Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
Q2 2015 Interim Report PresentationCEO D. Ry Wagner
CFO John Janczak
August 6, 2015
2
Cautionary Statement on Forward-Looking Statements
Certain statements in this document constitute "forward-looking statements.'' All statements other than statements of historical facts
included in this document, including those regarding our future financial position and results, business strategy, plans and objectives of
management for future operations, including development plans and statements on industry growth are forward-looking statements.
These statements may be identified by words such as "expects," "looks forward to," "anticipates," "intends," "plans," "believes," "seeks,"
"estimates," "will," "project" or words of similar meaning.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results,
business strategy, performance or achievements, or industry results, to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous
assumptions regarding our present and future business strategies and the environment in which we will operate in the future. Factors
that could cause our actual results, performance or achievements to differ materially from those in the forward-looking statements
include, among others, changes in the political, economic or regulatory conditions in the markets in which we operate, and currency
exchange fluctuations.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future
results, levels of activity, performance or achievements.
• Q2 Sales Revenue at USD 1.3 million vs. USD 3.9 million in Q2 2014.
• Matthieu Baumgartner and Svetoslav Valkov appointed to the Board of Directors.
• Steve Sinkula, Vice President Business Development, and Dr. Michael Austin, Head of Global Agronomy, join Agrinos.
• HYT® B launched as a foliar nutrition product in the U.S., Brazil, and India.
• Milestones achieved for significantly increased yield and profitability for Umoe Bioenergy sugarcane operations in Brazil.
3
Highlights
4
Financial Review
• Q2 Recognized Sales Revenue at USD 1.3 million reflecting current business seasonality
• Total Operating Expense lower by 25% compared to Q2 2014
• EBITDA USD -4.1 vs -3.4 in Q2 2014
• Cash and Equivalents totaled USD 10.4 million
• Total number of employees increased from 141 to 147
5
Financial Summary Q2 2015
6
Q2 Sales Revenue
7
Profit and LossCondensed and Unaudited
USDl H1 2015 Q2 2015 Q1 2015 Year 2014
Sales revenue 2,507,509 1,334,192 1,173,316 6,276,419
Other operating revenue 15,471 9,708 5,763 875,118
Operating revenue 2,522,979 1,343,901 1,179,079 7,151,537
Cost of goods sold (802,595) (494,963) (307,632) (2,202,626)
Salaries and personnel costs (5,618,162) (2,397,750) (3,220,412) (11,644,854)
Depreciation and amortization (1,158,413) (586,829) (571,584) (2,625,793)
Other operating expenses (4,742,680) (2,501,455) (2,241,226) (25,730,731)
Earn-out - - - (179,687)
Total operating expenses (12,321,850) (5,980,996) (6,340,854) (42,383,691)
Operating income (9,798,871) (4,637,096) (5,161,776) (35,232,154)
Net financial income / expense (-) 1,643,112 930,042 713,070 7,589,290
Net income / loss (-) before taxes (8,155,760) (3,707,054) (4,448,706) (27,642,864)
Tax expense (88) (88) - (2,078,008)
Minority Interest. 99,820 45,748 54,072 206,995
Net income / loss (-) (8,056,027) (3,661,394) (4,394,634) (29,513,877)
• Q2 recognized sales revenue of USD 1.3m
a decrease of USD 2.6m to Q2 2014 and is
largely attibuted to the timing of the
Kingenta purchases and weather-related
sales impact in the U.S.
• Cost of goods sold of USD .49 m reflects
the sales volume
• Salaries and personnel costs lower in Q2
vs. Q1 by .82m. Primarliy driven by
redundancy costs concluded in Q1.
• Agrinos had 147 employees (FTE) at the
end of Q2 up from 141 at the end of Q1.
• EBITDA pre earn-out negative USD 4.1m
8
Balance Sheet – AssetsCondensed and Unaudited
USD 06.30.2015 03.31.2015 12.31.2014
Assets
Goodwill 3,918,513 4,174,267 6,059,319
Other intangible assets 1,954,568 1,945,745 1,450,687
Deferred Tax Asset 290,382 289,977 279,243
Total intangible assets 6,163,462 6,409,989 7,789,249
Land 63,816 65,147 67,968
Buildings 3,009,950 3,041,323 2,936,094
Improvements to leased premises 1,516,936 1,163,317 1,230,843
Vehicles 583,587 588,986 670,609
Machines, fixtures and fittings etc. 5,765,979 5,810,957 6,166,190
Accumulated depreciation (3,414,228) (3,150,273) (3,282,507)
Total tangible fixed assets 7,526,040 7,519,457 7,789,197
Investments in other shares and interests 2,316 2,556 -
Total non-current assets 13,691,819 13,932,002 15,578,446
Inventories 9,272,085 9,681,188 10,267,620
Accounts receivable 11,671,434 12,561,519 13,826,816
Other receivables 7,890,463 8,194,097 8,860,696
Total receivables 19,561,897 20,755,616 22,687,512
Bank deposits, cash etc. 10,396,094 14,176,038 20,569,843
Total current assets 39,230,075 44,612,842 53,524,975
Total assets 52,921,894 58,544,844 69,103,421
• Inventories down to USD 9.3 million
reflecting the sales for the first half of the
year.
