SEED TECHNOLOGIES - Nufarm

SEED TECHNOLOGIES Investor Day 28 May 2013 Melbourne, Australia

INTRODUCTION & SEED TECHNOLOGIES REVIEW Robert Reis Group Executive, Corporate Strategy & External Affairs

Agenda Introduction & Seed Technologies Review

10:00 am

Nuseed Global Overview

10:10 am

Innovation

11:00 am

R&D Model & Capabilities

11:45 pm

Omega 3

12:15 pm

Lunch

1:00 pm

Nuseed Regional Business Overview

1:30 pm

Seed Treatment

3:00 pm

Summary & Close

3:30 pm

Seed Technologies Platform • Seed • Traits • Seed treatment

Seed Technologies increasingly relevant to Nufarm’s future • • • •

15% of group EBIT in 2012 Ambition: double contribution in next 3-4 year period Strong platforms for organic growth Highly targeted acquisition opportunities

$121 m sales 53% GM $30.6M EBIT

2012 Segment Sales (A$)

2004

$10 m Sales $-2M EBIT

2008

5

NUSEED GLOBAL OVERVIEW Brent Zacharias General Manager, Nuseed Group

Global Company

Global Management Team Brent Zacharias General Manager, Nuseed Group

Gary Barber Global Financial Controller

Danielle Moore Corporate Communications Manager

Andy Thomas

Travis Rankin

Daniel Hinderliter

Brent Whittaker

Errol Corsan

President, Americas & Emerging Markets

General Manager, Australia

General Manager, South America

Global Market Development Manager

R&D Director, Canola & Sorghum

Keith Wehri Global Supply Chain Leader

Ernst Topitschnig General Manager, Europe

Bill Swann General Manager, New Technologies & Emerging Markets

Carlito Los General Manager, Brazil

James Gerdes R&D Director, Sunflower & Trait Development

Malcolm Devine Innovation Lead

With us today… Brent Zacharias General Manager, Nuseed Group Brent provides strong visionary leadership for Nuseed’s global strategy and overall business success. From global headquarters in Chicago he is responsible for the direction, management and growth of Nufarm’s seed business, giving guidance and focus to the Leadership Team.

Andy Thomas President, Americas & Emerging Markets Andy leads our US, Mexico and China businesses, from our Chicago head office. He also provides strategic direction for our European operations and emerging markets to ensure alignment and full leverage of our pipeline and capabilities.

Errol Corsan R&D Director, Global Canola & Sorghum Errol leads Nuseed’s global research and development activities for our sorghum and canola crops. Based in Brisbane, he is responsible for relevant trait advancement strategies, breeding and development teams, breeding sites and the Horsham Innovation Centre, Victoria.

Dr James Gerdes, PhD R&D Director, Global Sunflower & Trait Development Jim is responsible for leading the breeding and development teams at each of the global sunflower breeding sites, development of the sunflower trait advancement strategy, and providing leadership to the Woodland Innovation Centre in California.

Brent Whittaker Global Market Development Manager Brent leads Nuseed’s market development strategies and activities for all our crops across the globe. Based in Toowoomba, he is responsible for strategic acquisition, business development and seamless integration leveraging his strong relationships and networks.

Gary Barber Global Financial Controller Gary provides global leadership and support to regional Nuseed finance teams, ensuring a consistent and coordinated approach across all financial activities. Based in Chicago, he is also responsible for facilitating seed-specific process improvement initiatives.

Danielle Moore Corporate Communications Manager Danielle leads Nuseed’s corporate communication and brand strategies. Based in Melbourne, she is responsible for the development and execution of corporate level communication activities and provides direction and support to each region.

Bill Swann General Manager, New Technologies & Emerging Markets Based in Melbourne, Bill provides leadership across the business to drive success of key pipeline technologies that deliver value beyond yield, including the expansion of key products across all geographies. He also focuses on developing emerging markets in Africa, Middle East and West Asia.

Daniel Hinderliter General Manager, South America Daniel is responsible for Nuseed’s business strategies and operations in Argentina, Brazil and across South America. His focus is to create and further develop a growth platform for the company and lead development of the business across the region. He is based in Argentina.

Travis Rankin General Manager, Australia Travis leads Nuseed’s Australian operations from our Melbourne office. He leads the region’s strategic direction and the development of downstream growth in the healthy oils platform, including Monola and Omega 3 projects.

Terry Hughes Global Commercial Manager, Seed Treatment Terry is responsible for Nufarm’s global seed treatment strategy across various units and geographies, with the aim to expand our seed treatment product portfolio. Based in Chicago, he provides a strong focus to further enhance the company's seed treatment knowledge base.

