Syngenta’s crop protection sales up 14.5% in 2011

Syngenta’s crop protection sales increased by 14.5% to $10,162 million in 2011. At constant exchange rates, sales increased by more than $1 billion in 2011. Volume momentum continued into the second half of the year, with broad-based growth in Latin America and a strong contribution from selective herbicides and seed care in North America. Pricing for the year was positive due to a marked improvement in the second half, when all regions showed higher prices.

Syngenta’s crop protection sales by business segment ($ million)
Business segments	2011	2010	change%
Crop Protection	10,162	8,878	+14.5
Seeds	3,185	2,805	+13.5
EBITDA1	2,905	2,505	+16.0
Total	13,268	11,641	+14.0
1 earnings before interest, tax, depreciation and amortisation.

Sales by regions

Europe, Africa and the Middle East registered strong growth across the region and notably in the emerging markets, with sales in the CIS up by more than 50 percent and good growth in south east Europe. Good performance was contributed by the success of new product launches, including AXIAL® in France and Iberia, and the expansion of CRUISER® in France and the CIS. Emerging Europe sales grew in excess of 20 percent reflecting the recovery of the CIS markets and full integration of the Dow AgroSciences portfolio.

North America saw a significantly improved performance in the second half, with volumes up by more than 20 percent and a significant increase in price. Strong demand for selective herbicides resulted in substantial volume growth driven by CALLISTO® for corn and FLEX® for soybean. AMISTAR® sales for the full year were up almost 50 percent, reflecting increased fungicide applications and expanded use for crop enhancement benefits. Sales of AVICTA® nematicide seed care almost doubled following an expansion in use on cotton and the approval for extended application on soybeans.

Latin America maintained strong volume growth and positive pricing throughout the year, driven by strong farm economics and broad product offering.

Asia Pacific has seen strong volume growth across all product lines in the region reflecting the acceleration of technology adoption in emerging Asia, where sales grew by 12 percent. Sales in China were up 11 percent reflecting the launch of DURIVO®, expanded seed care adoption rates and the success of AMISTAR®. In South East Asia continued government support to growers, high rice prices and favorable weather conditions underpinned sales growth across the territory.

Syngenta’s crop protection sales by region ($ million)
Regions	2011	2010	change%	Q4 2011	Q4 2010	change%
Europe, Africa, Mid. East	3,046	2,638	+15.5	364	434	-16.1
North America	2,406	2,185	+10.1	371	260	+42.7
Latin America	2,955	2,509	+17.8	1,224	1,040	+17.7
Asia Pacific	1,755	1,546	+13.5	393	385	+2.1
Total	10,162	8,878	+14.5	2,352	2,119	+11.0

Sales by categories

The company highlighted that its cereal herbicide AXIAL® grew significantly in Europe with new launches in France and Iberia. For corn CALLISTO®, now in the market for more than ten years, showed good growth in all regions. In Non-selective herbicides, demand for TOUCHDOWN® increased, notably in Latin America with the expansion of glyphosate-tolerant crops. Syngenta’s herbicides business posted a 13.3% growth to $3,734 miliion.

Syngenta recorded a 12.6% increase of its fungicides sales, the growth demonstrated broad cross-crop potential, with expansion on corn and soybean in North America and rice and vegetables in Asia Pacific.

Growth in Insecticides was also broad-based but driven in particular by ACTARA® on corn and soybean in Brazil and DURIVO® on multiple crops in Brazil and Asia Pacific.

Seed care sales exceeded $1 billion in 2011, up by 21.5%. The strong results reflected rapid adoption in the emerging markets and the success of CRUISER® in France.

Sales of new products, launched since 2006, increased by 50 percent to reach $619 million. Since 2006 Syngenta has launched six new products with a combined peak sales potential of over $1.5 billion. AVICTA®, a seed care nematicide, saw a sharp increase in sales as a result of new launches on corn and soybean as well as expanded use on cotton. Growth in the cereal herbicide AXIAL® was driven by its launch in France and Iberia. Sales of DURIVO®, an insecticide for vegetables and rice, surpassed $150 million and continue to expand rapidly in emerging markets. The fungicide REVUS® is forming part of our leading offers for potatoes. SEGURIS®, the cereal fungicide first launched on barley in 2010, is now expanding into wheat. VIBRANCE™, the first active ingredient to be developed specifically for seed care, was launched in Argentina and received a registration in France.

Syngenta’s crop protection sales by category ($ million)
Categories	2011	2010	change%	Q4 2011	Q4 2010	change%
Selective herbicides	2,617	2,308	+13.4	417	386	+8.0
Non-selective herbicides	1,117	987	+13.2	231	163	+41.7
Fungicides	2,998	2,662	+12.6	704	671	+4.9
Insecticides	1,790	1,475	+21.4	496	438	+13.2
Seed Care	1,018	838	+21.5	332	267	+24.3
Professional products	511	470	+8.7	136	131	+3.8
Others	111	138	-19.6	36	63	-42.9
Total	10,162	8,878	+14.5	2,352	2,119	+11.0

Seeds

Syngenta’s seeds business sales increased by 13.5% to $3,185 million in 2011. Volume grew by 9%, driven by Corn & Soybean and by Diverse Field Crops. Growth has been accompanied by a further substantial improvement in profitability as portfolio enhancement, notably in corn, has led to gross margin expansion.

Corn & Soybean sales registered double digit growth in all regions except Asia Pacific, where sales were lower owing to over-supply in South East Asia. In North America, the company increased corn market share to around 11 percent reflecting the success of our new technology. The return on the investments made to bring these technologies to market is now increasing through the realization of licensing revenue and through introductions in Latin America. Total sales of corn and soybean seed in Latin America increased by 38 percent and are now benefiting from the marketing and sales leverage arising from integration of the commercial teams.

Sales of Diverse Field Crops reflect the scale of our expansion in high value sunflower. The company saw strong growth across the EAME region, and most notably in the emerging markets. Vegetables saw some impact from the economic environment in North America and Europe but good growth continued in other regions. Flowers were also affected by the economic environment, particularly in the fourth quarter.

Outlook

Mike Mack, CEO of Syngenta, is confident about 2012: “As we enter the 2012 season, notwithstanding the current economic uncertainty, we look forward to sustained sales growth and further market share gains. The rapid integration of our commercial teams, the success of our first integrated offers in the field and the strong momentum within the Syngenta organization increase our confidence that we will outperform in an expanding market. We also expect the combined business to achieve a further advance in EBITDA margin at constant exchange rates. Strong cash flow generation is expected to continue.”