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Syngenta Corporate Presentation. Updated February 2011.

Syngenta Corporate Presentation. Updated February 2011.

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  • 1. UpdatedFebruary 2011
    Corporate Presentation
    Classification: PUBLIC
  • 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 therefor.
    Classification: PUBLIC
  • 3. Who we are and what we do
    Syngenta is one of the world’s leading companies with more than 26,000 employees in over 90 countries dedicated to our purpose: Bringing plant potential to life.
    Our Crop Protection and Seeds products help growers increase crop yields and productivity. We contribute to meeting the growing global demand for food, feed and fuel and are committed to protecting the environment, promoting health and improving the quality of life.
    Classification: PUBLIC
  • 4. Global challenges
    Classification: PUBLIC
  • 5. Demand is driven by population growth and land scarcity
    Classification: PUBLIC
    People fed per hectare
    World population
    2030
    >8 billion
    2030>5 people
    2005>4 people
    20056.5 billion
    19602 people
    19502.5 billion
    Source: FAO, World Bank statistics, Syngenta
  • 6. Growing more with less
    Classification: PUBLIC
    Basket: corn, soybean, wheat, rice1, %
    250
    Yield
    200
    Limited resources: land, water
    Changes in climatic patterns
    Environmental sustainability
    Need for innovative and integrated technology solutions
    Acreage
    150
    100
    1960
    2010
    World population growth2, bn
    1950
    2030
    2010
    1990
    1970
    2050
    1 Source: USDA, January 2010
    2 Source: UN World Population Prospects: 2008 Revision, Medium variant
  • 7. Market Fundamentals – 2010/11
    Crop price rebound in H2
    Weather related supply concerns
    Sustained Chinese imports
    Yields back to trend after 2009 record levels
    Feed: remains the main driver of demand uncertainty
    Fundamental drivers remain: population, diet
    Classification: PUBLIC
    Stocks-to-use ratio*%
    Crop price index**
    Jan 2002 = 100
    01/02
    02/03
    03/04
    04/05
    05/06
    06/07
    07/08
    08/09
    09/10
    10/11E
    *STU ratio for combined corn, soy, wheat and rice per USDA defined marketing season
    **Equally weighted basket of corn (C1 Cmdty), soybeans (S 1 Cmdty), rice (RR1 COMB Cmdty), wheat (W 1 Cmdty). Prices in $/bu and $/cwt converted to $/ton. Prices: last update 13.01.11
    Source: WASDE Jan 2011 for STU, Bloomberg for prices, Syngenta analysis
  • 8. Did you know that…?
    By 2050, global population will rise by about a third to9 billionpeople
    but
    Global calorie demand will increase by
    50%
    Classification: PUBLIC
    Source: FAO, World Bank statistics, Syngenta
  • 9. Agricultural production: emerging markets drive future growth
    Classification: PUBLIC
    Globalfield crop production*Billion tons, est.
    • BRIC**
    ~75% ofglobal productiongrowth
    * Includes: wheat, oilseeds, rice, coarse grains
    ** BRIC = Brazil, Russia, India, China; Developed = NAFTA, EU, Japan, Australia
    Source: FAO-OECD 2010/19 Agricultural Outlook, Syngenta Analysis
  • 14. Challenges for global agriculture
    Huge rise in demand
    Limited farmland
    Limited water supplies
    Need to continue raising yields
    Classification: PUBLIC
    We must do more with less
    Only sustainable approach is to unlock the potential of plants through innovation
  • 15. Our industry
    Classification: PUBLIC
  • 16. Did you know that…?
    Classification: PUBLIC
    40% of the world’s food would not exist without crop protection products.
