FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934


For the month of February 2009

Commission File Number: 001-15152


SYNGENTA AG
(Translation of registrant’s name into English)

Schwarzwaldallee 215
4058 Basel
Switzerland
(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F
X
 
Form 40-F
 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes
   
No
X

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes
   
No
X

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes
   
No
X

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
 


 

 
Re:                      SYNGENTA AG
Press Release: "Full Year Results 2008”

Herewith we furnish a press release related to Syngenta AG. The full text of the press release is the following:
# # #


 
 
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
 

 
Basel, Switzerland, February 6, 2009
 
Full Year Results 2008
 
Record sales and earnings growth, winning technology offer
 
·  
Sales $11.6 billion up 21 percent at constant exchange rates
 
·  
Crop Protection sales up 22 percent(1) at $9.2 billion
 
·  
Seeds sales up 16 percent(1) to $2.4 billion
 
·  
Earnings per share(2) up 42 percent to $16.26
 
·  
Earnings per share $14.63 after restructuring and impairment
 
·  
Free cash flow $761 million
 
·  
Proposed dividend increase: up 25 percent to CHF 6.00
 
 
Reported Financial Highlights
 
Excluding Restructuring, Impairment
 
 2008
$m
2007
$m
Actual
%
 
2008
$m
2007
$m
Actual
%
CER(1)
%
Sales
11624
9240
+26
 
11624
9240
+26
+21
Net Income(3)
1385
1109
+25
 
1540
1112
+38
-
Earnings per share
$14.63
$11.42
+28
 
$16.26
$11.45
+42
-
Excluding 2007 non-recurring income
 
$16.26
$11.06
+47
-
 
Mike Mack, Chief Executive Officer, said:
 
“2008 was an extraordinary year for agriculture in which acreage expanded and technology adoption accelerated.  Growers worldwide increased usage intensity for crop protection and planted higher value seeds, resulting in excellent crop yields globally.  Syngenta was able to take full advantage of the favorable market environment thanks to the breadth of our portfolio and our global presence.  We achieved particularly strong growth in emerging markets, which now account for over a third of our sales.  Growth in food and feed demand is centered in these countries and underlies their ongoing drive to realize yield potential.
 
“Sales growth was broad-based and was accompanied by higher profitability, despite substantial growth investments which will ensure the further expansion of our business.  In Seeds, we successfully launched our proprietary triple stack in the USA and demonstrated the broad scope of our traits and germplasm globally.  In Crop Protection, we gained market share for the fourth consecutive year.  New products launched since 2006 showed dynamic growth and we added major projects to our strong pipeline.  The potential of existing products was exemplified by AMISTAR®, with sales now in excess of $1 billion, and by ACTARA®/CRUISER®.  We commenced a major capacity expansion program to enable us to realize this potential.  At the same time we returned over $1 billion to shareholders while retaining the financial flexibility to make several acquisitions in strategic areas.”
 

(1)  
Growth at constant exchange rates, see Appendix A.
(2)  
EPS on a fully-diluted basis, excluding restructuring and impairment.
(3)  
Net income to shareholders of Syngenta AG.
 
 
 
Syngenta-February 6, 2009/Page 1 of 32

 
 
Financial Performance 2008
 
Sales up 26 percent
Sales at constant exchange rates (CER) increased by 21 percent, with growth across all product lines and regions.  Volume growth of 15 percent was supplemented by a six percent contribution from price.  Crop Protection sales* rose by 22 percent (CER) and Seeds sales by 16 percent (CER).
 
EBITDA margin 21.5 percent
EBITDA increased by 22 percent (CER) to $2.5 billion primarily reflecting the growth in volume.  Price increases and operational efficiency savings more than offset higher raw material costs and are enabling the company to continue investing in growth.
 
Currency movements
The impact of currencies on reported sales was positive in the first half of the year and neutral in the second half reflecting the appreciation of the dollar towards the end of the year, notably against emerging market currencies.  For the full year, currencies had a positive impact of $164 million on EBITDA.
 
Earnings per share up 28 percent
Excluding restructuring and impairment, earnings per share rose 42 percent to $16.26.  On the same basis and excluding non-recurring income in 2007, earnings per share rose by 47 percent.  The increase was driven by higher operating income and a lower tax rate.  After charges for restructuring and impairment, earnings per share were $14.63 (2007: $11.42, including non-recurring income).
 
Business Highlights
 
Crop Protection: outperformance
2008 was a year in which greater usage intensity of Crop Protection products brought increased realization of the benefits they bring.  These benefits go beyond pest control and deliver improved crop yield and vigor.  Syngenta’s modern portfolio has the breadth needed to offer full programs and solutions to growers enabling them to improve yield and therefore profitability.  The value of our products to growers allowed us to achieve a price increase of six percent in 2008.
 
In Europe, higher crop prices and the elimination of the EU set-aside requirement resulted in increased acreage in Western Europe.  Strong demand for cereals favored the development of the fungicide market in particular.  Sales of AMISTAR®, BRAVO® and our leading triazole ALTO® all rose by over 30 percent, illustrating the importance of a broad portfolio in the treatment of disease, where resistance means that single compounds are often ineffective.  In Eastern Europe growth across all product lines reflected the ongoing modernization of agriculture and the strengthening of our market-leading position, a result of our long-standing presence in the region and of recent investments in the product range and in marketing.  In NAFTA we played a key role in the development of the US corn fungicide market with our combination product QUILT®, while in Seed Care, CRUISER® continued to prove its efficacy on both corn and soybean.  We also benefited from significant volume and price gains in the glyphosate market, where our TOUCHDOWN® range was further differentiated through the introduction of HALEX®.  Latin America had a record year despite a deterioration of economic conditions in the second half.  In Asia Pacific, growth was particularly strong in the emerging markets with a focus on the key crops of rice and vegetables.
 
 

*   Crop Protection sales include $73 million of inter-segment sales.
 
Syngenta-February 6, 2009/Page 2 of 32


 
Sales growth was strong across the range.  For the first time Fungicides were our largest product line, led by AMISTAR® for which sales reached $1 billion.  An exceptional performance in Non-selective herbicides reflected a buoyant glyphosate market in which TOUCHDOWN® gained market share thanks to the success of the TOUCHDOWN® brand ladder and to the launch of HALEX®.  ACTARA® and CRUISER®, based on the same active ingredient thiamethoxam, drove growth in Insecticides and Seed Care respectively.  Growth in Professional Products was led by growing media sales from Fafard.
 
Seed Care sales were driven by a technology shift and market share gain: we market our seed treatments to major seed companies and in 2008 announced a multi-year agreement to sell CRUISER® to Pioneer Hi-Bred for use on their corn seed products in NAFTA.  We are expanding the scope of our technology with the planned launch of AVICTA® on corn and the announcement of Plene™, a new technology which will dramatically improve the cost efficiency of sugar cane planting in Brazil.  In December we announced an R&D agreement with Dow AgroSciences to evaluate Dow compounds for incorporation into our Seed Care portfolio.
 
New products: Sales of new products (defined as those launched since 2006) totaled $263 million.  The largest contribution came from the cereal herbicide AXIAL®, which was well positioned to gain share in a buoyant cereals market.   The fungicide REVUS®, used on vegetables, vines and potatoes, expanded rapidly with registrations in over 50 countries planned.  The insecticide DURIVO® was launched on rice in Indonesia and was an immediate success.  In Seed Care AVICTA® sales were lower owing to reduced US cotton acres.
 
R&D pipeline: The combined peak sales potential of our Crop Protection pipeline is in excess of $2 billion.  We have several products in late development including 520, a broad spectrum cereal fungicide, which made significant advances during the year and is now scheduled for launch in 2010; 524, a seed treatment fungicide; and 449, a new herbicide for corn and sugar cane.  We signed a strategic alliance with Rohm & Haas to develop and commercialize INVINSA™ technology as a unique product for crop stress protection in field crops.  We will also prepare regulatory studies jointly with DuPont for DuPont’s Cyazypyr™, a new broad spectrum insecticide with significant potential for combination with our own products.
 
EBITDA increased by 28 percent (CER) to $2.5 billion with a record margin of 26.6 percent (2007: 25.0 percent).  Substantial volume growth and price increases more than offset a $68 million impact from higher raw material costs, while allowing significant investment in growth opportunities.
 
