Q2/H1 2014 Financial Results
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This presentation is for marketing and information purposes only. By this presentation, ADAMA
Agricultural Solutions Ltd. (the “Company") does not intend to give and the presentation does not
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Q2/H1 2014 business highlights
•
Continued strong momentum in Q2/H1 2014 – strong increase in sales and improved gross profit and
net income
•
Strong performance in all regions, specifically in Latin America, despite unfavorable weather
conditions in North America
•
Strategic initiatives
 Progress towards the acquisition of certain CNAC assets
 Global brand roll out
 Launch of new organizational structure
•
Board of Directors approved submission of a draft registration statement on Form F-1 with the SEC
relating to a potential initial public offering of Adama’s common stock
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Financial highlights Q2 2014
Million $
Q2 2014
Q2 2013
Change
Sales
875.9
803.3
+9.1%
Gross Profit
279.7
253.4
+10.3%
31.9%
31.5%
99.5
93.3
11.4%
11.6%
Income before Taxes
74.8
62.8
+19.1%
Net Income
59.4
48.1
+23.5%
6.8%
6.0%
141.2
132.6
16.1%
16.5%
Gross Margin
Operating Income
Operating Margin
Net Income Margin
EBITDA
EBITDA Margin
+6.7%
+6.5%
4
Financial highlights H1 2014
Million $
H1 2014
H1 2013
Change
Sales
1,785.7
1,688.6
+5.7%
592.7
548.2
+8.1%
33.2%
32.5%
230.2
224.4
12.9%
13.3%
Income before Taxes
180.6
165.6
+9.1%
Net Income
158.3
138.4
+14.4%
8.9%
8.2%
312.7
301.0
17.5%
17.8%
Gross Profit
Gross Margin
Operating Income
Operating Margin
Net Income Margin
EBITDA
EBITDA Margin
+2.6%
+3.9%
5
Q2 2014 sales bridge vs. 2013 ($million)
+9%
79
2
8
876
Q. Var
P. Var
FX
Q2 2014
803
Q2 2013
6
H1 2014 sales bridge vs. 2013 ($million)
+6%
112
5
20
Q. Var
P. Var
FX
1,786
1,689
H1
2013
H1
2014
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Regional sales performance
 Americas
– Despite challenging weather conditions in the US,
Sales change by region - Based on USD sales
Based on local currency
increase in revenues
– Continued business advancement and strong
21.3%
21.7%
Latin America
14.1%
14.7%
performance in Latin America
16.4%
17.6%
 APAC, Africa & ME
North America
5.8%
7.0%
– Regional growth despite negative exchange rate
effect
– Good weather and market conditions in India
13.3%
17.0%
APAC, Africa, ME
4.4%
9.8%
supported sales growth
– Extreme drought in Australia affected results
Europe

(1.4%)
(1.4%)
Sales Q2-Q2
3.4%
2.9%
Europe
Sales H1-H1
– The short winter shifted timing of some sales to the
first quarter, followed by cold and wet weather in the
Total
5.7%
6.9%
first half of Q2, putting pressure on demand
– Sales growth in H1 2014 driven by increase in
-5%
0%
5%
9.0%
10.1%
10%
15%
20%
25%
30%
quantities sold and stronger pricing
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Q2 2014 Gross profit vs. 2013 ($ million)
36
1
2
13
280
253
31.5%
Q2 2013
31.9%
Q. Var
Cost Var
P. Var
FX
Q2 2014
9
H1 2014 Gross profit vs. 2013 ($ million)
66
2
5
25
593
548
32.5%
H1
2013
33.2%
Q. Var
Cost Var
P. Var
FX
H1
2014
10