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BASEL, Switzerland, Feb. 6 /PRNewswire-FirstCall/ -- -- 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 Excluding Restructuring, Highlights Impairment 2008 2007 Actual 2008 2007 Actual CER(1) $m $m % $m $m % % 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(R), with sales now in excess of $1 billion, and by ACTARA(R)/CRUISER(R). 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. 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). * Crop Protection sales include $73 million of inter-segment sales. 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(R), BRAVO(R) and our leading triazole ALTO(R) 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(R), while in Seed Care, CRUISER(R) 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(R) range was further differentiated through the introduction of HALEX(R). 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. Sales growth was strong across the range. For the first time Fungicides were our largest product line, led by AMISTAR(R) for which sales reached $1 billion. An exceptional performance in Non-selective herbicides reflected a buoyant glyphosate market in which TOUCHDOWN(R) gained market share thanks to the success of the TOUCHDOWN(R) brand ladder and to the launch of HALEX(R). ACTARA(R) and CRUISER(R), 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(R) 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(R) on corn and the announcement of Plene(TM), 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(R), which was well positioned to gain share in a buoyant cereals market. The fungicide REVUS(R), used on vegetables, vines and potatoes, expanded rapidly with registrations in over 50 countries planned. The insecticide DURIVO(R) was launched on rice in Indonesia and was an immediate success. In Seed Care AVICTA(R) 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(TM) 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(TM), 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(R) 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 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(TM) (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(R)) and the insecticide thiamethoxam (ACTARA/CRUISER(R)). Expenditure under the program in 2008 was $40 million. 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." Crop Protection For a definition of constant exchange rates, see Appendix A. Full Year Growth 4th Quarter Growth Product line 2008 2007 Actual CER 2008 2007 Actual CER $m $m % % $m $m % % 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(R), CALLISTO(R) family, DUAL(R)/BICEP(R) MAGNUM, FUSILADE(R)MAX and TOPIK(R) AXIAL(R), 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(R) 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(R) and TOUCHDOWN(R) TOUCHDOWN(R) 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(R) continued to prove its effectiveness in rapid weed burn-down and also benefited from the tightness of glyphosate supply. Fungicides: major brands ALTO(R), AMISTAR(R), BRAVO(R), REVUS(R), RIDOMIL GOLD(R), SCORE(R), TILT(R) and UNIX(R) 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(R) reflected the success of a variety of combination products used across crops. AMISTAR(R) 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(R) establishing a leadership position in an expanding corn fungicide market. In Latin America, fungicide growth was broad based across the region with PRIORI Xtra(R) now the leading product in Brazil for the prevention and treatment of soybean rust. Insecticides: major brands ACTARA(R), DURIVO(R), FORCE(R), KARATE(R), PROCLAIM(R), VERTIMEC(R) ACTARA(R) continued to grow strongly notably in Latin America. Sales of KARATE(R) 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(R) in Indonesia marks a significant step in the strengthening of our rice portfolio. Growth of FORCE(R) in Europe due to the spread of corn rootworm more than offset a reduction of sales in NAFTA. Seed Care: major brands AVICTA(R), CRUISER(R), DIVIDEND(R), MAXIM(R) In Seed Care, sales increased by one third. The global expansion of CRUISER(R) led to strong growth in all regions as growers recognized its unique vigor effect in multiple crops. CRUISER(R) also benefited from higher soybean acres in the USA and a registration in France. Professional Products: major brands FAFARD(R), HERITAGE(R), ICON(R) Turf and Ornamentals saw strong sales of growing media by Fafard, growth of HERITAGE(R) 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 2008 2007 Actual CER 2008 2007 Actual CER by region $m $m % % $m $m % % 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(R) and the continuing expansion of Seed Care. AXIAL(R) 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. Seeds For a definition of constant exchange rates, see Appendix A. Full