Form
20-F
|
X
|
Form
40-F
|
Yes
|
No
|
X
|
Yes
|
No
|
X
|
Yes
|
No
|
X
|
Syngenta International AG
Media
Office
CH-4002 Basel
Switzerland
Tel:+41
61 323 23 23
Fax:+41
61 323 24 24
www.syngenta.com
|
Médard
Schoenmaeckers
Switzerland +41
61 323 2323
Anne
Burt
USA+1
202 628 2372
|
Jennifer
Gough
Switzerland +41
61 323 5059
USA+1
202 737 6521
John
Hudson
Switzerland +41
61 323 6793
USA+1
202 737 6520
|
·
|
Sales
up 20 percent at constant exchange rates to $7.3
billion
|
·
|
Crop
Protection sales up 21 percent(2)
at $5.55 billion
|
·
|
Seeds
sales up 15 percent(2)
to $1.74 billion
|
·
|
Earnings
per share(1)
up 36 percent to $16.53
|
·
|
Earnings
per share $15.93 after restructuring and
impairment
|
·
|
Capacity
expansion to meet longer term demand
growth
|
Reported
Financial Highlights
|
Excluding
Restructuring, Impairment
|
|||||||
H1
2008
$m
|
H1
2007
$m
|
Actual
%
|
H1
2008
$m
|
H1
2007
$m
|
Actual
%
|
CER(2)
%
|
||
Sales
|
7295
|
5690
|
+28
|
7295
|
5690
|
+28
|
+20
|
|
Net Income(3)
|
1519
|
1219
|
+25
|
1576
|
1190
|
+33
|
-
|
|
Earnings
per share
|
$15.93
|
$12.43
|
+28
|
$16.53
|
$12.13
|
+36
|
-
|
|
Excluding
2007 non-recurring income
|
$16.53
|
$11.75
|
+41
|
-
|
(1)
|
EPS
on a fully-diluted basis, excluding restructuring and
impairment.
|
(2)
|
Growth
at constant exchange rates, see Appendix
A.
|
(3)
|
Net
income to shareholders of Syngenta
AG.
|
1st
Half
|
Growth
|
2nd
Quarter
|
Growth
|
||||||
Product
line
|
2008
$m
|
2007
$m
|
Actual
%
|
CER
%
|
2008
$m
|
2007
$m
|
Actual
%
|
CER
%
|
|
Selective
Herbicides
|
1679
|
1423
|
+18
|
+10
|
904
|
787
|
+15
|
+9
|
|
Non-Selective
Herbicides
|
739
|
461
|
+60
|
+52
|
434
|
277
|
+56
|
+49
|
|
Fungicides
|
1649
|
1183
|
+39
|
+29
|
873
|
606
|
+44
|
+33
|
|
Insecticides
|
779
|
664
|
+17
|
+11
|
375
|
347
|
+8
|
+3
|
|
Seed
Care
|
388
|
299
|
+30
|
+23
|
135
|
107
|
+26
|
+19
|
|
Professional
Products
|
289
|
255
|
+13
|
+
9
|
143
|
128
|
+12
|
+6
|
|
Others
|
31
|
18
|
+73
|
+70
|
16
|
7
|
+123
|
+119
|
|
Total
|
5554
|
4303
|
+29
|
+21
|
2880
|
2259
|
+27
|
+20
|
1st
Half
|
Growth
|
2nd
Quarter
|
Growth
|
||||||
Crop
Protection
by
region
|
2008
$m
|
2007
$m
|
Actual
%
|
CER
%
|
2008
$m
|
2007
$m
|
Actual
%
|
CER
%
|
|
Europe,
Africa, Mid. East
|
2250
|
1670
|
+35
|
+20
|
1134
|
842
|
+35
|
+20
|
|
NAFTA
|
1850
|
1597
|
+16
|
+13
|
1060
|
914
|
+16
|
+14
|
|
Latin
America
|
698
|
449
|
+55
|
+55
|
318
|
219
|
+46
|
+46
|
|
Asia
Pacific
|
756
|
587
|
+29
|
+21
|
368
|
284
|
+29
|
+22
|
|
Total
|
5554
|
4303
|
+29
|
+21
|
2880
|
2259
|
+27
|
+20
|
1st
Half
|
Growth
|
2nd
Quarter
|
Growth
|
||||||
Product
line
|
2008
$m
|
2007
$m
|
Actual
%
|
CER
%
|
2008
$m
|
2007
$m
|
Actual
%
|
CER
%
|
|
Corn
& Soybean
|
814
|
732
|
+11
|
+
7
|
194
|
175
|
+10
|
+7
|
|
Diverse
Field Crops
|
353
|
254
|
+39
|
+27
|
151
|
87
|
+75
|
+63
|
|
Vegetables
& Flowers
|
572
|
432
|
+32
|
+23
|
267
|
216
|
+23
|
+16
|
|
Total
|
1739
|
1418
|
+23
|
+15
|
612
|
478
|
+28
|
+21
|
1st
Half
|
Growth
|
2nd
Quarter
|
Growth
|
||||||
Seeds
by region
|
2008
$m
|
2007
$m
|
Actual
%
|
CER
%
|
2008
$m
|
2007
$m
|
Actual
%
|
CER
%
|
|
Europe,
Africa, Mid. East
|
811
|
577
|
+41
|
+25
|
286
|
194
|
+47
|
+32
|
|
NAFTA
|
773
|
722
|
+
7
|
+
6
|
243
|
216
|
+13
|
+13
|
|
Latin
America
|
66
|
49
|
+36
|
+36
|
33
|
29
|
+12
|
+12
|
|
Asia
Pacific
|
89
|
70
|
+27
|
+20
|
50
|
39
|
+27
|
+22
|
|
Total
|
1739
|
1418
|
+23
|
+15
|
612
|
478
|
+28
|
+21
|
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 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 therefor.
