Syngenta AG
Annual Report 2016

Plain-text annual report

Annual Review 2016 6 1 0 2 w e i v e R l a u n n A a t n e g n y S Annual Review 2016 Syngenta Annual Review 2016 i In this year’s report Strategic overview Operational performance ii Regional overview iii Group performance 35 Making a habit of being ever better 36 People 01 Bringing plant potential to life 37 Sustainable operations 02 Chairman’s statement 41 Business integrity 04 Chief Executive Officer’s statement 43 Public debates 02 06 Our business model Research and Development Performance data 45 Product line performance 08 Stepping up productivity 46 Financial information 53 Non-financial information 61 Independent Assurance Report on the Syngenta Non-financial Reporting 2016 Corporate information 62 Corporate governance and compensation 64 Board of Directors 66 Executive Committee 68 Shareholder information and innovation The Good Growth Plan 12 Adding value sustainably 13 Make crops more efficient 14 Rescue more farmland 16 Help biodiversity flourish 17 Empower smallholders 19 Help people stay safe 20 Look after every worker Regional performance 22 New technologies driving growth 23 Europe, Africa and Middle East 26 North America 29 Latin America 32 Asia Pacific About the Syngenta Annual Report The full edition of Syngenta’s Annual Report 2016 comprises: 3 the Annual Review 2016, summarizing both financial and non-financial performance 3 the Financial Report 2016 3 the Corporate Governance Report and Compensation Report 2016 The Annual Review includes quantitative and qualitative information on policies and actions taken regarding our business and corporate responsibility goals. This change of share ownership allows Syngenta to remain Syngenta, a global company headquartered in Switzerland, focused on sustainable growth. Michel Demaré Chairman 04 2016 was another good year for innovation at Syngenta, demonstrating the power of our R&D engine. J. Erik Fyrwald Chief Executive Officer Syngenta’s Annual Report also serves as our annual Communication on Progress (COP) for the United Nations Global Compact. To read the full Syngenta Annual Report 2016, go to www.ar2016.syngenta.com For further information, including the Form 20-F, the Our Industry publication and a section with answers to many “Questions about Syngenta”, visit our corporate website: www.syngenta.com Syngenta Annual Review 2016 ii Regional overview North America Sales 1 $ m Employees 2 Research and Development sites Production and Supply sites Europe, Africa and Middle East Sales 1 $ m Employees 2,3 Research and Development sites Production and Supply sites 3,202 4,176 33 31 3,793 12,429 47 44 North America comprises Canada and the USA. It generates about 25 percent of Syngenta’s revenue, and its growers – among the most competitive and productive in the world – are typically early adopters of new technologies. Read more on pages 26–28 EAME is our largest region in terms of sales. At present, our business comes mainly from Europe, with an increasing share of future sales coming from markets like Russia, Ukraine and Africa. Read more on pages 23–25 90 Countries 107 Production and Supply sites 4 North America Europe, Africa and Middle East Latin America Asia Pacific Latin America Sales 1 $ m Employees 2 Research and Development sites Production and Supply sites Asia Pacific Sales 1 $ m Employees 2 Research and Development sites Production and Supply sites 3,293 5,161 12 12 Latin America accounts for almost 10 percent of the world’s cropped area and is the global leader in soybean, sugar cane and coffee production. Farm scale ranges from a predominance of smallholders in Central America to highly-technified large-scale farms in Argentina and Brazil. Read more on pages 29–31 1 Excluding Lawn and Garden 2 Permanent full-time equivalent (FTE) as of September 30, 2016 3 Including headquarters (Switzerland) 4 Including four multi-functional production sites 27,810 Employees 2 119 Research and Development sites 1,839 6,044 27 20 Accounting for 40 percent of the world’s cultivated land, APAC is a region dominated by smallholders farming less than 2 hectares. Changing diets and good scope for improving yields present significant opportunities for growth. Read more on pages 32–34 Syngenta Annual Review 2016 iii Group performance Financial performance Group sales $12.8bn -2% (CER1) 2016 2015 2014 Cash flow return on investment4 12% 12.79 2016 13.41 2015 15.13 2014 Non-financial performance People trained on safe use 6.8m 12% 2016 11% 2015 11% 2014 Crop Protection sales2 Seeds sales Seed supply farms in our Fair Labor Program $9.6bn -2% (CER1) $2.7bn -3% (CER1) 82% 2016 2015 2014 9.57 2016 10.00 2015 11.38 2014 Earnings per share3 EBITDA $17.03 -4% $2.7bn +2% (CER1) 2016 2015 2014 17.03 2016 17.78 2015 19.42 2014 2.66 2016 2.84 2015 3.16 2014 Recordable illness and injury rate6 0.39 2.66 2016 2.78 2015 2.93 2014 Research and Development investment $1.3bn 2016 2015 2014 Efficiency savings5 Smallholders reached7 $620m 16.6m 1.30 2016 1.36 2015 1.43 620 2016 300 2015 2014 6.8 5.7 4.7 82% 84% 53% 0.39 0.38 0.37 16.6 17.2 13.8 1 Growth at constant exchange rates (CER) 2 Including sales of Crop Protection products to Seeds 3 Fully diluted excluding restructuring and impairment 4 For a definition of cash flow return on investment, see page 52 5 Cumulative since 2015 6 Per 200,000 hours, according to US OSHA definition 7 Through sales Read more about “Financial information” on pages 46–52 Read more about “Non-financial information” on pages 53–60 Strategic overview 01 Bringing plant potential to life We apply world-class science and the most productive research and development in the industry to achieve a step change in agricultural productivity. In more than 90 countries around the world, our employees enable millions of farmers to improve global food security by making better, more sustainable use of available resources. Syngenta Annual Review 201602 Chairman’s statement Ensuring choice and innovation for growers worldwide This change of share ownership allows Syngenta to remain Syngenta, a global company headquartered in Switzerland, focused on sustainable growth. Michel Demaré Chairman 2016 has been a momentous year for Syngenta and for the agriculture sector. In the wake of challenging market conditions and rising innovation costs, our industry has embarked on a wave of consolidation, which has a profound transformational impact for all the players involved. I am pleased that Syngenta, after a period of turbulence, has found a path that guarantees the Company’s long- term future and safeguards its identity. The option we have chosen is more a change of ownership than a consolidation move. Syngenta will remain Syngenta, as you have known it for years, with the same commitment towards food security, innovation and farmers, whatever the size of their farms. The closing of such a transaction obviously takes time, as it requires review and approval from a large number of regulatory authorities. In the meantime, we are not standing still and waiting for the changes to happen. We have worked hard at adapting Syngenta to the new realities of our markets. Profound management changes, starting at the CEO level, are coupled with crucial simplification initiatives to make the Company leaner and faster to make decisions. We have clarified our strategy, giving our Seeds business a much more transparent focus and expanding our skills and capabilities, with an immediate, very positive response from our customers. We continue expanding and investing in our leading Crop Protection business with the same intensity. And we continue offering, wherever appropriate and in different forms, an integrated approach to our customers, tailor-made to their needs and expectations of what a broad portfolio company like Syngenta can offer them. While the instability that beset emerging markets in 2015 to some extent subsided, market conditions in 2016 remained tough for the fourth consecutive year. Syngenta had already responded quickly to a more challenging environment with the announcement, in February 2014, of the Accelerating Operational Leverage program. This has already yielded substantial cost savings, and I have been impressed by the way in which the entire organization has adapted to the process and platform efficiencies put in place. Innovation is vital However, for a company like Syngenta, cost savings alone cannot drive longer term performance. Growth is the key factor for long-term success and, in our field, it means that our business is dependent on continuous innovation, whether this be in the form of new crop protection products, improved seeds or novel traits. The development timelines are long, often exceeding ten years. Regulation is becoming ever more demanding, meaning that the cost of bringing a new product to market increases while the certainty of achieving approval diminishes. When revenues are under pressure – as they have been in recent years – it becomes difficult to sustain Research and Development (R&D) at the necessary level. This dilemma has been one of the catalysts for industry consolidation. ChemChina transaction reinforces strategy The transaction with ChemChina will secure Syngenta’s long-term investment in innovation. ChemChina has recognized the value of our pipeline and of our world- leading scientists, and has explicitly committed to maintaining a high level of R&D spend in the coming years.  