water limited environment
Nuseed announces new category
Wholis
The seed:
• Adapted sorghum from a ‘feed grain’ to a premium ‘food grain’
• Maintains sorghum's inherent gluten free quality and ability to produce in
water-limited environments around the world
The food:
• Designed for milling fine white food-grade flour (gluten free)
The opportunity:
• New category of premium food grade, gluten free flour and whole grain
solution for food companies in developed markets
• Significant advancement in food quality and yield within emerging markets
where sorghum is a major domestic crop and staple food
Wholis advancement
Milling quality improvement and testing
Baking tests
Adaption from feed to food seed types
Broad germplasm base
Confection sunflower
The seed:
• Breeding program develops hybrids that demonstrate desired consumer
characteristics (size, color, texture) and agronomics (yield). Yield has
doubled in last five years in China
The food:
• Harvested grain is processed and sold as snack food in global markets
The opportunity:
• Number 1 snack food in China (>1kg / person pa)
• Significant markets in Europe and America
• Stack new input traits to raise yield potential further
Sorghum
Sunflower
Canola
Summary
1. Exciting commercial & future pipeline of “beyond yield traits”
2. Strong yield and input trait pipeline
3. Efficient innovation model – highly targeted investment
Discovery & Proof of Concept
Trait Development
Trait Introgression
Hybrid Advancement
Launch
Input trait 1
Beyond Yield
trait 1
Input trait 2
Input trait 2 with
Beyond Yield stack
Beyond Yield
trait 2
Land based DHA
Sorghum HT
Input trait stack
(disease, HT,
orobanche)
Novel Input &
Beyond Yield
trait stack
RR2 input trait
High Brix hybrids
Wholis second
generation hybrids
Long seeded with
new disease traits
Oilseed EU & LAS
RR second
generation canola
hybrids
Monola hybrids
High Energy
Wholis
Confection (global)
High Oleic
RR hybrids
Monola
RESEARCH & DEVELOPMENT
DESIGN AND CAPABILITIES
Errol Corsan
R&D Director, Canola & Sorghum
Jim Gerdes
R&D Director, Sunflower & Trait Development
Shift in R&D sophistication and scale
2009 2013
2 field stations 11 field stations
2 Innovation Centers
10 research staff > 50 research staff
Traditional plant breeding Genetic mapping
Molecular marker assisted breeding
Double haploid breeding
GM trait development
Mutation breeding
Accelerated trait introgression
Pathology screening
Advanced trials in 2 countries Advanced trials in 30+ countries
R&D components
Using tools and technology
to reduce pipeline time, numbers and cost
1-2 Commercial
<10
Tens
Hundreds
Thousands
F1-F2
F3-F5
F6- F8
PARENTS breeding years 1-3 HYBRIDS testing years 4-8
Generate hybrids for testing
Hybrid advancement model
Global numbers
Outcome:
• Continuous pipeline of improved products
• Rapid recycling and conversion of elite lines
• 10-20 new hybrid product releases per year per crop targeting stacked traits
Target # of
experimental hybrids
8,000-10,000
1,000
500
100
10-20 per annum
T0 • Breeder observation
T1 • Yield trials local
T2 • Multi environment regional
T3 • Multi environment national
T4 • Registration completion and launch
Innovation Centre: California
• Molecular biology lab
• Pathology lab
• Quality analysis lab
• Greenhouse capacity
• Global sorghum and sunflower trait development
and advancement
Innovation Centre: Horsham
• Global centre for canola innovation
• Pathology
• GM (PC2 certified) glasshouse and lab
• GM trait transformation
• Growth chambers
• Trait advancement and introgression
Sunflower field stations
Venado Tuerto, Santa Fe, Argentina
Toowoomba, Queensland,
Australia
Rio Verde, Goias, Brazil
Woodland, California,
United States
Breckenridge, Minnesota,
United States
Novisad, Serbia, Europe
China
Sorghum field stations
Vega, Texas,
United States
Novisad, Serbia, Europe
Venado Tuerto, Santa Fe, Argentina
Toowoomba, Queensland,
Australia
Rio Verde, Goias, Brazil
Canola field stations
Horsham, Victoria, Australia
Venado Tuerto, Santa Fe, Argentina
Breckenridge, Minnesota,
United States
Dahlen site 20 hectares
Brimpaen trials Crossing tent
Summary
• Completing scale up for leading research and development
platform in our core crops
• Significant step change in sophistication, investment, and
trait capability
• Continuous pipeline to deliver leading genetics with
leading traits
OMEGA 3 PROJECT REVIEW
Mike Pointon
Group Executive, Innovation & Development
Dr James Petrie, PhD
CSIRO Food Futures Flagship
EPA/DHA science developments
• 1980’s Scientific data of benefits of EPA/DHA for CVD
• 1990’s Supplements launched for CVD and general health
• 1990’s Evidence – benefits for embryo and infants
• 2000’s Science explosion – new evidence in clinical trials, pharma
Impact:
• Demand spike - humans ingredients, aquaculture feed, nutraceutical
• Increasing pressure on ocean supply & regulation, new source
discovery
1000
mg /
day
250
mg /
day
400
mg /
day
Fish oil use by sector
Data Source: IFFO
0
200
400
600
800
1000
1200
1400
1600
1800
1970 1975 1980 1985 1990 1995 2000 2005 2010
Nutraceutical
Industrial
Aquaculture
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2200
2400
2600
2800
3000
Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13
Soy oil - CIF Rott.
