Rotam Global AgroSciences Limited

Transcription

1 Rotam Global AgroSciences Limited Stock Code:

2 龍 Crop 燈 未 Commodity 來 三 年 發 展 方 Overview 向

3 Decrease in arable land and Dietary Shift Increasing global demand for food Rising population Land reducing Decrease in arable land year by year Increasing demand for meat in developing countries Application of biomass energy Crop yields per unit must improve By GMO By developing agricultural science and technology Hectares per person (LHS) Population (bn) (RHS) Increasing scale ( the lands of small owner are rented to a big tenant) Diet Changes Due to climate anomaly, the main crops go into specialization 飼 料 對 肉 類 轉 換 表 Increase food stocks Transnational cultivation by contracts 3 3

4 World Population Distribution & Crop Protection Market By Regions World population ratio Crop protection market share NAFTA 8% Others 2% Others 4% Europe 11% NAFTA 19% Asia 27% Africa 15% Latin American 5% Asia 60% Europe 25% Latin American 26% 4 NAFTA, Europe and Latin America are major exporting regions for grain food, while Asia and Africa mostly reply on import. The top 5 consumption countries of crop protection products in order are: Brazil 18.47%, US 13.62%, China 8.9%, Japan 6.25% and France 5.3%, the consumption volume for these top 5 countries is 50 % of global consumption. 4

5 Crop Commodity Prices (December 2013 To December 2015) Wheat Soybean Corn Suger 5 單 位 : 美 分 / 英 斗

6 World Supply & Demand for Food Corn: World Supply and Demand Sugar: World Supply and Demand Soybean: World Supply and Demand World consumption for Corn, Sugar and Soybean are in upward trend. Source: USDA, Agroconsult Most of Demand growth was came from the change of the consumer s custom. It s hard to be reversed. 6 Source: USDA, Agroconsult

7 USDA Production And Inventory Updates 7 The USDA has released its latest estimates for global crop production and inventory expectations in the 2015/16 marketing year. Soybean production will be continue increase under strong demand from China. Major increase areas form Brazil and Argentina. Cotton production still drop, because the price continue goes down. Corn production in2015/2016 would decrease 38 million tons for high Stocks. Wheat production was growth for 3 years and raise the stocks forecast simultaneously. But China local production was increase too, it would impact wheat price in global market. The USDA estimates,

8 8 Industry Snapshot

9 Crop Protection Market Average growth around 5% in last 5 years,but YOY drop 8% in Impact by deprecate in emerging market and EU, another was bad weather condition in US and South American. When only currency isremoved, then in constant dollar terms the market is estimated to have declined by0.8%.

10 Consistent Data Protection Pharmaceuticals Patented products Generic products/post-paten 10 Crop Protection Products Patented products 80% 20% Data Protection(IPP/PPP) 20% 55% 25% Post-Paten Generic products The standards of Crop protection products be Modified because environment / concept change. Proprietary Post Patent Products: These segment are out of basic patent but still covered and protected with a web of subsidiary patents and data protection regimes that create a strong barrier for entry of others. Innovative / Proprietary Post Patent Products. 10

11 Leading Crop Protection Companies Others 19% Syngenta 先 正 達 18.3% Nufarm 4.5% ADAMA 5.2% DuPont 杜 邦 6% Monsanto 孟 山 都 Dow 8% AgroSciences 陶 式 11% BASF 巴 斯 夫 11.1% Bayer 拜 耳 17.3% Paten and international companies take more than 80% market shares Source: PhillipsMcDougall 11 Syngenta sales in 2015 was USD 10.65billion,take 18.3% Nufarm and ADAMA each sales in 2015 was USD2.09 及 3.06 billion Others: UPL, FMC, Cheminova, Sumitomo Chemical, ISK, Kumiai, Arysta and Rotam(0.6%) 11

12 Ways To Improve Pesticide To Crop Protection Products 12 The new mechanism is to improve the selectivity of specific targets. Reduce toxic impurities or improve the purity of AI. Use solvents and adjuvants that are safe and environmental friendly. Improve the storage stability. Control the decomposition rate of pesticides and the safety of residual. Develop new and safe formulations. Develop environmental friendly and safer packaging materials. Improve warning or rejection characteristics. Sim-pharmaceutical manufacturing environment. Clean formulation methods, synthesis techniques and routes. 12 Environment al friendly User friendly Consumer friendly

13 13 Business Model

14 Complementary Advantages Between The Two Hemispheres Taiwan, high seasons in March to May Sao Paulo, Brazil rush seasons in August to November Taiwan and Sao Paulo are almost antipodal to each other, giving good balance between rush and low season. The world's four major agricultural areas: Asia, North America, South America and Europe. Only South America is in the southern hemisphere

15 Unique Model with Global Network 15 Notes: Sales over 65 countries in the world Strategy of global distribution network Direct operations in Indonesia, Vietnam, Myanmar, Korea, and Philippines 15

