Table Of Content

Annual Review 2014 i Syngenta Annual Review 2014 Contents About the Syngenta Annual Report Overview Crops in focus The full print edition of Syngenta’s Annual At a glance ii Cereals 18 Report 2014 comprises: Chairman’s statement 02 Corn 20 – the Annual Review 2014, summarizing both fi nancial and Chief Executive Offi cer’s statement 04 Diverse fi eld crops 21 non-fi nancial performance Our business model 06 Rice 23 – the Financial Report 2014 Soybean 24 Our strategy – t he Corporate Governance Report Specialty crops 25 and Compensation Report 2014. Integrate 08 Sugar cane 27 The Annual Review includes quantitative Innovate 08 Vegetables 28 and qualitative information on strategies, Outperform 09 Lawn and Garden 29 policies and actions taken towards our business and corporate The Good Growth Plan Operational performance responsibility goals. Make crops more effi cient 11 Research and Development 30 For further information go to: Rescue more farmland 12 People 32 – our online Annual Report 2014 Help biodiversity fl ourish 13 Sustainable operations 34 including expanded information on Empower smallholders 14 Business integrity 38 our corporate responsibility activities and non-fi nancial performance: Help people stay safe 15 Public debates 39 www.syngenta.com/ar2014 Look after every worker 16 Performance data – our corporate website including the Form 20-F, the Our Industry publication Regional performance 42 and a section with answers to many Product line performance 43 “Questions about Syngenta”: Financial information 44 www.syngenta.com Non-fi nancial information 51 The Syngenta Annual Report also serves as our annual Communication on Progress (COP) for the United Nations Board of Directors 60 Global Compact. Executive Committee 61 Shareholder information 62 10 18 51 The Good Growth Plan Crops in focus Non-fi nancial information Six commitments that How we are innovating The performance indicators will help our planet face across technologies and we are using to track our progress its toughest challenge addressing growers’ needs on sustainability ii Syngenta Annual Review 2014 At a glance Bringing plant Crop performance potential to life Our business is helping the world’s We are using our deep growers to increase crop quality understanding of crops to and yields, to feed an ever-growing develop fully integrated offers, population. World-class science, which increasingly bring together deep understanding of growers’ genetics and chemistry. needs and continuous innovation have made us one of the world’s leading companies. Crop sales +6% Now, to help feed an extra 2 billion people by 2050, we’ve Crop sales 1 set our sights even higher. Our Good Growth Plan commits us to help grow more food using fewer resources while protecting nature and helping people in rural communities live better lives. And at the same time, we’re making our own operations more sustainable. Sales 2 $m 2014 Cereals 1,943 Corn 3,355 Diverse fi eld crops 1,351 Rice 635 Soybean 3,017 Specialty crops 2,110 Sugar cane 275 Vegetables 1,743 Lawn and Garden 693 Read more about “Crops” on pages 18–29 1 Growth at constant exchange rates (CER); percentage excludes Lawn and Garden 2 Crop sales are based on Syngenta estimates iii Syngenta Annual Review 2014 Business Our global reach highlights 2014 Throughout 2014 we continued Our teams around the world to strengthen our integrated offers combine their local knowledge through innovation, acquisition with our global assets and and collaboration. Here are a few expertise, tailoring solutions highlights from the year. that create value for growers. 90 New solution for soybean rust Countries ELATUS™, a breakthrough foliar fungicide, was launched in Brazil. 111 Read more Production and Supply sites1 on p age 25 141 Acquisition: durum wheat seed company Research and Development sites Società Produttori Sementi (PSB), a leader in durum wheat 29,340 breeding and production. Employees 2 Read more on p age 19 Europe, Africa and Middle East Cellulosic fuel collaboration Sales 3 $m 4,547 Syngenta and Cellulosic Ethanol Technologies, LLC announced Employees 2,4 13,300 CELLERATE™, a revolutionary cellulosic ethanol process Research and Development sites 50 technology to increase ethanol plant production. Production and Supply sites 41 Read more on p age 20 North America Sales 3 $m 3,582 Acquisition: winter wheat and Employees 2 4,636 winter oilseed rape Research and Development sites 41 Access to Lantmännen’s germplasm, seeds pipeline and Production and Supply sites 36 commercial varieties, to support development of hybrid cereals worldwide. Latin America Read more on p ages 19 and 22 Sales 3 $m 4,279 Employees 2 4,945 New PLENE® for commercial Research and Development sites 14 sugar cane planting Production and Supply sites 12 Exclusive licensing agreement with New Energy Farms to develop an innovative planting system for sugar cane Asia Pacifi c in Brazil: CEEDS™. Sales 3 $m 2,033 Read more Employees 2 6,459 on p age 27 Research and Development sites 36 Production and Supply sites 22 The Good Growth Plan on track Syngenta has established a global network of 860 reference farms and 2,738 benchmark farms. 