Seeds: broad-based growth
In 2008 our diversified Seeds portfolio was well placed to respond to the global shifts in crop acreages.  We also benefited from the scale of our presence in emerging markets, where the trend in favor of high value seeds is a key milestone in the modernization of farming practice.
 
Corn & Soybean:  In the USA, where GM penetration continued to expand, our proprietary triple stack seed AGRISURE® 3000 GT was successfully launched in limited quantities.  Availability will increase rapidly and further advances in portfolio quality will be achieved through combination of the traits with elite germplasm.  In soybean, where Syngenta already has a full traited offer, quality of germplasm plays a key differentiating role and allowed us again to gain market share.  With lower US corn acres, growers outside the USA responded by increasing corn plantings.  This gave rise to new opportunities with a broadening of our hybrid maturity profile in Europe and the expansion of our traited offer in Latin America.  In Brazil, approval of our Bt11 trait was confirmed in May, enabling us to introduce the trait for the 2008/2009 season.  Approval for GA21 herbicide tolerance later in the year opens up future potential for double-stack products.  Brazilian soybean sales progressed rapidly with excellent acceptance of the early maturity V-Max variety.  In Argentina, the acquisition of
 
Syngenta-February 6, 2009/Page 3 of 32

 
SPS Argentina SA will complement our existing strong corn position while giving us a platform for the launch of soybean technology.
 
Diverse Field Crops:  Sunflower sales expanded rapidly, notably in Eastern Europe, where growing demand for healthy eating oils has fuelled acreage expansion and a move away from open pollination towards higher quality hybrids.  We strengthened our position in oilseed rape and doubled our market share in US sugar beet following the launch of our glyphosate-tolerant variety.
 
Vegetables & Flowers:  In Vegetables we successfully integrated Zeraim Gedera which strengthened our focus on high value crops and our presence in the Mediterranean region.  Flowers growth reflected the acquisition of Fischer which has reinforced our world leading position.   In the fourth quarter we completed two more acquisitions which further expand our genetic pool: industry-leading breeder and producer Goldsmith Seeds Inc., and the chrysanthemum and aster business of US flowers producer Yoder Brothers Inc.
 
R&D pipeline:  We have a promising pipeline of traits in both corn and soybean, which focuses on delivering improved solutions for growers throughout the Americas. These include drought tolerance, nitrogen efficiency and corn amylase, an enzyme which improves the productivity of ethanol plants. In December we received EPA approval for the first of our corn pipeline traits, AGRISURE VIPTERA™ (VIP broad lep). The value of our technology is increasingly recognized externally as demonstrated by the licensing of dicamba-enabling technology to Monsanto and of VIP broad lep to Pioneer Hi-Bred.  Among our many Vegetable projects are complex native traits to protect sweet peppers from sucking insects, developed through a joint approach by entomologists in India and Switzerland.
 
EBITDA of $135 million (2007: $98 million) was driven by volume growth and an improvement in gross margin, partly offset by increased investment in R&D and marketing.  The EBITDA margin improved to 5.5 percent and is on track to reach the target of 15 percent in 2011, driven by the development of a fully traited offer in corn and growth in high margin businesses such as Vegetables.
 
Net financial expense
Net financial expense increased to $169 million (2007: $42 million) due to a negative impact from currencies, which in 2007 were favorable.  The company’s ongoing financial strength is demonstrated by interest cover (EBITDA/net interest) of 16.7x.
 
Taxation
The favorable resolution of several statutory tax audits resulted in an underlying tax rate for the period of 19 percent (2007: 24 percent).  A tax rate in the low to mid-twenties is expected over the medium term.
 
Cash flow
Free cash flow was $761 million.  Average trade working capital as a percentage of sales was 37 percent (2007: 39 percent) primarily reflecting good receivables collection.  Fixed capital expenditure of $444 million (2007: $317 million) was higher as investment in both Seeds and Crop Protection was increased.
 
Capacity expansion
In July, Syngenta announced a phased capacity expansion program with an expected total investment of $600 million over the three years 2008-2010.  The main products concerned are the fungicide azoxystrobin (AMISTAR®) and the insecticide thiamethoxam (ACTARA/CRUISER®).  Expenditure under the program in 2008 was $40 million.
 
Syngenta-February 6, 2009/Page 4 of 32

 
Cash return to shareholders
A dividend of CHF 4.80 per share (2007: CHF 3.80) was paid in April representing a total payout of $450 million.  In addition Syngenta repurchased 2.3 million shares, bringing the total cash return for the year to $1042 million.  The cumulative cash return over the last five years is $3.7 billion.
 
A significant increase in the dividend for 2008 to CHF 6.00 per share will be submitted for shareholder approval at the AGM on 21 April 2009.
 
Outlook
 
Mike Mack, Chief Executive Officer, said:
“In 2008, buoyant agricultural markets demonstrated the central role of technology in an ongoing drive to raise yields.  Syngenta capitalized on the favorable environment, reinforcing our global leadership position.  In 2009, adverse currency effects and the need for tight risk management may limit growth in the emerging markets. Early signs for the northern hemisphere season are encouraging and we are well placed again to outperform the overall market, enabling us to continue targeting growth in earnings per share in 2009 despite economic uncertainty.  We remain confident in the strong fundamentals for agriculture and the outlook for our business, as demonstrated by the continuation of growth investments, our capacity expansion program and the significant dividend increase announced today.”
 
 
Syngenta-February 6, 2009/Page 5 of 32

 
Crop Protection
 
For a definition of constant exchange rates, see Appendix A.

 
Full Year
Growth
 
4th Quarter
Growth
Product line
2008
$m
2007
$m
Actual
%
CER
%
 
2008
$m
2007
$m
Actual
%
CER
%
Selective Herbicides
2412
2019
+19
+14
 
349
310
+13
+20
Non-Selective Herbicides
1329
902
+47
+43
 
228
191
+20
+23
Fungicides
2620
2004
+31
+25
 
517
449
+15
+20
Insecticides
1423
1205
+18
+15
 
334
269
+24
+27
Seed Care
830
604
+37
+33
 
208
152
+37
+42
Professional Products
527
475
+11
+ 8
 
140
127
+10
+11
Others
90
76
+20
+19
 
26
48
-45
-44
Total
9231
7285
+27
+22
 
1802
1546
+17
+21
 
Selective Herbicides:  major brands AXIAL®, CALLISTO® family, DUAL®/BICEP® MAGNUM,  FUSILADE®MAX and TOPIK®.
 
AXIAL®, our new cereal herbicide, grew rapidly in an expanding cereals market with launches in key European countries and further expansion in NAFTA and Western Europe.  The CALLISTO® family of products saw double digit growth with a continuation of its successful roll-out outside the USA.  Soybean herbicides staged a resurgence in sales as a result of acreage growth in Latin America and glyphosate-resistance issues in the USA.
 
Non-selective Herbicides:  major brands GRAMOXONE® and TOUCHDOWN®
 
TOUCHDOWN® sales increased significantly driven by growth in key markets including the USA, Brazil, Argentina and Canada where glyphosate-tolerant acres continued to expand.  Sales also benefited from a favorable pricing environment which offset higher sourcing costs.  GRAMOXONE® continued to prove its effectiveness in rapid weed burn-down and also benefited from the tightness of glyphosate supply.
 
Fungicides:  major brands ALTO®, AMISTAR®, BRAVO®, REVUS®, RIDOMIL GOLD®, SCORE®, TILT® and UNIX®.
 
In 2008, we strengthened our world leading position in fungicides in a market characterized by increased usage intensity and growers’ focus on plant performance.  Growth in AMISTAR® reflected the success of a variety of combination products used across crops.  AMISTAR® is now sold on 120 crops in 100 countries and has proven a yield-boosting effect in addition to excellent disease control.  In the USA, fungicide use on corn and wheat grew rapidly, with QUILT® establishing a leadership position in an expanding corn fungicide market.  In Latin America, fungicide growth was broad based across the region with PRIORI Xtra® now the leading product in Brazil for the prevention and treatment of soybean rust.
 
