FORM
6-K
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Report
of Foreign Issuer
Pursuant
to Rule 13a-16 or 15d-16
of
the Securities Exchange Act of 1934
For
the
month of July 2007
Commission
File Number: 001-15152
SYNGENTA
AG
(Translation
of registrant’s name into English)
Schwarzwaldallee
215
4058
Basel Switzerland
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F:
|
Form
20-F
|
X
|
Form
40-F
|
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1):
|
Yes
|
No
|
X
|
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(7):
|
Yes
|
No
|
X
|
Indicate
by check mark whether by furnishing the information contained in this Form,
the
Registrant is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
|
Yes
|
No
|
X
|
If
“Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): N/A
| Re: | SYNGENTA AG |
| Press Release: |
“Half
Year Results
2007”
|
Filed
herewith is a press release related to Syngenta AG. The full text of the
press
release follows:
#
#
#
Item
1
|
Syngenta International AG
Media
Office
CH-4002 Basel
Switzerland
Telephone:
+41 61 323 11 11
Fax:
+41 61 323 24 24
www.syngenta.com
|
|
Financial
release
|
|
Half
Year Results 2007
Basel,
Switzerland, 26 July 2007
|
‘Strong
performance: improved market outlook’
|
·
|
Reported
sales up 9 per cent to $5.7
billion
|
|
·
|
Crop
Protection sales up 7 per cent
(1) to $4.3
billion
|
|
·
|
New
products sales 15 per cent(1)
higher at $760 million
|
|
·
|
Seeds
sales up 4 per cent(1)
to $1.4 billion
|
|
·
|
Earnings
per share(2)
up 16 per cent to $12.13
|
|
·
|
Free
cash flow $306 million: full year cash return increased to
around $1
billion
|
Financial
Highlights (unaudited)
|
Excluding
Restructuring & Impairment
|
As
reported under IFRS
|
|||||||||||||||||||||||
|
1st
Half
2007
$m
|
1st
Half
2006
$m
|
Actual
%
|
CER(1)
%
|
1st
Half
2007
$m
|
1st
Half
2006
$m
|
|||||||||||||||||||
|
Sales
|
5690
|
5201
|
+
9
|
+
6
|
5690
|
5201
|
||||||||||||||||||
|
Net
Income(3)
|
1190
|
1056
|
+13
|
1219
|
961
|
|||||||||||||||||||
|
Earnings
per Share(2)
|
$12.13
|
$10.44
|
+16
|
$12.43
|
$9.51
|
|||||||||||||||||||
Michael
Pragnell, Chief Executive Officer, said:
“In
strong
agricultural markets Syngenta’s broad and innovative portfolio captured numerous
opportunities and delivered a strong financial performance. Crop
Protection increased sales in all regions and across all product lines,
with
notable performances in Europe and Latin America. Professional
Products growth was driven by Seed Care, augmented by a first year contribution
from Fafard in Lawn & Garden. New products again generated double
digit growth. In Seeds, an unprecedented shift in US acreage
from soybean to corn was reflected in higher corn sales, offsetting lower
soybean sales which, in the short term, is adverse to margin; our new
corn
rootworm trait is performing well following initial introduction; Vegetables
sustained its growth record and Flowers capitalized on market
recovery. Further strategic progress was made in Seeds with the
acquisition of Fischer Flowers and, in vegetables, Zeraim Gedera of Israel;
in China, a corn seeds joint venture with SanBei was reinforced by a
research
collaboration with the Institute of Genetics and Developmental Biology in
Beijing. Good progress was made across the R&D
pipeline. Volume growth underpinned by further efficiency savings led
to strong profit performance and free cash flow delivery, accompanied
by
additional investment in future growth.”
|
(1)
|
Growth
at
constant exchange rates, see Appendix
A.
|
|
(2)
|
EPS
on a
fully-diluted basis, including $50 million non-recurring income,
excluding
restructuring and impairment.
|
|
(3)
|
Net
income
attributable to shareholders of Syngenta
AG.
|
Highlights
for 2007
Sales
at constant exchange rates (CER) were six percent
higher, with growth of seven percent in Crop Protection and four percent
in
Seeds.
EBITDA
was 10 percent higher (CER) at $1.75 billion including a $50 million
non-recurring payment from Delta & Pine Land following change of
control relating to the VipCot technology agreement. Operational
efficiency savings of $84 million more than offset increased marketing and
development expenditure of $37 million in growth areas of the
business.
Earnings
per
share, excluding restructuring and impairment, rose 16 percent to
$12.13. Excluding the non-recurring payment from Delta & Pine
Land, earnings per share were 12 per cent higher. After charges for
restructuring and impairment, earnings per share were $12.43 (2006: $9.51);
including a capital gain from the sale of a site in Basel.
Currency: Sales
were positively impacted by three percent due to relative weakness of
the
US dollar, notably against the Euro. The positive impact on
EBITDA was also three percent.
Crop
Protection: Crop Protection increased sales across all
product lines and in all regions, with the strongest contributions coming
from
Europe, Africa and the Middle East (EAME), and
Latin America. The Western European market, stimulated by higher
crop prices, recovered after poor weather conditions in 2006. In
Eastern Europe Syngenta again registered double digit sales growth,
building on its leading market position and the drive to modernize
agriculture. Latin America showed high growth in demand in advance of
the main season in the second half. Growth in NAFTA was more moderate
as the positive impact of higher US corn acres was largely offset by
increased
GM penetration. In Asia Pacific strong growth in China, India and the
emerging
markets of south east Asia outweighed weakness in Japan and
Australia. New products continued to make a significant contribution
to growth with sales up 15 percent including the launch of the new fungicide
REVUS®. The
on-going success of these products has led to an upward revision of their
combined sales potential from $1.1 billion to $1.5 billion. In
addition, the dynamic pipeline of products for launch from 2008 has a
combined
peak sales potential of over $1.3 billion.
Professional
Products: Sales increased 12 percent (CER) with strong first
quarter demand in Seed Care and a positive contribution from the consolidation
of Fafard in Lawn & Garden. In Seed Care, Syngenta is
growing market share with new products and capitalizing on increased
demand as a
result of the trend towards higher value seed.
The
combined EBITDA
benefited from higher volume and cost savings, rising by 10 percent (CER)
to
$1.5 billion.
Seeds: Sales
of corn grew worldwide driven by higher crop prices and acreage
expansion. In the USA this was offset by a decline in soybean sales
as planted acreage dropped sharply. Syngenta is transforming its US
corn portfolio from a conventional to a fully traited offer and the launch
of
Agrisure™ RW marked further progress. The market for corn
biotechnology is expanding rapidly and Syngenta plans to increase R&D
investment further to capture all opportunities; in the short term, this
transition and the associated R&D investment mean that corn is less
profitable than soybean. The development of a fully traited offer in
corn will help to drive a significant expansion in the Seeds EBITDA margin
from
2009 towards a target of 15 percent in 2011 with further progress
thereafter. In Diverse Field Crops sales were one percent
lower. In Vegetables, sales growth accelerated to 15 percent and the
consolidation of Emergent Genetics Vegetable A/S further expanded the
product offer.
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 2 OF 27
Good
strategic
progress was made in the first half: in China, Syngenta expanded its
corn
presence through the announced acquisition of a 49 percent stake in SanBei,
a
leading Chinese corn seeds company, and a five year research collaboration
with
the Institute of Genetics and Developmental Biology, focusing on novel
agronomic
traits in key crops including corn, soybean, sugar beet and sugar
cane. In July the acquisition of Zeraim Gedera, an Israeli vegetable
seeds company focusing on high value crops, with a strong presence in
Mediterranean markets, was announced. The transaction is expected to
close in the fourth quarter of 2007. In Flowers the acquisition of
Fischer was completed on 25 June and reinforces Syngenta’s position as
world leader with an estimated market share of 16 percent.
EBITDA
of $202
million was lower due to gross margin impact of the soybean-to-corn acreage
shift in the USA and increased R&D and marketing expenditure.
Cash
flow
and balance sheet: Free cash flow was $306 million after
acquisitions (2006: $98 million), including $146 million from a site
in Basel and $50 million from
Delta & Pine Land. The ratio of average trade
working capital as a percentage of sales was unchanged at 42
percent. Fixed capital expenditure was higher at $125 million
(2006: $81 million) reflecting growth investments in selected
areas.
Taxation: The
underlying tax rate for the period was 22 percent (2006: 22
percent).
Cash
return
to shareholders: In the first half of 2007 the company
repurchased 2.2 million shares on the second trading line with a total
cost of
$399 million; a dividend of $128 million was paid on 7 May; a further
payment of $174 million was made on 24 July in the form of a nominal
value
reduction. Total cash returned to shareholders to date in 2007 is
$701 million. The company intends to increase its full year cash
return program for 2007 to around $1 billion through additional share
repurchases. The 3.3 million shares repurchased in 2006
were cancelled on 17 July.
Outlook
Michael
Pragnell,
Chief Executive Officer, said:
“Our
strong
performance in the first half reflects Syngenta’s financial and commercial
strength. Combined with a positive outlook for the second half, this
allows us to increase our target for the full year 2007 to mid-teens
growth in
earnings per share*. Looking further ahead, the role of agriculture
in addressing a number of the world’s major challenges, including population
growth, food and biofuel demand, is becoming increasingly important and
Syngenta
is uniquely positioned to help address these challenges. Our ability
to innovate, our technological breadth and global reach mean we are well
placed
to capture the numerous opportunities, continue to drive growth and further
increase shareholder value.”
* Fully
diluted, before restructuring,
impairment, $50 million non-recurring income and share repurchase
program.