Different thinking FROM A NEW KIND of seed company…

Committed to enhancing THE VALUE OF CROPS THROUGH seeds with greater purpose.

Innovations in canola, sorghum, sunflowers • More than yield • Use seed technology to solve problems • New ways to add value through the entire process

Worldwide resources. Local knowledge. • Worldwide resources • Regional knowledge • Anticipate consumer demand and the opportunity it creates for farmers and processors • Concentrate on select core crops with exceptional potential • Deliver innovations that make a difference

Advancing invention to market innovation • Changing rural lives in China • Green bio-energy • High quality gluten-free sorghum flour • Productivity step change in Africa • Healthy oil alternatives

• Land produced DHA-rich Omega 3 oils • More beef, pork, chicken and milk • Saving water • Healthful sunflower snack foods

Commitment, focus, capabilities • Our commitment – Global scale, local impact – Apply the highest levels of innovation, science and investment to ensure results • Our focus – Deliver top yielding hybrids stacked with leading disease, stress, herbicide and productivity traits – Enhance crops beyond yield with targeted output trait research and development – Invest to deliver local crop adaptation, productivity and quality

World leading sunflowers • Critical role in healthful food alternatives • Deliver solutions that enhance production and benefit both the grower and end-use consumer • Lead global product and market development in new segments • $1,500M market in seed and treatment • Strong seed and end use market growth

Revolutionary sorghum • Recognize the incredible potential of sorghum • Apply modern breeding techniques to the worlds 6th largest crop • Hybrids with high energy availability for feed and fuel applications • Creating a premium food use product category • $400M existing global seed market value • Exceptional growth potential with introduction of hybrid technology, agronomic traits, and beyond yield concepts • Long term approach – key role in global agri-food

Canola on the cutting edge • Impressive range of products • Key role in innovating Monola® • Development of DHA-rich omega 3 oil in canola plants • $1B global seed-trait-treatment market • Opportunity to significantly lift market value in target countries

Growing opportunity • Unique focus and passion to go beyond yield • Tremendous depth of knowledge and experience in core crops • Innovative thinking that is impacting the industry today • Looking ahead to add value in the future

International reach. Local impact. • Locations around the world > 250 dedicated staff • Product testing and sales in >35 countries • Regional operating units delivering hybrids, traits, production techniques and seed treatments tailored to individual climates, soil types and markets

Four pillars of growth

M&A history Canola: 2004 2006 2006 2006

AgSeed Research Nutrihealth Dovuro Seeds Monsanto Assets

Sunflowers and sorghum: 2008 Lefroy Seeds 2009 MMR Genetics 2009 Richardson Seeds 2010 Druetto Argentina 2010 Flower Genetics USA 2011 Super Seeds Europe 2011 Seeds 2000 – USA / SA 2012 Atlantica Brazil JV

Strategic asset: • Canola breeding • Specialty canola traits • Production & sales infrastructure • Canola breeding program & RR trait Strategic asset: • Sunflower and sorghum germplasm • Forage sorghum breeding and genetics • Sorghum production and sales • Forage and grain sorghum • Confectionery and oilseed sunflower • Sunflower germplasm • Confectionery and oilseed sunflower • Brazil infrastructure and market access

Nuseed life cycle Phase III: Evolution

Phase II: Growth - Realization of R&D and M&A investment returns - Seed treatment synergy - New trait & hybrid launches - Crop expansion

Phase I: Emergence - Nearing completion - Global footprint - Proprietary R&D pipeline

- Delivery of novel traits - Downstream engagement - Redefining key crop value

Summary • • • • •

Nuseed is a distinct seed and traits company Successful track record, profitable growth Strong leadership team Considerable growth ambition Innovation focused – sharing the rewards in partnership

INNOVATION PIPELINE Brent Zacharias General Manager, Nuseed Group Andy Thomas President, Americas & Emerging Markets

Innovation defined • Invention to market innovation • Beyond yield impact • See yield differently • Market introduction and value capture

Innovation sources Alternate plant species gene discovery (GMO, in partnerships)

Native traits from proprietary germplasm & molecular discovery (in house & partnerships)

Unique gene & trait stacks (public, licensed, proprietary)

Advantages of native traits • Speed • Development costs • Significantly lower regulatory costs • Higher ROI, lower hurdle rates

Nuseed innovation stages

Discovery & Proof of Concept

Trait Development

Trait Introgression

Hybrid Advancement

Launch

INNOVATION PIPELINE STATUS

Discovery & proof of concept • Omega 3 – Land based DHA rich oil from elite canola plant source – Just advanced to trait development in 2013