    That is why the world can produce enough food to provide every person with more than 2700 calories
    per day
  • 17. Market overview 2009
    Classification: PUBLIC
    Global market: ~ $72 bn
    Conventional Seeds(~ $16 bn)
    GM Seeds(~ $11 bn)
    Crop Protection*
    (~ $40 bn)
    Non-Crop Chemicals
    (~ $5.7 bn)
    *Includes Seed Treatment
    Source: Syngenta Analysis, Philips McDougall
  • 18. Competitors in 2009
    Classification: PUBLIC
    Sources: Companies Annual/Quarterly reports, Phillips McDougall, Agreworld, Syngenta Analysis
  • 19. Who we are and what we do
    Classification: PUBLIC
  • 20. We bring plant potential to life
    Syngenta is one of the world’s leading companies with more than 26,000 employees in over 90 countries dedicated to our purpose: Bringing plant potential to life.
    Our Crop Protection and Seeds products help growers increase crop yields and productivity. We contribute to meeting the growing global demand for food, feed and fuel and are committed to protecting the environment, promoting health and improving the quality of life.
    Classification: PUBLIC
  • 21. Syngenta at a glance
    A uniquely broad product portfolio
    A leader in crop protection
    Third in high-value commercial seeds
    World-class science
    $1 billion R&D investments in 2010
    5,000 people in R&D around the world
    Global reach and experience
    Over 26,000 employees in more than 90 countries
    Commitment to working with customers
    Tailoring solutions to individual needs
    Classification: PUBLIC
  • 22. Sustained outperformance
    Classification: INTERNAL USE ONLY
    Sales $bn
    EPS* $
    Emerging market growth
    Crop Protection market share gain
    Doubling size of Seeds business
    New products
    Innovative marketing
    Cost, capital efficiency
    CAGR+26%
    * Fully diluted basis, excluding restructuring & impairmentSource: Syngenta
  • 23. Did you know that…?
    Syngentaproductsprotectthepotatoesforabout1,300,000tonnes of chips and crispseveryyear.
    Classification: PUBLIC
  • 24. Did you know that…?
    Classification: PUBLIC
    1 in 6 tomatoes is grown using Syngenta seed
  • 25. Did you know that…?
    16% of the global market of Sweetcorn, 50 million tonnes,
    is from Syngenta seed
    Classification: PUBLIC
  • 26. Did you know that…?
    4 million tonnes of cotton
    are grown using our crop
    protection products
    That’s the equivalent of 20 billion T-Shirts every year
    Classification: PUBLIC
  • 27. Did you know that…?
    Syngenta introduces 100 new ornamental varieties every year
    Classification: PUBLIC
  • 28. Lawn & Garden*
    Syngenta has three businesses
    Classification: PUBLIC
    Crop Protection
    Seeds
    Flowers
    Growing Media**
    Chemical Controls**
    Turf & Ornamentals**
    Selective herbicides
    Non-selective herbicides
    Fungicides
    Insecticides
    Seed care
    Corn & Soybean
    Diverse Field Crops
    Vegetables
    * Newlyestablished in 2008 - Financial reportingforproductlinesin 2008 underCropProtection and Seedsrespectively
    ** Reported as Professional ProductsunderCropProtection
  • 29. Major product brands
    Classification: PUBLIC
    Herbicides control weeds that compete with crops for light and nutrients
    Fungicides prevent and cure fungal disease
    Insecticides control pests which reduce yields by damaging crops
    Seed Care products for protecting young plants against insects and disease