Syngenta-February 6, 2009/Page 6 of 32

 
Insecticides: major brands ACTARA®, DURIVO®, FORCE®, KARATE®, PROCLAIM®, VERTIMEC®
 
ACTARA® continued to grow strongly notably in Latin America.  Sales of KARATE® showed strong growth particularly in the USA, where they benefited from a major outbreak of soybean aphids and from new opportunities for mixtures with fungicides.  The successful launch of DURIVO® in Indonesia marks a significant step in the strengthening of our rice portfolio. Growth of FORCE® in Europe due to the spread of corn rootworm more than offset a reduction of sales in NAFTA.
 
Seed Care: major brands AVICTA®, CRUISER®, DIVIDEND®, MAXIM®
 
In Seed Care, sales increased by one third.  The global expansion of CRUISER® led to strong growth in all regions as growers recognized its unique vigor effect in multiple crops.  CRUISER® also benefited from higher soybean acres in the USA and a registration in France.
 
Professional Products: major brands FAFARD®, HERITAGE®, ICON®
 
Turf and Ornamentals saw strong sales of growing media by Fafard, growth of HERITAGE® in Asia Pacific and the introduction of new products in Latin America.  Home Care strengthened its performance in vector control and materials protection.
 
 
Full Year
Growth
 
4th Quarter
Growth
Crop Protection
by region
2008
$m
2007
$m
Actual
%
CER
%
 
2008
$m
2007
$m
Actual
%
CER
%
Europe, Africa, Mid. East
3214
2545
+26
+16
 
401
423
- 5
+5
NAFTA
2693
2238
+20
+18
 
338
303
+11
+14
Latin America
2037
1423
+43
+43
 
824
561
+47
+47
Asia Pacific
1287
1079
+19
+17
 
239
259
- 8
-
Total
9231
7285
+27
+22
 
1802
1546
+17
+21
 
Europe, Africa and the Middle East: Growers in both Western and Eastern Europe significantly increased their use of technology in order to raise yields with strong commodity prices in the first half of 2008 driving cereal and corn acreage.  Rapid growth in Eastern Europe - notably in Russia, Ukraine and Kazakhstan – reflected ongoing expansion of the product range and an extension of Syngenta’s leading market position.
 
NAFTA experienced strong sales growth reflecting the expansion of the fungicide market for corn and wheat, strong growth in TOUCHDOWN® and the continuing expansion of Seed Care.  AXIAL® achieved excellent penetration in an expanded wheat market.
 
In Latin America, strong sales growth was driven by acreage expansion and the breadth of our product range.  Growers increased their investment in both corn and soybean in Brazil and Argentina.  While economic conditions deteriorated in the second half, growers continued to invest in crops and sales also benefited from more favorable pricing.
 
In Asia Pacific, sales growth came primarily from emerging markets including India, China, Indonesia and Vietnam with growers investing in key crops including rice and vegetables.  Improved weather conditions and product launches in Australia resulted in a significant increase in sales.
 
Syngenta-February 6, 2009/Page 7 of 32

 
Seeds
 
For a definition of constant exchange rates, see Appendix A.
 
 
Full Year
Growth
 
4th Quarter
Growth
Product line
2008
$m
2007
$m
Actual
%
CER
%
 
2008
$m
2007
$m
Actual
%
CER
%
Corn & Soybean
1040
893
+16
+13
 
82
99
-17
-15
Diverse Field Crops
462
351
+32
+23
 
42
50
-15
- 2
Vegetables & Flowers
940
774
+21
+16
 
162
168
- 5
+2
Total
2442
2018
+21
+16
 
286
317
-10
- 4
 
Corn & Soybean: major brands AGRISURE®, GARST®, GOLDEN HARVEST®, NK®
 
In the USA, sales of NK® soybean benefited from an acreage shift in favor of soybean and from a further market share gain reflecting yield outperformance.  In corn, our proprietary triple stack product under the AGRISURE® brand was successfully launched and incorporation of these traits into our elite germplasm is accelerating.  Sales of corn in Europe expanded rapidly, with increased acreage and a broadening of our portfolio across maturities.  In Latin America, sales increased significantly in buoyant corn and soybean markets, as customers responded positively to new combinations of GM technology and top germplasm.
 
Diverse Field Crops:  major brands NK® oilseeds, HILLESHÖG® sugar beet
 
Diverse Field Crops showed strong growth reflecting our leading position in sunflower and increased presence in winter oilseed rape.  Eastern European growers in particular are responding to growing demand for healthy oils and have expanded acreage while adopting improved varieties.  Sugar beet sales increased with the launch of glyphosate-tolerant varieties in the USA leading to a substantial gain in market share.
 
Vegetables & Flowers: major brands, Vegetables DULCINEA®,ROGERS®, S&G®, Zeraim Gedera;  major brands, Flowers Fischer, Goldsmith, S&G®, Yoder
 
Strong growth in Vegetables across all regions was supplemented by the consolidation of Zeraim Gedera.  Our strong developed market presence is being enhanced by a leadership position in the rapidly growing Latin American market and by increased market penetration in Asia Pacific.  In Flowers the main driver was the full year consolidation of Fischer acquired in 2007.
 
 
Full Year
Growth
 
4th Quarter
Growth
Seeds by region
2008
$m
2007
$m
Actual
%
CER
%
 
2008
$m
2007
$m
Actual
%
CER
%
Europe, Africa, Mid. East
1077
818
+32
+20
 
93
112
-17
- 7
NAFTA
979
916
+ 7
+ 6
 
107
131
-19
-18
Latin America
216
146
+48
+48
 
43
34
+24
+25
Asia Pacific
170
138
+23
+24
 
43
40
+ 7
+25
Total
2442
2018
+21
+16
 
286
317
-10
- 4
 

Syngenta-February 6, 2009/Page 8 of 32

 
Announcements and Meetings
 
First quarter trading statement 2009
15 April 2009
AGM
21 April 2009
Announcement of the half year results 2009
24 July 2009
 
Syngenta is one of the world's leading companies with more than 24,000 employees in over 90 countries dedicated to our purpose: Bringing plant potential to life.  Through world-class science, global reach and commitment to our customers we help to increase crop productivity, protect the environment and improve health and quality of life.  For more information about us please go to www.syngenta.com.
 
 

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.
 
Syngenta-February 6, 2009/Page 9 of 32


Condensed Consolidated Financial Statements
 
The following condensed consolidated financial statements and notes thereto, which do not themselves contain all of the information required by IFRS for a full set of financial statements, are based on and are consistent with Syngenta’s consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) as described in Note 1.
 
Condensed Consolidated Income Statement
 
For the year ended December 31
($m, except share and per share amounts)
 
2008
   
2007
 
Sales
    11624       9240  
Cost of goods sold
    (5713 )     (4669 )
Gross profit
    5911       4571  
Marketing and distribution
    (2039 )     (1638 )
Research and development
    (969 )     (830 )
General and administrative
    (849 )     (604 )
Restructuring and impairment
    (196 )     (35 )
Restructuring and impairment, excluding divestment gains
    (198 )     (156 )
Divestment gains
    2       121  
Operating income
    1858       1464  
Income/(loss) from associates and joint ventures
    3       (3 )
Financial expenses, net
    (169 )     (42 )
Income before taxes
    1692       1419  
Income tax expense
    (307 )     (308 )
Net income
    1385       1111  
Attributable to:
               
- Minority interests
    -       2  
- Syngenta AG shareholders
    1385       1109  
Earnings per share
               
- Basic
    $14.75       $11.56  
- Diluted
    $14.63       $11.42  
Weighted average number of shares
               
- Basic
    93,916,415       95,973,958  
- Diluted
    94,696,762       97,143,368  
 
Syngenta-February 6, 2009/Page 10 of 32

 
Condensed Consolidated Balance Sheet
 
$m
 
31 December
2008
   
31 December
2007 (reclassified (1)
 
Assets
           
Current assets
           
Cash and cash equivalents
    803       503  
Trade receivables, net
    2311       2386  
Other accounts receivable
    479       516  
Inventories
    3456       2647  
Financial and other current assets
    571       432  
Total current assets
    7620       6484  
Non-current assets
               
Property, plant and equipment
    2188       2138  
Intangible assets
    3083       2790  
Deferred tax assets
    514       639  
Financial and other non-current assets
    1179       1229  
Total non-current assets
    6964       6796  
Total assets
    14584       13280  
 