Rapeseed oil - cif Rott.
PalmOil - fob Malay
FishBulk - fob Peru
Fish oil price appreciation
Price $/tonne
Data Source: Hammersmith Marketing/USDA, GOED
DHA canola: progress update James Petrie | CSIRO Food Futures Flagship
A partnership between CSIRO, Nuseed and GRDC.
Why DHA?
The particular importance of long-chain omega-3
– Marine: long-chain EPA and DHA
• Strong health benefits
• Microalgal primary production
– Plants: short-chain ALA and SDA
• Limited health benefits
• Low conversion to DHA
Why DHA?
– Marine: long-chain EPA and DHA
• Strong health benefits
• Microalgal primary production
– Plants: short-chain ALA and SDA
• Limited health benefits
• Low conversion to DHA
The particular importance of long-chain omega-3
Why DHA?
Microalgae
(DHA primary producers)
Canola
GENES
The particular importance of long-chain omega-3
DHA biosynthesis was a challenge
History of DHA biosynthesis attempts
Au
stra
lian N
atio
nal A
lga
e C
ultu
re C
olle
ctio
n
History of DHA biosynthesis attempts
History of DHA biosynthesis attempts
1 Ha of canola >12% is the
DHA yield from 10,000 fish
Summary
• High value project, with significant intellectual property
• Leading science, proof of concept in canola complete
• Moving to full developmental and field trial stage
NUSEED USA
Andy Thomas
President, Americas & Emerging Markets
Nuseed Americas overview
Crop focus
• Sorghum: forage and grain
• Sunflower: oilseed and confection
• Seed treatment: insect and disease protection in wheat, cotton and soybean
The market size
• Sorghum: grain 3m ha (26000 MT), forage 0.7m ha (5000MT) $150M
• Sunflower: oilseed 0.7m ha (3500MT), confection 120 k ha (600 MT) $80M
• Seed treatment: 1.4B market in USA growing at 13% CAGR
Our position
• Strong third party supplier position in sorghum with deep pipeline
• Strong branded position in sunflower
• One of two global confection focused breeding businesses
• Complete product portfolio for focus crops in seed treatment
Operations and infrastructure
• USA operations key supply source for global business.