16 Multicultural Talents Mark Lu Nationality and Background of the Management Team & Scientists Nationality Past Experience James Liu Nationality Past Experience James Bristow C.Y. Lo William Yuen Jean Michel Duhamel Subu Dr Yifan Wu UPL Alvaro Canizares Garth Drury Michael Huang Dr Bakthan Marc Lore Tom Chavez Ronaldo Pereira Alok Kumar UPL 16 16

17 Structure of Human Resource Regional headcounts by functions Area LAN EU China MMA NAFTA Asia Headquarters Grand Total Administration Research & Development Selling & Distribution Manufacturing Grand Total , ,565 Business teams around the world Registration team mainly in Europe Data generation and manufacturing in China 17 17

18 Focus on R&D 18 Rank Company Sales($M) R&D($M) % 1 Agro-Kanesho % 2 ISK % 3 Isagro % 4 Rotam % 5 Nippon Soda % 6 BASF 7, % 7 Nihon Nohyaku % 8 DuPont 3, % 9 Nissan % 10 Sumitomo Chemical 2, % 11 syngnta 11, % 12 Amvac % 13 Mistui Chemicals % 14 Bayer 11, % 15 Dow 5, % 16 SDS Biotech % 17 Kyoyu Agri % 18 FMC 2, % 19 Helm % 20 Hokko % 21 Kumiai % 22 Cheminova 1, % 23 UPL 1, % 24 Gowan % 25 Chemtura % 26 Sinon % 27 Sipcam % 28 Albaugh 1, % 29 Nufarm 2, % 30 Arysta 1, % according to Phillips McDougall,base on sales ranking, Rotam as No.24 in Global, but base on R&D expense, Rotam was No.14 If ranking by R&D expense on sales, Rotam would be No.4 in Global.

19 2015 Achievements and Awards Patents Granted 63 Product Registration Approvals 219 New Product Developed 40 China National Standard 1 WHO Standard 1 Dongfang Experimental Farm Station expanded to 16,500 m² ACHIEVEMENTS 2015 Total value of government award 9.8 Million RMB 42 People Obtained Talent Awards by Kunshan Government 1 Person Awarded as Innovative Talent of Jiangsu Innovative Team Award by Kunshan Intellectual Property Intensive Enterprise of Kunshan Innovation Pioneer Enterprise of Suzhou Jiangsu Province Crop Protection Engineering Center High Tech Agrochemical Pilot Enterprise of Jiangsu Strategic Funding Awarded for Product International Standards AWARDS 19

20 Registrations 單 位 : 仟 元 ('000) 藥 證 相 關 的 無 形 資 產 USD NTD USD NTD Intangible assets relating to Registration 140,465 4,458, ,888 5,021,935 According to the valuation done by American Appraisal, the value of Rotam s Intangible Assets relating to Registrations as at 2014 year end is USD 303,785k 20

21 Key Products and Its Market Share UNIT:USD 000 AI Originator Type Year of First Registration Major Area First Registered 2015 Sales Market Value Market Share% Te Bayer Fungicide 2005 Latin American (2005) 31, , % Me Dupont Insecticide 1995 Latin American(2005) 26, , % Im Bayer Insecticide 2003 Latin American (2006) 23,634 1,070, % Ab Sygenta Insecticide 1998 EU (2004) 18, , % Di BASF Herbicide 2012 EU (2012) 11, , % Ca + Te BASF &Bayer Fungicide 2006 Latin American (2008) 7,705 Ni Dupont Herbicide 2007 Latin American (2007) 7, , % Fi BASF Insecticide 2014 Latin American (2014) 6, , % Tr Bayer Insecticide 2010 Latin American (2010) 6,949 65, % Th Bayer Insecticide 2006 Latin American (2006) 6, , % Ca BASF Fungicide 1996 Latin American (2005) 5, , % 21 21

22 Sales By Region Q sales USD 353m NTD 10.7bn 拉 丁 美 洲 Latin America 14% 歐 洲 Europe 10% 亞 太 Asia Pacific 2% 中 國 China 29% Q sales USD 347m NTD 10.99bn 拉 丁 美 洲 Latin America 12% 歐 洲 Europe 11% 亞 太 Asia Pacific 2% 中 國 China 37% 巴 西 32% 北 美 NAFTA 10% 中 東 + 非 洲 Middle East + Africa 3% 巴 西 23% 中 東 + 非 洲 Middle East + Africa 3% 北 美 NAFTA 12% 22

23 Growth On Sales By Region Q over Q 北 美 NAFTA + 14% 巴 西 Brazil - 29 % 歐 洲 Europe + 12 % 中 國 China + 24 % 拉 丁 美 洲 Latin America - 17 % 23

24 Sales Growth No. 1 - Rotam Source: Phillips McDougall

25 Competitors Performances (Agrochemical Sales) Company Local Currency Growth Local $m Local $m %(Local) %($) Rotam NTD 10, , % -1.70% Total sales Adama USD 3,221 3,221 3,064 3, % -4.87% Total sales Nufarm AUD 2,478 2,278 2,578 2, % -7.86% 註 :FMC 2015 年 1 月 購 併 Cheminova,2014 年 為 調 整 後 營 收 計 算 ~ & ~ Corp Protection Bayer EUR 8,390 11,142 9,090 10, % -9.45% Agrochemical Syngenta USD 12,074 12,074 10,653 10, % % Corp Protection + Lawn & Garden BASF EUR 5,446 7,232 5,820 6, % % Agricultural Solutions DOW USD 7,290 7,290 6,381 6, % % Agricultural segment DuPont USD 11,304 11,304 9,798 9, % % Agricultural segment Platform USD 2,173 2,173 1,829 1, % % Agricultural Solutions FMC USD 3,401 3,401 2,615 2, % % Agricultural Solutions 25 Source: Phillips McDougall and Rotam