|
Ex
Restructuring & Impairment(1)
|
Restructuring
&
Impairment
|
As
reported under
IFRS
|
|||||||||||||||||||||
For
the six months to June 30
|
$ | 2008 m | $ | 2007 m | $ | 2008 m | $ | 2007 m | $ | 2008 m | $ | 2007 m | |||||||||||
Sales
|
7295 | 5690 | - | 7295 | 5690 | ||||||||||||||||||
Gross
profit
|
3977 | 2990 | (6 | ) | (1 | ) | 3971 | 2989 | |||||||||||||||
Marketing
and distribution
|
(984 | ) | (780 | ) | - | (984 | ) | (780 | ) | ||||||||||||||
Research
and development
|
(460 | ) | (386 | ) | - | (460 | ) | (386 | ) | ||||||||||||||
General
and administrative
|
(468 | ) | (268 | ) | - | (468 | ) | (268 | ) | ||||||||||||||
Restructuring
and impairment
|
- | - | (75 | ) | 44 | (75 | ) | 44 | |||||||||||||||
Operating
income
|
2065
|
1556 | (81 | ) | 43 |
1984
|
1599 | ||||||||||||||||
Income
before taxes
|
2028
|
1534 | (81 | ) | 43 |
1947
|
1577 | ||||||||||||||||
Income
tax expense
|
(446 | ) | (338 | ) | 24 | (14 | ) | (422 | ) | (352 | ) | ||||||||||||
Net
income
|
1582 | 1196 | (57 | ) | 29 | 1525 | 1225 | ||||||||||||||||
Attributable
to minority interests
|
6 | 6 | - | 6 | 6 | ||||||||||||||||||
Attributable
to
Syngenta
AG shareholders:
|
1576 | 1190 | (57 | ) | 29 | 1519 | 1219 | ||||||||||||||||
Earnings/(loss)
per share(3)
|
|||||||||||||||||||||||
-
basic
|
$ | 16.68 | $ | 12.29 | $ | (0.60 | ) | $ | 0.30 | $ | 16.08 | $ | 12.59 | ||||||||||
-
diluted
|
$ | 16.53 | $ | 12.13 | $ | (0.60 | ) | $ | 0.30 | $ | 15.93 | $ | 12.43 |
2008
|
2007
|
2008
CER(2)
|
|||||||||||
Gross
profit margin(4)
|
54.5 | % | 52.6 | % | 54.0 | % | |||||||
EBITDA
margin(5)
|
31.3 | % | 30.7 | % | 30.9 | % | |||||||
EBITDA(5)
|
2282 | 1749 | |||||||||||
Tax
rate(6)
|
22 | % | 22 | % | |||||||||
Free
cash flow(7)
|
240 | 306 | |||||||||||
Trade
working capital to sales(8)
|
44 | % | 47 | % | |||||||||
Debt/Equity
gearing(9)
|
29 | % | 21 | % | |||||||||
Net
debt(9)
|
2005
|
1352 |
(1)
|
For
further analysis of restructuring and impairment charges, see Note 4 on
page 17. 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
19.
|
(3)
|
The
weighted average number of ordinary shares in issue used to calculate the
earnings per share were as follows: for 2008 basic EPS 94,474,155 and
diluted EPS 95,334,962; 2007 basic EPS 96,810,708 and diluted EPS
98,050,667.
|
(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 20.
|
(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 19.
|
(8)
|
Period
end trade working capital as a percentage of twelve-month sales, see
Appendix F on page 22.
|
(9)
|
For
a description of net debt and the calculation of debt/equity gearing, see
Appendix E on page 21.