• Novel input trait 1: sorghum – Increase in yield and adaptable area

• Novel ‘beyond yield’ trait 1: sunflower – Unique downstream user attribute

Discovery & Proof of Concept

Trait development

Trait Introgression

Hybrid advancement

Launch

Trait development • Novel input trait 2: sorghum – Increase in adaptable area and yield

• Input trait 2 with ‘beyond yield’ stack: sorghum – Increase in yield and adaptable area with ‘beyond yield’ trait

• Novel ‘beyond yield’ trait 2: sunflower – Unique downstream user attribute

Discovery & proof of concept

Trait Development

Trait Introgression

Hybrid advancement

Launch

Trait introgression • Roundup Ready (second generation): canola – Collaboration with Monsanto

• Input trait stack: oilseed sunflower – Multiple disease resistance, HT, orobanche stack

• Novel input & beyond yield trait stack: confection sunflower – Increase in adaptable area and yield

• Sorghum herbicide tolerance – Collaboration with third party – Increase in grower convenience, yield, adaptable area Discovery & proof of concept

Trait development

Trait Introgression

Hybrid advancement

Launch

Hybrid advancement and launch • High brix sorghum hybrids – Alternative crop for sugarcane ethanol producers

• RR canola hybrids (Australia) – First year launch, second generation in prelaunch

• Canola and Monola hybrids (Global) – Hybrids extending to global markets for testing

• Long seeded confection sunflower with unique disease traits (China) • Wholis sorghum (Global) – Second generation hybrids testing in multiple global locations Discovery & proof of concept

Trait development

Trait Introgression

Hybrid Advancement

Launch

INNOVATION PROJECTS IN COMMERCIAL RAMP UP STAGE

Monola The seed: • Trait enhanced – modified oil • Australia adapted – drought, herbicide, disease • Identity preserved production system The oil: • Low saturated fat ( yields.

Nufarm Global Seed Treatment position Why and how we see success in ST at Nufarm

Statement of intent Vision • Position Nufarm as the, premium second tier supplier in key geographies of NA/WE and LA • Bring innovation and differentiation to the market via formulations, mixtures, partnerships and select new technologies. • Non aligned proprietary allows for flexibility and diversity • Develop NA/WE and LA with priority and spill to other Regional markets such as Asia • Increase value capture from current and future Nufarm seed companies via seed treatment

Nufarm data investment Seed treatment is a strategic plank in Nufarm's strategy and we will continue investment in data to achieve expansive growth. • Imidacloprid – Significant investment in data (EU/USA) to support global registrations

• Tebuconazole – Investment in base data to support European registrations & TDMG

• Myclobutanil – Triazole Taskforce investment needed for USA- support all triazoles

• Fludioxonil – Data compensation investment for the US

• Wild Birds & Mammals Task Force & Seed TROPEX • Nufarm is investing in our portfolio

Top 10 seed treatments and Nufarm

Distribution rights Ai purchase/formulation and sale

Future Development Target Source : Philips Mc Dougal

Global Seed Treatment 2013 = 75 Registrations

1 32 16

Registered 4

Pending

15 3

6

Global Seed Treatment 2016 = ~122 Registrations

1 69 19

Registered 6

Pending

14 1

5

7

Nufarm formulation investment

France – Gaillon / Paris Calgary Chicago

Raleigh

Fortaleza

Manufacturing Lytton

Formulation Development Auckland Laverton

Manufacturing seed treatments in 5 countries Marketing operations in more than 25 countries 107

Utilisation of resources • Building formulations • Formulation site capability • Registration skills • Regulatory management • Knowledge of gene technologies {Nuseed influence}

• Seed laboratories {seed safety and efficacy/ compatibility} • The nurturing culture of seed genetics and hybrids • Selection and development of staff with core competencies

Manufacturing: Chicago, Illinois

• Focus for seed treatment

• Custom blending • State of the Art milling facilities

• Designed with flexibility in mind – Support SC & EC fungicides/insecticides

Nuseed alignment with core crops

• Customised crop solutions through unique molecule stacks and formulation – – – – – – –

Imidacloprid Thiram Fluquinconazole Metalaxyl Fludioxonil Azoxystrobin Fluxofenim

Core competencies in Seed Treatment

• A specialist organisation intent on creating value • Strong product development capability • Access to new technologies and biological treatments • Country based experience with seed treatment • Formulation development and manufacture... unique formulations

• Investment in data, facilities and people ahead of competitors • Diverse portfolio not easily available to other participants

NUFARM SEED TREATMENTS | GET SEEDS OFF TO A STRONG START

SUMMARY & CLOSING REMARKS