• There has been no significant production
during the first half of the year.
• Accounts Receivable down by USD .89
million to USD 11.7 million due to stepped
up collection.
• Other receivables down USD .3 from Q1
driven by VAT collection in Mexico.
Included in this balance is USD 7.4m in VAT
the largest part is related to operations in
Mexcio.
9
Balance Sheet – Equity and LiabilitiesCondensed and Unaudited
USD 06.30.2015 03.31.2015 12.31.2014
Equity
Share capital 97,803 97,803 97,803
Premium reserve 131,176,300 131,176,300 131,176,300
Total paid in capital 131,274,103 131,274,103 131,274,103
Minority interests (566,827) (523,749) (624,390)
Accumulated P&L (117,982,816) (113,501,884) (105,056,004)
Total equity 13,291,287 17,772,219 26,218,099
Liabilities
Deferred tax - - -
Total provisions for liabilities - - -
Other non-current liabilities 15,140,527 15,064,550 15,613,433
Total non-current liabilities 15,140,527 15,064,550 15,613,433
Accounts payable 3,790,299 3,800,031 4,114,675
Current tax payable 226,286 231,383 1,154,020
Other current liabilities 21,040,322 22,200,409 22,627,584
Total current liabilities 25,056,908 26,231,823 27,896,279
Total liabilities 40,197,435 41,296,374 43,509,712
Total equity and liabilities 52,921,894 58,544,844 69,103,421
• Accounts Payable Flat to in Q2 vs. Q1.
• Other liabilities for the quarter was USD
21.0m. The main components are deferred
sales revenue, interest, and income
accures of USD 12.0m. In addition taxes
and VAT of USD 6.8m make up the
remainder.
10
Cash FlowCondensed and Unaudited
USD H1 2015 Q2 2015 Q1 2015 YE 2014
Cash flow from operating activities
Profit/Loss (-) before tax (8,155,760) (3,707,054) (4,448,706) (27,642,864)
Depreciation and amortization 1,158,413 586,829 571,584 2,625,793
Changes in inventories,receivables and payables 1,281,779 427,907 853,872 16,249,665
Changes in other accruals/currency effects (4,713,476) (816,957) (3,896,519) (11,340,568)
Net cash flow from operating activities (10,429,043) (3,509,275) (6,919,768) (20,107,974)
Cash flow from investment activities
Investments/disposals of tangible fixed assets 728,201 (346,659)
1,074,846 627,948
Changes in other investments - - - -
Net cash flow from investments activities 728,201 (346,659)
1,074,846 627,948
Cash flow from financing activities
Proceeds from borrowings( current and non-current) (472,906)
75,976 (548,883)
14,983,200
Net proceeds from issuance of shares (0)
-(0)
-
Net cash flow from financing activities (472,907)
75,976 (548,883)
14,983,200
Net change in cash and cash equivalents (10,173,749) (3,779,958) (6,393,805) (4,496,826)
Cash and cash equivalents at beginning of period 20,569,843 14,176,052 20,569,843 25,066,669
Cash and cash equivalents at end of period 10,396,094 10,396,094 14,176,038 20,569,843
• The net cash flow from operating
activities amounted to negative USD
3.5m in the quarter a significant
imporvement compared to Q1.
• The cash positon of USD 10.4m at
the end of the quarter.
11
Business Review
Agrinos growth strategy
12
Organization
Crops
Geography
Technology
In 2014, Agrinos defined a strategy to build the organizational capabilities and focus to
maximize the value of our competitive advantage and deliver long-term profitable growth.
