Weather and Europe Costs Continue to Weigh on Nufarm. No Change to our AUD 7.00 FVE.

Our AUD 7.00 fair value is unchanged. Nufarm has guided for first-half fiscal 2020 group EBITDA of AUD 55-65 million, 12%-25% below our prior AUD 74 million estimate, and 43%-52% below the previous corresponding period, or pcp. But another quarter’s worth of unfavourable climatic conditions does not a fair value make, and Nufarm generally makes the majority 70% of its earnings in the fiscal second half. In fiscal 2020, we anticipate a far higher 85% portion of earnings will be made in the fiscal second half due simply to the first half being so weak.