|
Syngenta
|
1st
Half 2008
$m
|
1st
Half 2007
$m
|
CER(2)
%
|
|||||||||
Third
Party Sales
|
7295 | 5690 | + 20 | |||||||||
Gross
Profit(3)
|
3977 | 2990 | + 24 | |||||||||
Marketing
and distribution
|
(984 | ) | (780 | ) | - 18 | |||||||
Research
and development
|
(460 | ) | (386 | ) | - 13 | |||||||
General
and administrative
|
(468 | ) | (268 | ) | - 60 | |||||||
Operating
income
|
2065
|
1556 | + 23 | |||||||||
EBITDA(4)
|
2282 | 1749 | + 21 | |||||||||
EBITDA
(%)
|
31.3 | 30.7 | ||||||||||
Crop
Protection
|
1st
Half 2008
$m
|
1st
Half 2007
$m
|
CER(2)
%
|
|||||||||
Total
Sales
|
5554 | 4303 | + 21 | |||||||||
Inter-segment
elimination(5)
|
(18 | ) | (33 | ) | n/a | |||||||
Third
Party Sales
|
5536 | 4270 | + 21 | |||||||||
Gross
Profit
|
3153 | 2354 | + 25 | |||||||||
Marketing
and distribution
|
(681 | ) | (539 | ) | - 18 | |||||||
Research
and development
|
(268 | ) | (232 | ) | - 9 | |||||||
General
and administrative
|
(355 | ) | (236 | ) | - 38 | |||||||
Operating
income
|
1849 | 1347 | + 27 | |||||||||
EBITDA(4)
|
2019
|
1506 | + 25 | |||||||||
EBITDA
(%)
|
36.3 | 35.0 | ||||||||||
Seeds
|
1st
Half 2008
$m
|
1st
Half 2007
$m
|
CER(2)
%
|
|||||||||
Third
Party Sales
|
1739 | 1418 | + 15 | |||||||||
Gross
Profit
|
795 | 621 | + 18 | |||||||||
Marketing
and distribution
|
(299 | ) | (239 | ) | - 18 | |||||||
Research
and development
|
(163 | ) | (134 | ) | - 16 | |||||||
General
and administrative
|
(104 | ) | (76 | ) | - 25 | |||||||
Operating
income
|
229 | 172 | + 19 | |||||||||
EBITDA(4)
|
272 | 202 | + 21 | |||||||||
EBITDA
(%)
|
15.6 | 14.3 | ||||||||||
Business
Development
|
1st
Half 2008
$m
|
1st
Half 2007
$m
|
CER(2)
%
|
|||||||||
Third Party Sales
|
20 | 2 | n/a | |||||||||
Gross
Profit
|
8 | 0 | n/a | |||||||||
Marketing
and distribution
|
(4 | ) | (2 | ) | - 95 | |||||||
Research
and development
|
(29 | ) | (20 | ) | - 41 | |||||||
General
and administrative
|
(9 | ) | 44 | n/a | ||||||||
Operating
income/(loss)
|
(34 | ) | 22 | n/a | ||||||||
EBITDA(4)
|
(30 | ) | 26 | n/a | ||||||||
EBITDA
(%)
|
n/a | n/a |
(1)
|
Excluding
restructuring and impairment see Note 4 on page
17.
|
(2)
|
Growth
at constant exchange rates, see Appendix A on page
19.
|
(3)
|
For
details of the inter-segment elimination within gross profit, see Appendix
G on page 22.
|
(4)
|
For
a reconciliation of segment EBITDA to segment operating income, see
Appendix D on page 20.
|
(5)
|
Crop
Protection inter-segment sales to
Seeds.