• Operations supply chain capacity for ~25,000MT of seed
• Integration of acquisitions on plan with synergies across operations
• Co-located R&D, operations and sales in California, Texas and Minnesota
• Increased flexibility , responsive to opportunities, working capital efficiency
• Alsip site (Chicago) investment delivers a new service and custom product system
Strategic growth focus
• Product differentiation
– Beyond yield
• Sunflower: new confection types, high oleic oil
• Sorghum: high value feed, Wholis food grade sorghum
• Seed treatment: custom products and service
– Agronomic
• Water use efficiency through genetics
• New rotations and crop expansion
• Stacked disease traits, herbicide tolerance, new traits
• Partnering
– Strong relationships with technology providers, distributors and downstream
partners
• Brand
– Continued development in North American seed market
NUSEED CHINA
Andy Thomas
President, Americas & Emerging Markets
Nuseed China overview
Crop focus
• Sunflower: confection and oilseed
The market size
• Sunflower: confection 400 000 ha $100M
• Oilseed: 170 000 ha $18M
Our position
• Leading share of Chinese confection market with high value differentiated products
• Strong pipeline of new products with in country testing and strong distribution
relationships
Strategic growth focus
• Expanded in-country presence
– Focus on confection pipeline management, new and differentiated product type
and agronomic fit
– Facilitate market growth by addressing agronomic restraints on sunflower
plantings
– Growing current small oilseed sunflower position
– Introduction of quality sorghum to expanding Chinese dairy sector
• Strong relationships with key distributors with long business histories aligned with
Nuseed position
NUSEED EUROPE
Andy Thomas
President, Americas & Emerging Markets
Nuseed Europe overview
Crop focus
• Sunflower (confection and oilseed)
• Grain sorghum
• Canola
The market size
• Sunflowers: 15m ha ~$1,200M
• Sorghum: 0.5m ha $10M
• Canola: 1.5m ha $50M
Our position
• Nascent oilseed sunflower position
• Broad oilseed product pipeline and pending registrations
• Strong confection/specialty position in expanding market
• High genetic share in sorghum market through key points of access
• Testing canola products for EU fit to market
Strategic growth focus
• Products
– Sunflower with improved disease and drought tolerance for key
Eastern European market
– Confection sunflower development: new specialty products
– Sorghum expansion around the Black Sea
– Accelerated European breeding, testing and registration
• Partners
– Strong channel partners in traditional distribution and downstream processing
giving flexibility to value capture
NUSEED EMERGING MARKETS
Bill Swann
General Manager, New Technologies & Emerging Markets
Nuseed emerging markets overview
Crop focus
• Core crops
– Grain sorghum, forage, sunflower and canola
• Emerging geographies
– Southern Africa, Northern Africa and Middle East, Western Asia, India,
South East Asia, West Africa
• Emerging technology
– Energy agriculture: global opportunities
Our position
• Adapted products in core crops
• Product evaluation and market development underway
• Range of distribution options available and variously engaged
World grain sorghum production
20% 16%
10% 12%
4%
6%
3%
3%
2%
All others combine for 20%
3%
Source: USDA, Grains: World Markets and Trade November 2010
Country
Production ‘000
MT and
% of African total
production
Nigeria 7,081 (33.8%)
Sudan 4,470 (21.4%)
Ethiopia 1,538 (7.3%)
West Africa 4,000 (20%)
East/Southern
Africa 1,920 (9.5%)
Egypt 862 (4.1%)
Sorghum production in Africa
Source: International Crops Research Institute for the Semi-Arid
Tropics and Food and Agriculture Organization of the United
Nations. The World Sorghum and Millet Economies, ICRISAT,
Patancheru, India and FAO, Rome (1996).
Strategic growth focus
• Wholis and hybrid expansion in Africa and Asia
• Sunflower market development with high oleic demand rising
• Rise of industrial agricultural projects in developing world (Africa) –
higher value seed inputs
• Key market share expansion in Africa and Asia
• Increased penetration through focus on market development and
downstream partnerships
• Energy agriculture
– Capitalize on high brix sorghum synergies in sugar cane ethanol systems
– Other energy developments in dry stalk and cellulosic digestion
NUSEED SOUTH AMERICA
Daniel Hinderliter
General Manager, South America
South America overview
Crop focus
• Sorghum, sunflower, and canola
• Opportunistic crops – various forages and corn