This transaction reinforces our strategy Syngenta Annual Review 2016 Strategic overview 03 Management changes In May, after a rigorous search, the Board announced the appointment of Erik Fyrwald as Chief Executive Officer. Erik’s considerable experience in both agriculture and chemicals, along with his strong track record of success as a CEO, made him an excellent candidate for the role. I look forward to continuing to work with him to create the next chapter in Syngenta’s history. After a career at Syngenta and legacy companies spanning 32 years, John Ramsay decided to retire from the Company at the end of September. John was instrumental in the foundation of Syngenta and served with distinction as Chief Financial Officer since 2007 and latterly also as Chief Executive Officer ad interim. I should like to thank John for leading the Company during a period of uncertainty with great skill and judgment. I should also like to thank employees, who have worked tirelessly through a time of turbulence, for their dedication and loyalty. Syngenta remains Syngenta Many of Syngenta’s shareholders invested in the Company for the long term and remain invested today. I am glad that they will be amply rewarded through ChemChina’s recognition of the Company’s strategic value. This is a transaction that benefits not just shareholders but all stakeholders, including customers, employees and communities. This change of share ownership allows Syngenta to remain Syngenta, a global company headquartered in Switzerland, focused on sustainable growth and committed to helping growers worldwide achieve food security. Nequae prenita. Michel Demaré Chairman of being a leading provider of technology and will ensure continued choice for growers worldwide. It will allow us to maintain a broad portfolio and geographic presence and to further strengthen our position in emerging markets, notably in China itself. We are excited by the opportunity to assist in the ongoing modernization of Chinese agriculture, bringing not only our products but also our experience and know-how in promoting the highest environmental standards. Sustainability has always been at the core of our business model, impacting the way we do business on a day-to-day basis, and reinforced by our smallholder-focused initiatives through the Syngenta Foundation and the commitments contained in The Good Growth Plan. ChemChina has enthusiastically endorsed these values and principles, which are the foundation of our Company and will remain so in the future. Transparency and partnership bring added value In 2016, we made further progress towards meeting our Good Growth Plan targets for 2020. An expanding network of partnerships is enabling us to broaden our contribution by combining our skills with the expertise and reach of others. Data on each of the commitments is independently collected and validated and our open data policy allows people to make their own assessment of our progress. We are further promoting transparency as a partner in GODAN, the Global Open Data for Agriculture and Nutrition initiative, a public/private collaboration of more than 400 organizations that supports global efforts to make agricultural and nutritionally relevant data accessible and usable. Living our company values The launch of The Good Growth Plan in 2013 was not a new beginning for Syngenta – it represented a continuation and a quantification of a long-standing focus on sustainability. This focus has been embraced by the Company’s 28,000 employees and infuses its culture and values. In November, I was privileged to host the 2016 Syngenta Awards ceremony, at which outstanding teams from around the world were recognized for their contributions to those values and to the company purpose of Bringing plant potential to life. The entries were without exception inspiring, and I was deeply impressed by the passion, motivation and spirit of healthy competition that reverberated through the event. Syngenta Annual Review 201604 Chief Executive Officer’s statement A clear sense of purpose in a changing industry environment 2016 was another good year for innovation at Syngenta, demonstrating the power of our R&D engine. J. Erik Fyrwald Chief Executive Officer When I was appointed CEO of Syngenta in June 2016, I was thrilled to return to the world of agricultural technology. The need to grow food sustainably has never been greater and our industry has a vital role to play. I am proud to be part of the Syngenta Team that does so much to help farmers and their communities all around the world. Common sense of purpose In my first months at Syngenta, I traveled to every region, meeting our people and the customers they serve. From vegetable and rice growers in Vietnam and China to corn and soybean farmers in the USA and Brazil, and many others, I found a common sense of purpose to produce better crops while making the best use of inputs and natural resources. During my travels, I witnessed firsthand the tremendous energy and dedication of Syngenta employees around the world, who develop and deliver innovative products and agronomic advice to help farmers succeed, and I would like to thank them all for their capabilities and commitment. It is a true joy to see these farmers use our products and services to help improve their lives and lift up their families and communities, while contributing to global food security and a reduction in carbon emissions and water usage. Robust long-term prospects With regard to the agriculture industry, 2016 was another difficult year. Crop prices remained low and grower profitability was under pressure in many areas. This led to a contraction in the crop protection market, with the seeds market about flat. It is important to remember that, until 2013, both markets saw years of almost uninterrupted growth, driven by the adoption of innovative technology and intensification. These drivers remain in place as the global demand for grains continues to rise, so we look towards the future with confidence that the prospects for our industry are robust. Syngenta Annual Review 2016   Strategic overview 05 Resilient performance in a difficult environment Our sales in 2016 were 2 percent lower at constant exchange rates and 5 percent lower in reported terms. In the fourth quarter, adjusted for a non-recurring royalty payment, regional revenue growth was 7 percent. We continued our focus on costs through the Accelerating Operational Leverage program and were able to increase EBITDA in the second half. For the full year we generated free cash flow of $ 1.4 billion, helped by our focus on inventory management. Meanwhile, we continued to invest in order to meet demand for best-in-class chemistry and seeds, with the completion of capacity expansion projects at key sites in Brazil and Switzerland. Proven innovation success 2016 was another good year for innovation at Syngenta, demonstrating the power of our R&D engine. Our new herbicide ACURON™ propelled market share gain in the North American corn market, providing growers with a much-needed solution to the problem of weed resistance. Its success shows that, even in difficult market conditions, growers embrace new technology that can deliver value. In Argentina, we received approval for the breakthrough fungicide ADEPIDYN™, which builds on our strong fungicide heritage including ELATUS™ and AMISTAR® technology. In Brazil, the outstanding performance of our VIPTERA™ insect resistance technology enabled us to grow our corn seed share in this critical market. Innovation is at the heart of our business model and extends well beyond new crop protection active ingredient launches. Our broad portfolio and formulation expertise enable us to continuously bring new crop protection products to market, addressing the varying and evolving needs of growers of multiple crops in different countries. In Seeds, our breeding capability delivers many new hybrids and varieties every year, providing growers with continuous yield and quality benefits. In those regions where GM technology is accepted, we also offer a leading suite of traits for corn. Clear corporate goals This strength in innovation will support the achievement of our first corporate goal, which is to improve the customer experience and to profitably grow market share. Achievement of this goal depends not just on leading innovative products, but also on our entire approach to the customer. The approach varies by market as it is driven by local needs and knowledge. Our second corporate goal is to drive simplification to continuously improve everything we do, thereby unleashing our people to