|
Syngenta
|
1st
Half 2008
$m
|
1st
Half 2007
$m
|
Actual
%
|
CER(1)
%
|
||||||||||||
Crop
Protection
|
5554 | 4303 | + 29 | + 21 | ||||||||||||
Seeds
|
1739 | 1418 | + 23 | + 15 | ||||||||||||
Business
Development
|
20 | 2 | - | - | ||||||||||||
Inter-segment
elimination(2)
|
(18 | ) | (33 | ) | - | - | ||||||||||
Third
Party Sales
|
7295 | 5690 | + 28 | + 20 | ||||||||||||
Crop
Protection
|
||||||||||||||||
Product
line
|
||||||||||||||||
Selective
Herbicides
|
1679 | 1423 | + 18 | + 10 | ||||||||||||
Non-selective
Herbicides
|
739 | 461 | + 60 | + 52 | ||||||||||||
Fungicides
|
1649 | 1183 | + 39 | + 29 | ||||||||||||
Insecticides
|
779 | 664 | + 17 | + 11 | ||||||||||||
Seed
Care(3)
|
388 | 299 | + 30 | + 23 | ||||||||||||
Professional
Products
|
289 | 255 | + 13 | + 9 | ||||||||||||
Others
|
31 | 18 | + 73 | + 70 | ||||||||||||
Total
|
5554 | 4303 | + 29 | + 21 | ||||||||||||
Regional
|
||||||||||||||||
Europe,
Africa and Middle East
|
2250 | 1670 | + 35 | + 20 | ||||||||||||
NAFTA
|
1850 | 1597 | + 16 | + 13 | ||||||||||||
Latin
America
|
698 | 449 | + 55 | + 55 | ||||||||||||
Asia
Pacific
|
756 | 587 | + 29 | + 21 | ||||||||||||
Total
|
5554 | 4303 | + 29 | + 21 | ||||||||||||
Seeds
|
||||||||||||||||
Product
line
|
||||||||||||||||
Corn
and Soybean
|
814 | 732 | + 11 | + 7 | ||||||||||||
Diverse
Field Crops
|
353 | 254 | + 39 | + 27 | ||||||||||||
Vegetables
and Flowers
|
572 | 432 | + 32 | + 23 | ||||||||||||
Total
|
1739 | 1418 | + 23 | + 15 | ||||||||||||
Regional
|
||||||||||||||||
Europe,
Africa and Middle East
|
811 | 577 | + 41 | + 25 | ||||||||||||
NAFTA
|
773 | 722 | + 7 | + 6 | ||||||||||||
Latin
America
|
66 | 49 | + 36 | + 36 | ||||||||||||
Asia
Pacific
|
89 | 70 | + 27 | + 20 | ||||||||||||
Total
|
1739 | 1418 | + 23 | + 15 |
(1)
|
Growth
at constant exchange rates, see Appendix A on page
19.
|
(2)
|
Crop
Protection inter-segment sales to
Seeds.
|
(3)
|
Seed
Care previously grouped within Professional
Products
|
Syngenta
|
2nd
Quarter 2008
$m
|
2nd
Quarter 2007
$m
|
Actual
%
|
CER(1)
%
|
||||||||||||
Crop
Protection
|
2880 | 2259 | + 27 | + 20 | ||||||||||||
Seeds
|
612 | 478 | + 28 | + 21 | ||||||||||||
Business
Development
|
18 | 1 | - | - | ||||||||||||
Inter-segment
elimination(2)
|
(4 | ) | (5 | ) | - | - | ||||||||||
Third
Party Sales
|
3506 | 2733 | + 28 | + 21 | ||||||||||||
Crop
Protection
|
||||||||||||||||
Product
line
|
||||||||||||||||
Selective
Herbicides
|
904 | 787 | + 15 | + 9 | ||||||||||||
Non-selective
Herbicides
|
434 | 277 | + 56 | + 49 | ||||||||||||
Fungicides
|
873 | 606 | + 44 | + 33 | ||||||||||||
Insecticides
|
375 | 347 | + 8 | + 3 | ||||||||||||
Seed
Care(3)
|
135 | 107 | + 26 | + 19 | ||||||||||||
Professional
Products
|
143 | 128 | + 12 | + 6 | ||||||||||||
Others
|
16 | 7 | + 123 | + 119 | ||||||||||||
Total
|
2880 | 2259 | + 27 | +20 | ||||||||||||
Regional
|
||||||||||||||||
Europe,
Africa and Middle East
|
1134 | 842 | + 35 | + 20 | ||||||||||||
NAFTA
|
1060 | 914 | + 16 | + 14 | ||||||||||||
Latin
America
|
318 | 219 | + 46 | + 46 | ||||||||||||
Asia
Pacific
|
368 | 284 | + 29 | + 22 | ||||||||||||
Total
|
2880 | 2259 | + 27 | +20 | ||||||||||||
Seeds
|
||||||||||||||||
Product
line
|
||||||||||||||||
Corn
and Soybean
|
194 | 175 | + 10 | + 7 | ||||||||||||
Diverse
Field Crops
|
151 | 87 | + 75 | + 63 | ||||||||||||
Vegetables
and Flowers
|
267 | 216 | + 23 | + 16 | ||||||||||||
Total
|
612 | 478 | + 28 | + 21 | ||||||||||||
Regional
|
||||||||||||||||
Europe,
Africa and Middle East
|
286 | 194 | + 47 | + 32 | ||||||||||||
NAFTA
|
243 | 216 | + 13 | + 13 | ||||||||||||
Latin
America
|
33 | 29 | + 12 | + 12 | ||||||||||||
Asia
Pacific
|
50 | 39 | + 27 | + 22 | ||||||||||||
Total
|
612 | 478 | + 28 | + 21 |
(1)
|
Growth
at constant exchange rates, see Appendix A on page
19.