The market size – focus crops $350M
• Argentina: $105M
• Brazil: $100M
• Uruguay: $50M
• Bolivia: $40M
• Paraguay: $45M
Our position
• Established in Argentina and Brazil, moving into Uruguay
• Sorghum: strong portfolio and pipeline, moving to traits,
15% ms volume
• Sunflower: strong portfolio, licensing moving to branded, 3% ms volume
• Canola: good products, moving to hybrids, 15% ms
• Have reached critical mass, attracting partnerships
Operations and infrastructure
• New organization
– 3 years sorghum/canola,1 year sunflower in Argentina
– 0.5 year in Brazil sorghum, sunflower, others
• Established and successful breeding programs
– Sorghum in Sunchales, Argentina
– Sunflower in Venado Tuerto, Argentina
• Seed processing by Nuseed in Argentina, third party Brazil
• 84 employees (46 Argentina, 38 Brazil)
• Sales
– Argentina: third party and branded sales
– Brazil: competitive brands, moving to Nuseed and starting third party
– Others: third party (Nuseed brand by third party in Uruguay)
Strategic growth focus
• Launch in new geographies
– Brazil, Uruguay, Bolivia and Paraguay - replace current portfolios
– Evaluate, register, produce, position, provide cropping solutions
• Strengthen sales and marketing in Argentina
– Move toward more branded sales, maintain third party
• Launch traits
– BMR millet, Monola brand canola, healthy oils, herbicide resistant sorghums,
disease resistance, energy and ethanol sorghums, food grade sorghums
• Pipeline optimization
– Dominate in grain sorghum, high value segments
– Utilize excellent worldwide breeding materials
– Expand screening locations to Brazil, Uruguay, Bolivia and Paraguay
• South American production optimization
– Excellence in import/export
– Production best practices
NUSEED AUSTRALIA
Travis Rankin
General Manager, Australia
Nuseed Australia overview
Crop focus
• Canola – hybrid & Monola
• Sorghum – grain
• Sunflower
The market size
• Canola: 2.3m ha $100M
• Sorghum: 700k ha $35M
Our position
• Canola market leader >30% market share (volume)
• Monola – enabling healthy oil conversion with key food companies
• Grain sorghum – pre-commercial with strong pipeline
• Sunflower – 80% market share high oleic (small volume)
Operations and infrastructure
Employees (number in state)
Innovation Centres
Summer hybrid testing
Winter hybrid testing
2
28
1
7
2
Strategic growth focus
• Rich pipeline: high value portfolio introductions
– Conversion of current canola base to hybrids
– Step changes in Australian canola productivity and value
• Grow Monola position with domestic and export customers
• Launch sorghum hybrid pipeline
• Develop and release new beyond yield traits in sorghum and canola
(Wholis, Omega 3, others)
SEED TREATMENT
Terry Hughes
Global Commercial Manager, Seed Treatment
Global Seed Treatment overview
• Global seed treatment market ~$3.1bn
• Market share for main players:
– Bayer 40%
– BASF 10%
– Syngenta 35%
– Other 14%
– Nufarm (~43M) 1.0%
• Market is dominated by neonicitinoids insecticides – imidacloprid and clothianidin and thiamethoxam. Value at 70%
• Market is growing to cater for protection of high value GM crop seed. NA/LA
• Strategic involvement in ST by some seed companies, ie Monsanto and vice versa.
29%
28%
20%
5%
5%
4% 3% 2%
2%
Global Seed Treatment value x Crop. Total Market $3.10bn USD
Cereals
Corn
Soybeans
Potatoes
Cotton
Oilseeds
Beets
Rice
Peas/beans
33%
25%
23%
8%
5%
6%
Global Seed Treatment Value x Region ($M USD)
North America
South America
West Europe
Asia
East Europe
Former-USSR
29%
28%
20%
5%
5%
4% 3%
2% 2%
Global Seed Treatment value x Crop. Total Market $3.10bn USD
Cereals
Corn
Soybeans
Potatoes
Cotton
Oilseeds
Beets
Rice
Peas/beans
Sunflower
Small Grains
33%
25%
23%
8% 5%
6%
Global Seed Treatment Value x Region ($M USD)*
North America
South America
West Europe
Asia
East Europe
Former-USSR
* Source: GfK Kynetec IMap
Global Seed Treatment overview
Global top 10 actives
Top 10 AI’s
Company Molecule $M US
Syngenta Thiamethoxam☺ 573
Bayer Imidacloprid☺ 464
Bayer Clothianidin☻ 408
Syngenta Fludioxonil☺ 226
BASF Fipronil☺☻ 177
Bayer Tebuconazole☺ 103
Bayer Thiodicarb☺ 82
FMC Carbofuran 77
Syngenta Mefenoxam☻
metalaxyl☺
73
22
Chemtura Carboxin☻ 68
25%
21%
18%
10%
8%
5%
4%
3% 3% 3%
Top 10 Global Seed treatment AI's ~ $2.2bn
Total Market $3.1bn
Thiamethoxam
Imidacloprid
Clothianidin
Fludioxonil
Fipronil
Tebuconazole
Thiodicarb
Carbofuran
Metalaxyl-M
Carboxin
☺Basic ☻Third party supply
Source: AMIS Global Agrochem Data,
Harvest Year 2010 with AI Sales.xls”
Top 15 countries by crop value
Top 15 countries equates to 92% of the total value.