Liabilities and equity
               
Current liabilities
               
Trade accounts payable
    (2240 )     (1895 )
Current financial debts
    (211 )     (399 )
Income taxes payable
    (322 )     (512 )
Other current liabilities
    (1291 )     (849 )
Provisions
    (170 )     (223 )
Total current liabilities
    (4234 )     (3878 )
Non-current liabilities
               
Non-current financial debts and other non-current liabilities
    (2869 )     (1773 )
Deferred tax liabilities
    (659 )     (622 )
Provisions
    (921 )     (966 )
Total non-current liabilities
    (4449 )     (3361 )
Total liabilities
    (8683 )     (7239 )
Shareholders’ equity
    (5884 )     (6022 )
Minority interests
    (17 )     (19 )
Total equity
    (5901 )     (6041 )
Total liabilities and equity
    (14584 )     (13280 )
 
(1)  
Derivative financial assets and liabilities have been reclassified in accordance with maturity date, see Note 2 on page 15.  Certain balance sheet line items have been combined, both within the current assets section and non-current assets section, in order to improve the clarity of presentation
 
Syngenta-February 6, 2009/Page 11 of 32

 
Condensed Consolidated Cash Flow Statement
 
For the year ended December 31 ($m)
 
2008
   
2007
 
Income before taxes
    1692       1419  
Reversal of non-cash items
    973       725  
Cash (paid)/received in respect of:
               
Interest and other financial receipts
    199       98  
Interest and other financial payments
    (150 )     (253 )
Income taxes
    (283 )     (192 )
Restructuring costs
    (140 )     (214 )
Contributions to pension plans, excluding restructuring costs
    (113 )     (124 )
Other provisions
    (108 )     (99 )
Cash flow before working capital changes
 
2070
      1360  
Change in net current assets:
               
Change in inventories
    (982 )     (146 )
Change in trade and other accounts receivable and other net current assets
    (291 )     (317 )
Change in trade and other accounts payable
    669       271  
Cash flow from operating activities
    1466       1168  
Additions to property, plant and equipment
    (444 )     (317 )
Proceeds from disposals of property, plant and equipment
    29       193  
Purchases of intangible assets
    (118 )     (53 )
Purchases of investments in associates and other financial assets
    (70 )     (43 )
Proceeds from disposals of intangible and financial assets
    42       26  
Net cash flow from (purchase)/disposal of marketable securities
    97       (2 )
Acquisitions and divestments
    (144 )     (172 )
Cash flow used for investing activities
    (608 )     (368 )
Increases in third party interest-bearing debt
    986       298  
Repayments of third party interest-bearing debt
    (378 )     (116 )
(Purchase)/sale of treasury shares and options over own shares
    (613 )     (662 )
Distributions paid to shareholders
    (452 )     (301 )
Cash flow used for financing activities
    (457 )     (781 )
Net effect of currency translation on cash and cash equivalents
    (101 )     39  
Net change in cash and cash equivalents
    300       58  
Cash and cash equivalents at the beginning of the year
    503       445  
Cash and cash equivalents at the end of the year
    803       503  
 
Syngenta-February 6, 2009/Page 12 of 32


 
Condensed Consolidated Statement of Changes in Shareholders’ Equity
 
 
Attributable to Syngenta AG shareholders
   
$m
Par value of
ordinary
shares
Additional
paid-in
capital
Treasury
shares,
at cost
Fair
value
reserves
Cumulative
translation
adjustment
Retained
earnings
Total
share-
holders’
equity
Minority interest
Total
equity
January 1, 2007
142
3834
(784)
(6)
334
2146
5666
28
5694
Profit for the period
         
1109
1109
2
1111
Gains/(losses) recognized directly
in equity on:
                 
Available-for-sale financial assets
     
(47)
   
(47)
 
(47)
Derivatives designated as hedges
     
(108)
   
(108)
 
(108)
Income taxes on gains/(losses) recognized directly in equity
     
7
 
64
71
 
71
Currency translation effects
       
252
 
252
3
255
Total recognized gains/(losses)
-
-
-
(148)
252
1173
1277
5
1282
Share based compensation
   
53
   
55
108
 
108
Distributions to shareholders
(131)
7
   
(47)
(128)
(299)
(2)
(301)
Share repurchases
   
(728)
     
(728)
 
(728)
Cancellation of treasury shares
(5)
(121)
629
 
(7)
(496)
-
 
-
Other
         
(2)
(2)
(12)
(14)
December 31, 2007
6
3720
(830)
(154)
532
2748
6022
19
6041
Profit for the period
         
1385
1385
 
1385
Gains/(losses) recognized directly in equity on:
                 
Available-for-sale financial assets
     
9
   
9
 
9
Derivatives designated as hedges
     
(34)
   
(34)
 
(34)
Income taxes on gains/(losses) recognized directly in equity
     
(34)
 
8
(26)
 
(26)
Currency translation effects
       
(444)
 
(444)
1
(443)
Total recognized gains/(losses)
     
(59)
(444)
1393
890
1
891
Share based compensation
   
41
   
79
120
 
120
Distributions to shareholders
         
(450)
(450)
(2)
(452)
Share repurchases
   
(683)
     
(683)
 
(683)
Cancellation of treasury shares
 
(143)
727
 
6
(590)
-
 
-
Income taxes on share based compensation
         
(19)
(19)
 
(19)
Other
         
4
4
(1)
3
December 31, 2008
6
3577
(745)
(213)
94
3165
5884
17
5901
 
Syngenta-February 6, 2009/Page 13 of 32

 
Segmental Information
 
2008 ($m)
 
Crop
Protection
   
Seeds
   
Business Development
   
Unallocated
   
Total
 
Total segment sales
    9231       2442       24             11697  
Less sales to other segments
    (73 )                       (73 )
Third party segment sales
    9158       2442       24             11624  
Cost of goods sold
    (4352 )     (1331 )     (18 )     (12 )     (5713 )
Gross profit
    4806       1111       6       (12 )     5911  
Marketing and distribution
    (1474 )     (555 )     (10 )           (2039 )
Research and development
    (556 )     (343 )     (70 )           (969 )
General and administrative
    (655 )     (173 )     (21 )           (849 )
Restructuring and impairment
    (83 )     (76 )     (37 )           (196 )
Operating income/(loss) continuing operations
 
2038
      (36 )     (132 )     (12 )     1858  

 
2007 ($m)
 
Crop Protection
   
Seeds
   
Business Development
   
Unallocated
   
Total
 
Total segment sales
    7285    
2018
      5             9308  
Less sales to other segments
    (68 )                       (68 )
Third party segment sales
    7217    
2018
      5             9240  
Cost of goods sold
    (3537 )     (1123 )     (6 )     (3 )     (4669 )
Gross profit
    3680       895       (1 )     (3 )     4571  
Marketing and distribution
    (1167 )     (465 )     (6 )           (1638 )
Research and development
    (496 )     (283 )     (51 )           (830 )
General and administrative
    (516 )     (125 )     37             (604 )
Restructuring and impairment
    1       (38 )     2             (35 )
Operating income/(loss) - continuing operations
    1502       (16 )     (19 )     (3 )     1464  
 
Notes to Condensed Consolidated Financial Statements
 
Note 1: Basis of Preparation
 
Nature of operations:  Syngenta AG (‘Syngenta’) is a world leading crop protection and seeds business engaged in the discovery, development, manufacture and marketing of a range of agricultural products designed to improve crop yields and food quality.
 
Basis of presentation and accounting policies:  The condensed consolidated financial statements for the year ended December 31, 2008 are based on and are consistent with Syngenta’s consolidated financial statements.  Syngenta’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and, except as described in Note 2 below, with the accounting policies set out in the Syngenta Financial Report 2007.
 
The consolidated financial statements are presented in United States dollars ($) as this is the major currency in which revenues are denominated.
 
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimated.
 
Syngenta-February 6, 2009/Page 14 of 32

 
 
Notes to Condensed Consolidated Financial Statements (continued)
 
Note 2: Changes in Accounting Policies
 
There were no changes to accounting policies in 2008 which had an effect on these condensed consolidated financial statements, except for the following reclassification, which has no impact on earnings, shareholders’ equity or cash flows.
 