1 Includes six multi-functional production sites 2 Permanent full-time equivalent (FTE) as of September 30, 2014 Read more 3 Excluding Lawn and Garden on p ages 10–17 4 Including headquarters (Switzerland) Syngenta 01 Annual Review 2014 Group performance Syngenta’s integrated strategy continues to gain momentum as evidenced by the strong sales growth achieved in 2014. Our focus is now on achieving above-market growth and on driving greater profi tability through operational leverage. Group sales Cash flow return People trained on safe use on investment4 $15.1bn +5% (CER1) 11% 4.7m 2014 15.13 2014 11% 2014 4.7 2013 14.69 2013 13% 2013 2.8 2012 14.20 2012 15% 2012 3.0 Crop protection sales2 Seeds sales Seed supply farms in Syngenta Fair Labor Program1 $11.4bn +6% (CER1) $3.2bn +2% (CER1) 28,361 2014 11.38 2014 3.16 2014 28,361 2013 10.92 2013 3.20 2013 22,895 2012 10.32 2012 3.24 2012 17,625 Earnings per share3 Dividend per share5 Recordable illness and injury rate2 $19.42 +1% CHF11.00 +10% 0.37 2014 19.42 2014 11.00 2014 0.37 2013 19.30 2013 10.00 2013 0.41 2012 22.03 2012 9.50 2012 0.39 Research and EBITDA Smallholders reached3 Development investment $1.4bn +5% (CER1) $2.9bn +7% (CER1) 15.3m 2014 1.43 2014 2.93 2014 15.3 2013 1.38 2013 2.90 2012 1.26 2012 3.11 1 Growth at constant exchange rates (CER) 4 For a defi nition of cash fl ow return on investment, 1 Number of farms in Fair Labor Association’s audit scope 2 Including sales of Crop Protection products to Seeds see page 50 2 Per 200,000 hours, according to US OSHA defi nition 3 Fully diluted excluding restructuring and impairment 5 2014 dividend is subject to shareholder approval 3 Indirectly through sales, 2014 fi rst year of reporting at the Annual General Meeting on April 28, 2015 Read more about “Financial information” Read more about “Non-fi nancial information” on p ages 44–50 on p ages 51–58 02 Syngenta Annual Review 2014 Chairman’s statement Measuring our contribution to farming and to the environment The Board’s confi dence in the company’s fi nancial strength, its people and future prospects is manifested in our recommendation to increase the dividend in line with our progressive policy. Michel Demaré Chairman Syngenta 03 Annual Review 2014 2014 was a year in which both the farmers are somehow exploited. In truth, our more details of which can be found in the enormous potential of global agriculture business is reliant upon healthy ecosystems Compensation Report. The proposal, and its innate volatility were clearly visible. and thriving rural communities – it would developed by the Compensation The potential was evident in the growth be entirely self-defeating for us to want to Committee, was reviewed with external of developed markets such as Western damage either. And the company’s work advisors and approved by the Board at Europe, as well as in developing agricultural is complemented in this regard by the our December meeting. I am convinced markets such as Southeast Asia, where Syngenta Foundation for Sustainable that the framework appropriately a major step-change in yield is still possible. Agriculture, whose primary focus is the incentivizes the executive team with the Volatility in the year was manifested in smallholder farmer. right drivers, while at the same time, further three areas: weather, particularly in North aligning total compensation with the long- Syngenta continued to be active in this America; commodity crop prices, with large term interests of shareholders. debate and to demonstrate our profound swings in corn, soybean and wheat; and contribution to the planet and society. 2014 was also the fi rst full year of the Board emerging market currencies, with signifi cant Convincing an often skeptical and of Directors in its current composition. With weakness, notably in Russia and Ukraine. entrenched audience will take determination, ten members of eight different nationalities Against this challenging backdrop, the but I remain confi dent that we are on the and diverse backgrounds across a variety company delivered sales growth for the fi fth right path. We also moved further along of industrial sectors, scientifi c disciplines year in a row, and strong cash fl ow, but the this path by rolling out, during the year, and professions, it is a very strong and signifi cant headwinds curtailed growth in The Good Growth Plan across all experienced body and well placed to guide profi ts. Newly-launched products such as 19 of our territories around the world. the company in the years ahead. I should ELATUS™ have strongly contributed to the like to thank my Board colleagues for their resilience of our top line, and I am confi dent 2014 was also the fi rst year of measuring insights and constructive criticism that our late-stage R&D pipeline will continue our progress against our six