|
(2)
|
Crop
Protection inter-segment sales to
Seeds.
|
(3)
|
Seed
Care previously grouped within Professional
Products
|
For
the six months to June 30
|
2008
$m
|
2007
$m
|
||||||
Sales
|
7295 | 5690 | ||||||
Cost
of goods sold
|
(3324 | ) | (2701 | ) | ||||
Gross
profit
|
3971 | 2989 | ||||||
Marketing
and distribution
|
(984 | ) | (780 | ) | ||||
Research
and development
|
(460 | ) | (386 | ) | ||||
General
and administrative
|
(468 | ) | (268 | ) | ||||
Restructuring
and impairment
|
||||||||
Restructuring
and impairment, excluding divestment gains
|
(75 | ) | (73 | ) | ||||
Divestment
gains
|
- | 117 | ||||||
Operating
income
|
1984
|
1599 | ||||||
Financial
expenses, net
|
(37 | ) | (22 | ) | ||||
Income
before taxes
|
1947
|
1577 | ||||||
Income
tax credit/(expense)
|
(422 | ) | (352 | ) | ||||
Net
income/(loss)
|
1525 | 1225 | ||||||
Attributable
to:
|
||||||||
-
Minority interests
|
6 | 6 | ||||||
-
Syngenta AG shareholders
|
1519 | 1219 | ||||||
Earnings/(loss) per
share(1)
|
||||||||
-
Basic
|
$ | 16.08 | $ | 12.59 | ||||
-
Diluted
|
$ | 15.93 | $ | 12.43 |
(1)
|
The
weighted average number of ordinary shares in issue used to calculate the
earnings per share were as follows: for 2008 basic EPS 94,474,155 and
diluted EPS 95,334,962; 2007 basic EPS 96,810,708 and diluted
EPS 98,050,667.
|
30
June
2008
$m
|
30
June
2007
(reclassified)(1)
$m
|
31
December
2007
(reclassified)(1)
$m
|
||||||||||
Assets
|
||||||||||||
Current
assets
|
||||||||||||
Cash
and cash equivalents
|
822 | 380 | 503 | |||||||||
Trade
accounts receivable
|
4927 | 4049 | 2386 | |||||||||
Other
accounts receivable
|
529 | 410 | 516 | |||||||||
Other
current assets
|
497 | 268 | 360 | |||||||||
Marketable
securities
|
63 | 81 | 90 | |||||||||
Inventories
|
2595 |
2062
|
2647 | |||||||||
Total
current assets
|
9433 | 7250 | 6502 | |||||||||
Non-current
assets
|
||||||||||||
Property,
plant and equipment
|
2259 |
1972
|
2138 | |||||||||
Intangible
assets
|
2912 | 2730 | 2790 | |||||||||
Investments
in associates and joint ventures
|
132 | 86 | 89 | |||||||||
Deferred
tax assets
|
642 | 665 | 639 | |||||||||
Other
financial assets
|
1261 | 949 | 1109 | |||||||||
Total
non-current assets
|
7206 | 6402 | 6765 | |||||||||
Assets
held for sale
|
8 | 5 | 13 | |||||||||
Total
assets
|
16647 | 13657 | 13280 | |||||||||
Liabilities
and equity
|
||||||||||||
Current
liabilities
|
||||||||||||
Trade
accounts payable
|
(2771 | ) | (2126 | ) | (1895 | ) | ||||||
Current
financial debts
|
(790 | ) | (271 | ) | (399 | ) | ||||||
Income
taxes payable
|
(666 | ) | (530 | ) | (512 | ) | ||||||
Other
current liabilities
|
(1109 | ) | (953 | ) | (863 | ) | ||||||
Provisions
|
(190 | ) | (251 | ) | (223 | ) | ||||||
Total
current liabilities
|
(5526 | ) | (4131 | ) | (3892 | ) | ||||||
Non-current
liabilities
|
||||||||||||
Non-current
financial debts
|
(2325 | ) | (1583 | ) | (1726 | ) | ||||||
Deferred
tax liabilities
|
(685 | ) | (752 | ) | (622 | ) | ||||||
Other
non current liabilities
|
(68 | ) | (23 | ) | (33 | ) | ||||||
Provisions
|
(1072 | ) | (856 | ) | (966 | ) | ||||||
Total
non-current liabilities
|
(4150 | ) | (3214 | ) | (3347 | ) |
Total
liabilities
|
(9676 | ) | (7345 | ) | (7239 | ) |
Shareholders’
equity
|
(6950 | ) | (6287 | ) | (6022 | ) | ||||||
Minority
interests
|
(21 | ) | (25 | ) | (19 | ) | ||||||
Total
equity
|
(6971 | ) | (6312 | ) | (6041 | ) | ||||||
Total
liabilities and equity
|
(16647 | ) | (13657 | ) | (13280 | ) |
(1)
|
Derivative
financial assets and liabilities reclassified in accordance with maturity
date,
|
|
see
Note 2 on page 16.