focus on the customer. We have built the foundations for this through the Accelerating Operational Leverage program, which is now fully embedded across the Company. Our third corporate goal, which we will pursue with continued determination as a private company, is to meet our financial commitments. New Executive Team established There were several changes in the Syngenta Executive Team in the course of the year. I warmly thank the three outgoing members – John Ramsay, Davor Pisk and Jonathan Seabrook – for their many years’ service and substantial contributions to the Company. I was pleased to announce the appointments of Mark Patrick as Chief Financial Officer and Jeff Rowe as President Global Seeds and North America. Mark brings more than 20 years’ experience in the Syngenta Finance function. Jeff comes from outside the Company and has tremendous seeds industry experience. In his new role, he will focus on making our performance in seeds match the quality of our technology. The team has been further strengthened with the appointments of Alexander Tokarz as Head Business Development, Mark Titterington as Head Corporate Affairs and Laure Roberts as Head Human Resources – all strong leaders who bring great experience and energy to their new positions. In 2016, we made progress despite the many challenges we faced in the external environment. Our people remained focused on the business in the knowledge that, under the future ownership of ChemChina, Syngenta will play an increasingly important role in the future of agriculture. I personally am very excited by the growth opportunities that this transaction will bring and look forward to its successful conclusion. J. Erik Fyrwald Chief Executive Officer Syngenta Annual Review 201606 Our business model The resources we depend on Financial capital People and the intellectual property they create Chemical, biological, genetic and computational sciences Natural resources Facilities and services Local communities Laws and regulations Creating value by taking a long-term view Our ability to create value for employees, the communities where they live and for all other stakeholders is contingent on the value we create for our customers. Our innovation enables farmers – from smallholdings to large-scale farms – to safely produce food, feed and other plant-based products as efficiently as possible, without using more natural resources. We take a long-term view to developing technologies that will not just meet demand in the years to come, but will do so without depleting already overstretched resources. We cannot achieve our goals alone. To create the business and social value we aspire to, we have built a rich network of productive alliances with NGOs, academic institutions, other agricultural businesses and growers. Our knowledge and open, collaborative culture contribute to making us a trusted and respected partner. Through these relationships we can leverage our own resources – accelerating innovation, sharpening efficiency and increasing our flexibility. Our broader value proposition comes not just from the food that we help farmers produce today, but from the support we give them in building prosperous rural communities and sustainable farming practices. That’s why our Good Growth Plan commitments are integral to our business strategy. They put sustainability center stage in the way we do business. And they align closely with many of the UN’s Sustainable Development Goals. We’re mobilizing our expertise and innovation to create a sustainable future in agriculture. Factors such as climate change are among the global risks that we consider in addition to normal business risks. This means that we plan not only for the short term but also for the decades ahead. Syngenta Annual Review 2016Strategic overview 07 What we do What we create The value we provide Research and development Products, services and solutions Products 3 Herbicides 3 Insecticides 3 Fungicides 3 Seedcare 3 Seeds 3 Traits Crops 3 Cereals 3 Corn 3 Diverse field crops 3 Rice 3 Soybean 3 Specialty crops 3 Sugar cane 3 Vegetables 3 Lawn and Garden Adjacent technologies 3 Nutrients 3 Financial solutions 3 Information systems 3 Digital agronomy What we do Who we work with 3 Scientists and universities 3 Research institutions 3 Farmers and suppliers 3 NGOs 3 Agricultural extension services 3 Crop protection discovery and innovation 3 Advanced seed breeding 3 Addressing insect, fungus, weed and environmental stress on crops Production What we do Who we work with 3 Active ingredients 3 Intermediates 3 Formulation, fill and packaging 3 Seed production Commercial 3 Chemical suppliers 3 Toll manufacturers 3 Seed supply farms 3 Lawn and Garden supply chain What we do Who we work with 3 Product life cycle management 3 Crop-based offers 3 Marketing and sales 3 Distribution 3 Growers 3 Distributors 3 Demonstration farms 3 Processors and the food chain 3 Agronomists 3 Agricultural extension services 3 Technology providers Supporting activities What we do Who we work with 3 Safe and sustainable use of our products 3 Product registration 3 Health, safety and environment 3 Multi-stakeholder dialogue 3 Industry associations 3 Government and regulatory authorities 3 NGOs and IGOs 3 Communities Return on investment for growers and shareholders Food, feed, fuel and fiber Sustainable intensification of agriculture to provide food security Grower and customer satisfaction Sustainable production Development of our people and partners along the value chain Economic value shared with employees, suppliers, governments and communities Collective wellbeing of communities Stimulating research and sharing knowledge Syngenta Annual Review 201608 Research and Development Stepping up productivity and innovation Our continuing success and sustainability will be determined by our ability to keep creating new solutions that meet and anticipate grower needs. We invest around $ 1.3 billion a year in research and development (R&D), covering chemistry, genetics, breeding and computational science. We have demonstrated the productivity of our R&D – and in 2016, we adapted our strategy to accelerate the pace of delivery further. Investment in Research and Development $bn 2016 2015 2014 1.30 1.36 1.43 Our goal is to create value for our customers through higher yields and better use of resources. Constant innovation is necessary to meet the evolving needs of growers and the value chain, to address the ever-changing pressures presented by pests, diseases and climate change, and to deliver the sustainability commitments of our Good Growth Plan. In 2016, we invested $ 1.3 billion in research and development at 119 sites around the world. Our R&D world is changing In a changing industry landscape Syngenta’s commitment to R&D is unwavering. The regulatory framework in which we operate is also evolving. We need to work with governments and other bodies to help shape policy and ensure that regulatory requirements are science-based. Against this background, the opportunities offered by science have never been greater. The convergence of chemistry, biology and mathematics is enabling us to innovate faster, more precisely and with more predictable results. Increasingly, we can apply predictive science to innovate by design, using data-driven techniques to create better products that meet growers’ needs. Faster, smarter innovation The quality of our R&D is reflected in an exceptionally strong pipeline. Our aim is to target our activity where we see major opportunities for growth and differentiation. We will invest selectively in new technologies that can differentiate us in the marketplace. This exploratory portfolio will take us deeper into novel products such as biocontrols and hybrid wheat while expanding our capabilities in areas such as genome editing and predictive toxicology. Biological controls complement other crop protection technologies with new modes of action or enhanced spectrum, and have particular value in managing resistance challenges and food chain requirements. This market is expected to see double-digit growth over the next decade, and we are increasing our capabilities by establishing a biocontrols lab at Research Triangle Park in the USA, working in close collaboration with specialists at Jealott’s Hill in the UK. The biocontrols partnership we launched in 2016 with DSM has already built a portfolio of biologically active candidates for further investigation. We remain committed to promoting innovation by sharing our knowledge – both through licensing and through our increasing publication of open data. For example, as a pioneer in the emerging science of RNA-based biocontrols, in 2016 we became the first agrochemical company to share RNA-based biocontrol research as open data. Syngenta Annual Review 2016Research and Development We also publish large amounts of agronomic data from our Good Growth Plan. For more on our approach to open data, see “Open data: accelerating progress” on page 43. For some years, we have provided access