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 3 OF 27
Crop
Protection
For
a definition
of constant exchange rates, see Appendix A.
|
Half
Year
|
Growth
|
2nd
Quarter
|
Growth
|
|||||||||||||||||||||||||||||
|
Product
line
|
2007
$m
|
2006
$m
|
Actual
%
|
CER
%
|
2007
$m
|
2006
$m
|
Actual
%
|
CER
%
|
||||||||||||||||||||||||
|
Selective
herbicides
|
1423
|
1313
|
+8
|
+5
|
787
|
703
|
+12
|
+9
|
||||||||||||||||||||||||
|
Non-selective
herbicides
|
461
|
422
|
+9
|
+7
|
277
|
255
|
+9
|
+6
|
||||||||||||||||||||||||
|
Fungicides
|
1183
|
1065
|
+11
|
+6
|
606
|
526
|
+15
|
+10
|
||||||||||||||||||||||||
|
Insecticides
|
664
|
602
|
+10
|
+7
|
347
|
307
|
+13
|
+10
|
||||||||||||||||||||||||
|
Professional
products
|
554
|
490
|
+13
|
+12
|
235
|
246
|
-
4
|
-
6
|
||||||||||||||||||||||||
|
Others
|
18
|
24
|
-24
|
-24
|
7
|
7
|
-
3
|
-
1
|
||||||||||||||||||||||||
|
Total
|
4303
|
3916
|
+10
|
+7
|
2259
|
2044
|
+11
|
+7
|
||||||||||||||||||||||||
Selective
Herbicides: major brands AXIAL®,
CALLISTO® family,
DUAL®/BICEP®
MAGNUM,
ENVOKE®, FUSILADE®MAX, TOPIK®
Selective
herbicides
capitalized on strong demand in corn and in cereals. Sales of
AXIAL® more
than
doubled with particularly strong growth in the USA and Canada. The
CALLISTO® family
continued to expand in both Europe and the USA, where a focus on pre-emergence
weed control is enabling growers to maximize yield on both conventional
and
glyphosate-tolerant corn.
Non-selective
Herbicides: major brands GRAMOXONE®,
TOUCHDOWN®
Non-selective
herbicides grew in all regions. There was a notably strong
performance by TOUCHDOWN® reflecting
increased
herbicide-tolerant acreage in North America and good growth in Argentina
and
Eastern Europe. GRAMOXONE® sales
grew in Asia,
particularly China, where strong demand continues from emerging market
growers.
Fungicides:
major brands AMISTAR®, BRAVO®,
RIDOMIL GOLD®, SCORE®,
TILT®, UNIX®
Excluding
the impact
of the ACANTO®
divestment,
fungicide sales were eight percent higher led by
AMISTAR® in
Latin America, due to increased market penetration and high disease
pressure. Europe saw broad-based growth in mixtures for late season
disease control and rapid expansion in Eastern Europe.
Insecticides:
major brands ACTARA®, FORCE®,
KARATE®, PROCLAIM®,
VERTIMEC®
Strong
growth in
Europe and Latin America more than offset a decline in NAFTA due to a
reduction
in cotton acreage and the impact of corn rootworm trait penetration on
FORCE®
demand. KARATE® showed
double digit
growth led by Germany, where high pest pressure created strong demand
for this
leading product. ACTARA® continued
to expand
in Eastern Europe and Latin America, with new opportunities on sugarcane,
coffee and cotton in Brazil.
Professional
Products: major brands AVICTA®,
CRUISER®, DIVIDEND®,
HERITAGE®, MAXIM®
Strong
early demand
in Seed Care led to a concentration of sales growth in the first quarter.
AVICTA® in
its
second year continued to show strong US growth, despite lower cotton
acres;
CRUISER®
expanded
in all regions. In Lawn & Garden the main
contribution came from Fafard, acquired in the second half of 2006.
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 4 OF 27
|
Half
Year
|
Growth
|
2nd
Quarter
|
Growth
|
|||||||||||||||||||||||||||||
|
Regional
|
2007
$m
|
2006
$m
|
Actual
%
|
CER
%
|
2007
$m
|
2006
$m
|
Actual
%
|
CER
%
|
||||||||||||||||||||||||
|
Europe,
Africa
& Middle East
|
1670
|
1452
|
+15
|
+7
|
842
|
708
|
+19
|
+11
|
||||||||||||||||||||||||
|
NAFTA
|
1597
|
1579
|
+1
|
+1
|
914
|
928
|
-
2
|
-
2
|
||||||||||||||||||||||||
|
Latin
America
|
449
|
327
|
+37
|
+37
|
219
|
145
|
+50
|
+50
|
||||||||||||||||||||||||
|
Asia
Pacific
|
587
|
558
|
+5
|
+3
|
284
|
263
|
+8
|
+5
|
||||||||||||||||||||||||
|
Total
|
4303
|
3916
|
+10
|
+7
|
2259
|
2044
|
+11
|
+7
|
||||||||||||||||||||||||
Europe,
Africa and the Middle East: An earlier start to the season
and buoyant crop prices boosted demand in all product lines. A strong
product offer in cereals led to a strengthened market position in Germany
and
the UK, and Syngenta’s market leadership in Eastern Europe was reflected in
double-digit growth, notably in Hungary, Russia and Ukraine.
In
NAFTA
the positive impact of higher US corn acreage was partially
offset by
the impact of GM penetration and lower cotton acreage on selective
herbicide and insecticide sales. Drought in certain regions reduced
fungicide usage. Good growth was registered by TOUCHDOWN® and
in professional
products as well as strong performances in Canada and Mexico.
Latin
America: Performance in the region was very strong with
Brazil and Argentina driving growth. The successful risk management
policies which have helped increase market share in these countries,
notably
Brazil, continue to underpin the current dynamic business
growth. Syngenta’s broad offer for crops including corn, cotton and
sugarcane, as well as soybean, drove sales growth across all product
lines.
Asia
Pacific: Strong growth in emerging markets, notably China,
India and Vietnam, more than offset weakness in Japan due to channel
de-stocking
and in Australia, where last year’s drought has led to a reduction in
acreage.
Seeds
For
a definition
of constant exchange rates, see Appendix A.
|
Half
Year
|
Growth
|
2nd
Quarter
|
Growth
|
|||||||||||||||||||||||||||||
|
Product
line
|
2007
$m
|
2006
$m
|
Actual
%
|
CER
%
|
2007
$m
|
2006
$m
|
Actual
%
|
CER
%
|
||||||||||||||||||||||||
|
Corn
&
Soybean
|
732
|
708
|
+3
|
+2
|
175
|
210
|
-
16
|
-
18
|
||||||||||||||||||||||||
|
Diverse
Field
Crops
|
254
|
242
|
+5
|
-
1
|
87
|
83
|
+5
|
-
|
||||||||||||||||||||||||
|
Vegetables
& Flowers
|
432
|
370
|
+17
|
+11
|
216
|
181
|
+18
|
+13
|
||||||||||||||||||||||||
|
Total
|
1418
|
1320
|
+7
|
+4
|
478
|
474
|
+1
|
-
3
|
||||||||||||||||||||||||
Corn
&
soybean: major brands NK®,
GARST®, GOLDEN
HARVEST®
Growth
in corn sales
reflected the major shift in US acreage but was partially offset by the
concomitant decline in soybean sales in the second quarter. High corn
prices also led to increased acreage outside the USA.
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 5 OF 27
Diverse
field crops: major brands NK®
oilseeds,
HILLESHÖG® sugar
beet
The
growth trend in
sunflower was offset by the shift in favor of corn in Europe. Sugar
beet sales were affected by subsidy reform.
Vegetables
and Flowers: major brands S&G®
vegetables,
ROGERS®
vegetables, S&G® flowers
Vegetables
showed
accelerating growth with solid performances in EAME and NAFTA, augmented
by the
acquisition of Emergent Genetics Vegetable, and rapid expansion in Latin
America
and Asia Pacific. Sales of S&G® flowers
also
increased with improved market conditions notably in NAFTA.
|
Half
Year
|
Growth
|
2nd
Quarter
|
Growth
|
|||||||||||||||||||||||||||||
|
Regional
|
2007
$m
|
2006
$m
|
Actual
%
|
CER
%
|
2007
$m
|
2006
$m
|
Actual
%
|
CER
%
|
||||||||||||||||||||||||
|
Europe,
Africa
& Middle East
|
577
|
516
|
+12
|
+3
|
194
|
173
|
+11
|
+4
|
||||||||||||||||||||||||
|
NAFTA
|
722
|
717
|
+1
|
+1
|
216
|
252
|
-14
|
-14
|
||||||||||||||||||||||||
|
Latin
America
|
49
|
35
|
+40
|
+40
|
29
|
21
|
+39
|
+38
|
||||||||||||||||||||||||
|
Asia
Pacific
|
70
|
52
|
+34
|
+26
|
39
|
28
|
+40
|
+30
|
||||||||||||||||||||||||
|
Total
|
1418
|
1320
|
+7
|
+4
|
478
|
474
|
+1
|
-
3
|
||||||||||||||||||||||||
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 therefore.