|
For
the six months to June 30
|
2008
$m
|
2007
$m
|
||||||
Income
before taxes
|
1947
|
1577 | ||||||
Reversal
of non-cash items;
|
||||||||
Depreciation,
amortization and impairment on:
|
||||||||
Property,
plant and equipment
|
128 | 128 | ||||||
Intangible
assets
|
103 | 93 | ||||||
Financial
assets
|
25 | 1 | ||||||
Loss/(gain)
on disposal of fixed assets
|
- | (118 | ) | |||||
Charges
in respect of share based compensation
|
25 | 21 | ||||||
Charges
in respect of provisions
|
120 | 91 | ||||||
Net
financial expenses
|
37 | 22 | ||||||
Cash
(paid)/received in respect of;
|
||||||||
Interest
and other financial receipts
|
53 | 59 | ||||||
Interest
and other financial payments
|
(231 | ) | (120 | ) | ||||
Taxation
|
(165 | ) | (94 | ) | ||||
Restructuring
costs
|
(82 | ) | (104 | ) | ||||
Contributions
to pension schemes
|
(59 | ) | (61 | ) | ||||
Other
provisions
|
(50 | ) | (39 | ) | ||||
Cash
flow before working capital changes
|
1851 | 1456 | ||||||
Change
in net current assets and other non cash items
|
(1341 | ) | (1068 | ) | ||||
Cash
flow from operating activities
|
510 | 388 | ||||||
Additions
to property, plant and equipment
|
(168 | ) | (125 | ) | ||||
Proceeds
from disposals of property, plant and equipment
|
5 | 154 | ||||||
Purchase
of intangible assets
|
(55 | ) | (20 | ) | ||||
Investments
in other financial assets
|
(55 | ) | (28 | ) | ||||
Proceeds
from disposals of intangible and financial assets
|
39 | 18 | ||||||
(Purchase)
disposals of marketable securities
|
39 | (2 | ) | |||||
Proceeds
from disposal of non-current assets held for sale
|
5 | - | ||||||
Acquisition
and Divestments
|
(41 | ) | (81 | ) | ||||
Cash
flow used for investing activities
|
(231 | ) | (84 | ) | ||||
Increases
in third party interest-bearing debt
|
972 | 152 | ||||||
Repayment
of third party interest-bearing debt
|
(110 | ) | (44 | ) | ||||
(Purchase)/sale
of treasury shares and options over own shares
|
(388 | ) | (358 | ) | ||||
Dividends
paid to group shareholders
|
(450 | ) | (128 | ) | ||||
Dividends
paid to minorities
|
(2 | ) | (2 | ) | ||||
Cash
flow from/(used) for financing activities
|
22 | (380 | ) | |||||
Net
effect of currency translation on cash and cash
equivalents
|
18 | 11 | ||||||
Net
change in cash and cash equivalents
|
319 | (65 | ) | |||||
Cash
and cash equivalents at the beginning of the year
|
503 | 445 | ||||||
Cash
and cash equivalents at the end of the year
|
822 | 380 |
Shareholders’
equity
$m
|
Minority
interest
$m
|
Total
equity
$m
|
||||||||||
December
31, 2006
|
5666 | 28 | 5694 | |||||||||
Net
income
|
1219 | 7 | 1226 | |||||||||
Unrealized
holding gains/(losses) on available for sale financial
assets
|
(49 | ) | - | (49 | ) | |||||||
Unrealized
gains/(losses) on derivatives designated as cash flow and net investment
hedges
|
(61 | ) | - | (61 | ) | |||||||
Income
tax current and deferred (charged)/credited to equity
|
32 | - | 32 | |||||||||
Dividends
payable to group shareholders
|
(302 | ) | - | (302 | ) | |||||||
Dividends
paid to minority shareholders
|
- | (2 | ) | (2 | ) | |||||||
Issue
of shares under employee purchase plans
|
42 | - | 42 | |||||||||
Share
based compensation
|
21 | - | 21 | |||||||||
Share
repurchases
|
(400 | ) | - | (400 | ) | |||||||
Acquisition
of minority interest
|
- | (8 | ) | (8 | ) | |||||||
Reclassification
of negative minority shareholder equity
|
1 | (1 | ) | - | ||||||||
Foreign