    Seeds for corn, soybean, sugar beet, cereals, oil crops; vegetables and flowers
  • 30. Syngenta sales 2010: $ 11.6 bn
    Classification: PUBLIC
    Crop Protection
    Seeds
    $ 8.8 bn (77%)
    $ 2.8 bn
    (23%)
    Crop Protection
    Seeds
    Corn & Soybean (58%)
    Selective Herbicides (26%)
    Diverse Field Crops (23%)
    Non-selective Herbicides (11%)
    Vegetables (10%)
    Fungicides (30%)
    Flowers (9%)
    Insecticides (17%)
    Professional Products (5%)
    Other (2%)
    Seed Care (9%)
  • 31. Syngenta sales by region 2010
    Classification: PUBLIC
    NAFTA
    Sales2010: $ 3.6 bn
    EAME
    Sales2010: $ 3.7 bn
    APAC
    Sales2010: $ 1.8 bn
    LATAM
    Sales2010: $ 2.5bn
    Total sales: $ 11.6 bn
    Crop Protection
    Seeds
  • 32. Where our people are located
    Classification: PUBLIC
    NAFTA
    5,022
    EAME
    12,466
    APAC
    4,687
    LATAM
    4,004
    TOTAL* = 26,179
    * FTE at December 2010
  • 33. Syngenta businesses
    Classification: PUBLIC
  • 34. Sales 2010: Crop Protection
    Classification: PUBLIC
    Others
    $ 138m
    Regional sales - Total $ 8.8 bn
    Product line sales - Total $ 8.8 bn
    Non-selective Herbicides
    Europe, Africa
    and Middle East
    AsiaPacific
    Fungicides
    $ 987m
    Selective Herbicides
    $1 546m
    $ 2 649m
    $ 2 662m
    $ 2 308m
    $ 2 300m
    Latin
    America
    $ 1 475m
    $2 383m
    $ 470m
    $ 838m
    Insecticides
    Professional Products
    NAFTA
    Seed Care
  • 35. Portfolioexpansion
    Tailoredbusiness models
    New product growth, strong pipeline
    Global crop strength, reach
    Creating new markets
    Costefficiency
    Crop Protection: distinctive strategy to capture opportunities
    Classification: PUBLIC
  • 36. 2010 sales: $69m +22%
    Peak est: >$200m
    2010 sales: $87m +137%
    Peak est: >$400m
    2010 sales: $27m +114%
    Peak est: >$350m
    2010 sales: $276m -2%
    Peak est: >$350m
    New products: technology enables global growth
    Classification: PUBLIC
  • 37. Classification: PUBLIC
    Plant Performance: building leadership
    Takes yields to a new level vigor, greening, drought relief
    PlantPerformance
    Protects yield potential
    full crop programs, solutions
    Crop
    Enhancement
    Crop
    Care
    Reduces loss
    single product offers
    Pest
    Control
    Integration of technology, know-how & skills
  • 38. Sales 2010: Seeds
    Classification: PUBLIC
    Product line sales $ 2.8 bn
    Regional sales $ 2.8 bn
    Diverse
    Field Crops
    Asia Pacific
    Europe, Africa
    & Middle East
    Vegetables
    $ 249m
    $524m
    NAFTA
    $663m
    $1 047m
    $ 1 234m
    $ 1 281m
    $ 337m
    $275m
    Flowers
    Latin America
    Corn & Soybean
  • 39. Seeds: strong portfolio, depth and breadth
    Classification: PUBLIC
    24%
    Corn and Soybean
    • NAFTA: portfolio transformation
    • 40. Europe: germplasm expansion
    • 41. LATAM: trait, soybean growth
    • 42. APAC: leading corn germplasm
    Leveraging technology platforms
    Diverse Field Crops
    • Sunflower: world-leading breeding
    • 43. Sugar beet: GM success in USA
    • 44. Oilseed rape: high value hybrids
    • 45. Cereals: wheat varieties, hybrid barley
    • 46. Rice: expanding APAC potential
    Vegetables and Flowers
    • Marker-assisted breeding expertise
    • 47. Acquisitions
    • 48. Consumer driven innovation
  • Technology platforms
    Corn: transformportfolio