to our patented native vegetable traits and enabling technologies through our e-licensing website. And in 2016, we entered into a cross-licensing agreement on native vegetable traits with Dutch plant breeding company, Rijk Zwaan. This gives both companies the right to exchange patented biological material for breeding and commercial purposes. Key achievements in 2016 We continue to be leaders in productivity within crop protection R&D and are meeting our target of launching on average at least one significant new active ingredient (AI) each year. In 2016, ADEPIDYN™ received its first registration in Argentina and is now being marketed there as MIRAVIS™ DUO, a combination of ADEPIDYN™ fungicide and difenoconazole for use on soybean against late-cycle diseases. ADEPIDYN™ is a highly effective fungicide with a broad range of applications and is set to become a blockbuster – see case study below. For use on multiple crops, it provides a step change in leaf spot disease management, delivers excellent control of powdery mildew, and is highly effective on difficult- to-control diseases such as Fusarium head blight and molds, which cause severe crop damage. Untreated soybean Soybean treated with ADEPIDYN™ New fungicide set for global success Our new broad-spectrum fungicide ADEPIDYN™ is a potential blockbuster: we’re forecasting peak sales of over $ 750 million globally. It’s both effective and versatile – we are currently developing products based on ADEPIDYN™ for soybean, wheat, corn, canola, vegetables and specialty crops. Following its launch in Argentina at the end of 2016, we’re preparing to take it into the USA, Canada, Mexico, Australia and New Zealand in 2018 – reinforcing our global leadership in fungicides. 09 Cl Cl F O F Cl N O N N 3,800 In developing new fungicide ADEPIDYN™, we screened over 3,800 candidate compounds and conducted over 5,000 trials. It took eight years to develop Pinoxaden, the AI in herbicides such as AXIAL®, achieved EU Annex 1 listing. This means that cereal growers can continue to use it to control a broad spectrum of weeds and grasses, and it protects our sales of this effective herbicide. Our insecticide AI abamectin received label extension approvals in the USA, allowing it to be used on a wider variety of crops. Our fungicide ORONDIS™ received its first premix registration in North America, along with new uses on citrus and potatoes. In seed treatment, Brazil granted registration for FORTENZA® 600 insecticide treatment, China approved oxathiapiprolin fungicide and the USA approved the first oxathiapiprolin combi-formulation. Our new EPIVIO™ herbicide biostimulant also has great market potential as a seed treatment solution enabling early vigor in seedlings. In 2016, we launched EPIVIO™ VIGOR in Brazil for this application in soybean, and received product approval in China for use on corn. In our pipeline, Lead 5 – a long-lasting nematicide with a novel mode of action – moved into stage 2 development. Growers are eagerly awaiting an effective solution for microscopic nematodes, which today represent one of the largest unmet pest control needs. Syngenta Annual Review 201610 Research and Development Our strengths in plant breeding are reflected in leadership positions in a number of markets including cereal seeds. Our plant breeding work has experienced a paradigm shift since researchers began using analytics tools to identify and harness high-performing genetics for new seed varieties. We are developing technology that will allow us to customize our products for growers based on their needs, field conditions and weather forecasts in a given year. In 2016, Syngenta received the Genius Award for Analytics Innovation from the US Association of National Advertisers, which cited our “creative analytical approach to the complexity of plant breeding”. 5,000+ Skilled employees working in R&D worldwide Recent Crop Protection launches Product SEGURIS® VIBRANCE® ELATUS™ SOLATENOL™ FORTENZA® MINECTO® ACURON™ ORONDIS™ EPIVIO™ ADEPIDYN™ Indication Fungicide Fungicide Fungicide Seedcare Herbicide Fungicide Seedcare Fungicide Crop Protection Pipeline Crops Cereals, diverse field crops, rice, specialty crops, vegetables Cereals, corn, diverse field crops, rice, soybean, specialty crops, vegetables Cereals, corn, diverse field crops, soybean, specialty crops, vegetables Cereals, corn, diverse field crops, rice, soybean, specialty crops, vegetables Cereals, corn, diverse field crops Vegetables, specialty crops Cereals, corn, cotton, sorghum, soybean Cereals, corn, soybean, specialty crops, vegetables Product Lead 1 Lead 2 Lead 3 Lead 4 Lead 5 Lead 6 Lead 7 Lead 8 Lead 9* Lead 10* Indication Insecticide Herbicide Fungicide Insecticide Seedcare Seedcare Seedcare Herbicide Herbicide Crops Multiple crops Corn Soybean Vegetables, specialty crops Cereals, corn, soybean Multiple crops Cereals Cereals, corn Rice Crop enhancement Rice * New addition in 2016 Stage 1: Invention, optimization Stage 2: Evaluation Stage 3: Development and launch Peak sales >$ 150m ~$ 500m ~$ 1,000m >$ 400m >$ 500m >$ 150m ~$ 80m >$ 750m Status Stage 3 Stage 3 Stage 1 (late) Stage 3 Stage 2 discontinued Stage 1 (late) Stage 2 Stage 1 (late) Stage 1 (late) Syngenta Annual Review 2016Research and Development 11 Traits Pipeline Product Lead 1 Lead 2 Lead 3 Lead 4 Lead 5 Lead 6 Lead 7 Lead 8 GM Traits Crops Disease control Soybean Insect control Insect control Corn Corn Weed control Corn, soybean Insect control Corn Weed control Soybean Insect control Insect control Corn Corn Stage 1: Invention, optimization Stage 2: Evaluation Stage 3: Development and launch Status Stage 1 Stage 1 (late) Stage 1 (late) Stage 1 Stage 2 Stage 3 Stage 3 Stage 3 (late) Plant breeding highlights in 2016 included US authorizations for our glyphosate- and glufosinate-resistant corn molecular stack product and for a molecular stack engineered to express three proteins that confer resistance to herbicide and to insect damage. Canada gave commercial approval for our AGRISURE® refuge-in-a-bag trait stacks, which give growers a flexible and convenient way to comply with refuge requirements and manage the development of resistant insects. Our rich seeds pipeline includes a next- generation above-ground insect control trait, now entering early development. Further leads have entered late research, and we are working on multiple insecticidal proteins with new modes of action against corn root worm and fall army worm. Investment in people and resources To fulfill our strategy we must invest in both facilities and talent. Diversity of thought, disciplines and experience is fundamental to our approach, and we actively pursue cross-functional development across the organization. Attracting and retaining capable, creative scientists and engineers is crucial. Our Science and Technology Ladder provides clear opportunities for career progression for employees whose contribution is focused on science. We have also updated the role and purpose of our Fellows community. Fellows are Syngenta scientists and engineers at the top of the Science and Technology Ladder who are role models for scientific and technical delivery and who help us to identify new business and technology opportunities. They also play an ambassadorial role, helping to ensure that our R&D productivity benefits from effective information exchange with the international scientific community. 70 Native vegetable trait patents covered by our 2016 cross-licensing agreement with Rijk Zwaan Syngenta continues to be recognized in the scientific community as an attractive place to work. We are regularly placed in the world’s Top 20 biotech and pharmaceutical employers in Science magazine’s annual survey, ranking 14th in 2016. We support our talented people with continuing investment in high-quality R&D facilities. In 2016, scientists at our Research Triangle Park facility in the USA moved into a new state-of-the-art innovation center designed to stimulate scientific interaction. In the Ukraine, we invested in a new corn and sunflower breeding station for Eastern Europe and the CIS, where we are a market leader. We also initiated investment in: cutting-edge sample storage and retrieval hardware at our UK Central Research Dispensary at Jealott’s Hill; a new Breeding Center of Expertise in Chartres, France, where activity will include our high-priority hybrid wheat program; and a new Global Nursery in Kenya to support vegetable and hybrid cereal production. Syngenta Annual Review 201612 The Good Growth Plan The Good Growth Plan is a learning process, both for us and the people who work with us. Its value will depend to a large extent on how successfully we pass on what we know, and what we learn – to small- and large-scale farmers, the farmworkers we train, and the partners who use our openly published data. That’s why we’ve set targets for each of our commitments. We report our progress against these targets each year, and provide additional progress information online at www.data.syngenta.com We are now going