currency translation effects
|
118 | 1 | 119 | |||||||||
June
30, 2007
|
6287 | 25 | 6312 | |||||||||
December
31, 2007
|
6022 | 19 | 6041 | |||||||||
Net
income
|
1519 | 6 | 1525 | |||||||||
Unrealized
holding gains/(losses) on available for sale financial
assets
|
5 | - | 5 | |||||||||
Unrealized
gains/(losses) on derivatives designated as cash flow and net investment
hedges
|
(1 | ) | - | (1 | ) | |||||||
Income
tax current and deferred (charged)/credited to equity
|
25 | - | 25 | |||||||||
Dividends
paid to group shareholders
|
(450 | ) | - | (450 | ) | |||||||
Dividends
paid to minority shareholders
|
- | (2 | ) | (2 | ) | |||||||
Issue
of shares under employee purchase plans
|
52 | - | 52 | |||||||||
Share
based compensation
|
25 | - | 25 | |||||||||
Share
repurchase scheme
|
(440 | ) | - | (440 | ) | |||||||
Acquisition
of minority interest
|
- | (2 | ) | (2 | ) | |||||||
Reclassification
of negative minority shareholder equity
|
1 | (1 | ) | - | ||||||||
Foreign
currency translation effects
|
192 | 1 | 193 | |||||||||
June
30, 2008
|
6950 | 21 | 6971 |
2008
|
2007
|
|||||||||||||||||||||||
For
the six months to June 30
|
$m | $m | $m | $m | $m | $m | ||||||||||||||||||
Reversal
of inventory step-up (in cost of goods sold)
|
(6 | ) | (1 | ) | ||||||||||||||||||||
Restructuring
costs:
|
||||||||||||||||||||||||
Write-off
or impairment
|
||||||||||||||||||||||||
- property,
plant and equipment
|
(4 | ) | (17 | ) | ||||||||||||||||||||
- intangible
assets
|
(11 | ) | (11 | ) | ||||||||||||||||||||
Non-cash
pension restructuring charges
|
(1 | ) | 8 | |||||||||||||||||||||
Total
non-cash restructuring costs:
|
(16 | ) | (20 | ) | ||||||||||||||||||||
Cash
costs
|
||||||||||||||||||||||||
- operational
efficiency
|
(25 | ) | (51 | ) | ||||||||||||||||||||
- Seeds
acquisition integration
|
(8 | ) | (1 | ) | ||||||||||||||||||||
- other
cash costs
|
(1 | ) | (1 | ) | ||||||||||||||||||||
Total
cash restructuring costs
|
(34 | ) | (53 | ) | ||||||||||||||||||||
Impairment
of Financial Assets
|
(25 | ) | - | |||||||||||||||||||||
Divestment
gains
|
- | 117 | ||||||||||||||||||||||
(75 | ) | 44 | ||||||||||||||||||||||
Total
restructuring and impairment charge
|
(81 | ) | 43 |
Average
1st
Half 2008
|
Average
1st
Half 2007
|
Period
end
30
June 2008
|
Period
end
30
June 2007
|
|
Brazilian
real. BRL
|
1.72
|
2.07
|
1.60
|
1.93
|
Swiss
franc. CHF
|
1.06
|
1.23
|
1.02
|
1.23
|
Euro.
EUR
|
0.66
|
0.75
|
0.63
|
0.74
|
British
pound. GBP
|
0.50
|
0.51
|
0.50
|
0.50
|
Japanese
yen. JPY
|
105.34
|
119.74
|
105.25
|
123.44
|
For
the six months to June 30
|
2008
$m
|
2007
$m
|
||||||
Cash
flow from operating activities
|
510 | 388 | ||||||
Cash
flow used for investing activities
|
(231 | ) | (84 | ) | ||||
Cash
flow for/(from) marketable securities
|
(39 | ) | 2 | |||||
Free
cash flow
|
240 | 306 |
1st
Half
2008
$m
|
1st
Half
2007
$m
|
|||||||
Net
income attributable to Syngenta AG shareholders
|
1519 | 1219 | ||||||
Minority
interests
|
6 | 6 | ||||||
Income
tax (credit)/expense
|
422 | 352 | ||||||
Financial
expenses, net
|
37 | 22 | ||||||
Pre-tax
restructuring and impairment
|
81 | (43 | ) | |||||
Depreciation,
amortization and other impairment
|
217 | 193 | ||||||
EBITDA
excluding restructuring
|
2282 | 1749 |
1st
Half 2008
|
1st
Half 2007
|
|||||||||||||||||||||||
Crop
Protection
$m
|
Seeds
$m
|
Business
Dev.
$m
|
Crop
Protection
$m
|
Seeds
$m
|
Business
Dev.