commitments throughout the year. to deliver growth in the future. in The Good Growth Plan, and to this end we established a global network of around I should also like to thank all our employees The year also saw signifi cant progress in 850 reference farms and 2,700 benchmark for their dedication and hard work, which our Accelerating Operational Leverage farms. Furthermore, the Board of Directors enabled us to deliver a robust fi nancial program, which aims to deliver a $ 1 billion approved the recommendation to take and commercial performance in the face improvement in EBITDA by 2018. The its auditing standards to the level of a full of signifi cant challenges. The Board’s program comprises a number of key projects fi nancial audit – making us one of the very confi dence in the company’s fi nancial to obtain greater effi ciencies across few companies in the world in any sector strength, its people and future prospects Commercial, Global Operations and R&D and to strive for such rigor. is manifested in our recommendation to is central to the delivery of greater shareholder increase the dividend in line with our returns in the coming years. I am confi dent The Board also had the opportunity to progressive policy. Looking ahead, the that this program will enable us to deliver assess the impact both of our integrated company is strategically best placed to profi table growth in the future and make strategy and The Good Growth Plan during capture the many opportunities that exist us more agile and resilient to the inevitable a visit to Italy, one of the most sophisticated in a dynamic, global agricultural market, challenges and volatilities within our markets. markets for food in the world. Our business and to deliver strong returns for in Italy is at the forefront of developing There were challenges in the area of license shareholders in the coming years. innovative, value-adding partnerships with to operate during the year. The polarized food companies and retailers. It was clear debate about pollinators and neonicotinoids from our visit that The Good Growth Plan in Europe, and the contentious issue of the is not only enabling those partnerships, but labeling of food containing genetically is also fully embedded in our integrated modifi ed ingredients in the USA were just value offer to customers. two which gained signifi cant coverage. The disconnect between urban and rural Progress towards The Good Growth Plan society continues to pose a threat to the goals is just one of the performance metrics industry’s reputation, and is predicated upon set out in the new Executive Committee Michel Demaré beliefs that our products harm human and compensation proposal being submitted Chairman environmental health and that smallholder to this year’s Annual General Meeting, 04 Syngenta Annual Review 2014 Chief Executive Offi cer’s statement Focusing on profi tability and above-market growth With the emerging markets now representing more than 50 percent of our sales, managing more volatile conditions has become an integral part of our business. Longer-term our strong position in these countries, where the scope for productivity gains is still immense, underpins our future growth potential. Michael Mack Chief Executive Offi cer Syngenta 05 Annual Review 2014 The decision to integrate our Crop Protection We are convinced that the breadth of This provided a visually compelling and Seeds businesses, announced in 2011, our portfolio across crops will allow us opportunity to engage with town dwellers was based on a determination to meet the to resume a trend of share gain in these on the reality of agriculture and to show challenges faced by growers. Over the last markets also. school children how their food is produced. four years, these challenges have included As we enter the next phase of our strategy, Our employees worldwide are fully engaged increased demands from the value chain our focus is clearly on delivering improved in The Good Growth Plan. For many, and regulators, as well as varying weather profi tability through the Accelerating making crops more effi cient is inherent conditions leading to major fl uctuations Operational Leverage program. The in the service they provide to customers in yield. In 2014, high levels of production comprehensive actions we have announced or in the scientifi c research they conduct. caused a sharp dip in crop prices, creating will enhance both our commercial Increasingly though, our people are signifi cant uncertainty with regard to the effectiveness and the power of our voluntarily expanding their contribution outlook for farm incomes. This in turn has innovation. By optimizing our cost structure through activities such as the creation of affected perception of Syngenta’s short- within the framework of our integrated natural habitats on degraded land. Active term prospects. It does not however alter strategy, we are set to attain industry- participation in The Good Growth Plan is the longer-term fundamentals of