Syngenta

Sygenta
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&list=PLNXYBTYZMOmppoLWk_bCoUWSA6hIXK
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Agribusiness Industry Overview
Portfolio includes seed and grain production,
crop protection, seed care etc.
Covers the supply of agricultural inputs, the
production and transformation of agricultural
products and their distribution to final
consumers
Sector is subject to stringent regulatory controls
on consumer safety, product quality and
environmental protection

History
2
0
0
0

Formation of
Syngenta by
merger of
agribusiness
of Novartis
and
AstraZeneca
2
0
0
4

Acquisition of
Advanta BV,
one of the
worlds
leading seed
companies
from
AstraZeneca
2
0
0
7

Introduction
of Sugar beet
in India for
food and bio
fuels.
Stakes in
Sanbei,
Chinese seed
company
2
0
0
9

2
0
1
2

Ranks
among top
20
Biotechnol
ogy and
Pharmaceu
tical
employers
Announce
ment of
investment
to build a
$1 billion
business in
Africa over
10 years
Operations
Crop Protection
Products made at eight major sites in countries like USA, UK, Switzerland, China
and India
18 global facilities for production, packaging and distribution
Seeds
Produced by thousands of contract growers around the world
Working with local suppliers for individual tailored offering
PAT & Revenue
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
PAT
Revenue
Equity
4350
5056
5678
5403
5666
6022
5884
7141
7439
7494
8745
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Capital Expenditure
211
221
166
174
217
317
444
771
526
575
662
0
100
200
300
400
500
600
700
800
900
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Earnings Per Share
2.17
3.34
7.19
7.67
8.73
11.56
14.75 14.72
15.07
17.4
22.3
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
PESTLE Analysis
Food & Energy Security
Climate change
Political
Cost Of Food
Cost Of Fuel
Economic
PESTLE Analysis
Population Growth
Resource unavailability for
agriculture
Shrinking farmer population
Social
Advances in the field of
biotechnology
Biofuels technology as an
alternative to fossil fuels
Technological
PESTLE Analysis
Safety of GMO crops
Environmental Laws
Legal
Harmful soil residues left by
crop protection products
Cutting down CO2
emissions
Environmental
Industrial environment
Agri-business
Agglomeration of capital
Seeds & Chemicals
Government sanctions for genetically modified seeds
Growing interest in Biofuels
Global crop shortages have pushed up prices
Expected to grow at an annual rate 1.4% over the
next 5 years
Consumers


Industrial Environment

Commercial seed industry has undergone
tremendous consolidation in the last 40 years as
transnational corporations entered this agricultural
sector, and acquired or merged with competing firms

Commercialization of transgenic crops in the mid-
1990s, sale of seeds has become dominated globally
by Monsanto, DuPont and Syngenta

Concentration of power - Oligopoly



Industrial Environment
Industrial Environment
Capabilities & Competencies
Expertise in
biotechnology
Information on gene
mapping, hybrid and GM
seeds
R&D
Capability
Key driving factor
Provider of innovative
solutions
Global
Footprint
Exclusive
wealth of
information
protected by
patents
Competitive edge that cannot
be copied
Diversified global
operations in North
America, Latin America,
Europe, Asia and Africa
Industry value chain
Generic Strategy
Innovate
Innovation combining chemical and biological expertise
Harnessing knowledge of agriculture and understanding of growers to develop game
changing technologies
Value adding partnerships and collaborations to bring new offers to growers
Integrate
Presenting a single face to the customers
Offering integrated solutions in the field
Offerings on a global scale
Outperform
Creating value for shareholders and customers
Targeted market share gains of 0.5 % across the combined business
EBITDA margin increase of 22-24 % by 2015
CFROI in excess of 12%
Business Model
Value proposition
Grow more crops from less resources
Bring greater food security in an environmentally sustainable way to
an increasingly populous world by creating a worldwide step-change
in farm productivity
Products:
Crop protection
Fungicides, Herbicides & Insecticides
Seed care
Root health
Seeds
Field crops & Vegetables
Lawn & garden
Syngenta Flowers, FloriPro Services, Turf & Landscape, Consumer & Vector
Management



Business Model
Customer segments
Farmers
Bio-fuel industry
Nurseries

Channels
Distributors > Retailers > Growers

Customer relationships
Beyond just promotions
Targeted, integrated crop management solutions
Advice & high quality field services
Encourage growers to use our products appropriately in conjunction with sustainable
farming practices
Provide them with industry-leading training on how to dose and apply products in an
efficient and responsible way to ensure human and environmental safety

Business Model
Key activities
Marketing & promotions
R&D

Key resources
R&D talent & infrastructure
Patents
Gene pool

Key partners
Suppliers
Growers
Industry consultants



Business Model
Revenue streams
Sales
Royalties

Cost structure


55%
28%
17%
2012
Marketing &
Promotions
Research &
Development
General &
Administrative
Growth Strategy
Research &
Development
Mergers &
Acquisitions
Partnerships &
Strategic
Alliances
Build &
Acquire
Capabilities
Operational
Efficiency
Changes in the organization and
Vision
2004 Sustainable agriculture through
innovative research & technology
2005 - Providing high quality food for the worlds
growing population & improving health and the
quality of life
2007 Food, Feed & Fuel
2008 Bringing plant potential to life