Nessun titolo diapositiva

1
4Q and 12 months 2004 With updating of 2005
estimates
Conference call Milan, February 11th, 2005
2
Executive summary

• Strong development of Tetraconazole sales in
  South Am. on soybean
• RD increase of costs expensed at PL (lower
  capitalisation)
• Further strengthening of Euro vs. US Dollar
  (from 1.13 to 1.24)
• Free cash flow in 2004 for 17.5 m

4Q actual 2004 vs. 2003 pro-forma
12 mesi unaudited 2004 vs. 2003 pro-forma
Revenues
28 19 EBITDA 60
34 Result before taxes 133
70 Net result
81 Net financial
debt -23 (Debt/Equity from
1.25 to 0.83)
Exclud. extraor. income as per Vietti Reform
Exclud. extraor. income as per Vietti Reform
3
Contents
Page 4 Page 16 Page 20
- 15 - 19 - 22
1. 4Q and 12 months 04 - Consolidated data 2.
2005 estimates updating ... Appendix
Vietti Reform.
4
4Q and 12 months 04 - Consolidated data
5
Isagro in 2004

• SALES OF PROPRIETARY AGROPHARMA
• Tetraconazole strong growth in Brazil on soybean
  with beginning of sales in Argentina
• Copper products 15 vs. 2003 (recovery of sales
  and launch of W.G. technology)

• RD COSTS
• Continuation of efforts for the completion of the
  4 products under development, with reduction of
  capitalisation (around 2 m)
• A new herbicide under pre-development

• EXCHANGE RATES
• Negative impact - 4.5 m at revenues level and
  - 3.3 m at EBITDA level

• OTHERS
• Re-definition of the manufacturing set-up of
  Tetraconazole (agreements with Caffaro, DuPont,
  Oxon, Solvay/Solexys), thus more than doubling
  production capacity
• Sell-out of VerdeVivo line (home garden) and
  acquisition of Bayers stake in AgriFormula (now
  100 controlled by Isagro)

6
4Q consolidated PL
Memo 4Q03 actual
million
4Q03 pro-forma
4Q04 actual
Variations
Revenues
38.2
38.2
48.8
28
EBITDA
5.5
5.3
8.4
60
on Revenues
14.4
13.7
17.2
EBIT
1.4
2.9
4.7
63
on Revenues
3.7
7.6
9.7
Net extraordinary incomes
0.5
0.3
0.5
Result bef. taxes
0.8
2.3
5.3
133
on Revenues
5.9
10.8
2.1
2003 data pro-forma as per Vietti
Reform Including effects from non
speculative hedging on Copper
7
2004 Revenues Favourable momentum
11
million
28
51
56
49
37
37
38
49
27
40
1Q
2Q
3Q
4Q
2003 revenues
2004 revenues
variations Q/Q
8
12 months consolidated PL
Memo
2004 parity of /
million
2003 actual
2004 Nov. 04 estim.
2003 pro-forma
2004 un-audited
Variations
Variations
Revenues
153.0
172.4
153.0
182.1
186.6
19
22
EBITDA
23.2
31.1
23.9
34.5
28.6
34
48
on Revenues
15.6
16.6
15.2
17.1
18.5
EBIT
10.5
18.4
15.0
19.6
30
on Revenues
6.8
10.7
9.8
10.8
Extr. incomes (excl. Vietti)
0.9
1.5
1.2
1.7
Net result

8.0
3.2
5.8
10.6
81
Excluding Vietti
on Revenues
4.6
2.1
3.8
5.8
(0.9)
(0.2)
Delta N.r. with full taxation
Extr. income per Vietti Ref.
6.7
Net result
17.3
2003 data pro-forma as per Vietti Reform
Including non speculative effects from
hedging of Copper (3.46m in 2004 and 0.68m in
2003) Fiscal rate of 20 instead of the 33 in
2003 (actual and pro-forma) and 2004 un-audited,
following the IPO operation of Nov. 2003
9
Composition of 12 months consolidated revenues
million
Rest of
Europe
Americas
19
19
118
18
46
118
2004 un-audit.
Asia
20
Italy
38
RoW
-6
18
24
4
Rest of
Europe
19
Americas
14
95
39
20
2003
95
Asia
15
Italy
47
RoW
5
Proprietary agropharma
Third parties agropharma
Other products/services
10
Differences at EBITDA level2004 un-audited vs.
2003 pro-forma
million
12.5
(2.0)
0.8
31.1
(0.1)
23.2
(3.3)
34
Others
EBITDA Dec. 31st, 2003 pro-forma
EBITDA Dec. 31st, 2004 un-audited
Labour
RD expensed
Exch. rate /
Tetraconazole
11
Consolidated balance sheet
million
Sever. ind. fund (8)
Sever. ind. fund (7)
Net fixed assets 66
Net fixed assets 64
Equity 55
Equity 64
15
short term 41
Net current assets 60
Net current assets 66
Net fin. debt 69
short term 27
- 23
Net fin. debt 53
M/L term 28
M/L term 26
2004 un-audited
2003 pro-forma
Debt/Equity 1.25
Debt/Equity 0.83
Memo - dividends paid to Shareholders 2.2m in
2003 and 1.6m in 2004 (on the basis of previous
year net results)
12
12 months free cash flow
2004 un-audited
2003 actual
million
(Increase)/decrease. net fin. debt
15.9
17.8
Net proceeds from IPO
-
(13.5)
Dividends paid to shareholders
1.6
2.2
Free cash flow
17.5
6.5
Of which, from reduction of work. capital
6.0
9.7
Net of IPO costs (2.4m)
13
12 months ratios
2003 pro-forma
2004 un-audited
ROE
16.6
10.6
ROI
16.8
12.1
Earnings per share ()
0.661
0.365
Debt/Equity
0.83
1.25
EBITDA/net financial charges
9.99
4.33
Net financial debts/EBITDA
1.70
2.96
Comm. receivables/net fin. debt
1.20
0.85
14
Dividends from 2004 net resultproposal of Board
to Shareholders Meeting
Fiscal rate at 20 (as per un-audited data)
Fiscal rate at 33
million
Net result (excluding extr. income per Vietti
Ref.)
10.6
9.5
Less Net extraordinary incomes after taxes
(1.0)
(0.4)
Net ordinary result
9.6
9.1
42
Dividends (pay-out of 40)
3.8
3.6
Dividend per share
0.24
0.23
Memo In the Business Plan, level of dividend
equal to 40-45 of net ordinary result
(0.18 per share estimated for 2004)
Following the IPO of November 2003, fiscal rate
of 20 on the result s of holding company Isagro
S.p.A. in 2003-05
15
Isagros P/E in 2003 and 2004
P/E 2004
P/E 2003
At 3 Euro per share
4,5
8,3
At 4 Euro per share
6,0
11,0
At 5 Euro per share
7,5
13,8
At 7 Euro per share
10,6
19,3
At 8 Euro per share
12,1
22,0
At 9 Euro per share
13,6
24,8
Avg. competitors
25,2
n.s.
Source Banca IMI (avg. of Basf, DuPont,
Monsanto, Recordati, Syngenta)
16
2005 estimates updating
17
Corporate structure at beginning of 2005
Isagro