Syngenta
is a
world-leading agribusiness committed to sustainable agriculture through
innovative research and technology. The company is a leader in crop
protection, and ranks third in the high-value commercial seeds
market. Sales in 2006 were approximately $8.1
billion. Syngenta employs some 21,000 people in over
90 countries. Syngenta is listed on the Swiss stock exchange
(SYNN) and in New York (SYT). Further information is available at www.syngenta.com.
|
Analyst/Investor
Enquiries:
|
Jonathan
Seabrook
|
+41
61 323
7502
+1
202 737
6520
|
||
|
Jennifer
Gough
|
+41
61 323
5059
+1
202 737
6521
|
|||
|
Media
Enquiries:
|
Médard
Schoenmaeckers (Switzerland)
|
+41
61 323
2323
|
||
|
Sarah
Hull
(USA)
|
+1
202 628
2372
|
|||
|
Share
Registry
Enquiries
|
Urs-Andreas
Meier
|
+41
61 323
2095
|
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 6 OF 27
Financial
Summary
|
Excluding
Restructuring and Impairment (1)
|
Restructuring
and Impairment (1)
|
As
reported under IFRS
|
||||||||||||||||||||||
|
For
the six months to 30 June
|
2007
$m
|
2006
$m
|
2007
$m
|
2006
$m
|
2007
$m
|
2006
$m
|
||||||||||||||||||
|
Sales
|
5690
|
5201
|
-
|
-
|
5690
|
5201
|
||||||||||||||||||
|
Gross
profit
|
2990
|
2806
|
(1 | ) | (7 | ) |
2989
|
2799
|
||||||||||||||||
|
Marketing
and
distribution
|
(780 | ) | (727 | ) |
-
|
-
|
(780 | ) | (727 | ) | ||||||||||||||
|
Research
and
development
|
(386 | ) | (387 | ) |
-
|
-
|
(386 | ) | (387 | ) | ||||||||||||||
|
General
and
administrative
|
(268 | ) | (335 | ) |
-
|
-
|
(268 | ) | (335 | ) | ||||||||||||||
|
Restructuring
and impairment
|
-
|
-
|
44
|
(123 | ) |
44
|
(123 | ) | ||||||||||||||||
|
Operating
income
|
1556
|
1357
|
43
|
(130 | ) |
1599
|
1227
|
|||||||||||||||||
|
Income
before taxes
|
1534
|
1363
|
43
|
(130 | ) |
1577
|
1233
|
|||||||||||||||||
|
Income
tax
expense
|
(338 | ) | (300 | ) | (14 | ) |
35
|
(352 | ) | (265 | ) | |||||||||||||
|
Net
income
|
1196
|
1063
|
29
|
(95 | ) |
1225
|
968
|
|||||||||||||||||
|
Attributable
to minority interests
|
6
|
7
|
-
|
-
|
6
|
7
|
||||||||||||||||||
|
Attributable
to Syngenta AG shareholders:
|
1190
|
1056
|
29
|
(95 | ) |
1219
|
961
|
|||||||||||||||||
|
Earnings/(loss)
per share(3)
|
||||||||||||||||||||||||
|
-
basic
|
$12.29
|
$10.65
|
$0.30
|
$(0.96 | ) |
$12.59
|
$9.69
|
|||||||||||||||||
|
-
diluted
|
$12.13
|
$10.44
|
$0.30
|
$(0.93 | ) |
$12.43
|
$9.51
|
|||||||||||||||||
|
2007
|
2006
|
2007
CER(2)
|
||||||||||||||||||||||
|
Gross
profit margin(4)
|
52.6% | 54.0% | 52.5% | |||||||||||||||||||||
|
EBITDA
margin(5)
|
30.7% | 29.7% | 30.6% | |||||||||||||||||||||
|
EBITDA(5)
|
1749
|
1543
|
||||||||||||||||||||||
|
Tax
rate(6)
|
22% | 22% | ||||||||||||||||||||||
|
Free
cash flow(7)
|
306
|
98
|
||||||||||||||||||||||
|
Trade
working capital to sales(8)
|
47% | 48% | ||||||||||||||||||||||
|
Debt/Equity
gearing(9)
|
21% | 24% | ||||||||||||||||||||||
|
Net
debt(9)
|
1352
|
1398
|
||||||||||||||||||||||
|
(1)
|
For
further
analysis of restructuring and impairment charges, see Note
4
on page 16. Net
income and earnings per share excluding restructuring and impairment
are
provided as additional information, and not as an alternative
to net
income and earnings per share determined in accordance with
IFRS.
|
|
(2)
|
For
a description of CER see
Appendix
A
on page
22.
|
|
(3)
|
The
weighted average number of
ordinary shares in issue used to calculate the earnings per
share were as
follows: for 2007 basic EPS 96,810,708 and diluted EPS 98,050,667;
2006 basic EPS 99,137,067 and diluted EPS 101,077,106.
|
|
(4)
|
Gross
profit margin is calculated
excluding restructuring and
impairment.
|
|
(5)
|
EBITDA
is a non-GAAP measure but
is in regular use as a measure of operating performance and
is defined in
Appendix
C
on
page 23.
|
|
(6)
|
Tax
rate on results excluding
restructuring and
impairment.
|
|
(7)
|
Includes
restructuring and
impairment cash outflows. For a description of free cash flow,
see
Appendix
B
on page
22.
|
|
(8)
|
Period
end trade working capital
as a percentage of twelve-month sales, see Appendix
F
on page
24.
|
|
(9)
|
For
a description of net debt and
the calculation of debt/equity gearing, see Appendix
E
on page
24.
|
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 7 OF 27
Unaudited
Half Year Segmental Results(1)
|
Syngenta
|
1st
Half
2007
$m
|
1st
Half
2006
$m
|
CER(2)
%
|
|||||||||
|
Third
Party Sales
|
5690
|
5201
|
+
6
|
|||||||||
|
Gross
Profit(3)
|
2990
|
2806
|
+
3
|
|||||||||
|
Marketing
and
distribution
|
(780 | ) | (727 | ) |
-
4
|
|||||||
|
Research
and
development
|
(386 | ) | (387 | ) |
+
5
|
|||||||
|
General
and
administrative
|
(268 | ) | (335 | ) |
+
20
|
|||||||
|
Operating
income
|
1556
|
1357
|
+
11
|
|||||||||
|
EBITDA(4)
|
1749
|
1543
|
+
10
|
|||||||||
|
EBITDA
(%)
|
30.7
|
29.7
|
||||||||||
|
Crop
Protection
|
1st
Half
2007
$m
|
1st
Half
2006
$m
|
CER(2)
%
|
|||||||||
|
Total
Sales
|
4303
|
3916
|
+
7
|
|||||||||
|
Inter-segment
elimination(5)
|
(33 | ) | (36 | ) |
n/a
|
|||||||
|
Third
Party Sales
|
4270
|
3880
|
+
7
|
|||||||||
|
Gross
Profit
|
2354
|
2156
|
+
6
|
|||||||||
|
Marketing
and
distribution
|
(539 | ) | (501 | ) |
-
5
|
|||||||
|
Research
and
development
|
(232 | ) | (237 | ) |
+
8
|
|||||||
|
General
and
administrative
|
(236 | ) | (260 | ) |
+
7
|
|||||||
|
Operating
income
|
1347
|
1158
|
+
13
|
|||||||||
|
EBITDA(4)
|
1506
|
1320
|
+
10
|
|||||||||
|
EBITDA
(%)
|
35.0
|
33.7
|
||||||||||
|
Seeds
|
1st
Half
2007
$m
|
1st
Half
2006
$m
|
CER(2)
%
|
|||||||||
|
Third
Party Sales
|
1418
|
1320
|
+
4
|
|||||||||
|
Gross
Profit
|
621
|
654
|
-
9
|
|||||||||
|
Marketing
and
distribution
|
(239 | ) | (224 | ) |
-
3
|
|||||||
|
Research
and
development
|
(134 | ) | (113 | ) |
-
15
|
|||||||
|
General
and
administrative
|
(76 | ) | (69 | ) |
-
4
|
|||||||
|
Operating
income
|
172
|
248
|
-
36
|
|||||||||
|
EBITDA(4)
|
202
|
275
|
-
31
|
|||||||||
|
EBITDA
(%)
|
14.3
|
20.9
|
||||||||||
|
Plant
Science
|
1st
Half
2007
$m
|
1st
Half
2006
$m
|
CER(2)
%
|
|||||||||
|
Third
PartySales
|
2
|
1
|
n/a
|
|||||||||
|
Gross
Profit
|
0
|
1
|
n/a
|
|||||||||
|
Marketing
and
distribution
|
(2 | ) | (2 | ) |
-
26
|
|||||||
|
Research
and
development
|
(20 | ) | (37 | ) |
+
48
|
|||||||
|
General
and
administrative
|
44
|
(6 | ) |
n/a
|
||||||||
|
Operating
income/(loss)
|
22
|
(44 | ) |
n/a
|
||||||||
|
EBITDA(4)
|
26
|
(47 | ) |
n/a
|
||||||||
|
EBITDA
(%)
|
n/a
|
n/a
|
||||||||||
|
(1)
|
Excluding
restructuring and impairment, see Note
4
on page
16.
|
|
(2)
|
Growth
at constant
exchange rates, see Appendix
A
on page
22.
|
|
(3)
|
For
details of the inter-segment elimination within gross profit
, see
Appendix G on page 25
|
|
(4)
|
For
a reconciliation of segment
EBITDA to segment operating income, see Appendix
D on page
23.
|
|
(5)
|
Crop
Protection inter-segment sales to
Seeds.