Year Growth 4th Quarter Growth Product line 2008 2007 Actual CER 2008 2007 Actual CER $m $m % % $m $m % % 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(R), GARST(R), GOLDEN HARVEST(R), NK(R) In the USA, sales of NK(R) 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(R) 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(R) oilseeds, HILLESHOG(R) 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(R), ROGERS(R), S&G(R), Zeraim Gedera; major brands, Flowers Fischer, Goldsmith, S&G(R), 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 2007 Actual CER 2008 2007 Actual CER $m $m % % $m $m % % 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 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 http://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 therefore. 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 Condensed Consolidated Balance Sheet 31 December 31 December 2008 2007 $m (reclassified)(1) Assets Current assets Cash and cash equivalents 803 503 Trade receivables, net 2311 2386 Other accounts receivable 479 516 Inventories 3456 2647 Financial and other current assets 571 432 Total current assets 7620 6484 Non-current assets Property, plant and equipment 2188 2138 Intangible assets 3083 2790 Deferred tax assets 514 639 Financial and other non-current assets 1179 1229 Total non-current assets 6964 6796 Total assets 14584 13280 Liabilities and equity Current liabilities Trade accounts payable (2240) (1895) Current financial debts (211) (399) Income taxes payable (322) (512) Other current liabilities (1291) (849) Provisions (170) (223) Total current liabilities (4234) (3878) Non-current liabilities Non-current financial debts and other non-current liabilities (2869) (1773) Deferred tax liabilities (659) (622) Provisions (921) (966) Total non-current liabilities (4449) (3361) Total liabilities (8683) (7239) Shareholders' equity (5884) (6022) Minority interests (17) (19) Total equity (5901) (6041) Total liabilities and equity (14584) (13280) (1) Derivative financial assets and liabilities have been reclassified in accordance with maturity date, see Note 2 on page 15. Certain balance sheet line items have been combined, both within the current assets section and non-current assets section, in order to improve the clarity of presentation Condensed Consolidated Cash Flow Statement For the year ended December 31 ($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 Condensed Consolidated Statement of Changes in Shareholders' Equity Attributable to Syngenta AG shareholders Par value Total of Additional Treasury Fair Cumulative share- ordinary paid-in shares, value translation Retained holders' $m shares capital at cost reserves adjustment Earnings equity January 1, 2007 142 3834 (784) (6) 334 2146 5666 Profit for the period 1109 1109 Gains/(losses) recognized directly in equity on: Available- for-sale financial assets (47) (47) Derivatives designated as hedges (108) (108) Income taxes on gains/ (losses) recognized directly in equity 7 64 71 Currency translation effects 252 252 Total recognized gains/ (losses) - - - (148) 252 1173 1277 Share based compensation 53 55 108 Distributions to share- holders (131) 7 (47) (128) (299) Share repurchases (728) (728) Cancellation of treasury shares (5) (121) 629 (7) (496) Other (2) (2) December 31, 2007 6 3720 (830) (154) 532 2748 6022 Profit for the period 1385 1385 Gains/(losses) recognized directly in equity on: Available- for-sale financial assets 9 9 Derivatives designated as hedges (34) (34) Income taxes on gains/ (losses) recognized directly in equity (34) 8 (26) Currency translation effects (444) (444) Total recognized gains/ (losses) (59) (444) 1393 890 Share based compensation 41 79 120 Distributions to shareholders (450) (450) Share repurchases (683) (683) Cancellation of treasury shares (143) 727 6 (590) Income taxes on share based compensation (19) (19) Other 4 4 December 31, 2008 6 3577 (745) (213) 94 3165 5884 Minority Total $m interest equity January 1, 2007 28 5694 Profit for the period 2 1111 Gains/(losses) recognized directly in equity on: Available-for-sale financial assets (47) Derivatives designated as hedges (108) Income taxes on gains/(losses) recognized directly in equity 71 Currency translation effects 3 255 Total recognized gains/(losses) 5 1282 Share based compensation 108 Distributions to shareholders (2) (301) Share repurchases (728) Cancellation of treasury shares - - Other (12) (14) December 31, 2007 19 6041 Profit for the period 1385 Gains/(losses) recognized directly in equity on: Available-for-sale financial assets 9 Derivatives designated as hedges (34) Income taxes on gains/(losses) recognized directly in equity (26) Currency translation effects 1 (443) Total recognized gains/(losses) 1 891 Share based compensation 120 Distributions to shareholders (2) (452) Share repurchases (683) Cancellation