Comparative figures for the condensed consolidated balance sheet have been adjusted to reclassify derivative financial assets and liabilities as current or non-current based on the maturity dates of the derivative contracts.  Previously, all derivatives were shown within current assets or liabilities.  Derivative assets of $199 million as at December 31, 2007 have been reclassified as non-current assets.  Derivative liabilities of $47 million as at December 31, 2007 have been reclassified as non-current liabilities.
 
Note 3: Business Combinations, Divestments and Other significant transactions
 
Acquisitions 2008
 
On November 10, 2008, Syngenta purchased 100% of SPS Argentina SA (SPS), a company primarily specialized in the development, production and marketing of soybean, corn and sunflower.  On November 19, 2008, Syngenta acquired 100% of Goldsmith Seeds, Inc. (Goldsmith).  Goldsmith breeds, produces and sells a broad range of pot and bedding products, including major crops such as cyclamen, impatiens and petunia.  On December 12, 2008, Syngenta acquired the pot and garden chrysanthemum and aster business of US flowers producer Yoder Brothers Inc.  Chrysanthemums are one of the top five selling pot and garden flowers in the global industry.  Because of the timing of these three transactions, Syngenta is still at a preliminary stage in the purchase accounting process.  The cost of acquisition and the acquisition date carrying amount of all the identifiable assets and liabilities acquired are subject to finalization.  $96 million, representing the sum of goodwill and purchase accounting adjustments still to be completed, is included within Intangible assets in the consolidated balance sheet at December 31, 2008.  Direct acquisition costs incurred to date on these three acquisitions are $4 million.  The combined impact on profit for 2008 of the post-acquisition period trading for the acquired businesses was $ nil.
 
Following a public offer to minority shareholders of Syngenta India Limited (SIL) made during 2007, Syngenta acquired a further 1.3% of SIL’s share capital in January 2008.  The total shareholding of Syngenta in SIL has increased to 96.3%.
 
Total cash paid on all the above acquisitions and minority shareholder transactions during 2008 was $143 million.  This represents the cost of acquisition before final adjustments.
 
On April 3, 2008, Syngenta acquired a 49 percent share in the Chinese company Sanbei Seeds Co Ltd, which specializes in the production and sale of high-quality, high-yielding corn seeds.  The purchase price was $36 million.
 
Syngenta-February 6, 2009/Page 15 of 32

 
Notes to Condensed Consolidated Financial Statements (continued)
 
Acquisitions 2007
 
Between April 20 and December 22, 2007, following a public offer to minority shareholders of Syngenta India Ltd. (SIL), Syngenta increased its shareholding in SIL from 84% to 95%, at a cash cost of $66 million.  SIL delisted from the Mumbai and Kolkata stock exchanges on June 20, 2007.  Goodwill on this transaction was $50 million.  The most important factors contributing to the recognition of goodwill were the economies of scale that Syngenta expects to achieve in its global marketing, selling and distribution operations, research and development activities, and product supply chain by consolidating the operation of SIL with other wholly owned Indian Syngenta subsidiaries, and making greater future use of SIL as a manufacturing and research and development center for the global business.
 
On January 31, 2007, Syngenta acquired the assets of Gromor International Corporation, which consist of peat extraction rights over certain land in Manitoba, Canada.  On July 17, 2007, Syngenta acquired the outstanding 20% of Agrosem S.A. which it did not already own.  On June 25, 2007, Syngenta acquired 100% of the business of the Fischer group of companies through purchases of shares and assets.  The Fischer group of companies specializes in the breeding and marketing of flower crops.  On August 31, 2007, Syngenta purchased 100% of the shares of Zeraim Gedera Ltd., which specializes in the breeding and marketing of vegetable crops, including tomato, pepper and melon.  Cash paid for these acquisitions is $108 million.  Goodwill on these acquisitions is $49 million.  The most important factors contributing to the recognition of goodwill on these acquisitions were the expected value of revenue and cost synergies and other benefits from combining the businesses of the acquired entities with those of Syngenta.  Purchase accounting was finalized in 2008: the detailed valuation of various intangible assets is $20 million lower than the provisional estimate made in the 2007 consolidated financial statements, with a consequent $5 million reduction in deferred tax liabilities and $15 million increase in goodwill.  Direct acquisition costs were $6 million.
 
Syngenta-February 6, 2009/Page 16 of 32

 
Notes to Condensed Consolidated Financial Statements (continued)
 
 
Note 4: Restructuring and Impairment before Taxes
 
For the year ended December 31 ($m)
2008
 
2007
               
Reversal of inventory step-up
(in cost of goods sold)
   
(9)
     
(6)
Restructuring costs:
             
 
Write-off or impairment
             
 
-  Property, plant and equipment
(17)
     
(20)
   
 
-  Intangible assets
(17)
     
  (16)
   
 
-  Inventories
-
     
(2)
   
 
Non-cash pension restructuring (charges) credits
(2)
     
6
   
Total non-cash restructuring costs:
 
(36)
     
(32)
 
 
Cash costs
             
 
-  Operational efficiency
(80)
     
(117)
   
 
-  Seeds acquisition integration
(46)
     
(9)
   
 
-  Other
1
     
-
   
Total cash restructuring costs
 
(125)
     
(126)
 
Impairment of financial assets
 
(37)
     
2
 
Divestment gains
 
2
     
121
 
     
(196)
     
(35)
Total restructuring and impairment charge
   
(205)
     
(41)
 
Restructuring represents the effect on reported performance of initiating business changes which are considered major and which, in the opinion of management, will have a material effect on the nature and focus of Syngenta's operations, and therefore require separate disclosure to provide a more thorough understanding of business performance.  Restructuring includes the effects of completing and integrating significant business combinations and divestments.  The incidence of these business changes may be periodic and the effect on reported performance of initiating them will vary from period to period.  Because each such business change is different in nature and scope, there will be little continuity in the detailed composition and size of the reported amounts which affect performance in successive periods.  Separate disclosure of these amounts facilitates the understanding of performance including and excluding items affecting comparability.  Reported performance before restructuring and impairment is one of the measures used in Syngenta’s short term employee incentive compensation plans.  Syngenta’s definition of restructuring and impairment may not be comparable to similarly titled line items in financial statements of other companies.
 
Restructuring and impairment includes the impairment costs associated with major restructuring and also impairment losses and reversals of impairment losses resulting from major changes in the markets in which a reported segment operates.
 
Syngenta-February 6, 2009/Page 17 of 32

 
Notes to Condensed Consolidated Financial Statements (continued)
 
2008
 
The Operational Efficiency program announced in February 2007 includes restructuring in Crop Protection and Seeds.  The overall cost of this program is estimated at $550 million in cash and $180 million in non-cash charges in the period up to 2011.  During 2008, restructuring charges of $19 million were incurred by Crop Protection under this program, including $7 million for the restructuring of the segment’s product development function.  Seeds incurred charges under the program of $11 million, including $6 million for the continued restructuring of the NAFTA Corn & Soybean marketing and sales organizations.  Costs expensed as incurred under the program relate to Crop Protection and Seeds and consist mainly of $13 million for headquarter and information systems restructuring charges and $24 million for further standardization and consolidation of back office operations.
 
Seeds integration costs of $46 million relate mainly to the integration and synergy program of the Fischer group, which was acquired in 2007, including severance and redundancy charges of approximately $32 million.  Seeds integration related consultancy charges of approximately $6 million were also expensed as incurred.
 
Non-cash restructuring and impairment costs consist of accelerated depreciation and property, plant and equipment write-offs from site closures and rationalizations.  Impairments of intangible assets of $17 million include accelerated amortization of a lease related to a Crop Protection development site, the closure of which was announced in 2006.  Impairments and write-offs of property, plant and equipment included the $11 million write-down of a former Crop Protection production site that was sold in 2008.  Impairments of available-for-sale financial assets total $37 million consisting mainly of recognition of the significant decline in the share price of Verenium (previously Diversa Corporation).
 
Reversal of inventory step up included in cost of goods sold in 2008 consists of the reversal of inventory step up on the Zeraim Gedera acquisition.
 
2007
 
Syngenta incurred costs of $41 million associated with the Operational Efficiency program announced in 2004 relating to the implementation of the Crop Protection manufacturing site closures announced in 2004-2006 and the continued rationalization and relocation of Research and Technology sites announced in 2004.
 