|
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 8 OF 27
Unaudited
Half-Year Product Line and Regional Sales
|
Syngenta
|
1st
Half 2007
$m
|
1st
Half 2006
$m
|
Actual
%
|
CER(1)
%
|
||||||||||||
|
Crop
Protection
|
4303
|
3916
|
+
10
|
+
7
|
||||||||||||
|
Seeds
|
1418
|
1320
|
+
7
|
+
4
|
||||||||||||
|
Plant
Science
|
2
|
1
|
n/a
|
n/a
|
||||||||||||
|
Inter-segment
elimination(2)
|
(33 | ) | (36 | ) |
n/a
|
n/a
|
||||||||||
|
Third
Party
Sales
|
5690
|
5201
|
+
9
|
+
6
|
||||||||||||
|
Crop
Protection
|
||||||||||||||||
|
Product
line
|
||||||||||||||||
|
Selective
herbicides
|
1423
|
1313
|
+
8
|
+
5
|
||||||||||||
|
Non-selective
herbicides
|
461
|
422
|
+
9
|
+
7
|
||||||||||||
|
Fungicides
|
1183
|
1065
|
+
11
|
+
6
|
||||||||||||
|
Insecticides
|
664
|
602
|
+
10
|
+
7
|
||||||||||||
|
Professional
products
|
554
|
490
|
+
13
|
+
12
|
||||||||||||
|
Others
|
18
|
24
|
-
24
|
-
24
|
||||||||||||
|
Total
|
4303
|
3916
|
+
10
|
+
7
|
||||||||||||
|
Regional
|
||||||||||||||||
|
Europe,
Africa
and Middle East
|
1670
|
1452
|
+
15
|
+
7
|
||||||||||||
|
NAFTA
|
1597
|
1579
|
+
1
|
+
1
|
||||||||||||
|
Latin
America
|
449
|
327
|
+
37
|
+
37
|
||||||||||||
|
Asia
Pacific
|
587
|
558
|
+
5
|
+
3
|
||||||||||||
|
Total
|
4303
|
3916
|
+
10
|
+
7
|
||||||||||||
|
Seeds
|
||||||||||||||||
|
Product
line
|
||||||||||||||||
|
Corn
&
Soybean
|
732
|
708
|
+
3
|
+
2
|
||||||||||||
|
Diverse
Field
Crops
|
254
|
242
|
+
5
|
-
1
|
||||||||||||
|
Vegetables
& Flowers
|
432
|
370
|
+
17
|
+
11
|
||||||||||||
|
Total
|
1418
|
1320
|
+
7
|
+
4
|
||||||||||||
|
Regional
|
||||||||||||||||
|
Europe,
Africa
and Middle East
|
577
|
516
|
+
12
|
+
3
|
||||||||||||
|
NAFTA
|
722
|
717
|
+
1
|
+
1
|
||||||||||||
|
Latin
America
|
49
|
35
|
+
40
|
+
40
|
||||||||||||
|
Asia
Pacific
|
70
|
52
|
+
34
|
+
26
|
||||||||||||
|
Total
|
1418
|
1320
|
+
7
|
+
4
|
||||||||||||
|
(1)
|
Growth
at constant exchange rates,
see Appendix
A
on page
22.
|
|
(2)
|
Crop
Protection inter-segment
sales to Seeds.
|
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 9 OF 27
Unaudited
Second Quarter Product Line and Regional Sales
|
Syngenta
|
2nd
quarter
2007
$m
|
2nd
quarter
2006
$m
|
Actual
%
|
CER(1)
%
|
||||||||||||
|
Crop
Protection
|
2259
|
2044
|
+
11
|
+
7
|
||||||||||||
|
Seeds
|
478
|
474
|
+
1
|
-
3
|
||||||||||||
|
Plant
Science
|
1
|
-
|
n/a
|
n/a
|
||||||||||||
|
Inter-segment
elimination(2)
|
(5 | ) | (25 | ) |
n/a
|
n/a
|
||||||||||
|
Third
Party
Sales
|
2733
|
2493
|
+
10
|
+
6
|
||||||||||||
|
Crop
Protection
|
||||||||||||||||
|
Product
line
|
||||||||||||||||
|
Selective
herbicides
|
787
|
703
|
+
12
|
+
9
|
||||||||||||
|
Non-selective
herbicides
|
277
|
255
|
+
9
|
+
6
|
||||||||||||
|
Fungicides
|
606
|
526
|
+
15
|
+
10
|
||||||||||||
|
Insecticides
|
347
|
307
|
+
13
|
+
10
|
||||||||||||
|
Professional
products
|
235
|
246
|
-
4
|
-
6
|
||||||||||||
|
Others
|
7
|
7
|
-
3
|
-
1
|
||||||||||||
|
Total
|
2259
|
2044
|
+
11
|
+
7
|
||||||||||||
|
Regional
|
||||||||||||||||
|
Europe,
Africa
and Middle East
|
842
|
708
|
+
19
|
+
11
|
||||||||||||
|
NAFTA
|
914
|
928
|
-
2
|
-
2
|
||||||||||||
|
Latin
America
|
219
|
145
|
+
50
|
+
50
|
||||||||||||
|
Asia
Pacific
|
284
|
263
|
+
8
|
+
5
|
||||||||||||
|
Total
|
2259
|
2044
|
+
11
|
+
7
|
||||||||||||
|
Seeds
|
||||||||||||||||
|
Product
line
|
||||||||||||||||
|
Corn
&
Soybean
|
175
|
210
|
-
16
|
-
18
|
||||||||||||
|
Diverse
Field
Crops
|
87
|
83
|
+
5
|
-
|
||||||||||||
|
Vegetables
& Flowers
|
216
|
181
|
+
18
|
+
13
|
||||||||||||
|
Total
|
478
|
474
|
+
1
|
-
3
|
||||||||||||
|
Regional
|
||||||||||||||||
|
Europe,
Africa
and Middle East
|
194
|
173
|
+
11
|
+4
|
||||||||||||
|
NAFTA
|
216
|
252
|
-
14
|
-
14
|
||||||||||||
|
Latin
America
|
29
|
21
|
+
39
|
+
38
|
||||||||||||
|
Asia
Pacific
|
39
|
28
|
+
40
|
+
30
|
||||||||||||
|
Total
|
478
|
474
|
+
1
|
-
3
|
||||||||||||
|
(1)
|
Growth
at constant exchange rates,
see Appendix
A
on page
22.
|
|
(2)
|
Crop
Protection inter-segment
sales to Seeds.
|
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 10 OF 27
Unaudited
Interim Condensed Consolidated Financial Statements
The
following
condensed consolidated financial statements and notes thereto have been
prepared
in accordance with International Financial Reporting Standards (IFRS)
as per
Note 1. A reconciliation to US GAAP has been included as Note
6.
Condensed
Consolidated Income Statement
|
For
the six months to 30 June
|
2007
$m
|
2006
$m
|
||||||
|
Sales
|
5690
|
5201
|
||||||
|
Cost
of goods
sold
|
(2701 | ) | (2402 | ) | ||||
|
Gross
profit
|
2989
|
2799
|
||||||
|
Marketing
and
distribution
|
(780 | ) | (727 | ) | ||||
|
Research
and
development
|
(386 | ) | (387 | ) | ||||
|
General
and
administrative
|
(268 | ) | (335 | ) | ||||
|
Restructuring
and impairment
|
44
|
(123 | ) | |||||
|
Operating
income
|
1599
|
1227
|
||||||
|
Income/(loss)
from associates and joint ventures
|
-
|
(6 | ) | |||||
|
Financial
expenses, net
|
(22 | ) |
12
|
|||||
|
Income
before taxes
|
1577
|
1233
|
||||||
|
Income
tax
credit/(expense)
|
(352 | ) | (265 | ) | ||||
|
Net
income/(loss)
|
1225
|
968
|
||||||
|
Attributable
to:
|
||||||||
|
-
Minority
interests
|
6
|
7
|
||||||
|
-
Syngenta AG shareholders
|
1219
|
961
|
||||||
|
Earnings/(loss)
per share(1)
|
||||||||
|
-
Basic
|
$12.59
|
$9.69
|
||||||
|
-
Diluted
|
$12.43
|
$9.51
|
|
(1)
|
The
weighted average number of
ordinary shares in issue used to calculate the earnings per
share were as
follows: for 2007 basic EPS 96,810,708 and diluted EPS 98,050,667;
2006 basic EPS 99,137,067 and diluted EPS 101,077,106.
|
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 11 OF 27
Unaudited
Interim Condensed Consolidated Balance Sheet
|
30
June
2007
$m
|
30
June
2006
(reclassified)
$m
|
31
December
2006
$m
|
||||||||||
|
Assets
|
||||||||||||
|
Current
assets
|
||||||||||||
|
Cash
and cash
equivalents
|
380
|
231
|
445
|
|||||||||
|
Trade
accounts
receivable
|
4049
|
3664
|
2002
|
|||||||||
|
Other
accounts
receivable
|
410
|
399
|
365
|
|||||||||
|
Other
current
assets
|
313
|
404
|
272
|
|||||||||
|
Marketable
securities
|
81
|
-
|
81
|
|||||||||
|
Inventories
|
2062
|
2079
|
2381
|
|||||||||
|
Total
current assets
|
7295
|
6777
|
5546
|
|||||||||
|
Non-current
assets
|
||||||||||||
|
Property,
plant and equipment
|
1972
|
1898
|
1957
|
|||||||||
|
Intangible
assets
|
2730
|
2692
|
2724
|
|||||||||
|
Investments
in
associates and joint ventures
|
86
|
105
|
89
|
|||||||||
|
Deferred
tax
assets
|
665
|
751
|
599
|
|||||||||
|
Other
financial assets
|
904
|
765
|
901
|
|||||||||
|
Total
non-current assets
|
6357
|
6211
|
6270
|
|||||||||
|
Assets
held
for sale
|
5
|
-
|
36
|
|||||||||
|
Total
assets
|
13657
|
12988
|
11852
|
|||||||||
|
Liabilities
and equity
|
||||||||||||
|
Current
liabilities
|
||||||||||||
|
Trade
accounts
payable
|
(2126 | ) | (1958 | ) | (1568 | ) | ||||||
|
Current
financial debts
|
(271 | ) | (833 | ) | (143 | ) | ||||||
|
Income
taxes
payable
|
(530 | ) | (429 | ) | (296 | ) | ||||||
|
Other
current
liabilities
|
(976 | ) | (1071 | ) | (679 | ) | ||||||
|
Provisions
|
(251 | ) | (208 | ) | (282 | ) | ||||||
|
Total
current liabilities
|
(4154 | ) | (4499 | ) | (2968 | ) | ||||||
|
Non-current
liabilities
|
||||||||||||
|
Non-current
financial debts
|
(1583 | ) | (877 | ) | (1569 | ) | ||||||
|
Deferred
tax
liabilities
|
(752 | ) | (965 | ) | (728 | ) | ||||||
|
Provisions
|
(856 | ) | (844 | ) | (893 | ) | ||||||
|
Total
non-current liabilities
|
(3191 | ) | (2686 | ) | (3190 | ) | ||||||
|
Total
liabilities
|
(7345 | ) | (7185 | ) | (6158 | ) | ||||||
|
Shareholders’
equity
|
(6287 | ) | (5771 | ) | (5666 | ) | ||||||
|
Minority
interests
|
(25 | ) | (32 | ) | (28 | ) | ||||||
|
Total
equity
|
(6312 | ) | (5803 | ) | (5694 | ) | ||||||
|
Total
liabilities and equity
|
(13657 | ) | (12988 | ) | (11852 | ) | ||||||
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 12 OF 27
Unaudited
Interim Condensed Consolidated Cash Flow Statement
|
For
the six months to 30 June
|
2007
$m
|
2006
$m
|
||||||
|
Income
before taxes
|
1577
|
1233
|
||||||
|
Reversal
of non-cash items;
|
||||||||
|
Depreciation,
amortization and impairment on:
|
||||||||
|
Property,
plant and equipment
|
128
|
123
|
||||||
|
Intangible
assets
|
93
|