    Soybean: US, LATAM
    Vegetables: continueshare growth
    Flowers: enhanceleadership
    Captureemergingmarkets growth
    High growthopportunities
    Integrated offers
    Seeds strategy
    Classification: PUBLIC
  • 49. Classification: PUBLIC
    Seeds: market growth, technology
    Seeds and Traits market$bn
    >$50
    Demand for higher yield drives broader technology adoption
    hybrids, GM, stacks
    Increasing value
    Growth across crops
    >$35
    Corn & Soybean
    ~$26
    Field
    Crops*
    Vegetables,Flowers
    2008
    2020E
    2015E
    *Includes cereals and rice Source: Syngenta
  • 50. US corn: achieving milestones, building strength
    Classification: PUBLIC
    Proprietarytriple stack
    Expandedmulti-stack options
    Elite germplasm combinations
    Strong distributor presence
    LeadingSeed Care portfolio
  • 51. Corn portfolio and pipeline to meet all agronomic needs
    Classification: PUBLIC
    Insect pressure
    Herculex® 1
    Herculex® RW
    Triple stack +LibertyLink®
    Drought
    Drought tolerance
    Weeds
    LibertyLink®, a trademark of Bayer CropScience; Herculex®, a trademark of Dow AgroSciences LLC
  • 52. Diverse Field Crops: broad-based growth, differentiated portfolio
    2010 sales: $524m, +13%
    Expansion across all regions
    Sugar beet:
    broad presence in key markets
    GM technology
    Sunflower:
    Strong growth in emerging markets
    herbicide tolerance, virus resistance, disease control
    W Europe,AME+10%
    NAFTA+11%
    APAC+1%
    E Europe+31%
    LATAM+62%
    EAMELATAMAPAC
    EAMENAFTA
    Sunflower
    Sugar beet
    Growth at constant exchange rates
  • 53. Vegetables, Fresh Produce product innovation
    Classification: PUBLIC
    Integrated global technology network
    strength in 14 major crops
    leading native traits, marker-assisted breeding
    >140 new varieties per annum
    Cross-regional sourcing
    Piloting downstream programs
    taste, nutrition, convenience
    retail branding
  • 54. Vegetables: continuing outperformance
    2010 market $4.3 billion: almost doubling by 2024*
    Syngenta Vegetables Seeds growth above market (+10% in both 2010 and 2011) and pricing at par
    High value crop focus: target #1 or #2 in key crops
    Industry pricing under pressure in 2010 after important increases in previous years
    Classification: PUBLIC
    2010 sales: $663 million, +11%
    APAC+18%
    EAME
    +7%
    LATAM
    +27%
    NAFTA+13%
    Growth at constant exchange rates
    * Source: Syngenta estimates
  • 55. in sugarcane: anticipating customer needs
    Germplasm, crop protection: integrated R&D
    First integrated mechanized planting system
    Launch 2011: $300m in orders to 2015
    Long term contracts with sugar mills
    Peak sales potential: >$500m
  • 56. : integrated rice program
    Program components:
    • High quality seedlings
    • 57. seed care
    • 58. Mechanized transplanting
    • 59. Agronomic protocol
  • Market: $15bn
    Chemicalcontrols
    Fertilizer
    Flowerseeds
    Growing media
    Lawn & Garden potential: professional focus
    Largest markets: NAFTA, Europe
    Classification: PUBLIC
    • 2010 sales: $807m*
    • 60. Focus on Professional: Ornamentals, Golf, Turf
    • 61. Partnerships in Consumer
    • 62. Flowers acquisitions enhance leadership
    * Flower Seeds and Professional Products
  • 63. World-class science
    Classification: PUBLIC
  • 64. Did you know that…?