In connection with the Operational Efficiency program announced in 2007, $27 million in cash costs were incurred by Crop Protection related to the restructuring of the Development function, projects to improve the efficiency of the distribution and manufacturing networks and for restructuring of Crop Protection organizations impacting sites in the UK, Switzerland, Australia, France and Spain.  Cash costs in Seeds under this program totalled approximately $32 million for the restructuring of the NAFTA Corn & Soybean marketing and sales organizations, the exit of an onerous supply contract and exiting unprofitable crops in unprofitable geographies.  In addition, headquarter and information systems restructuring activity incurred costs of $17 million.
 
Seeds acquisition integration costs of $9 million relate to the integration of the acquired Fischer group and Emergent Genetics Vegetable A/S.
 
Syngenta-February 6, 2009/Page 18 of 32

 
Notes to Condensed Consolidated Financial Statements (continued)
 
 
Non-cash restructuring and impairment costs consist of accelerated depreciation and property, plant and equipment write-offs from site closures and rationalizations announced prior to and during 2006.  Impairments of intangible assets largely relate to accelerated amortization of a lease on a Crop Protection development site, referred to in the above discussion on 2008 restructuring costs.
 
Divestment gains of $121 million were realized mainly from the sale of a major part of the Rosental site in Basel and from the sale of land in Switzerland.
 
Reversal of inventory step up included in cost of goods sold in 2007 includes the reversal of inventory step up on the EGV and Zeraim Gedera acquisitions.
 
Note 5: Principal Currency Translation Rates
 
As an international business selling in over 100 countries, with major manufacturing and R&D facilities in Switzerland, the UK and the USA, movements in currencies impact business performance.  The principal currencies and exchange rates against the US dollar used in preparing the financial statements contained in this communication are as follows:
 
   
Average
Period ended December 31
   
2008
2007
2008
2007
Brazilian real
BRL
1.79
1.96
2.33
1.78
Swiss franc 
CHF
1.08
1.20
1.06
1.13
Euro
EUR
0.68
0.73
0.71
0.68
British pound 
GBP
0.53
0.50
0.69
0.50
 
The above average rates are an average of the monthly rates used to prepare the condensed consolidated income and cash flow statements.  The period end rates were used for the preparation of the condensed consolidated balance sheet.
 
Syngenta-February 6, 2009/Page 19 of 32

 
Supplementary Financial Information
 
Financial Summary
 
 
Ex Restructuring & Impairment(1)
 
Restructuring &
Impairment
As reported under
IFRS
For the year ended December 31 ($m)
2008
2007
 
2008
2007
2008
2007
Sales
11624
9240
 
-
-
11624
9240
Gross profit
5920
4577
 
(9)
(6)
5911
4571
Marketing and distribution
(2039)
(1638)
 
-
-
(2039)
(1638)
Research and development
(969)
(830)
 
-
-
(969)
(830)
General and administrative
(849)
(604)
 
-
-
(849)
(604)
Restructuring and impairment
-
-
 
(196)
(35)
(196)
(35)
Operating income
2063
1505
 
(205)
(41)
1858
1464
Income before taxes
1897
1460
 
(205)
(41)
1692
1419
Income tax expense
(357)
(346)
 
50
38
(307)
(308)
Net income
1540
1114
 
(155)
(3)
1385
1111
Attributable to minority interests
-
2
 
-
-
-
2
Attributable to Syngenta AG shareholders:
1540
1112
 
(155)
(3)
1385
1109
Earnings/(loss) per share(3)
             
- basic
$16.40
$11.59
 
$(1.65)
$(0.03)
$14.75
$11.56
- diluted
$16.26
$11.45
 
$(1.63)
$(0.03)
$14.63
$11.42

   
2008
   
2007
   
2008 CER(2)
 
Gross profit margin excluding restructuring and impairment
    50.9 %     49.5 %     50.5 %
EBITDA(4)
    2494    
1902
         
EBITDA margin
    21.5 %     20.6 %     20.8 %
Tax rate on results excluding restructuring and impairment
    19 %     24 %        
Free cash flow(5)
    761       802          
Trade working capital to sales(6)
    30 %     34 %        
Debt/Equity gearing(7)
    32 %     23 %        
Net debt(7)
    1886       1385          
 
(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 26.
(3)  
The weighted average number of ordinary shares in issue used to calculate the earnings per share were as follows: for 2008 basic EPS 93,916,415 and diluted EPS 94,696,762; 2007 basic EPS 95,973,958 and diluted EPS 97,143,368.
(4)  
EBITDA is defined in Appendix B on page 26.
(5)  
For a description of free cash flow, see Appendix E on page 29.
(6)  
Period end trade working capital as a percentage of twelve-month sales, see Appendix F on page 29.
(7)  
For a description of net debt and the calculation of debt/equity gearing, see Appendix G on page 30.
 
Syngenta-February 6, 2009/Page 20 of 32

 
Full Year Segmental Results excluding Restructuring and Impairment
 
Syngenta
 
Full Year 2008
$m
   
Full Year 2007
$m
   
CER
%
 
Third party sales
    11624       9240       + 21  
Gross profit
    5920       4577       + 23  
Marketing and distribution
    (2039 )     (1638 )     - 21  
Research and development
    (969 )     (830 )     - 15  
General and administrative
    (849 )     (604 )     - 32  
Operating income
 
2063
      1505       + 27  
EBITDA(1)
    2494    
1902
      + 22  
EBITDA (%)
    21.5       20.6          
                         
Crop Protection
    $m       $m    
%
 
Total sales
    9231       7285       + 22  
Inter-segment elimination
    (73 )     (68 )     + 8  
Third party sales
    9158       7217       + 22  
Gross profit
    4806       3680       + 25  
Marketing and distribution
    (1474 )     (1167 )     - 23  
Research and development
    (556 )     (496 )     - 10  
General and administrative
    (655 )     (516 )     - 19  
Operating income
    2121       1501       + 34  
EBITDA(1)
    2455       1821       + 28  
EBITDA (%)
    26.6       25.0          
                         
Seeds
    $m       $m    
%
 
Third party sales
    2442    
2018
      + 16  
Gross profit
    1120       901       + 17  
Marketing and distribution
    (555 )     (465 )     - 17  
Research and development
    (343 )     (283 )     - 19  
General and administrative
    (173 )     (125 )     - 31  
Operating income
    49       28       - 59  
EBITDA(1)
    135       98       - 3  
EBITDA (%)
    5.5       4.9          
                         
Business Development
    $m       $m    
%
 
Third party sales
    24       5       n/a  
Gross profit
    6       (1 )     n/a  
Marketing and distribution
    (10 )     (6 )     - 52  
Research and development
    (70 )     (51 )     - 37  
General and administrative
    (21 )     37       n/a  
Operating (loss)
    (95 )     (21 )     n/a  
EBITDA(1)
    (84 )     (14 )     n/a  
EBITDA (%)
    n/a       n/a          
                         
 
(1)  
For a reconciliation of segment EBITDA to segment operating income, see Appendix D on page 28

Syngenta-February 6, 2009/Page 21 of 32

 
Second Half Segmental Results excluding Restructuring and Impairment
 
Syngenta
2nd Half 2008
$m
 
2nd Half 2007
$m
 
CER
%
 
Third party sales
  4329     3550     + 22  
Gross profit
1943
    1587     + 23  
Marketing and distribution
  (1055 )   (858 )   - 24  
Research and development
  (509 )   (444 )   - 16  
General and administrative
  (381 )   (336 )   - 10  
Operating income
  (2 )   (51 )   + 98  
EBITDA(1)
  212     153     + 41  
EBITDA (%)
  4.9     4.3        
                   
Crop Protection
  $m     $m  
%
 
Total sales
  3677     2982     + 24  
Inter-segment elimination
  (55 )   (35 )   - 57  
Third party sales
  3622     2947     + 23  
Gross profit
  1653     1326     + 26  
Marketing and distribution
  (793 )   (628 )   - 27  
Research and development
  (288 )   (264 )   - 11  
General and administrative
  (300 )   (280 )   - 3  
Operating income
  272     154     + 88  
EBITDA(1)
  436     315     + 44  
EBITDA (%)
  11.9     10.6        
                   