122
|
||||||
|
Financial
assets
|
1
|
(2 | ) | |||||
|
Loss/(gain)
on
disposal of fixed assets
|
(118 | ) | (14 | ) | ||||
|
Charges
in
respect of share based compensation
|
21
|
17
|
||||||
|
Charges
in
respect of provisions
|
91
|
158
|
||||||
|
Net
financial
expenses
|
22
|
(12 | ) | |||||
|
Share
of net loss from
associates
|
-
|
6
|
||||||
|
Cash
(paid)/received in respect of;
|
||||||||
|
Interest
and
other financial receipts
|
59
|
55
|
||||||
|
Interest
and
other financial payments
|
(120 | ) | (20 | ) | ||||
|
Taxation
|
(94 | ) | (81 | ) | ||||
|
Restructuring
costs
|
(104 | ) | (92 | ) | ||||
|
Contributions
to pension schemes
|
(61 | ) | (65 | ) | ||||
|
Other
provisions
|
(39 | ) | (25 | ) | ||||
|
Cash
flow before working capital changes
|
1456
|
1403
|
||||||
|
Change
in net
current assets and other operating cash flows
|
(1068 | ) | (1212 | ) | ||||
|
Cash
flow from operating activities
|
388
|
191
|
||||||
|
Additions
to
property, plant and equipment
|
(125 | ) | (81 | ) | ||||
|
Proceeds
from
disposals of property, plant and equipment
|
154
|
15
|
||||||
|
Purchase
of intangibles and other
financial assets
|
(48 | ) | (43 | ) | ||||
|
Proceeds
from disposals of
intangible and financial assets
|
18
|
38
|
||||||
|
Purchase
of marketable
securities
|
(2 | ) |
-
|
|||||
|
Acquisitions
and
Divestments
|
(81 | ) | (22 | ) | ||||
|
Cash
flow used for investing
activities
|
(84 | ) | (93 | ) | ||||
|
Increases
in
third party interest-bearing debt
|
152
|
478
|
||||||
|
Repayment
of
third party interest-bearing debt
|
(44 | ) | (218 | ) | ||||
|
(Purchase)/sale
of treasury shares and options over own shares
|
(358 | ) | (584 | ) | ||||
|
Dividends
paid
to group shareholders
|
(128 | ) |
-
|
|||||
|
Dividends
paid
to minorities
|
(2 | ) | (3 | ) | ||||
|
Cash
flow from/(used) for financing activities
|
(380 | ) | (327 | ) | ||||
|
Net
effect of
currency translation on cash and cash equivalents
|
11
|
2
|
||||||
|
Net
change in cash and cash equivalents
|
(65 | ) | (227 | ) | ||||
|
Cash
and cash equivalents at the beginning of the
period
|
445
|
458
|
||||||
|
Cash
and cash equivalents at the end of the period
|
380
|
231
|
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 13 OF 27
Condensed
Consolidated Statement of Changes in Shareholders’ Equity
|
Shareholders’
equity
$m)
|
||||
|
31
December 2005
|
5403
|
|||
|
Net
income
attributable to Syngenta AG shareholders
|
961
|
|||
|
Unrealized
holding gains/(losses) on available for sale financial
assets
|
34
|
|||
|
Unrealized
gains/(losses) on derivatives designated as cash flow and net
investment hedges
|
(29 | ) | ||
|
Income
tax
current & deferred (charged)/credited to equity
|
(12 | ) | ||
|
Dividends
payable to group shareholders
|
(260 | ) | ||
|
Issue
of
shares under employee purchase plans
|
50
|
|||
|
Share
based
compensation
|
17
|
|||
|
Share
repurchase scheme
|
(629 | ) | ||
|
Cash
impact of
share options under share repurchase scheme
|
(5 | ) | ||
|
Reclassification
of negative minority shareholder equity
|
-
|
|||
|
Foreign
currency translation effects
|
241
|
|||
|
30
June 2006
|
5771
|
|||
|
31
December 2006
|
5666
|
|||
|
Net
income
attributable to Syngenta AG shareholders
|
1219
|
|||
|
Unrealized
holding gains/(losses) on available for sale financial
assets
|
(49 | ) | ||
|
Unrealized
gains/(losses) on derivatives designated as cash flow and net
investment
hedges
|
(61 | ) | ||
|
Income
tax current & deferred
(charged)/credited to equity
|
32
|
|||
|
Dividends
payable to group shareholders
|
(302 | ) | ||
|
Issue
of
shares under employee purchase plans
|
42
|
|||
|
Share
based
compensation
|
21
|
|||
|
Share
repurchase
scheme
|
(400 | ) | ||
|
Cash
impact of
share options under share repurchase scheme
|
-
|
|||
|
Reclassification
of negative minority shareholder equity
|
1
|
|||
|
Foreign
currency translation effects
|
118
|
|||
|
30
June 2007
|
6287
|
|||
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 14 OF 27
Notes
to the Condensed Consolidated Financial Statements
Note
1: Basis of Preparation
Nature
of
operations: Syngenta AG (‘Syngenta’) is a world leading crop
protection and seeds business that is engaged in the discovery, development,
manufacture and marketing of a range of agricultural products designed
to
improve crop yields and food quality.
Basis
of
presentation and accounting policies: The consolidated
financial statements for the six months ended June 30, 2007 have been
prepared
in accordance with International Financial Reporting Standards (IFRS),
which
comprise standards and interpretations approved by the International
Accounting
Standards Board (IASB), and International Accounting Standards and Standing
Interpretations Committee interpretations approved by the International
Accounting Standards Committee (IASC) that remain in effect. The
interim consolidated financial statements have been prepared in accordance
with
our policies as set out in the 2006 Financial Report. These
principles differ in certain significant respects from generally accepted
accounting principles in the United States
(‘US GAAP’). Application of US GAAP would have affected
shareholders’ net income for the six months ended, and shareholders’ equity as
of, June 30, 2006 and 2007 as detailed in Note 6.
The
interim
consolidated financial statements are presented in United States dollars
(‘$’)
as this is the major trading currency of the company.
The
preparation of
financial statements requires management to make estimates and assumptions
that
affect the reported amounts of assets and liabilities and disclosure
of
contingent assets and liabilities at the date of the financial statements
and
the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those
estimated.
Note
2: Changes in Accounting Policies - IFRS
The
condensed
consolidated financial statements for the six months ended June 30, 2007
have
not been affected by the adoption of new accounting standards or by changes
to
accounting policies, compared to those used in the 2006 Financial
Report. In accordance with the policy adopted at December 31, 2006 of
netting deferred tax assets and liabilities by taxable entity, the totals
of
deferred tax assets and liabilities in the comparative consolidated balance
sheet at June 30, 2006 have each been reduced by $150 million. This
change has no effect on earnings, cash flows or shareholders’
equity. Changes to US GAAP accounting policies are described in Note
6 below.
Note
3: Changes in the Scope of Consolidation
On
January 31, 2007,
Syngenta acquired Gromor International Corporation. The assets of
Gromor consist of peat extraction rights over certain land in Manitoba,
Canada.
On
April 20, 2007,
following a public offer to minority shareholders of Syngenta India Ltd.,
Syngenta increased its shareholding in Syngenta India Ltd from 84 percent
to 91
percent, at a cash cost of $44 million. Goodwill on this transaction
has been provisionally estimated at $36 million. The purchase price
allocation will be finalized in the second half of 2007.
On
June 25, 2007,
Syngenta purchased 100 percent of the net assets of the Fischer group
of
companies for cash of $36 million. The Fischer group specializes in
the breeding and marketing of flower crops. Purchase accounting for
the acquisition is at an early stage and no purchase price allocation
has yet
been made. The acquired assets are included within intangible assets
on the Balance Sheet.
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 15 OF 27
On
June 1, 2006,
Syngenta purchased 100 percent of the shares of Emergent Genetics Vegetable
A/S
(‘EGV’), for cash. On August 1, 2006, Conrad Fafard, Inc., (‘Fafard’)
merged with a Syngenta subsidiary so that Syngenta acquired control of
Fafard
and its subsidiaries, in exchange for cash paid to or for the account
of
Fafard’s former shareholders. In addition, Syngenta settled $14
million of financial debts and certain other liabilities of Fafard on
August 2,
2006. Goodwill on these two acquisitions was $3 million and $43
million respectively. The aggregate cash cost of these acquisitions,
together with the November 16, 2006, acquisition of the remaining 50
percent of
the shares of Longreach Plant Breeders Pty Ltd, was $148 million including
direct acquisition costs of $3 million.