26 Competitor analysis(market capital /sales) Company Rotam Syngenta Monsanto Bayer BASF Nufarm FMC UPL Currency TWD USD USD EUR EUR AUD USD RS Price Exchange Rate Market Value (M USD) ,470 38,950 89,580 64,929 1,593 5,450 3, Sales (M USD) ,411 15,001 51,415 78,190 2,228 3,277 1,979 GPM 40.71% 47.49% 54.54% 54.33% 27.09% 26.19% 32.82% 50.24% P/S Note ~ ~ ~

27 Gearing ratio compare to competitors 74% 2015 H1 72% 70% 68% 66% 64% 62% 60% 龍 燈 杜 邦 FMC Adama 興 農 27

28 Develop and Momentum in Future

29 New Business Model And Product in US SipcamRotam is a joint venture derived from SipcamAdvan ( and Rotam North America ( Both companies offer a distribution-focused marketing strategy to provide chemical, biorational and biostimulant products to the agriculture, turf and ornamental (T&O) markets. The joint venture is headquartered in Durham, North Carolina. Sales Breakdown of Sipcam in 2014 as blow: Launch the new corn herbicide in 2016 North America. 29

30 Thirteen Five-year Plan in China Accelerate to Develop the Modern Agriculture 30 Enhance food security capability Improve unit production and quality, total capacity improve to 540 million tons. Improve and adjust structure strategy of agriculture Complete the modern agricultural industrial system, developing of high-yield, high quality, efficiency, ecological and agriculture safety. Promote the industrialization of agriculture, specialization, standardization, scale and intensive. Accelerate of technical innovations in agriculture Push agriculture technology integration, process mechanization, management of production computerize. Improve new breeding and applications, create new species with high value and IP to be the modern industry. Improve the social service system in agricultural Develop the logistic service for agricultural products, build the marketing network with low cost and high efficiency.

31 Provide Good Solutions on Key Crops 31 31

32 Top 5 Agrochemical Formulation Companies in China 32 資 料 來 源 : 中 國 農 藥 工 業 協 會 月 The top 30 Chinese Formulations Companies 2015, ShenzhenNoposion reached billion sales continued to hold the rank No.1. Rotam Jiangsu and Guangxi Tianyuan achieved sales of billion and billion, ranking No.2 and No.3 of the list. Overall performance increased to record high, was up by 13.4% to reach billion.

33 Politics of Argentina will be Benefit for Agriculture Conservative Mauricio Macri wins Argentina presidency and he vows to revitalize sagging economy with free-market reforms. Argentina lifts currency controls, floats peso in bid to boost economy. The peso depreciation is good for farmers, due to Argentina is a grainsexporting powerhouse but thereby hurting private consumption. The new government has announced that export taxes on corn, soybeans, beef and other farm products are have been eliminated. These taxes are typically in the range of between 15% to 23%, although soybeans carry a tax of 35%. This has now been reduced to 30%, with an additional five percentage points to be removed annually. In 2014 Argentina exported 13.0 billion tonnes of arable produce, down from the 16.9 billion exported in the previous year. 33

34 New Product Contribute in EU 50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 New products Existing Product 3rdparty 15,000,000 10,000,000 5,000,

35 Application of Rapid Traits Development System (Non-GM) Joint Program with Pioneering Crop Trait Development Firm in USA Gain Global Publication Exposure 35 Rotam is the exclusive supplier of crop protection chemicals in the project. Herbicide had get registration in Canada and can sell to wheat. Cibus And Rotam Team Up To Launch Non-Transgenic Rapeseed Product For Chinese Market. 35

36 RAPESEED PLANTED AREA GLOBAL Herbicide $1.1bn Seed/Trait $1.6bn Asia & Aus (18mha) Europe (9.3mha) NAFTA (8.7mha) $234m $667m $240m Source: Phillips McDougall 2013 $293m 2013 $594m 2013 $713m 36

37 GM and Non-GM Canola Oil Chinese canola oil is 30% share in local oil seed market. GM products have to be notice. The price is great difference between GM and non-gm canola oil. The price gap more than 30%, and estimated total Value is 6 Bn USD 多 力 菜 籽 油 非 轉 基 因 5 升 RMB

38 Conclusion Continuing research and development enhance the brand and product competitiveness. Through the joint venture, increase the penetration rate in North American market. With the package sales, cultivate the Chinese market deeply. Control exposure potions in Latin America and raise up the GP Margin. Leverage the Non-GMP develop trend, Crate the new blue market. 38

39 THANK YOU Q&A