further, seeking to measure not just the extent of our reach but also the nature and quality of the value we add. We are assessing our programs’ impact on people, communities and the environment. The principles and priorities of The Good Growth Plan are now deeply embedded in the way we do business. And as we build what we learn into our commercial offer, we are also building the evidence that it delivers real, measurable value for growers and society at large. For more on the UN’s SDGs, visit sustainabledevelopment.un.org/topics See detailed performance data for The Good Growth Plan on page 55 Adding value sustainably As a business serving the agricultural industry, we help farmers feed a fast-growing world population. But there’s more: we aim to lead in sustainability. The Good Growth Plan is not only driving the way we add value to a sustainable agriculture system; it’s measuring the results, so we can quantify the difference we make. The Good Growth Plan Our six commitments to help farmers meet the challenge of feeding a fast- growing world population sustainably. Make crops more efficient Rescue more farmland Help biodiversity flourish Empower smallholders Help people stay safe Look after every worker The Good Growth Plan is part of our business strategy, designed to focus our skills and resources on understanding and meeting the most pressing needs of our customers and stakeholders. It demands innovation and enterprise from every part of our organization. The Plan considers the resource efficiency that must underpin current productivity, the ecosystem resilience necessary to sustain it in the future, and the knowledge transfer needed to support and strengthen rural communities. It pays particular attention to smallholders, because they have the greatest potential to increase farm productivity. Today, we have a well-developed network of more than 3,700 farmers and many other partners working with us to demonstrate and measure what’s possible for 23 crops, the environment, rural communities and agriculture workers in 42 countries. Our six Good Growth Plan commitments help us quantify how we contribute to the Sustainable Development Goals set out in the United Nations Agenda 2030. Syngenta Annual Review 2016The Good Growth Plan 13 Make crops more efficient Increase the average productivity of the world’s major crops by 20 percent without using more land, water or inputs Average land productivity increase1 % 1.2% 2020 2016 2015 2014 20 1.2 1.9 0 1 On reference farms compared to baseline 2014 Farm network No. of reference farms No. of benchmark farms 2016 2014 2015 1,039 1,062 860 2,694 2,586 2,738 Progress and key achievements 3 Combined farm-level data with “big data” to give richer, more consistent analysis and feedback 3 Helped drive creation of open data ecosystem to accelerate innovation 3 Began to identify key drivers for sustainably enhancing productivity The world needs to grow more food in the next 50 years than it has produced in the past 10,000 while using resources far more efficiently. We work together with growers who use our products every day, and focus particular effort on smallholders, who have the greatest potential to increase productivity and in turn improve their own livelihoods. Getting the most out of every hectare Tanner Tanke grows soybeans, sugar beets and wheat in North Dakota, USA. As a Good Growth Plan reference farmer, he tracks the resources it takes to grow his crops. Knowing the efficiency of his farm inputs helps him not only keep an eye on his bottom line, but also improve the sustainability of his farm. This helps him get the most out of every hectare. Such a large farm network sees constant changes over time driven by developments in the business environment. For example, we are now focusing our reference farm network in Africa and the Middle East entirely on smallholders to make our service to them more impactful. We’ve improved our progress measurement to allow for changes in reference farms while still measuring consistently. Find more details online at www.data.syngenta.com Making our data more valuable We’ve improved the way we share our Good Growth Plan data with growers by focusing on the results most relevant to them. Measuring the difference we make To test and measure what’s possible, we have created a network of farms across 23 crops in 42 countries. In 11 countries we are focusing particularly on smallholders, who have the greatest potential to increase productivity. We have reference farmers working with our field experts to trial new solutions and raise productivity and we have benchmark farmers who share with us their data to compare and complement the assessment. In 2016, we collected data from a total of 1,039 reference farms that follow Syngenta protocols, as well as 2,694 randomly selected benchmark farms for comparison. Across all our reference farms, the average land productivity increase in 2016 was 1.2 percent. This was 3.8 percentage points higher than benchmark farms where we saw an average 2.6 percent decrease in land productivity. Syngenta Annual Review 201614 The Good Growth Plan Farm performance is affected by many factors, both controllable and uncontrollable, and what works for one grower, crop or location may not work for another: the more data we can analyze, the greater our chances of understanding why. We now have unprecedented quantities of detailed farm-level information, which – by sharing them as open data – we are supplementing with global information on factors such as weather, soil and growing conditions. Global food security is too big a challenge for any one organization, and the pace of innovation will depend on how easily people and organizations can share data. Without an efficient global infrastructure for agricultural data, our openness and transparency are of limited value. To help build this infrastructure, we joined GODAN, the Global Open Data for Agriculture and Nutrition initiative, which now has over 375 partners including governments, NGOs and commercial organizations. At GODAN’s 2016 Summit, we co-presented a discussion paper setting out priorities for creating an effective data ecosystem for the industry, from engaging stakeholders to sourcing, sharing and collaborating with data. Commissioned by Syngenta with contributions from partners – the Consultative Group for International Agricultural Research, the Open Data Initiative, information specialists Agroknow and Agrimetrics – this paper is helping to drive an open data revolution in our industry. What we’re learning from our data In collaboration with external partners, we have been conducting a wide range of analyses, using computers to mine our data and test environmental models. Using machine intelligence will help us gain previously unavailable insight into patterns and correlations. Given the huge numbers of variables involved, it is too early to draw firm conclusions about the keys to sustainable productivity increases. 8% Average land productivity increase on smallholder reference farms We aggregate full-year data to calculate global averages on reference and benchmark farms. In this report, we focus on how efficiently land, pesticides and nutrients are used. In addition, we detail smallholder farm productivity – they achieved the hoped for higher rate of increase in productivity of 8 percent, compared with larger farms where the average was 1.2 percent. Yields and pesticide field application efficiency generally seem to correlate with external factors such as pest pressure, adverse weather conditions, access to training and our agronomic advice. Pesticide field application efficiency for example was generally lower this year, though reference farms performed better than benchmark farms. What’s next? Each growing season provides us with more data to help us and our partners to identify keys to more productive agriculture. Meanwhile, a particular focus in 2017 will be to create more value for farmers participating in our reference network. We can analyze their data to make optimized recommendations or support multi-stakeholder partnerships that provide incentives for sustainable improvements in the field. For example, our Fruit Quality Contract program helps farmers comply with stringent food chain standards. And, while building trust externally by publishing data openly and transparently, we will take care to earn growers’ trust by protecting their privacy so that they stay in control of their own data and results. Rescue more farmland Improve the fertility of 10 million hectares of farmland on the brink of degradation Benefited farmland1 m ha 4.3m 2020 2016 2015 2014 1.9 10.0 4.3 2.4 0.8 1 Cumulative since baseline 2014 Progress and key achievements 3 Integrated soil conservation protocols into commercial offers as additional farmer benefit 3 Continued campaigning to promote good soil management practices 3 Joined multi-stakeholder platforms to promote the adoption of conservation agriculture Poor farming practices expose soil to wind and rain