$m
|
|||||||||||||||||||
Operating
income(2)
|
1849 | 229 | (34 | ) | 1347 | 172 | 22 | |||||||||||||||||
Income/(loss)
from associates and joint ventures
|
- | - | - | - | - | - | ||||||||||||||||||
Depreciation,
amortization and other impairment
|
170 | 43 | 4 | 159 | 30 | 4 | ||||||||||||||||||
EBITDA(2)
|
2019
|
272 | (30 | ) | 1506 | 202 | 26 |
(1)
|
Excluding
restructuring and impairment see Note 4 on page
17.
|
(2)
|
Including
inter-segment, for details see Appendix G on page
22.
|
2008
$m
|
2007
$m
|
|||||||
Opening
balance at January 1
|
1385 | 1153 | ||||||
Acquisitions
and other non-cash items
|
28 | 9 | ||||||
Foreign
exchange effect on net debt
|
(8 | ) | 8 | |||||
Purchase/(sale)
of treasury shares
|
388 | 358 | ||||||
Dividends
paid to group shareholders
|
450 | 128 | ||||||
Dividends
paid to minorities
|
2 | 2 | ||||||
Free
cash flow
|
(240 | ) | (306 | ) | ||||
Closing
balance as at June 30
|
2005
|
1352 | ||||||
Constituents
of closing balance;
|
||||||||
Cash
and cash equivalents
|
(822 | ) | (380 | ) | ||||
Marketable
securities(1)
|
(65 | ) | (101 | ) | ||||
Current
financial debts
|
790 | 271 | ||||||
Non-current
financial debts
|
2325 | 1583 | ||||||
Financing-related
derivatives(2)
|
(223 | ) | (21 | ) | ||||
Closing
balance as at June 30
|
2005
|
1352 |
(1)
|
Long-term
marketable securities are included in other financial
assets.
|
(2)
|
Included
within other non-current financial assets and other non-current
liabilities.
|
2008
$m
|
2007
$m
|
|||||||
Net
debt
|
2005
|
1352 | ||||||
Shareholders’
equity
|
6950 | 6287 | ||||||
Debt/Equity
gearing ratio (%)
|
29 | % | 21 | % |
2008
$m
|
2007
$m
|
|||||||
Inventories
|
2595 |
2062
|
||||||
Trade
accounts receivable
|
4927 | 4049 | ||||||
Trade
accounts payable
|
(2771 | ) | (2126 | ) | ||||
Net
trade working capital
|
4751 | 3985 | ||||||
Twelve-month
sales
|
10846 | 8535 | ||||||
Trade
working capital as percentage of sales (%)
|
44 | % | 47 | % |
Half
Year Segmental Results
|
Sales
|
Gross
Profit
|
Operating
income
|
EBITDA
|
||||||||||||
Crop
Protection
|
5554 | 3153 | 1849 |
2019
|
||||||||||||
Seeds
|
1739 | 795 | 229 | 272 | ||||||||||||
Business
Development
|
20 | 8 | (34 | ) | (30 | ) | ||||||||||
Total
|
7313 | 3956 |
2044
|
2261 | ||||||||||||
Inter-segment
elimination(2)
|
(18 | ) | 21 | 21 | 21 | |||||||||||
Total
3rd
party
|
7295 | 3977 |
2065
|
2282 |
(1)
|
Excluding
restructuring and impairment see Note 4 on page
17.
|
(2)
|
Crop
Protection inter-segment sales to
Seeds.
|
Third
quarter trading statement 2008
|
23
October 2008
|
Announcement
of 2008 full year results
|
05
February 2009
|
First
quarter trading statement 2009
|
15
April 2009
|
AGM
|
21
April 2009
|
Announcement
of the half year results 2009
|
23
July 2009
|
Selective
Herbicides
|
|
APIRO®
|
novel
grass weed herbicide for rice
|
AXIAL®
|
new
cereal herbicide
|
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
|
INVINSATM
|
pre-harvest
protection for multiple crops from drought stress
|
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
|
DURIVOTM
|
broad
spectrum, lower dose insecticide, controls resistant
pests
|
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
|
|
AGRISURETM
|
new
corn trait choices
|
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
|
NK®
|
global
brand for corn, oilseeds and other field crops
|
Vegetables
and Flowers
|
|
DULCINEATM
|
consumer
produce brand for value-added fruits and vegetables in North
America
|
Fischer
|
Global
premium flowers brand
|
PUREHEARTTM
|
DULCINEA™
brand for ‘personal size’ seedless watermelon
|
ROGERS®
vegetables
|
leading
brand throughout the Americas
|
S&G®
flowers
|
global
brand for seeds and young plants
|
S&G®
vegetables
|
leading
brand in Europe, Africa and Asia
|
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
|
SYNGENTA AG
|
||||||
Date:
|
July
24, 2008
|
By:
|
/s/ Christoph Mäder | |||
Name:
|
Christoph
Mäder
|
|||||
Title:
|
Head
Legal and Taxes
|