our leading effi ciency. bringing the concept of sustainability to life industry and the imperative of producing across the company and is heightening more food with fi nite natural resources. Innovation will play a key role in enabling us awareness of the importance of each to achieve our objective of profi table above- I am pleased to report that in a diffi cult individual’s work. market growth, as we enter an upturn in the market environment we achieved our innovation cycle. In 2014, we introduced At the end of 2014, John Atkin retired as objective of 6 percent growth in integrated three new active ingredients of which the Chief Operating Offi cer after a formidable sales at constant exchange rates. This was most signifi cant was ELATUS™, which had 37-year career in agriculture. John played despite a deliberate reduction in low margin sales of over $ 300 million following its launch a pivotal role in the creation of Syngenta by glyphosate. Earnings were only slightly higher in Brazil. This was the largest product launch successfully merging two Crop Protection than the previous year largely because of an in Syngenta’s history, involving more than businesses to form a clear industry leader, unfavorable impact from currencies, notably 1,000 sales people. Their enthusiasm and the strength of which is a cornerstone those of the CIS countries. We did however commitment ensured that the product’s of the integrated strategy. I should like to mitigate this impact through price increases, advantages, which have been validated by thank John for his outstanding contribution, and we maintained our strong track record key external researchers, have been widely and am pleased that in Jon Parr we have in terms of risk management. With the recognized by our customers. found a strong successor on the emerging markets now representing more Executive Committee. than 50 percent of our sales, managing more As we approach the publication of the fi rst volatile conditions has become an integral data set relating to The Good Growth Plan, I should also like to thank all our employees part of our business. Longer-term our we have fulfi lled our pledge to continue worldwide for their energy and dedication strong position in these countries, where the seeking counsel and guidance from our at a time of change and challenge. We have scope for productivity gains is still immense, stakeholders by holding a series of Year established the platforms for bringing underpins our future growth potential. One Updates in various cities. At these distinctive offers to growers more quickly events, we were able to report on the many and for achieving a sustained improvement Our confi dence in achieving this potential projects and crop solutions that are in profi tability. These will allow us to work has been reinforced by the early successes underway in all regions. The dialogue with together towards realizing the vast potential of the integrated strategy. In most emerging participants deepened our insight into their of global agriculture. markets, we have gained share in both crop concerns, which include smallholders and protection and seeds, with tailored crop- family farmers, food waste and soil health. based offers accompanied by agronomic There is also growing awareness of the advice and services. In developed markets, dichotomy between urban consumers where technology adoption is already and rural growers, which often gives rise advanced, progress has been slower to tensions and misunderstanding. We but the need for complete solutions – for illustrated the dichotomy at the event in Michael Mack example to address abiotic stress and Brussels, where we installed a miniature Chief Executive Offi cer resistance issues – is undisputed. farm with four crops in the city center. 06 Syngenta Annual Review 2014 Our business model What allows us What we do to do what we do Working with others and through direct operations Financial capital Research and – Scientists and – Crop protection development universities discovery and – Research institutions innovation – Farmers – Advanced and suppliers seed breeding – NGOs – Addressing insect, fungus, weed and – Agricultural environmental People and the extension services stress on crops intellectual property they create Production – Active ingredients – Seed supply farms – Raw materials – Seed processing Chemical, biological, – Intermediates – Lawn and Garden genetic and – Formulation, fi ll supply chain computational and packaging sciences Natural resources Commercial – Distributors – Product – Demonstration farms management – Processors and the – Crop-based offers food chain – Marketing and Facilities and services – Agronomists distribution – Agricultural extension services – Technology providers Local communities Supporting – Stewardship – Industry activities – Product registration associations – Health, Safety, – NGOs and IGOs Environment, – Multi-stakeholder Quality and Security dialogue Laws and regulations – Technology and engineering