    Some5000Syngentaemployeeswork in Research and Development
    We spent around $1 billion in 2010 on R&D
    Classification: PUBLIC
  • 65. GOA
    Chemistry
    JEALOTT’S HILL
    Chemical Discovery
    Weed Control
    Formulation
    Bioscience
    Environmental Science
    Major R&D sites located on three continents
    BEIJING
    Biotechnology
    R&D
    GREENSBORO
    Formulation
    Environmental Science
    SBI
    Biotechnology
    R&D
    Other sites
    • Marker-assisted and seed breeding capabilities
    • 66. Global field station network
    Global R&D capabilities
    Classification: PUBLIC
    STEIN
    Fungicides, Insecticides &
    Professional Products
  • 67. Value creation
    New business
    Core business
    growth
    Technology leadership & efficiency
    • Advanced output traits
    • 68. New plant sciences
    • 69. Superior chemicals
    • 70. Novel seed varieties
    • 71. New crop solutions
    • 72. Combined skills - most powerful R&T engine
    • 73. Rich pipeline
    • 74. Efficiency through capturing synergy
    Long term
    Medium term
    Short term
    Research and Development: engine for profitable growth
    Classification: PUBLIC
  • 75. Syngenta: a leader in research and development
    $5.1bn investment from research based companies*
    Crop Protection
    • Global molecules tailored to local markets
    Seeds
    • Technology platforms
    • 76. Vegetables: targeting consumer appeal
    Business Development
    • Pioneering new technologies
    Syngenta
    (19%)
    Others
    (8.5%)
    Dow
    (8%)
    DuPont
    (13%)
    Bayer
    (18.5%)
    BASF
    (13%)
    Monsanto
    (20%)
    * Source: Phillips MacDougall; Company section July 2009 and Agrifutura n°116, June 2009
    Classification: PUBLIC
  • 77. Crop protection compounds: the long road to market
    Classification: PUBLIC
    1 - 2
    30
    5000 compounds
    Support
    100’000 compounds
    Evaluate
    Profile
    Discover
    Time
  • 78. Crop Protection pipeline: multi-crop potential
    Peaksales
    Lateresearch
    Earlydevelopment
    Late development
    Targetlaunch
    >$1.7bn
    Sedaxane(SC fungicide)
    2011 – 2014
    Bicyclopyrone(herbicide)
    Cyantraniliproleinsecticide
    SYN 192fungicide
    (stress tolerance)
    Corn
    Soybean
    Cereals
    Vegetables
    Rice
    Sugar cane
    Others
    Invinsa™, a trademark of AgroFresh Inc., a subsidiary of DAS
    Specialty
  • 79. Crop Protection pipeline: multi-crop potential
    Peaksales
    Lateresearch
    Earlydevelopment
    Late development
    Targetlaunch
    >$0.5bn
    post 2014
    Fungicide
    Insecticide
    Herbicide
    New cropenhancer
    Corn
    Soybean
    Cereals
    Vegetables
    Rice
    Sugar cane
    Others
    Invinsa™, a trademark of AgroFresh Inc., a subsidiary of DAS
    Specialty
  • 80. Corn Seeds pipeline: peak sales potential >$2 billion
    Earlydevelopment
    Late development
    Initiallaunches
    Peak
    sales
    >$2.0bn
    Launched 2010
    2010
    2010
    2010
    Biotic stress
    2012
    2014
    next generation RW
    Abiotic stress
    post2015
    Water opt., nitrogen use efficiency
    Output traits
    2011*
    post2015
    CarbYield™
    * Approved in Japan, Canada, Australia, New Zealand, Mexico, Philippines
  • 81. Soybean Seeds pipeline: peak sales potential >$700 million
    Earlydevelopment
    Late development
    Initiallaunches
    Peak
    sales
    >$700m
    Herbicide tolerance
    Launched
    2010
    2nd generation HT
    HPPD solution
    2016 / 17
    Other input traits
    Launched
    2010*
    2nd generationnematode resistance
    Launched
    2010*
    Aphid management system
    Rust solution
    2012*
    post2015
    GM insect resistance
    * Native traits
  • 82. Genomics
    Combinatorialchemistry
    Bioinformatics
    • Biotechnology: a new paradigm for CP invention
    • 83. Practical routes to novel crop varieties
    • 84. Fast-tracking to market
    Crop
    transformation
    High throughputscreening
    Molecular toxicology and environmental science
    Marker-assistedbreeding
    Advancedformulation
    Strength in genomics is key to building new markets
    Unique combination of technology platforms
    Classification: PUBLIC
    Advancedformulation
  • 85. Corporate Responsibility
    Classification: PUBLIC
  • 86. Our contribution: focused on the global challenges
    Corporate Responsibility: inherent in what we do
    Our contribution:
    increasing yields and crop quality
    improving resource efficiency in agriculture
    growing rural communities
    reducing our own footprint
    investment in R&D for the future of agriculture
    Classification: PUBLIC
  • 87. Grow more from less
    Syngenta believes that farmers can produce enough to meet the world’s needs for food, fuel and fiber and safeguard the only planet we have for future generations – if we take a system-wide approach that links technology, land and people. These three elements build the foundation for a sustainable production system in which technology enables better solutions for farmers to increase productivity and profitability, to increase resource efficiency, and help reach food security.