Seeds
  $m     $m  
%
 
Third party sales
  703     600     + 17  
Gross profit
  325     280     + 14  
Marketing and distribution
  (256 )   (226 )   - 15  
Research and development
  (180 )   (149 )   - 22  
General and administrative
  (69 )   (49 )   - 41  
Operating income
  (180 )   (144 )   - 34  
EBITDA(1)
  (137 )   (104 )   - 43  
EBITDA (%)
  -19.4     -17.3        
                   
Business Development
  $m     $m  
%
 
Third party sales
  4     3     - 48  
Gross profit
  (2 )   (1 )   n/a  
Marketing and distribution
  (6 )   (4 )   - 52  
Research and development
  (41 )   (31 )   - 31  
General and administrative
  (12 )   (7 )   - 68  
Operating (loss)
  (61 )   (43 )   - 48  
EBITDA(1)
  (54 )   (40 )   - 29  
EBITDA (%)
  n/a     n/a        
 
(1)  
For a reconciliation of segment EBITDA to segment operating income, see Appendix D on page 28
 
Syngenta-February 6, 2009/Page 22 of 32

 
Full Year Product Line and Regional Sales
 
Syngenta
 
Full Year 2008
$m
   
Full Year 2007
$m
   
Actual
%
   
CER
%
 
Crop Protection
    9231       7285       + 27       + 22  
Seeds
    2442    
2018
      + 21       + 16  
Business Development
    24       5       -       -  
Inter-segment elimination
    (73 )     (68 )     -       -  
Third Party Sales
    11624       9240       + 26       + 21  
                                 
Crop Protection
                               
Product line
                               
Selective Herbicides
    2412    
2019
      + 19       + 14  
Non-selective Herbicides
    1329       902       + 47       + 43  
Fungicides
    2620    
2004
      + 31       + 25  
Insecticides
    1423       1205       + 18       + 15  
Seed Care(1)
    830       604       + 37       + 33  
Professional Products
    527       475       + 11       + 8  
Others
    90       76       + 20       + 19  
Total
    9231       7285       + 27       + 22  
Regional
                               
Europe, Africa and Middle East
    3214       2545       + 26       + 16  
NAFTA
    2693       2238       + 20       + 18  
Latin America
 
2037
      1423       + 43       + 43  
Asia Pacific
    1287       1079       + 19       + 17  
Total
    9231       7285       + 27       +22  
                                 
Seeds
                               
Product line
                               
Corn and Soybean
    1040       893       + 16       + 13  
Diverse Field Crops
    462       351       + 32       + 23  
Vegetables and Flowers
    940       774       + 21       + 16  
Total
    2442    
2018
      + 21       + 16  
Regional
                               
Europe, Africa and Middle East
    1077       818       + 32       + 20  
NAFTA
    979       916       + 7       + 6  
Latin America
    216       146       + 48       + 48  
Asia Pacific
    170       138       + 23       + 24  
Total
    2442    
2018
      + 21       + 16  
 
(1)  
Seed Care was previously grouped within Professional Products
 
Syngenta-February 6, 2009/Page 23 of 32

 
Second Half Product Line and Regional Sales
 
Syngenta
 
2nd Half 2008
$m
   
2nd Half 2007
$m
   
Actual
%
   
CER
%
 
Crop Protection
    3677       2982       + 23       + 24  
Seeds
    703       600       + 17       +17  
Business Development
    4       3       + 14       -46  
Inter-segment elimination
    (55 )     (35 )     -       -  
Third Party Sales
    4329       3550       + 22       +22  
                                 
Crop Protection
                               
Product line
                               
Selective Herbicides
    733       596       + 23       + 23  
Non-selective Herbicides
    590       441       + 34       + 33  
Fungicides
    971       821       + 18       + 20  
Insecticides
    644       541       + 19       + 20  
Seed Care(1)
    442       305       + 45       + 43  
Professional Products
    238       220       + 8       + 7  
Others
    59       58       + 3       + 3  
Total
    3677       2982       + 23       + 24  
Regional
                               
Europe, Africa and Middle East
    964       875       + 10       + 9  
NAFTA
    843       642       + 31       + 32  
Latin America
    1339       973       + 38       + 38  
Asia Pacific
    531       492       + 8       + 12  
Total
    3677       2982       + 23       + 24  
                                 
Seeds
                               
Product line
                               
Corn and Soybean
    226       161       + 40       + 41  
Diverse Field Crops
    109       94       + 16       + 15  
Vegetables and Flowers
    368       345       + 7       + 6  
Total
    703       600       + 17       + 17  
Regional
                               
Europe, Africa and Middle East
    266       241       + 11       + 7  
NAFTA
    206       194       + 6       + 6  
Latin America
    150       97       + 54       + 54  
Asia Pacific
    81       68       + 18       + 29  
Total
    703       600       + 17       + 17  
 
(1)  
Seed Care was previously grouped within Professional Products
 
Syngenta-February 6, 2009/Page 24 of 32

 
Fourth Quarter Product Line and Regional Sales
 
Syngenta
 
4th Quarter 2008
$m
   
4th Quarter 2007
$m
   
Actual
%
   
CER
%
 
Crop Protection
    1802       1546       + 17       + 21  
Seeds
    286       317       - 10       -4  
Business Development
    2       3       - 17       - 18  
Inter-segment elimination
    (38 )     (25 )     -       -  
Third Party Sales
 
2052
      1841       + 11       + 16  
                                 
Crop Protection
                               
Product line
                               
Selective Herbicides
    349       310       + 13       + 20  
Non-selective Herbicides
    228       191       + 20       + 23  
Fungicides
    517       449       + 15       + 20  
Insecticides
    334       269       + 24       + 27  
Seed Care(1)
    208       152       + 37       + 42  
Professional Products
    140       127       + 10       + 11  
Others
    26       48       - 45       -44  
Total
    1802       1546       + 17       + 21  
Regional
                               
Europe, Africa and Middle East
    401       423       - 5       + 5  
NAFTA
    338       303       + 11       + 14  
Latin America
    824       561       + 47       + 47  
Asia Pacific
    239       259       - 8       -  
Total
    1802       1546       + 17       + 21  
                                 
Seeds
                               
Product line
                               
Corn and Soybean
    82       99       - 17       - 15  
Diverse Field Crops
    42       50       - 15       - 2  
Vegetables and Flowers
    162       168       - 5       + 2  
Total
    286       317       - 10       - 4  
Regional
                               
Europe, Africa and Middle East
    93       112       - 17       - 7  
NAFTA
    107       131       - 19       - 18  
Latin America
    43       34       + 24       + 25  
Asia Pacific
    43       40       + 7       + 25  
Total
    286       317       - 10       - 4  
 
(1)  
Seed Care was previously grouped within Professional Products
 
Syngenta-February 6, 2009/Page 25 of 32

 
Appendices to Supplementary Financial Information
 
Appendix A: Constant Exchange Rates (CER)
 
In this report results from one period to another period are, where appropriate, compared using constant exchange rates (CER).  To present this information, current period results for entities reporting in currencies other than US dollars are converted into US dollars at the prior period's exchange rates, rather than at the exchange rates for the current year.  CER margin percentages for gross profit and EBITDA are calculated by the ratio of these measures to sales after restating the measures and sales at prior period exchange rates.  The CER presentation indicates the underlying business performance before taking into account currency exchange fluctuations.
 
Appendix B: Reconciliation of EBITDA to Net Income
 
EBITDA is defined as earnings before interest, tax, minority interests, depreciation, amortization, restructuring and impairment.  Information concerning EBITDA has been included as it is used by management and by investors as a supplementary measure of operating performance and is used by Syngenta as the basis of part of its employee incentive plans.  Management excludes restructuring from EBITDA in order to focus on results excluding items affecting comparability from one period to the next.  EBITDA is not a measure of cash liquidity or financial performance under generally accepted accounting principles and the EBITDA measures used by Syngenta may not be comparable to other similarly titled measures of other companies.  EBITDA should not be construed as an alternative to operating income or cash flow as determined in accordance with generally accepted accounting principles.
 