Note
4:
Restructuring and
Impairment before
taxes
|
2007
|
2006
|
||||||||||||||||||||||||
| For the six months to 30 June |
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|||||||||||||||||||
|
Reversal
of inventory step-up (in
cost of goods sold)
|
(1 | ) | (7 | ) | |||||||||||||||||||||
|
Restructuring
costs:
|
|||||||||||||||||||||||||
|
Write-off
or
impairment
|
|||||||||||||||||||||||||
|
- property,
plant &
equipment
|
(17 | ) | (14 | ) | |||||||||||||||||||||
|
- intangible
assets
|
(11 | ) | (38 | ) | |||||||||||||||||||||
|
- inventories
|
-
|
-
|
|||||||||||||||||||||||
|
Non-cash
pension restructuring
charges
|
8
|
(1 | ) | ||||||||||||||||||||||
|
Total
non-cash restructuring
costs:
|
(20 | ) | (53 | ) | |||||||||||||||||||||
|
Cash
costs
|
|||||||||||||||||||||||||
|
- operational
efficiency
|
(51 | ) | (62 | ) | |||||||||||||||||||||
|
- Seeds
acquisition
integration
|
(1 | ) | (8 | ) | |||||||||||||||||||||
|
- other
cash
costs
|
(1 | ) |
-
|
||||||||||||||||||||||
|
Total
cash restructuring
costs
|
(53 | ) | (70 | ) | |||||||||||||||||||||
|
Other
impairment of
assets
|
-
|
-
|
|||||||||||||||||||||||
|
Divestment
gains
|
117
|
-
|
|||||||||||||||||||||||
|
44
|
(123 | ) | |||||||||||||||||||||||
|
Total
restructuring and impairment
charge
|
43
|
(130 | ) | ||||||||||||||||||||||
Restructuring
represents the effect on reported performance of initiating business
changes
which are considered major and which, in the opinion of management, will
have a
material effect on the nature and focus of Syngenta's operations, and
therefore
require separate disclosure to provide a more thorough understanding
of business
performance. Restructuring includes the effects of completing and
integrating significant business combinations and divestments. The
incidence of these business changes may be periodic and the effect on
reported
performance of initiating them will vary from period to
period. Because each such business change is different in nature and
scope, there will be little continuity in the detailed composition and
size of
the reported amounts which affect performance in successive
periods. Separate disclosure of these amounts facilitates the
understanding of performance including and excluding items affecting
comparability. Reported performance before restructuring and
impairment is one of the measures used in Syngenta’s short term employee
incentive compensation schemes. Syngenta’s definition of
restructuring and impairment may not be comparable to similarly titled
line
items in financial statements of other companies.
Restructuring
and
impairment includes the impairment costs associated with major restructuring
and
also impairment losses and reversals of impairment losses resulting from
major
changes in the markets in which a reported segment operates.
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 16 OF 27
Restructuring
and
impairment recorded in cost of goods sold in 2007 consists of the final
reversal
of the inventory step-up recorded as part of the EGV acquisition (2006:
$7
million included the final reversal of the inventory step-up recorded
as part of
the Garst and Golden Harvest acquisitions).
In
2007 Syngenta
continued to incur costs associated with the operational efficiency programs
announced in 2004. Further operational efficiency programs were
announced in early 2007. $18 million of costs were incurred by the
Crop Protection division and $25 million were incurred by the Seeds
division. Seeds cash costs included $13 million for renegotiation of
a long-term supply agreement to enable Syngenta flexibility to seek lower
cost
supply.
Impairments
of
property, plant and equipment in 2006 and 2007 consist of accelerated
depreciation and asset write-offs from site closures and rationalizations
announced prior to and during 2006. In 2007, impairment of $17
million included $9 million of impairment reversal due to proceeds expected
on
asset disposals. Intangible asset impairments of $11 million in 2007
relate to accelerated amortization of a lease agreement. In 2006, a
supply agreement capitalized as part of a product acquisition was written
off on
the negotiation of an early exit from the contract.
Divestment
gains of
$117 million include $109 million realized from the sale of a major part
of the
Rosental site in Basel. The sale agreement was completed on May 31,
2007. Gains of $11 million were the result of the reversal of an
impairment recorded as part of an asset swap in 2006; accelerated depreciation
charges of $5 million were also reported in 2007 relating to the same
asset
swap. Gains of $2 million were realized on the sale of land in
Switzerland.
Note
5: Principal Currency Translation Rates
As
Syngenta is an
international business selling in over 100 countries, with major manufacturing
and R&D facilities in Switzerland, the UK and the USA, movements in
currencies impact business performance. The principal currencies and
adopted exchange rates against the US dollar used in preparing the financial
statements contained in this communication were as follows:
|
Average
1st
Half
2007
|
Average
1st
Half
2006
|
Period
end
30
June 2007
|
Period
end
30
June 2006
|
|||||||||||||
|
Brazilian
real. BRL
|
2.07
|
2.22
|
1.93
|
2.18
|
||||||||||||
|
Swiss
franc.
CHF
|
1.23
|
1.28
|
1.23
|
1.23
|
||||||||||||
|
Euro.
EUR
|
0.75
|
0.82
|
0.74
|
0.79
|
||||||||||||
|
British
pound.
GBP
|
0.51
|
0.56
|
0.50
|
0.55
|
||||||||||||
|
Japanese
yen.
JPY
|
119.74
|
115.7
|
123.44
|
114.7
|
||||||||||||
The
above average
rates are an average of the monthly rates used to prepare the interim
consolidated income and cash flow statements. The period end rates
were used for the preparation of the interim consolidated balance
sheet.
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 17 OF 27
Note
6:
New US GAAP accounting pronouncements
and reconciliation to US GAAP
from the Condensed Consolidated
Financial Statements
The
condensed consolidated financial
statements have been prepared in accordance with IFRS which, as applied
by
Syngenta, differs in certain significant respects from US
GAAP.
In
certain markets,
sales terms allow customers the option of a one time, non repeatable
extension
of credit, for a defined additional period which extends into the following
growing season, in respect of a defined proportion of purchases they
have made
during a defined period, if the customers still have the inventories
on hand on
expiry of the current growing season. Revenue for these sales is
recognized on product delivery for IFRS. Until 2006, Syngenta also
followed this policy for US GAAP. With effect from January 1, 2006
Syngenta has treated these sales as made on a ‘de facto consignment’ basis for
US GAAP, which leads to later recognition of revenue. In 2006,
Syngenta has treated this change as a correction and has adjusted January
1,
2006 retained earnings by $68 million after tax, in accordance with the
transition rules on adopting SEC Staff Bulletin (SAB) 108. In
accordance with the revised accounting policy which Syngenta adopted
as part of
this change, an adjustment has been made to reduce US GAAP net income
for the
six months ended June 30, 2006, and US GAAP shareholders’ equity as at June 30,
2006, by $7 million and $75 million respectively. US GAAP net income
for the six months ended June 30, 2006 has also been adjusted to reduce
it by
the $60 million increase in fair value of the put option granted to Syngenta
AG
shareholders in the first half of 2006. Total US GAAP shareholders’
equity at June 30, 2006 is unaffected by this adjustment. The grant
date valuation of the option was performed in the second half of 2006,
following
selection of an appropriate valuation method. Earnings per share for
the six months ended June 30, 2006 have been adjusted
appropriately.
Syngenta
adopted
SFAS No. 158, ‘Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans’, as at December 31, 2006. In accordance with
SFAS No. 158, the funded status of all defined benefit plans – the full value of
the benefit obligation valued in accordance with the projected unit credit
actuarial method, less the December 31, 2006 market value of plan assets
- is
recorded on the employer’s balance sheet. As part of Syngenta’s
initial adjustment to adopt SFAS 158, $706 million of deferred actuarial
losses
and past service gains, and the associated deferred tax assets of $223
million,
have been recognized in Syngenta’s December 31, 2006 and June 30, 2007 US GAAP
balance sheets. In accordance with SFAS 158, the change has not been
applied retrospectively to prior periods, and had no effect on net income
for
the six months ended June 30, 2007.
Syngenta
adopted FIN
No.48, ‘Accounting for Uncertainty in Income Taxes’, with effect from January 1,
2007.
In
accordance with
FIN No. 48, a benefit has been recognized for uncertain income tax positions
if,
in the opinion of management, it is more likely than not that Syngenta’s
position would be sustained following audit or review by the relevant
tax
authorities. Previously, under FAS No. 5, income tax expense was
accrued for uncertain tax positions if a loss was considered
probable. As a result of the new requirement to recognize a tax
benefit only when it is more likely than not, and in accordance with
the
transition requirements of FIN 48, retained earnings at January 1, 2007
have
been reduced by a $20 million cumulative catch-up adjustment, and additional
income tax expense of $11 million has been recorded for the six months
ended
June 30, 2007. The change has not been applied retrospectively to
prior periods.
The
effects of the application of
US GAAP to net income and equity are set out in the following
tables:
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 18 OF 27
|
Net
income (for the six months to
30 June)
|
2007
$m
|
2006
$m
|
||||||
|
|
|
(adjusted)
|
||||||
|
Net
income/(loss) under IFRS attributable to Syngenta AG
shareholders
|
1219
|
961
|
||||||
|
US
GAAP
adjustments:
|
||||||||
|
Purchase
accounting:
|
||||||||
|
Zeneca
agrochemicals
|
2
|
28
|
||||||
|
Other
acquisitions
|
(53 | ) | (42 | ) | ||||
|
Revenue
recognition: product sales
|
5
|
(10 | ) | |||||
|
Real
estate
sale and leaseback
|
(20 | ) |
-
|
|||||
|
Impairment
losses - non-current assets
|
(15 | ) |
-
|
|||||
|
Inventory
provisions
|
14
|
-
|
||||||
|
Restructuring
charges
|
(35 | ) | (19 | ) | ||||
|
Pension
and
other post-retirement benefit provisions
|
(1 | ) | (3 | ) | ||||
|
Environmental
remediation costs
|
-
|
-
|
||||||
|
Other
items
|
(13 | ) |
2
|
|||||
|
Grant
of put
option to Syngenta AG shareholders
|
-
|
(60 | ) | |||||
|
Deferred
taxes
on stock-based compensation
|
(1 | ) |
11
|
|||||
|
Deferred
taxes
on unrealized profit in inventory
|
2
|
23
|
||||||
|
Uncertain
tax
positions
|
(11 | ) |
-
|
|||||
|
Deferred
tax
valuation allowances
|
-
|
4
|
||||||
|
Income
tax on
undistributed earnings of subsidiaries
|
12
|
-
|
||||||
|
Deferred
tax
effect of US GAAP adjustments
|
14
|
9
|
||||||
|
Net
income/(loss) under US GAAP attributable to Syngenta AG
shareholders
|
1119
|
904
|
||||||
|
Weighted
average number of ordinary shares in issue (million) –
basic
|
96.81
|
99.14
|
||||||
|
Weighted
average number of ordinary shares in issue (million) –
diluted
|
97.85
|
100.48
|
||||||
|
Earnings/(loss)
per share under US GAAP (basic)
|
11.56
|
9.12
|
||||||
|
Earnings/(loss)
per share under US GAAP (diluted)
|
11.44
|
9.00
|
||||||
For
the six months
ended June 30, 2007, net income under IFRS attributable to Syngenta AG
shareholders was $1219 million, compared to a net income of $1119 million
under US GAAP.