    Classification: PUBLIC
    Technology
    Better solutions
    Resource efficiency
    People
    Land
    Rural economies
  • 88. Better solutions
    Choices on the farm
    To ensure that farms meet their productivity potential, we need enabling and transparent regulations, to make safe technologies available to farmers.
    Accelerating innovation
    We need mechanisms to share innovation; protecting intellectual property helps stimulate research and development.
    Sharing knowledge
    Agriculture is based on knowledge supported by science; we need new partnerships to raise agronomy skills and share expertise.
    Classification: PUBLIC
  • 89. Resource efficiency
    Preserving the land
    We need to increase productivity on existing farmland.
    High stakes for water
    40% of water used for agriculture is wasted; we need solutions that increase water efficiency.
    Vitality of biodiversity
    Biodiversity and agriculture depend on each other; we need to protect the diversity of nature to secure our food supply and quality of life.
    Classification: PUBLIC
  • 90. Rural Communities
    Building markets
    Growing is not enough; farmers need supporting infrastructure and access to markets, finance and information.
    Valuing farm work
    Rural economies carry the weight of feeding the world; farming needs to be worthwhile and profitable.
    Community development
    We need agriculture to spur socio-economic development of rural communities.
    Classification: PUBLIC
  • 91. Food security: better food systems using fewer resources
    Classification: PUBLIC
    Technology
    Land
    People
    Sustainable production system
    recognizes connections between technology, land and people
    Limitation: availability of natural resources
    Improved access and distribution through enabling policies
    Food Security
  • 92. Sustainable agriculture
    Classification: PUBLIC
    Our commitment: contribute to sustainable agriculture in the production of healthy food and the conservation of biodiversity
    Preservesbiodiversity
    Ensures soilconservation
    Avoidsdeforestation
    Maintainswater quality
    Protects health & safety of community
    Suits localconditions and capacity
    Protects economic viability of farming
  • 93. Sustainable agriculture: Higher yields reduce poverty
    Our contribution to society and our business performance are mutually dependent
    Our products meet the needs of a fast-growing population
    Classification: PUBLIC
  • 94. Did you know that…?
    Classification: PUBLIC
    In 2010 Syngenta trained more than 4 million farmers in the safe use of crop protection products
  • 95. Reducing the agricultural carbon footprint
    Classification: PUBLIC
    Direct
    Indirect
    Within control Outside control
    Syngenta operations
    Purchased energy
    Distribution
    Supply
    Farm level
    Business travel
    0
    -6051
    -157
    -75
    Use benefits
    on the farm2
    -240
    -684
    -301
    -20
    -299
    • Positive contribution to climate change
    • 96. Reduce greenhouse gas emissions relative to EBIT by 40% by 2012
    • 97. Minimum tillage, nitrogen efficiency
    • 98. Biofuels: corn amylase, tropical sugar beet, key research partnerships
    1 CO2e – Carbon dioxide equivalents
    2 mainly driven by increasing and protecting yield and enabling no tillage
  • 99. Recognizing our performance
    Our responsible actions are widely recognized by stakeholders
    Syngenta is included in FTSE4Good and Dow Jones Sustainability Indexes
    84% of our employees are proud to work for Syngenta
    Classification: PUBLIC
  • 100. Syngenta Foundation: coordinated focus and execution
    Classification: PUBLIC
    Income from agricultural activities
    Number of land holdings
    Syngenta focus
    Large farm holder
    Medium farm holder
    Commercial smallholder
    Subsistence smallholder
    Foundation focus
    Landless workers
    Segmentation for commercial smallholders
  • 101. Classification: PUBLIC