$m
   
2008
   
2007
 
Net income attributable to Syngenta AG shareholders
      1385       1109  
Minority interests
      -       2  
Income tax expense
      307       308  
Financial expenses, net
      169       42  
Pre-tax restructuring and impairment
      205       41  
Depreciation, amortization and other impairment
      428       400  
EBITDA
      2494    
1902
 

Syngenta-February 6, 2009/Page 26 of 32

 
Appendix C: Segmental Results and Inter-Segment Elimination Excluding Restructuring and Impairment
 
Full Year Segmental Results ($m)
 
Sales
   
Gross
profit
   
Operating income
   
EBITDA
 
Crop Protection
    9231       4806       2121       2455  
Seeds
    2442       1120       49       135  
Business Development
    24       6       (95 )     (84 )
Total before inter-segment elimination
    11697       5932    
2075
      2506  
Inter-segment elimination (1)
    (73 )     (12 )     (12 )     (12 )
Total
    11624       5920    
2063
      2494  
                                 
Second Half Segmental Results ($m)
 
Sales
   
Gross
profit
   
Operating income
   
EBITDA
 
Crop Protection
    3677       1653       272       436  
Seeds
    703       325       (180 )     (137 )
Business Development
    4       (2 )     (61 )     (54 )
Total before inter-segment elimination
    4384    
1976
      31       245  
Inter-segment elimination (1)
    (55 )     (33 )     (33 )     (33 )
Total
    4329    
1943
      (2 )     212  
 
(1) Crop Protection inter-segment sales to Seeds
 
Syngenta-February 6, 2009/Page 27 of 32

 
Appendix D: Reconciliation of Segment EBITDA to Segment Operating Income
 
 
Full Year 2008
 
$m
Crop Protection
 
Seeds
 
Business Development
 
Inter-segment
elimination
 
Total
 
EBITDA
  2455     135     (84 )   (12 )   2494  
Depreciation, amortization & impairment
  (334 )   (82 )   (12 )         (428 )
Income/(loss) from associates & joint ventures
  -     (4 )   1           (3 )
Operating income
excl. restructuring & impairment
  2121     49     (95 )   (12 )
2063
 
Restructuring & impairment (1)
  (83 )   (85 )   (37 )         (205 )
Operating income
2038
    (36 )   (132 )   (12 )   1858  
Income from associates & joint ventures
                          3  
Financial expense, net
                          (169 )
Income before taxes
                          1692  
   
Second Half 2008
 
$m
Crop Protection
 
Seeds
 
Business Development
 
Inter-segment elimination
 
Total
 
EBITDA
  436     (137 )   (54 )   (33 )   212  
Depreciation, amortization & impairment
  (164 )   (43 )   (7 )         (214 )
Income/(loss) from associates & joint ventures
  -     -     -           -  
Operating income
excl. restructuring & impairment
  272     (180 )   (61 )   (33 )   (2 )
Restructuring & impairment (1)
  (29 )   (83 )   (12 )         (124 )
Operating income
  243     (263 )   (73 )   (33 )   (126 )
Income from associates & joint ventures
                          3  
Financial expense, net
                          (132 )
Income before taxes
                          (255 )
   
Full Year 2007
 
$m
Crop Protection
 
Seeds
 
Business Development
 
Inter-segment elimination
 
Total
 
EBITDA
  1821     98     (14 )   (3 )
1902
 
Depreciation, amortization & impairment
  (324 )   (68 )   (8 )         (400 )
Income/(loss) from associates & joint ventures
  4     (2 )   1           3  
Operating income
excl. restructuring & impairment
  1501     28     (21 )   (3 )   1505  
Restructuring & impairment (1)
  1     (44 )   2           (41 )
Operating income
  1502     (16 )   (19 )   (3 )   1464  
Loss from associates & joint ventures
                          (3 )
Financial expense, net
                          (42 )
Income before taxes
                          1419  
 
(1) Including reversal of inventory step-up included in Cost of Goods sold
 
Syngenta-February 6, 2009/Page 28 of 32

 
Appendix E: Free Cash Flow
 
Free cash flow comprises cash flow from operating and investing activities, except investments in and proceeds from marketable securities.  Free cash flow is not a measure of financial performance under generally accepted accounting principles and the free cash flow measure used by Syngenta may not be comparable to similarly titled measures of other companies.  Free cash flow has been included as it is used by many investors as a useful supplementary measure of cash generation.
 
For the year ended December 31 ($m)
 
2008
   
2007
 
Cash flow from operating activities
    1466       1168  
Cash flow used for investing activities
    (608 )     (368 )
Cash flow (from)/for marketable securities
    (97 )     2  
Free cash flow
    761       802  
 
Appendix F: Period End Trade Working Capital
 
The following table provides detail of trade working capital at the period end as a percentage of twelve-month sales:
 
$m  
2008
   
2007
 
Inventories
    3456       2647  
Trade accounts receivable
    2311       2386  
Trade accounts payable
    (2240 )     (1895 )
Net trade working capital
    3527       3138  
Twelve-month sales
    11624       9240  
Trade working capital as percentage of sales
    30 %     34 %
 
Syngenta-February 6, 2009/Page 29 of 32

 
Appendix G: Net Debt Reconciliation
 
Net debt comprises total debt net of related hedging derivatives, cash and cash equivalents and marketable securities.  Net debt is not a measure of financial position under generally accepted accounting principles and the net debt measure used by Syngenta may not be comparable to the similarly titled measure of other companies.  Net debt has been included as it is used by many investors as a useful measure of financial position and risk. The following table provides a reconciliation of movements in net debt during the period:
 
$m
2008
 
2007
 
Opening balance at January 1
  1385     1153  
Acquisitions and other non-cash items
  127     82  
Foreign exchange effect on net debt
  70     (11 )
Purchases of treasury shares
  613     662  
Distributions paid to shareholders
  452     301  
Free cash flow
  (761 )   (802 )
Closing balance as at December 31
  1886     1385  
               
Components of closing balance:
           
Cash and cash equivalents
  (803 )   (503 )
Marketable securities(1)
  (7 )   (102 )
Current financial debts
  211     399  
Non-current financial debts(2)
  2524     1726  
Financing-related derivatives(3)
  (39 )   (135 )
Closing balance as at December 31
  1886     1385  
 
(1)  
Long-term marketable securities are included in Financial and other non-current assets. Short-term marketable securities are included in Financial and other current assets
(2)  
Included within Non-current financial debts and other non-current liabilities
(3)  
Included within Financial and other non-current assets and Non-current financial debts and other non-current liabilities
 
The following table presents the derivation of the Debt/Equity gearing ratio:
 
$m    
2008
   
2007
 
Net debt
      1886       1385  
Shareholders’ equity
      5884       6022  
Debt/Equity gearing ratio (%)
      32 %     23 %
 
Syngenta-February 6, 2009/Page 30 of 32

 

Glossary and Trademarks
 
All product or brand names included in this results statement are trademarks of, or licensed to, a Syngenta group company. For simplicity, sales are reported under the lead brand names, shown below, whereas some compounds are sold under several brand names to address separate market niches.
 
Selective Herbicides
 
AXIAL®
post emergent grass weed herbicide for wheat and barley
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
FUSILADE®
grass weed killer for broad-leaf crops
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
 
ALTO®
triazole fungicide for use on cereals and coffee
AMISTAR®
broad spectrum strobilurin for use on multiple crops
BRAVO®
broad spectrum fungicide for use on multiple crops
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
Seed Care
 
AVICTA®
breakthrough nematode control seed treatment
CRUISER®
novel broad spectrum seed treatment  - neonicotinoid insecticide
DIVIDEND®
triazole seed treatment fungicide
MAXIM®
broad spectrum seed treatment fungicide
Professional Products
 
FAFARD®
leading producer of packaged growing media
HERITAGE®
strobilurin turf fungicide
ICON®
public health insecticide
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
Goldsmith
leading producer of a broad range of pot and bedding plats
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
Yoder
chrysanthemum and aster producer
Zeraim Gedera
high quality vegetable seed brand
 
Syngenta-February 6, 2009/Page 31 of 32

 
Addresses for Correspondence
 
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


 
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 therefore.
 
 
Syngenta-February 6, 2009/Page 32 of 32


 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
   
SYNGENTA AG
 
 
       
Date:
February 6, 2009
 
By:
/s/ Christoph Mäder  
       
Name:
Christoph Mäder
 
       
Title:
Head Legal and Taxes