erosion, leaving millions of hectares infertile. Every year, the world loses enough land to produce 20 million tons of grain. The UN Convention to Combat Desertification (UNCCD) estimates that 52 percent of the land used for agriculture is moderately or severely affected by soil degradation. There’s an urgent need for action by governments and the agricultural sector to restore the fertility of existing land and prevent further degradation: this is explicitly recognized by the UN in its Sustainable Development Goals. Syngenta Annual Review 2016The Good Growth Plan 15 Measuring the difference we make We are raising awareness of this issue and promoting conservation agriculture practices based on minimum soil disturbance, crop rotation and permanent ground cover. In 2016, our programs benefited an additional 1.9 million hectares of land – bringing the cumulative total to 4.3 million hectares and keeping us on track towards our 2020 target of 10 million. The substantial increase in 2016 was due mainly to better integration of soil management practices into our commercial offers, which now account for some 70 percent of hectares benefited. Driving positive change Integrating soil conservation practices into our product protocols and training is helping us to differentiate our commercial offer. In 2016, we began investigating the soil conservation profiles of key products and integrated offers so we can help growers to maximize their contribution to soil conservation. Our hybrid barley HYVIDO®, for instance, has valuable characteristics such as deep root systems that can contribute more to soil fertility when enhanced by protocols that include crop rotation and nutrient management. The science behind conservation agriculture is well established. Our aim is to drive effective technology transfer by helping farming communities and local stakeholders to adapt it to local conditions. Farms of all sizes will benefit, but there is no one-size-fits-all solution: soil conservation needs to be tailored to local environments and crops, and the best results come from marrying proven science to local knowledge. In this way, agriculture – and the communities that depend on it – will become more resilient to challenges such as climate change. Investing in soil health Péter Szabadka knows taking good care of his soil is an investment in the future. His family farm in Hungary grows a variety of crops using our CONTIVO® solution, which promotes conservation agriculture to reduce erosion and maintain soil health. He says it’s not only good for the environment – but for his productivity as well. We are engaging the conservation community to promote the adoption of conservation agriculture and secure validation for our methods. This includes presenting to major conventions – such as the 2016 UNCCD World Day to Combat Desertification in Beijing, China, where Syngenta was invited to represent an agri- business viewpoint. We are promoting the benefits to farmers and showing them how conservation agriculture can protect against stresses such as drought. Seeing is believing, and investment in demonstration plots and farms is an essential part of our advocacy and technology transfer effort. What’s next? In 2017, we’ll be working with expert partners to pilot impact assessments of eight soil conservation projects across all our major regions. These environmental and socio-economic assessments will help to accelerate change by showing more clearly the returns farmers can expect. They will also highlight immediate benefits – such as savings on tractor fuel – that arise before longer-term benefits such as climate change resilience become apparent. We’ll continue working with commercial partners by creating and promoting open platforms that combine technologies, machinery, financial solutions and education. We’ll also continue working with the UNCCD on the Soil Leadership Academy to increase awareness and urgency among policymakers on soil health and fertility issues. Syngenta Annual Review 201616 The Good Growth Plan Help biodiversity flourish Enhance biodiversity on 5 million hectares of farmland Benefited farmland1 m ha 4.9m 2020 2016 2015 2014 3.3 5.0 4.9 1.6 0.7 1 Cumulative since baseline 2014 Progress and key achievements 3 Developed new methodology for assessing environmental and socio- economic impacts of biodiversity interventions in agricultural landscapes 3 Worked with the conservation community communicating to policymakers the importance of landscape connectivity 3 Increased the impact of our partnership with The Nature Conservancy to benefit 2.8 million hectares in Brazil The sustainability of agriculture relies on biodiversity – for plant breeding, pollination and food diversity. Our customers and our own seed production rely on this critical resource. Biodiversity suffers as species’ habitats are lost or fragmented, and in recent decades it has been declining at an unprecedented rate. Climate change increases the risks. We are promoting and enabling action to protect and enhance biodiversity – primarily by managing marginal and less productive farmland alongside fields and waterways to create rich, connected wildlife habitats. This is recognized as the greatest opportunity to enhance biodiversity in agricultural landscapes. Measuring the difference we make Our approach seeks to restore farmers’ role as custodians of the land; but we also recognize that they have livelihoods to earn and businesses to run. To present a persuasive case to them, and to policymakers, we need to quantify the benefits that can be delivered and the returns farmers can expect. So we have developed an impact assessment methodology that we piloted in 2016 at eight sites in Asia, Europe, Latin America and North America. The assessments are being carried out by Arcadis, a leading global consultancy in natural assets, and are designed to measure both the returns to farmers and the wider socio- economic benefits. So far, we have engaged in programs in 34 countries benefiting a total area of 4.9 million hectares. This reflects the great success of our partnerships with other stakeholders and in particular The Nature Conservancy in Brazil, which alone contributed 2.8 million hectares in 2016. The Soja+Verde project works on the restoration of rainforest in agricultural landscapes. The significant positive impact on biodiversity is achieved through a new approach to landscape connectivity. As a consequence, we are already close to our 2020 target of 5 million hectares. Stimulating thought and action We aim to be both thought leaders and practitioners – publishing technical papers and making the case for action, while also providing seeds, demonstrations, training and expertise to facilitate that action. Preserving the land for generations Luciane Copetti is a grower and has been Secretary of Environment of Lucas do Rio Verde municipality, which is a major production area for soybean in Brazil. She’s been a leading figure in mobilizing growers, government, NGOs and companies to establish forest conservation areas amongst the numerous farms that operate there. Her work supports the Soja+Verde project, an environmental partnership involving Syngenta and The Nature Conservancy. Syngenta Annual Review 2016The Good Growth Plan 17 We are making biodiversity solutions an integral part of our commercial approach. To support this, we are building an extensive network of partners: regional governments, municipalities, NGOs, farmers and academics. Farmers want to see evidence of the benefits on offer, so partnering with a local university on a demonstration plot is a typical first step. We work closely with conservation bodies to review and validate our approach. With the World Business Council for Sustainable Development we brought together a coalition of businesses, conservationists and institutions to produce a policy briefing paper on the multifunctional benefits of promoting biodiversity corridors in agricultural landscapes. Part of this work was presented at the UN Convention on Biological Diversity conference in December 2016. Driving action up the value chain A key goal is to establish biodiversity alongside water and soil conservation as a primary focus for value chain partners. We are encouraging them to include biodiversity in the criteria they set for supply contracts with farmers, and are pleased that a growing number of food manufacturers now see this as part of their own responsibility towards the environment and their customers. Some even advertise it on their consumer packaging. What’s next? In 2017, we’ll continue to work with partners to make investment in field margin habitats simpler and cheaper for farmers, and to embed the concept more deeply into our commercial offer. We’ll also continue promoting the benefits across a broad spectrum of stakeholders, supported by findings from our impact assessments. Empower smallholders Reach 20 million smallholders and enable them to increase productivity by 50 percent Smallholders reached1 m 16.6m 2020 2016 2015 