96
100
51
22
50
100

Isagro Ricerca
Arterra Bioscience
Isagro Asia
Isagro BioFarming
AgriFormula
Siamer
Arysta 19 Arvesta 5 Phyteurop 15 Sipcam 10
4 Simest

99
100
100
50
100
28
95
Isagro Espana
Isagro Hellas
Isagro Italia
Isagro USA
Isagro Argentina
Isagro Brasil
Reiver
50 Sumitomo
1
5

51
100
Isam
Siapa
Isagro is also present, for local support, in
Australia, France and New Zealand with controlled
companies and in Cuba with a subsidiary
Local partners Participation acquired on
January 25th, 2005
18
Variations of assumption vs. 2005-09 Business
Plan
BASE CASE OF NOVEMBER 2004 CONFIRMED
including lower capitalisation of RD costs
plus
TAX RATE AT 20 for holding company Isagro
S.p.A., instead of 33
minus IMPACT EXCHANGE RATE / ...
from 1.25 to 1.30
plus
SALES IN U.S.A. ON SOYBEAN subject to obtaining
the relevant authorisation to sell
2005-09 ESTIMATES UNDER UPDATING
19
2005 PL estimates updating Soybean/USA prudent
estimate of market share
Nov. 04 Business Plan
million
Ires 20 versus 33
/ a 1.30 versus 1.25
Soybean/USA waiting for author.
2005E updated
Revenues
183
-
(3.0)
9-16
189-196
EBITDA
27.0
-
(1.0)
4.0-7.0
30.0-33.0
29.4
32.4-35.4
EBITDA normalised ()

Net result
7.8
1.3
(0.8)
3.0-5.3
11.3-13.6
9.3
12.8-15.1
Net result normalised ()
In case of tax rate IRES at 33, lower net
result in the range 2.8 - 3.2 million (of which
1.1m as retroactive effect for 2003-04)
(o) At parity of perimeter of capitalisation
20
Appendix Vietti Reform
21
The Vietti Reform

• Vietti Reform
• No fiscal interferences in civilistic
  representation
• Effective from January 1st, 2004

• Impact on Isagro
• Capitalised costs for the development of new
  products depreciated only after their launch on
  the market
• In 2004, part of such costs already depreciated
  in the past years to be added-back to fixed
  assets (net of relevant deferred fiscal impact)
  with an increase of same amount of Equity
• (balance through PL as extraordinary income)

22
Policy of RD capitalisation
Before Vietti Reform and IAS
After Vietti Reform and IAS
Costs for the development of new molecules
capitalised and depreciated immediately in 5
years Year by year, depreciation of capitalised
RD costs at launch, 60-80 of such costs
already depreciated
Costs for the develop. of new molecules can be
capitalised but are to be depreciated after
launch, in 10 years Progressive increase of
intangibles, with growth of civilistic profits
but with risk fully transferred to future years
ISAGROs policy focused on prudence and
responsibility
To expense costs for the develop. of further new
molecules from 2004-05, until there shall be
enough guarantees about their launch
Thus, also generating fiscal benefits
Vietti Reform effective from Jan. 1st, 2004
IAS effective from Jan. 1st, 2005
23
Contacts
For information, please contact
Ruggero Gambini Strategic Control Manager
Investor Relator tel. [phone] fax.
39.02.40901.353 email rgambini_at_isagro.it
Internet www.isagro.com
General information isagro_at_isagro.it
24
Disclaimer
Estimates, considerations, statements and
opinion, except for what referring to actuals,
are to be considered as data, estimates,
considerations, statements and opinion regarding
future, and have been elaborated and stated on
the basis of available information and/or on the
basis of those information considered the most
reliable and/or the most reasonable. Such data,
estimates, considerations, statements and opinion
could prove to be incomplete and/or wrong and
they incorporate elements of risk of uncertainty,
beyond the company control. For such reasons,
actual results may prove to differ versus Data,
estimates, considerations, statements and opinion
contained in such presentation. Such data,
estimates, considerations, statements and opinion
are not to be considered as a proposal of
investment, under any circumstances, in Isagros
shares. Any refer to Isagro products is to be
considered exclusively as general information
about the group activity and is not to be
intended, under any circumstances, as invitation
to employ or propose the employment of such
products.