of treasury shares - - Income taxes on share based compensation (19) Other (1) 3 December 31, 2008 17 5901 Segmental Information Crop Business 2008 ($m) Protection Seeds 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 Crop Business 2007 ($m) Protection Seeds Development Unallocated Total Total segment sales 7285 2018 5 - 9308 Less sales to other segments (68) - - - (68) Third party segment sales 7217 2018 5 - 9240 Cost of goods sold (3537) (1123) (6) (3) (4669) Gross profit 3680 895 (1) (3) 4571 Marketing and distribution (1167) (465) (6) - (1638) Research and development (496) (283) (51) - (830) General and administrative (516) (125) 37 - (604) Restructuring and impairment 1 (38) 2 - (35) Operating income/(loss) - continuing operations 1502 (16) (19) (3) 1464 Notes to Condensed Consolidated Financial Statements Note 1: Basis of Preparation Nature of operations: Syngenta AG ('Syngenta') is a world leading crop protection and seeds business engaged in the discovery, development, manufacture and marketing of a range of agricultural products designed to improve crop yields and food quality. Basis of presentation and accounting policies: The condensed consolidated financial statements for the year ended December 31, 2008 are based on and are consistent with Syngenta's consolidated financial statements. Syngenta's consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and, except as described in Note 2 below, with the accounting policies set out in the Syngenta Financial Report 2007. The consolidated financial statements are presented in United States dollars ($) 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. 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. 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 $6 million. Notes to Condensed Consolidated Financial Statements (continued) Note 4: Restructuring and Impairment before Taxes For the year ended December 31 ($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. 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. 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 $121 million were realized mainly from the sale of a major part of the Rosental site in Basel and from the sale of land in Switzerland. Reversal of inventory step up included in cost of goods sold in 2007 includes the reversal of inventory step up on the EGV and Zeraim Gedera acquisitions. Note 5: Principal Currency Translation Rates As an international business selling in over 100 countries, with major manufacturing and R&D facilities in Switzerland, the UK and the USA, movements in currencies impact business performance. The principal currencies and exchange rates against the US dollar used in preparing the financial statements contained in this communication are as follows: Average Period ended December 31 2008 2007 2008 2007 Brazilian real BRL 1.79 1.96 2.33 1.78 Swiss franc CHF 1.08 1.20 1.06 1.13 Euro EUR 0.68 0.73 0.71 0.68 British pound GBP 0.53 0.50 0.69 0.50 The above average rates are an average of the monthly rates used to prepare the condensed consolidated income and cash flow statements. The period end rates were used for the preparation of the condensed consolidated balance sheet. Supplementary Financial Information Financial Summary Ex Restructuring & Restructuring & As reported under Impairment(1) Impairment IFRS For the year ended December 31 ($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 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. Full Year Segmental Results excluding Restructuring and Impairment Full Year 2008 Full Year 2007 CER Syngenta $m $m % 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 Second Half Segmental Results excluding Restructuring and Impairment 2nd Half 2008 2nd Half 2007 CER Syngenta $m $m % 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 Full Year Product Line and Regional Sales Full Year 2008 Full Year 2007 Actual CER Syngenta $m $m % % 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 Second Half Product Line and Regional Sales 2nd Half 2008 2nd Half 2007 Actual CER Syngenta $m $m % % 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 Fourth Quarter Product Line and Regional Sales 4th Quarter 4th Quarter 2008 2007 Actual CER Syngenta $m $m % % 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 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. $m 2008 2007 Net income attributable to Syngenta AG shareholders 1385 1109 Minority interests - 2 Income tax expense 307 308 Financial expenses, net 169 42 Pre-tax restructuring and impairment 205 41 Depreciation, amortization and other impairment 428 400 EBITDA 2494 1902 Appendix C: Segmental Results and Inter-Segment Elimination Excluding Restructuring and Impairment Gross Operating Full Year Segmental Results ($m) Sales profit 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 Gross Operating Second Half Segmental Results ($m) Sales profit 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 Appendix D: Reconciliation of Segment EBITDA to Segment Operating Income Full Year 2008 Crop Business Inter-segment $m Protection Seeds Development 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 212 149 (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 Crop Business Inter-segment $m Protection Seeds Development 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 Crop Business Inter-segment $m Protection Seeds Development elimination Total EBITDA 1821 98 (14) (3) 1902 Depreciation, amortization & impairment (324) (68) (8) (400) Income/(loss) from associates & joint ventures 4 (2) 1 3 Operating income excl. restructuring & impairment 150 128 (21) (3) 1505 Restructuring & impairment (1) 1 (44) 2 (41) Operating income 1502 (16) (19) (3) 1464 Loss from associates & joint ventures (3) Financial expense, net (42) Income before taxes 1419 (1) Including reversal of inventory step-up included in Cost of Goods sold Appendix E: Free Cash Flow Free cash flow comprises cash flow from operating and investing activities, except investments in and proceeds from marketable securities. Free cash flow is not a measure of financial performance under generally accepted accounting principles and the free cash flow measure used by Syngenta may not be comparable to similarly titled measures of other companies. Free cash flow has been included as it is used by many investors as a useful supplementary measure of cash generation. For the year ended December 31 ($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% 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% 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(R) post emergent grass weed herbicide for wheat and barley BICEP(R) MAGNUM broad spectrum pre-emergence herbicide for corn and sorghum CALLISTO(R) novel herbicide for flexible use on broad-leaved weeds for corn DUAL(R) MAGNUM grass weed killer for corn and soybeans FUSILADE(R) grass weed killer for broad-leaf crops TOPIK(R) post-emergence grass weed killer for wheat Non-selective Herbicides GRAMOXONE(R) rapid, non-systemic burn-down of vegetation TOUCHDOWN(R) systemic total vegetation control Fungicides ALTO(R) triazole fungicide for use on cereals and coffee AMISTAR(R) broad spectrum strobilurin for use on multiple crops BRAVO(R) broad spectrum fungicide for use on multiple crops REVUS(TM) for use on potatoes, tomatoes, vines and vegetable crops RIDOMIL GOLD(R) systemic fungicide for use in vines, potatoes and vegetables SCORE(R) triazole fungicide for use in vegetables, fruits and rice TILT(R) broad spectrum triazole for use in cereals, bananas and peanuts UNIX(R) cereal and vine fungicide with unique mode of action Insecticides ACTARA(R) second-generation neonicotinoid for controlling foliar and soil pests in multiple crops DURIVO(TM) broad spectrum, lower dose insecticide, controls resistant pests FORCE(R) unique pyrethroid controlling soil pests in corn KARATE(R) foliar pyrethroid offering broad spectrum insect control PROCLAIM(R) novel, low-dose insecticide for controlling lepidoptera in vegetables and cotton VERTIMEC(R) acaricide for use in fruits, vegetables and cotton Seed Care AVICTA(R) breakthrough nematode control seed treatment CRUISER(R) novel broad spectrum seed treatment - neonicotinoid insecticide DIVIDEND(R) triazole seed treatment fungicide MAXIM(R) broad spectrum seed treatment fungicide Professional Products FAFARD(R) leading producer of packaged growing media HERITAGE(R) strobilurin turf fungicide ICON(R) public health insecticide Field Crops AGRISURE(TM) new corn trait choices GARST(R) US brand for corn and soybean GOLDEN HARVEST(R) brand for corn and soybean in North America and Europe HILLESHOG(R) global brand for sugar beet NK(R) global brand for corn, oilseeds and other field crops Vegetables and Flowers DULCINEA(TM) 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(R) vegetables leading brand throughout the Americas S&G(R) flowers global brand for seeds and young plants S&G(R) vegetables leading brand in Europe, Africa and Asia Yoder chrysanthemum and aster producer Zeraim Gedera high quality vegetable seed brand 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. Media contacts: Analyst/Investor contacts: Medard Schoenmaeckers Jennifer Gough Switzerland Switzerland +41 61 323 5059 +41 61 323 2323 USA +1 202 737 6521 Anne Burt John Hudson USA Switzerland +41 61 323 6793 +1 202 628 2372 USA +1 202 737 6520 DATASOURCE: Syngenta CONTACT: Media, Medard Schoenmaeckers, Switzerland, +41-61-323-2323 or Anne Burt, USA, +1-202-628-2372, or Analyst/Investors, Jennifer Gough, Switzerland, +41-61-323-5059 or USA, +1-202-737-6521, or John Hudson, Switzerland, +41-61-323-6793 or USA, +1-202-737-6520, all of Syngenta Web Site: http://www.syngenta.com/

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