2014 1 Through sales 20.0 16.6 17.2 13.8 Progress and key achievements 3 Land productivity increase on smallholder reference farms 8 percent 3 Partnerships to scale-up social impact assessment 3 Addressed grower challenges through partnerships such as the Sustainable Table Grapes Initiative in India Smallholder growers are critical to the world’s food security, yet they often face high financial risks and low returns. Every day, 180,000 people leave rural communities to live in cities. Over half our sales are in developing countries dominated by smallholder farmers, particularly in Africa, Asia Pacific and Latin America. As our contact with smallholders is largely indirect through vendors of our products, we use sales volume data to calculate the number of smallholders reached. In 2016, sales of products targeted at smallholders were reduced by adverse weather and changes in our go-to-market strategies; as a result, the calculated number of smallholders reached through sales reduced to 16.6 million (2015: 17.2 million). However, we remain confident of reaching our goal of 20 million by 2020. Productivity gains on smallholder farms come from a combination of state-of- the-art products made available in pack sizes appropriate for smallholders and the necessary training to use them effectively. We are measuring our progress in improving smallholder productivity through our network of reference farms. Today, we have 73 smallholder reference farmers in our Good Growth Plan farm network. The average productivity gain on these farms in 2016 was 8 percent, and we assess the benefit this can bring through social impact assessments. Measuring the difference we make Reaching more smallholders is a means to an end: we want to increase our impact on the wellbeing and prosperity of these farmers and their communities. To see the broader picture of what we bring to them through our products and services, we have been working with the Sustainable Markets Intelligence Center (CIMS) and other partners including the Sustainable Food Lab to develop a new impact assessment methodology. This brings a consistent approach to all our social impact assessments worldwide. It enables us to examine our impacts from economic, social and environmental perspectives, and to consider a broader range of factors such as farmer and farmworker safety. Syngenta Annual Review 201618 The Good Growth Plan Harmonizing our approach will allow us to scale-up the number of assessments by working with multiple partners – customizing individual studies to suit different countries, cultures and crops while still obtaining rigorous, consistent and comparable results. The new approach is currently being tested in Indonesia. This work will be supported by our new global partnership with Solidaridad – an international development organization that has been focused for over 45 years on social justice and the sustainable production of food. Solidaridad’s goals are closely aligned with those of The Good Growth Plan, and the organization is well respected for its work with companies in the value chain on practical action to improve conditions for farmers. Putting what we learn into action In 2016, we received the findings from three social impact assessments conducted in 2015 in China, India and Mexico. These are giving us a better understanding of our interactions with smallholders in these countries, which will help us to refine our go-to-market models to increase the benefits we bring to farmers and communities – for example, by helping to ensure more rigorous adoption of safe-use practices. Not all the issues we identify can be addressed by us alone. While prioritizing factors we can influence directly, we are actively seeking and developing partnerships to drive broader change by addressing challenges that our impact assessments bring to light. In India, for example, we have gained valuable insights into the problems caused by growers’ lack of access to microfinance. And in both China and India there’s a need for more effective ways of recycling our product containers after use. Improving yields and livelihoods Priscar Mwangangi grows tomatoes, peppers and corn on a small plot of land in Kenya. Heavy rains, crop disease and low-yielding seeds kept her from achieving her dream of growing healthy plants all year round. With training and high-quality inputs from Syngenta, her farm is now thriving. She’s helping show growers in her community how they can improve their yields and livelihoods as well. What’s next? In the year ahead, we will continue developing partnerships to tackle structural challenges facing smallholders in areas such as financing and access to technology and markets. We will also be undertaking new social impact assessments using our new methodology in Brazil, Guatemala, Indonesia and Mexico. One encouraging model is the multi- stakeholder Sustainable Table Grapes Initiative in India, where we are one of the partners providing input on sustainable growing protocols. India is one of the largest exporters of table grapes to the European Union (EU). Sales have grown dramatically, but further success will depend on significant progress in areas such as pesticide residues. Co-ordinated by IDH, The Sustainable Trade Initiative, this project brings together stakeholders ranging from growers in India to retailers in the EU with the aim of making the entire industry more sustainable. Syngenta Annual Review 2016The Good Growth Plan 19 Help people stay safe Train 20 million farm workers on labor safety, especially in developing countries People trained on safe use1 m 17.2m 2020 2016 2015 2014 6.8 20.0 17.2 10.4 4.7 1 Cumulative since baseline 2014 Progress and key achievements 3 Strengthened and scaled-up train-the- trainer initiatives through new Master Trainer Program 3 New partnerships to improve knowledge transfer We share a responsibility to help improve occupational safety and health in agriculture. This applies particularly to smallholders, especially those in developing countries, who often lack access to guidance on using crop protection efficiently, responsibly and safely. Measuring the difference we make In 2016, we reached 6.8 million people with dedicated safety training programs and safe-use awareness-raising initiatives linked to commercial activities. This brought the cumulative total since 2014 to 17.2 million and kept us well on track to meet our 20 million target by 2020. Smallholders make up some 70 percent of the people we train on safe use, as part of a broader training on using our products to best effect. Enhancing our training capability We constantly look for ways to enhance the reach and quality of our safe-use training. Key to this is our train-the-trainer program, which equips our commercial teams to deliver high-quality training. In 2016, we emphasized that this is central to the way we do business by introducing a cadre of Master Trainers who are part of our mainstream commercial organization rather than a specialist stewardship team. Our target is for each of our territories to have at least one Master Trainer responsible for training new trainers: in its first year, the new scheme has already covered more than 50 percent of territories, including all territories where we reach smallholders. Driving real behavior change Effective training will have a lasting effect on farmers’ behavior. To maximize its effectiveness, we need to ensure that farmers and farm workers fully understand our recommendations and why they matter, so that actions such as using the right personal protection or correctly following instructions on product labels become instinctive. As one of the outcomes of our 2015 Farmer Safety Workshop, we have formed a joint working group with Solidaridad to seek deeper understanding of farmers’ behavior and ways to improve knowledge transfer and adoption of training messages. Our partnership on training is part of a broader collaboration with Solidaridad on smallholder empowerment, which also covers aspects such as capacity building and productivity enhancement. What’s next? In the year ahead, we aim to engage more organizations in the discussion on behavior change. To help farmers recognize the real value of using chemicals safely, we need to involve more of the value chain. This will be the focus of a second Farmer Safety Workshop. We are planning to widen the participation of the private sector as well as the NGOs and academics who were the main contributors to our first workshop. Spreading the word on safe use Shi Lijie was trained by Syngenta on the safe use of pesticides 10 years ago. As a corn and rice grower in Liaoning province, China, she learned first-hand how pesticides can be applied and stored safely through the “5 Golden Rules” of safe and effective use of crop protection products. She now leads trainings in her community for Syngenta to help spread the word as an advocate for safety. Syngenta Annual Review 201620 The Good Growth Plan Look after every worker Strive for fair labor conditions throughout our entire supply chain network Seed supply farms in our Fair Labor Program % 82% 2020 2016 2015 2014 100 82 84 53 Progress and key achievements 3 All our seed suppliers in Latin America and Asia Pacific covered by our Fair Labor Program by end-2016 3 Of our commercial flowers farms, 73 percent have GLOBALG.A.P. certification and 24 percent have G.R.A.S.P. assessment 3 Two-thirds of our chemicals suppliers covered by our Supplier Sustainability Program We recognize a responsibility to ensure that our supply chain meets the highest ethical standards, especially in developing countries. Offering workers fair and attractive conditions will also help agriculture to stem the population drift to cities that can undermine efforts to increase production. We are committed to ensuring fair labor conditions across our supply chain. But this is no simple task: our seed supply chain – with almost 30,000 farms – poses particular challenges. 