In
the past, different purchase
accounting rules, and different subsequent goodwill accounting, were
applied in
accordance with IFRS compared to those applied in accordance with US
GAAP. For
intangible assets, this has led to
different balance sheet values and amortization charges in each subsequent
accounting period, including 2007 and 2006. The
$(53) million reconciling item for
other acquisitions (2006: $(42) million) mainly arises because the Sandoz
and
Ciba-Geigy merger was accounted for as a uniting of interests under
IFRS. For
US GAAP the merger was accounted for
as a purchase, including
recognition and subsequent amortization of purchased product rights.
The
$28 million reconciling item for
Zeneca Agrochemicals for 2006 consists principally of the IFRS net book
value of
the ACANTO® product
rights which were sold
to DuPont during the
period. These
product rights were not recognized
under US GAAP purchase accounting rules, so that there is no corresponding
US
GAAP charge to write off the net book value on their
disposal.
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 19 OF 27
The
$(20) million
reconciling item for sale and leaseback relates to the sale of part of
Syngenta’s Rosental, Basel site. Syngenta is leasing back certain of
the sold buildings, for periods of at most 5 years. For IFRS,
Syngenta has fully recognized the profit on sale, because the leaseback
is
classified as an operating lease. In accordance with US GAAP, where
rental payments under an operating lease exceed 10 percent of the fair
value of
the assets sold, profit must be recognized over the period that the rental
payments are made. Accordingly, $20 million of profit has been
deferred for US GAAP, and will be recognized in US GAAP net income over
the
period from July 1, 2007 to December 31, 2011.
The
$(15) million
reconciling item for impairment of non-current assets relates to IFRS
impairment
losses recorded in previous periods which have been reversed in 2007
because the
recoverable amount of the assets concerned has increased. US GAAP
does not permit the reversal of impairment losses unless the asset has
been
disposed of at the increased amount. The similar US GAAP requirement
that reversals of inventory provisions are recognized only when the inventories
are sold has resulted in the $14 million reconciling item for inventory
provisions. The provisions concerned were written back to the IFRS
income statement in 2006, but the related inventories were sold during
2007.
The
$(35) million
reconciling item for restructuring provisions (2006: $(19) million) represents
employee and third party supplier contract termination costs which were
recorded
under IFRS in previous periods, but, in accordance with US GAAP, are
being
recognized in the periods in which the employees complete their remaining
service and the contracts are terminated.
|
Shareholders’
equity (as at June 30)
|
2007
$m
|
2006
$m
|
||||||
|
|
|
(adjusted)
|
||||||
|
Shareholders’
equity under IFRS
|
6287
|
5771
|
||||||
|
US
GAAP
adjustments:
|
||||||||
|
Purchase
accounting:
|
||||||||
|
Zeneca
agrochemicals
|
(447 | ) | (458 | ) | ||||
|
Other
acquisitions
|
585
|
682
|
||||||
|
Revenue
recognition: product sales
|
(107 | ) | (121 | ) | ||||
|
Real
estate
sale and leaseback
|
(20 | ) |
-
|
|||||
|
Impairment
losses
|
3
|
16
|
||||||
|
Inventory
provisions
|
-
|
-
|
||||||
|
Restructuring
charges
|
16
|
41
|
||||||
|
Pension
provisions (including post-retirement benefits)
|
(741 | ) |
17
|
|||||
|
Environmental
remediation costs
|
(28 | ) |
-
|
|||||
|
Other
items
|
41
|
36
|
||||||
|
Grant
of put
option to Syngenta AG shareholders
|
-
|
-
|
||||||
|
Deferred
taxes
on stock-based compensation
|
3
|
(24 | ) | |||||
|
Deferred
taxes
on unrealized profit in inventory
|
(96 | ) | (97 | ) | ||||
|
Uncertain
tax
positions
|
(31 | ) |
-
|
|||||
|
Deferred
tax
valuation allowances
|
(4 | ) |
-
|
|||||
|
Tax
on
undistributed earnings of subsidiaries
|
(13 | ) | (26 | ) | ||||
|
Deferred
tax
effect of US GAAP adjustments
|
146
|
(124 | ) | |||||
|
Shareholders’
equity under US GAAP
|
5594
|
5713
|
||||||
The
reconciling item
in shareholders' equity for pension provisions changed from $17 million
in 2006
to $(741) million in 2007, and the deferred tax effect of US GAAP
adjustments changed from $(124) million in 2006 to $146 million in 2007,
principally because of the adoption of SFAS 158.
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 20 OF 27
Note
7: Other US
GAAP
Disclosures
The
US GAAP expense for pension and
other post-retirement benefits for the six months was as
follows:
|
For
the six months to 30 June
|
Pensions
2007
$m
|
Pensions
2006
$m
|
Other
postretirement
Benefits
2007
$m
|
Other
postretirement
Benefits
2006
$m
|
||||||||||||
|
Current
service cost
|
(64 | ) | (62 | ) | (2 | ) | (1 | ) | ||||||||
|
Interest
cost
|
(102 | ) | (91 | ) | (5 | ) | (5 | ) | ||||||||
|
Expected
return on assets
|
120
|
101
|
4
|
3
|
||||||||||||
|
Employee
contributions
|
12
|
14
|
-
|
-
|
||||||||||||
|
Amortization
of actuarial losses
|
(13 | ) | (15 | ) | (2 | ) | (3 | ) | ||||||||
|
Past
service
cost
|
-
|
(2 | ) |
2
|
2
|
|||||||||||
|
Curtailments
and settlements
|
(3 | ) | (2 | ) |
-
|
-
|
||||||||||
|
Expense
for pension and other post-retirement benefits under US
GAAP
|
(50 | ) | (57 | ) | (3 | ) | (4 | ) | ||||||||
Note
8: Subsequent
events
On
July 9, 2007,
Syngenta announced that it has agreed to acquire all outstanding shares
of
Zeraim Gedera Ltd, an Israeli vegetable seed company, from Markstone
Capital Partners for $95 million, subject to closing
adjustments. Completion of this transaction is subject to regulatory
approvals.
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 21 OF 27
Supplementary
Financial
Information
Appendix
A: Constant Exchange Rates
(CER)
In
this report results from one period
to another period are, where appropriate, compared using constant exchange
rates
(CER). To present that
information, current period results for entities reporting in currencies
other
than US dollars are converted into US dollars at the prior period's exchange
rates, rather than at the exchange rates for the current year. CER
margin percentages for gross profit
and EBITDA are calculated by the ratio of these measures to sales after
restating the measures and sales at prior period exchange rates.
The CER presentation indicates the
underlying business performance before taking into account currency exchange
fluctuations. See
Note 5: Principal Currency
Translation Rates on page 17 for information on average exchange rates
in 2007
and 2006.
Appendix
B: Free Cash Flow
Free
cash flow
comprises cash flow after operating activities, including taxes and interest
and
other financial payments and receipts, and investing activities, except
investments in and proceeds from marketable securities, prior to discontinued
operations and capital financing activities such as drawdown or repayment
of
debt, dividends paid to Syngenta Group shareholders, share repurchase
and other
equity movements. Free cash flow is not a measure of financial
performance under generally accepted accounting principles and the free
cash
flow measure used by Syngenta may not be comparable to similarly titled
measures
of other companies. Free cash flow has been included as it is used by
many investors as a useful supplementary measure of cash
generation.
|
For
the six months to 30 June
|
2007
$m
|
2006
$m
|
||||||
|
Cash
flow from
operating activities
|
388
|
191
|
||||||
|
Cash
flow used
for investing activities
|
(84 | ) | (93 | ) | ||||
|
Cash
Flow from
marketable securities
|
2
|
-
|
||||||
|
Free
cash
flow
|
306
|
98
|
||||||
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 22 OF 27
Appendix
C: Reconciliation of EBITDA(1) to
Net
Income
EBITDA
is defined as
earnings before interest, tax, minority interests, depreciation, amortization
and impairment. Information concerning EBITDA has been included as it
is used by
management and by investors as a supplementary measure of operating performance
and is used by Syngenta as the basis of part of its employee incentive
schemes. Management focuses on EBITDA excluding restructuring as this
excludes items affecting comparability from one period to the
next. EBITDA is not a measure of cash liquidity or financial
performance under generally accepted accounting principles and the EBITDA
measures used by Syngenta may not be comparable to other similarly titled
measures of other companies. EBITDA should not be construed as an
alternative to operating income or cash flow as determined in accordance
with
generally accepted accounting principles.