Top 10 countries equates to 85% of the total value. Source: GfK Kynetec IMAP
COUNTRY
Product value
(000 US$) Corn Soybean Cereals Cotton Potatos
Small
Grains Beet Rice
Ground
Nuts
Peas &
Beans OSR Sunflower Vegetables
U S A [2009] 853 437 232 52 69 38 8 15 2
Brazil [2009] 551 177 303 27 19 15 1 9
France [2009] 337 48 235 8 34 1 12
Germany [2009] 210 8 129 24 25 24
China [2009] 162 67 30 30 20 6 1 2 1 2
Canada [2009] 154 2 7 55 17 22 51
Argentina [2009] 125 39 46 18 2 2 2 1 1 2 8
Russian Fed. [2009] 90 79 7 1 2
U K [2009] 87 1 63 4 8 3 9
Ukraine [2008] 60 1 44 10 1 2 2 1
Poland [2009] 56 9 29 9 1 9
Mexico [2009] 51 39 4 1 4 2
India [2009] 45 2
Japan [2009] 35 3 2 1 27 1
Romania [2009] 30 8 15 2 4
TOTAL Top 15 2,847 836 621 783 111 121 14 84 48 5 42 109 16 3
Top 15 Countries Sales x Crop ($M USD)
• Protection of high value GM crop seed.
• Reduced operator and environmental exposure to pesticides.
• Protection of early sown seed aimed at higher yields = higher
disease risk.
• Adoption of reduced tillage sowing encourages increased
pressure from some insects/diseases.
• Reduce the need for early in crop fungicide/insecticide applications.
• Improve plant stands and uniformity => yields.
Key drivers
Nufarm Global Seed
Treatment position
Why and how we see success in ST at Nufarm
Vision
• Position Nufarm as the, premium second tier supplier in key
geographies of NA/WE and LA
• Bring innovation and differentiation to the market via formulations,
mixtures, partnerships and select new technologies.
• Non aligned proprietary allows for flexibility and diversity
• Develop NA/WE and LA with priority and spill to other Regional
markets such as Asia
• Increase value capture from current and future Nufarm seed
companies via seed treatment
Statement of intent
Seed treatment is a strategic plank in Nufarm's strategy and
we will continue investment in data to achieve expansive growth.
• Imidacloprid
– Significant investment in data (EU/USA) to support global registrations
• Tebuconazole
– Investment in base data to support European registrations & TDMG
• Myclobutanil
– Triazole Taskforce investment needed for USA- support all triazoles
• Fludioxonil
– Data compensation investment for the US
• Wild Birds & Mammals Task Force & Seed TROPEX
• Nufarm is investing in our portfolio
Nufarm data investment
Source : Philips Mc Dougal
Distribution rights
Ai purchase/formulation and sale
Future Development Target
Top 10 seed treatments and Nufarm
Global Seed Treatment 2013 = 75 Registrations
Registered
Pending
15
4
3 6
16
32
1
Global Seed Treatment 2016 = ~122 Registrations
14
6
5 7
19
69
1
1
Registered
Pending
Nufarm formulation investment
107
Raleigh
Calgary
Lytton
Auckland
Laverton
Fortaleza
France – Gaillon / Paris
Manufacturing seed treatments in 5 countries
Marketing operations in more than 25 countries
Manufacturing
Formulation Development
Chicago
• Building formulations
• Formulation site capability
• Registration skills
• Regulatory management
• Knowledge of gene technologies {Nuseed influence}
• Seed laboratories {seed safety and efficacy/ compatibility}
• The nurturing culture of seed genetics and hybrids
• Selection and development of staff with core competencies
Utilisation of resources
Manufacturing: Chicago, Illinois
• Focus for seed treatment
• Custom blending
• State of the Art milling
facilities
• Designed with flexibility in
mind
– Support SC & EC
fungicides/insecticides
Nuseed alignment with core crops
• Customised crop solutions
through unique molecule
stacks and formulation
– Imidacloprid
– Thiram
– Fluquinconazole
– Metalaxyl
– Fludioxonil
– Azoxystrobin
– Fluxofenim
Core competencies in Seed Treatment
• A specialist organisation intent on creating value
• Strong product development capability
• Access to new technologies and biological treatments
• Country based experience with seed treatment
• Formulation development and manufacture... unique formulations
• Investment in data, facilities and people ahead of competitors
• Diverse portfolio not easily available to other participants
NUFARM SEED TREATMENTS | GET SEEDS OFF TO A STRONG START
SUMMARY & CLOSING REMARKS