Design and build an
organization that
enables rapid and
responsible growth in
multiple geographies
Prioritize R&D and
commercial efforts on
global crops that will
deliver the greatest
impact to our customers
and the company
Focus on countries and
regions positioned to
embrace our technology,
and where we can
exercise our competitive
advantages
Initiate significant
investments to enhance
our current technologies
and to set the stage for
the development of new
technologies
Strategic reorganization and investments
13
Q4-13
Q3-14
Q4-14
Q1-15
Q2-15
Q1-14
Q2-14
D. Ry Wagner appointed as CTO
D. Ry Wagner named CEO
Corporate Leadership, Commercial & Technical team structures defined
John Janczak joins as CFO
Global Biological Solutions R&D Center opens in Davis, CA
Global Biological Solutions R&D Center expansion to 19,000 square feet initiated
Steve Sinkula joins as VP of Global Business Development
Global strategy and reorganization launched
Established Global R&D strategy defined and team/laboratory build-out plan initiated
Manor Investments becomes a strategic investor
Global R&D Executive Leadership Team completed
Global Finance & Accounting Team established in Dallas, TX
Local production, worldwide distribution network
14
Product portfolio delivering must have attributes
15
Creates a highly productive
microbial system in the soil
Promotes absorption of nitrogen and
critical minerals to increase the level
of bioavailable nutrients to the crop
root system
A unique nutrient solution that
increases the activity of multiple
critical metabolic pathways in the
crop
Contains carbon, nitrogen, true
protein, amino acids, and essential
metabolic micronutrients
A fertility solution that increases crop
productivity and supports soil health
Contains organic, biologically-
extracted micronized chitin, amino
acids, and other crucial plant
nutrients
Stimulates root biomass formation
resulting in a more vigorous root
system
Enhances crop quality and fertility
under both favorable and stressful
growth conditions
Provides a source of time-released
nitrogen that is highly bioavailable
and complements applied nitrogen
Enhances crop tolerance to
environmental and physiological
stresses
Improves root structure to support
plant growth and productivity
Strengthens plant function to
increase tolerance to environmental
stresses
Enhances soil health to support
plant well-being
Benefits Benefits Benefits
16
Developing a world-class R&D
Located in a global center for the
development of Biological
Solutions: Davis, California
– Serves to attract and retain strong
talent to Agrinos
– Linkages to major agricultural and
biotech expertise and collaboration
opportunities with the University of
California, Davis
– Pilot fermentation capability,
microbiology, analytical
biochemistry, data analysis to
become an internal core
competency
R&D facility expanded to 19,000
sq. feet in 2015/2016
Global Biologicals Solutions Center
Highly supportive key market growth drivers and distribution partners
17
Key distribution partners
987
750
1 500
1 250
1 000
500
2 000
2 250
2 750
1 750
2 500
250
0
1 671
1 486
1 111
2015e2014
USDm
2019e
1 788
2 690
Source: Team Analysis, MicroMarket Monitor Bio-Fertilizer Market
Analysis, Biostimulant Coalition
Bio-Fertilizers
Bio-Stimulants
Biological input growth projection
Distribution Agreements Signed
2013 Security Seed & Chemical (U.S.)
DCM Shiram Consolidated (India)
2014
G.S. Long Co. (U.S.)
Helena Chemical Co. (U.S.)
Kingenta Ecological Engineering Group Co.,
Ltd. (China)
The Tremont Group (U.S.)
2015
Rallis (India)
Zuari Agri Sciences (India)
Crop Protection Services (U.S.)
Buttonwillow Warehouse Co. (U.S.)
18
Business ReviewSummary and Outlook
Outlook and Focus for FY 2015
• Focus on core business units to create strong revenue growth driven by
expansion of the distribution networks
• R&D organization to be expanded and Davis lab to be completed and fully
equipped in 2015
• Continue efforts to further strengthen the Board of Directors with focus on
expertise in agricultural technologies and markets
• Continue work on strategic partnership development throughout the year
• Initiate new production of some key products due to increased market
demand and decreasing inventory
19
Business ReviewSummary and Outlook
20
Business ReviewSummary and Outlook• Matthieu Baumgartner and Svetoslav Valkov appointed to the Board of
Directors.
• New distribution agreements signed with Rallis, in India, and ButtonWillow
Warehouse Company in the U.S. Western region.
• Three new patents applications Agrinot HYT® technology platform.
• HYT® B launched as a foliar nutrition product in the U.S. Brazil, and India.
• Milestones achieved for significantly increased yield and profitability for Umoe
Bioenergy sugarcane operations in Brazil.
• Steve Sinkula, Vice President Business Development, and Dr. Michael
Austin, Head of Global Agronomy, join Agrinos.