|
1st
Half
2007
|
1st
Half
2006
|
|||||||
|
$m
|
$m
|
|||||||
|
Net
income attributable to Syngenta AG shareholders
|
1219
|
961
|
||||||
|
Minority
interests
|
6
|
7
|
||||||
|
Income
tax
(credit)/expense
|
352
|
265
|
||||||
|
Financial
expenses, net
|
22
|
(12 | ) | |||||
|
Pre-tax
restructuring and impairment
|
(43 | ) |
130
|
|||||
|
Depreciation,
amortization and other impairment
|
193
|
192
|
||||||
|
EBITDA
excluding restructuring
|
1749
|
1543
|
||||||
Appendix
D: Reconciliation of Segment EBITDA to Segment Operating Income(1)
|
1st
Half
2007
|
1st
Half
2006
|
|||||||||||||||||||||||
|
Crop
Protection
$m
|
Seeds
$m
|
Plant
Science
$m
|
Crop
Protection
$m
|
Seeds
$m
|
Plant
Science
$m
|
|||||||||||||||||||
|
Operating
income(2)
|
1347
|
172
|
22
|
1158
|
248
|
(44 | ) | |||||||||||||||||
|
Income/(loss)
from associates and joint ventures
|
-
|
-
|
-
|
(1 | ) |
-
|
(5 | ) | ||||||||||||||||
|
Depreciation,
amortization and other impairment
|
159
|
30
|
4
|
163
|
27
|
2
|
||||||||||||||||||
|
EBITDA(2)
|
1506
|
202
|
26
|
1320
|
275
|
(47 | ) | |||||||||||||||||
|
(1)
|
Excluding
restructuring and impairment see Note 4 on page
16
|
|
(2)
|
Including
inter-segment, for details see Appendix G on page
25
|
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 23 OF 27
Appendix
E: Net Debt Reconciliation
Net
debt comprises
total debt net of related hedging derivatives, cash and cash equivalents
and
marketable securities. Net debt is not a measure of financial
position under generally accepted accounting principles and the net debt
measure
used by Syngenta may not be comparable to the similarly titled measure
of other
companies. Net debt has been included as it is used by many investors
as a useful measure of financial position and risk. The following
table provides a reconciliation of movements in net debt during the
period:
|
2007
$m
|
2006
$m
|
|||||||
|
Opening
balance at 1 January
|
1153
|
865
|
||||||
|
Acquisitions
and other non-cash items
|
9
|
10
|
||||||
|
Foreign
exchange effect on net debt
|
8
|
34
|
||||||
|
Purchase/(sale)
of treasury shares
|
358
|
584
|
||||||
|
Dividends
paid
to group shareholders
|
128
|
-
|
||||||
|
Dividends
paid
to minorities
|
2
|
3
|
||||||
|
Free
cash
flow
|
(306 | ) | (98 | ) | ||||
|
Closing
balance as at 30 June
|
1352
|
1398
|
||||||
|
Constituents
of closing balance;
|
||||||||
|
Cash
and cash
equivalents
|
(380 | ) | (231 | ) | ||||
|
Marketable
securities(1)
|
(101 | ) |
-
|
|||||
|
Current
financial debts
|
271
|
833
|
||||||
|
Non-current
financial debts
|
1583
|
877
|
||||||
|
Financing-related
derivatives(2)
|
(21 | ) | (81 | ) | ||||
|
Closing
balance as at 30 June
|
1352
|
1398
|
|
(1)
|
Long-term
marketable securities are included in other financial
assets.
|
|
(2)
|
Included
within other current assets.
|
The
following table presents the derivation of the Debt/Equity gearing
ratio:
|
2007
$m
|
2006
$m
|
|||||||
|
Net
debt
|
1352
|
1398
|
||||||
|
Shareholders’
equity
|
6287
|
5771
|
||||||
|
Debt/Equity
gearing ratio (%)
|
21 | % | 24 | % |
Appendix
F: Period End Trade Working Capital
The
following table
provides detail of trade working capital at the period end as a percentage
of
twelve-month sales:
|
2007
$m
|
2006
$m
|
|||||||
|
Inventories
|
2062
|
2079
|
||||||
|
Trade
accounts
receivable
|
4049
|
3664
|
||||||
|
Trade
accounts
payable
|
(2126 | ) | (1958 | ) | ||||
|
Net
trade
working capital
|
3985
|
3785
|
||||||
|
Twelve-month
sales
|
8535
|
7918
|
||||||
|
Trade
working capital as percentage of sales (%)
|
47 | % | 48 | % | ||||
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 24 OF 27
Appendix
G: Unaudited Half Year Segmental Results(1) including
inter-segment elimination
|
Half
Year Segmental
Results
|
Sales
|
Gross
Profit
|
Operating
income
|
EBITDA
|
||||||||||||
|
Crop
Protection
|
4303
|
2354
|
1347
|
1506
|
||||||||||||
|
Seeds
|
1418
|
621
|
172
|
202
|
||||||||||||
|
Plant
Science
|
2
|
-
|
22
|
26
|
||||||||||||
|
Total
|
5723
|
2975
|
1541
|
1734
|
||||||||||||
|
Inter-segment
elimination(2)
|
(33 | ) |
15
|
15
|
15
|
|||||||||||
|
Total
3rd
party
|
5690
|
2990
|
1556
|
1749
|
||||||||||||
|
(1)
|
Excluding
restructuring and impairment, see Note 4 on page
16
|
|
(2)
|
Crop
Protection inter-segment sales to Seeds.
|
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 25 OF 27
Announcements
and Meetings
|
Third
quarter
trading statement 2007
|
18
October
2007
|
|
Announcement
of 2007 full year results
|
07
February
2008
|
|
AGM
and first
quarter trading statement 2008
|
22
April
2008
|
|
Announcement
of the half year results 2008
|
24
July
2008
|
Glossary
and Trademarks
All
product or brand
names included in this results statement are trademarks of, or licensed
to, a
Syngenta group company. For simplicity, sales are reported under the
lead brand names, shown below, whereas some compounds are sold under
several
brand names to address separate market niches.
|
Selective
Herbicides
|
|
|
APIRO®
|
novel
grass
weed herbicide for rice
|
|
AXIAL®
|
new
cereal
herbicide; first launches 2006
|
|
BICEP®
MAGNUM
|
broad
spectrum
pre-emergence herbicide for corn and sorghum
|
|
CALLISTO®
|
novel
herbicide for flexible use on broad-leaved weeds for
corn
|
|
DUAL®
MAGNUM
|
grass
weed
killer for corn and soybeans
|
|
ENVOKE®
|
novel
low-dose
herbicide for cotton and sugar cane
|
|
FUSILADE®
|
grass
weed
killer for broad-leaf crops
|
|
LUMAX®
|
unique
season-long grass and broad leaf weed control for corn
|
|
TOPIK®
|
post-emergence
grass weed killer for wheat
|
|
Non-selective
Herbicides
|
|
|
GRAMOXONE®
|
rapid,
non-systemic burn-down of vegetation
|
|
TOUCHDOWN®
|
systemic
total
vegetation control
|
|
Fungicides
|
|
|
AMISTAR®
|
broad
spectrum
strobilurin for use on multiple crops
|
|
BRAVO®
|
broad
spectrum
fungicide for use on multiple crops
|
|
REVUSTM
|
for
use on potatoes, tomatoes,
vines and vegetable crops
|
|
RIDOMIL
GOLD®
|
systemic
fungicide for use in vines, potatoes and vegetables
|
|
SCORE®
|
triazole
fungicide for use in vegetables, fruits and rice
|
|
TILT®
|
broad
spectrum
triazole for use in cereals, bananas and peanuts
|
|
UNIX®
|
cereal
and vine fungicide with
unique mode of action
|
|
Insecticides
|
|
|
ACTARA®
|
second-generation
neonicotinoid
for controlling foliar and soil pests in multiple
crops
|
|
FORCE®
|
unique
pyrethroid controlling soil
pests in corn
|
|
KARATE®
|
foliar
pyrethroid offering broad
spectrum insect control
|
|
PROCLAIM®
|
novel,
low-dose insecticide for
controlling lepidoptera in vegetables and cotton
|
|
VERTIMEC®
|
acaricide
for use in fruits,
vegetables and cotton
|
|
Professional
Products
|
|
|
AVICTA®
|
breakthrough
nematode control seed treatment
|
|
CRUISER®
|
novel
broad
spectrum seed treatment - neonicotinoid
insecticide
|
|
DIVIDEND®
|
triazole
seed
treatment fungicide
|
|
HERITAGE®
|
strobilurin
turf fungicide
|
|
ICON®
|
public
health
insecticide
|
|
IMPASSE®
|
termite
barrier
|
|
MAXIM®
|
broad
spectrum
seed treatment fungicide
|
|
Field
Crops
|
|
|
NK®
|
global
brand
for corn, oilseeds and other field crops
|
|
GARST®
|
US
brand for
corn and soybean
|
|
GOLDEN
HARVEST®
|
brand
for corn
and soybean in North America and Europe
|
|
HILLESHÖG®
|
global
brand
for sugar beet
|
|
Vegetables
and Flowers
|
|
|
S&G®
vegetables
|
leading
brand
in Europe, Africa and Asia
|
|
ROGERS®
vegetables
|
leading
brand
throughout the Americas
|
|
DULCINEATM
|
consumer
produce brand for value-added fruits and vegetables in North
America
|
|
PUREHEARTTM
|
DULCINEA™
brand for ‘personal size’ seedless watermelon
|
|
S&G®
flowers
|
global
brand
for seeds and young plants
|
|
FISCHER
|
global
premium
flowers brand
|
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 26 OF 27
Addresses
for Correspondence
|
Swiss
Depositary
|
Depositary
for ADRs
|
Registered
Office
|
||
|
SEGA
Aktienregister AG
|
The
Bank of
New York
|
Syngenta
AG
|
||
|
P.O.
Box
|
Shareholder
Relations
|
Schwarzwaldallee
215
|
||
|
CH-4601
Olten
|
PO
Box
11258
|
4058
Basel
|
||
|
Church
Street
Station
|
Switzerland
|
|||
|
New
York, NY
10286
|
||||
|
Tel:
+41 (0)62
205 3695
|
Tel:
+1 (212)
815 6917
|
Tel:
+41 (0)61
323 1111
|
Cautionary
Statement Regarding Forward-Looking Statements
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 US 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 therefore.
SYNGENTA
HALF YEAR
RESULTS 2007 / PAGE 27 OF 27
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
| SYNGENTA AG | |||
| |
|
|
|
| Date: July 26, 2007 | By: | /s/ Christoph Mäder | |
|
|
|||
| Name: | Christoph Mäder | ||
|
Title:
|
Head Legal & Taxes | ||