10th phillip capital agribusiness conference
TRANSCRIPT
Nearer term objectives
Longer term vision
Doug Rathbone
Managing Director
Sydney
April 11, 2013
10th Phillip Capital Agribusiness Conference
10th Phillip Capital Agribusiness Conference
2011: Comprehensive strategic review of the business
Utilised '3 Horizons' framework
Nearer term objectives; longer term vision
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Resetting the base
Horizon 1: Short term
Clear strategic growth plan
Building a disciplined and entrepreneurial
company
Horizon 2: Medium term
Securing a sustainably profitable
industry position
Horizon 3: Long term
3
Protect / enhance value of our core
positions
Invest in new growth
opportunities
Generate improved returns
Growing into higher value and more defendable product and market
segments
Corporate growth strategy
10th Phillip Capital Agribusiness Conference
Key strategic initiatives
4
Ensure cost competitiveness and improved efficiencies
Differentiate
Expand/diversify product portfolio
Support growth of seeds platform
Define, communicate and adhere to return targets and KPIs
Reinforce/ enhance brand values
Build the strength and capabilities of the organisation
10th Phillip Capital Agribusiness Conference
5
Specific regional and business
strategies
Corporate strategy framework
10th Phillip Capital Agribusiness Conference
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Nearer term objectives
10th Phillip Capital Agribusiness Conference
Stable capital structure
Now attending to regional facilities
Improved capital management
Good progress, but more can be done
Stronger organisation
Executive team; regional management; information services; risk
management; purchasing & supply chain; chemistry innovation
New disciplines around performance management; linked to relevant
KPI's
Horizon 1: Short term
Resetting the base
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Nearer term objectives
10th Phillip Capital Agribusiness Conference
Increasing the rigour, visibility and accountability around
R&D investment/activity
Rebalancing the portfolio
Growth into insecticides/fungicides
Investing in people and infrastructure to support high value
growth platforms
Seeds
Seed treatment
Resetting the base
Horizon 1: Short term
Building a disciplined and entrepreneurial
company
Horizon 2: Medium term
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Longer term objectives
10th Phillip Capital Agribusiness Conference
Implementation and demonstrated success of regional
business strategies
Diversification of business
By product and market segments
Step-out of seeds strategy to 4th target crop/market
Resetting the base
Horizon 1: Short term
Building a disciplined and entrepreneurial
company
Horizon 2: Medium term
Securing a sustainably profitable
industry position
Horizon 3: Long term
Established 'niche' player in seed treatment
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Longer term objectives
10th Phillip Capital Agribusiness Conference
Expanded, higher value product portfolios
Established positions in additional crop/market segments
Topline and market share growth
Securing a sustainably profitable
industry position
Horizon 3: Long term
EBIT margins consistently achieving 15%
REGIONAL BUSINESSES
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Longer term objectives
10th Phillip Capital Agribusiness Conference
Balanced geographic footprint
Balanced product portfolio
Securing a sustainably profitable
industry position
Horizon 3: Long term
BUSINESS DIVERSIFICATION
Positions established in strategic growth markets
eg. India
Larger presence in target high value market segments
Turf and ornamental
Seeds
Seed Treatment
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Longer term objectives
10th Phillip Capital Agribusiness Conference
Capturing the value of a rich pipeline
Securing a sustainably profitable
industry position
Horizon 3: Long term
SEEDS
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Seeds: Monola
10th Phillip Capital Agribusiness Conference
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 and
general food industry
− Healthier, highly functional oil
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Seeds: Food grade sorghum trait
10th Phillip Capital Agribusiness Conference
The seed:
− Adapted sorghum from a feed grain to a premium hard milling grain
The food:
− Designed for milling white food grade flour (gluten free)
The opportunity:
− Use our technology and innovation to convert sorghum to a premium food grade
crop and share in the value Hybrids commercial in USA, Mexico, South America,
Africa
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Seeds: Confection sunflower
10th Phillip Capital Agribusiness Conference
The seed:
− Breeding program develops hybrids that demonstrate desired consumer
characteristics (size, colour, texture) and agronomics (yield)
The food:
− Harvested grain is processed and sold as snack food in global markets
The opportunity:
− #1 snack food in China (1kg / person p.a.)
− Significant markets in Europe and America
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Seeds: High energy feed
10th Phillip Capital Agribusiness Conference
The seed:
− Brown mid rib trait in forage and grain sorghum. Retains sorghum's high water use
efficiency
The food:
− 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
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Longer term objectives
10th Phillip Capital Agribusiness Conference
Securing a sustainably profitable industry position
SEED TREATMENT
The opportunity
Global market value ~USD2.5B growing at ~13% CAGR
Driven by
- Crop acres
- Traits and genetics
- Agronomic and technology change
Our offer
Portfolio expansion and unique blends
Formulatoins
'Custom blend'. Product and service bundle providing our customers with a
simple efficient solution to their seed treatment needs
Our ambition
Doubling our S.T. registrations to 122 by 2016
Increasing S.T. revenues to $90m by 2017
Expand gross margin to >50% by 2017
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Summary:
10th Phillip Capital Agribusiness Conference
We are strongly focused on executing our strategic growth plan
Current seasonal pressures in Australia underline the importance/value of a
diversified geographic platform and a continued move into higher value
product and market segments
Shorter term objectives closely tied to long term vision
Good progress and significant change in the business
Commitment to increased discipline
Stronger focus on innovation across all areas of the business
Appropriate changes to and strengthening of the organisation