1 www.fairlabor.org/affiliate/syngenta 2 In some countries, the growing season was still underway when we completed our reporting year on September 30 – so some farms monitored are not included. We have worked with the Fair Labor Association (FLA) since 2004 to develop and manage our Fair Labor Program, requiring suppliers to comply with labor- rights codes in nine areas: Employment Relationship; Nondiscrimination; Harassment and Abuse; Forced Labor; Child Labor; Freedom of Association and Collective Bargaining; Health, Safety and Environment; Hours of Work; and Compensation. Measuring the difference we make Each year, we aim to audit compliance on 20 percent of farms in each country. The findings trigger corrective action plans and improvements to the program. In higher-risk areas the FLA independently audits a further 2 to 5 percent and publishes its findings. The FLA audit findings – together with the Syngenta remediation plans and reports on progress against these – are available on the FLA website 1. In 2016, we completed implementation of the program in China, Colombia, Mexico and Paraguay. At the end of the year, it covered over 24,000 suppliers, representing 82 percent of our seed supply chain. The slight decrease of coverage from 84 percent in 2015 is due to adaption to local market demand for seed production in a couple of countries in the program. We now have 100 percent coverage of suppliers in Latin America and Asia Pacific, and of all countries regarded as high-risk for labor rights. During the year we monitored compliance at 4,500 farms representing 18 percent 2 of the farms in the program; the FLA undertook some 20 independent audits during the same period, visiting around 200 farms covering about 2,000 workers. Advocating for fair labor Renukamma Umapathi’s small family farm in southern India produces Syngenta seed. After being trained in our Fair Labor Program, she advocates for the eradication of child labor, workers’ rights, and issues of health and safety for farm workers. She’s been instrumental in changing attitudes of other seed growers in her village to help keep children out of the fields and enrolled in school. Syngenta Annual Review 2016The Good Growth Plan 21 What’s next? By 2020, we will have added some 20 more countries to our Fair Labor Program to ensure 100 percent coverage. In 2017, we will be rolling the program out to four more countries in Europe; North America will follow in 2018. We will continue working to build rigor into our monitoring so that we can provide robust progress reporting. Our goal is not merely to tick compliance boxes but to achieve real improvement. We have come a long way, but are under no illusions about how much more there is to do. These are complex issues involving many actors from farmers to governments: we welcome discussion to share ideas and experience, and by reporting transparently on our progress we hope to contribute to better informed debate. 73% Percentage of our commercial flowers farms that have GLOBALG.A.P. certification Our findings correspond largely to those of the FLA. Although some topics are more common in certain regions, there are more general themes – including compliance with safety measures and trust in existing grievance mechanisms. A particular challenge that we are currently addressing is compliance with minimum wage payments to workers on our supply farms in India. This is a well-documented problem for agriculture in India, as prevailing market wages differ – sometimes significantly – from the legal minimum wage. In 2016, we organized a multi-stakeholder dialogue on the topic, held jointly with the FLA, in Hyderabad. Eleven companies representing 80 percent of the hybrid seeds industry in India attended the meeting, along with 21 civil society delegates representing trade unions, NGOs, research institutions, multilateral agencies, as well as both male and female farmers and farm workers. Building on feedback from delegates, we started two pilot projects – one in corn and one in hot pepper, covering a total of about 3,000 workers – to address the challenge of ensuring that workers receive the wages agreed and paid to farmers. Other companies attending the dialogue have also committed to run pilots in their supplier networks. Certifying our flower suppliers Work continues in our flower business to obtain certification to GLOBALG.A.P./ G.R.A.S.P. social practice standard for all our own and third-party commercial flowers farms. Take-up among our major suppliers has been rapid, and by the end of the year 73 percent of farms had GLOBALG.A.P. certification and 24 percent had undergone the G.R.A.S.P. assessment. In some countries, the largest challenge has been finding auditors certified to carry out both the GLOBALG.A.P. and G.R.A.S.P. work. Auditing chemicals suppliers We have a long tradition of assessing and auditing our chemical suppliers’ compliance with our health, safety and quality standards. In 2015, we joined the Together for Sustainability (TfS) initiative, which pools the resources of its member companies to optimize the efficiency and frequency of supplier audits and assessments. TfS also covers a broader range of criteria including labor rights compliance. During 2016, we carried out risk assessments on all our chemical suppliers over a certain spend and categorized them as high-, medium- or low-sustainability risk. We aim to bring all medium- and high-risk suppliers into our Supplier Sustainability Program in the coming years. In 2016, two-thirds of our target suppliers were covered by either our internal HSE audit or the TfS supplier program. For more on the TfS supplier program, see “Supplier impacts” on page 40. Syngenta Annual Review 201622 Regional performance New technologies driving growth Syngenta is a global organization of some 28,000 people working in around 90 countries. To understand and meet the needs of farmers across a wide range of climatic conditions, we have 119 research and development sites and 107 production and supply sites. Our teams around the world use their expertise and local knowledge to tailor our offer and to provide solutions that create value for growers. In 2016, the world’s farmers faced a diversity of challenges – climatic, economic and agronomic. In addition, they continued to come under pressure to demonstrate that farming can be carried out sustainably. Increasingly, Syngenta is differentiating itself not only through the strength of its portfolio but also through The Good Growth Plan, which represents a roadmap towards more sustainable farm practices. Europe, Africa and Middle East North America Pages 23−25 Pages 26−28 Latin America Asia Pacific Pages 29–31 Pages 32–34 Climate change brings unpredictable challenges Climate change continues to bring extreme and unpredictable weather patterns around the globe. In 2016, this meant droughts in much of Asia, Australia and Western and Midwestern USA – while large parts of Europe suffered from exceptionally cold and wet weather. Latin America fared rather better, with relatively benign weather following two difficult years of drought in the North and floods in the South. Commodity prices put pressure on farm investment Weak commodity prices affected growers across Asia, Europe and North America. Poor returns can undermine growers’ willingness to invest in advanced technologies, but yield protection remains imperative in order to avoid a further erosion of their incomes. In some areas, farming flourished despite low crop prices: bright spots included favorable conditions in Russia and Ukraine for corn and sunflowers, and economic measures benefiting agriculture in Argentina. Innovation remains the key to success Even in a difficult market environment, innovation continues to be a powerful sales driver. Our new carboxamide fungicide SOLATENOL™ is set to make a growing contribution to sales over the coming years. It is the principal ingredient in a range of new products launched in the USA in 2016 for grains, fruit and vegetables. The roll out in Europe began with the launch of the fungicide ELATUS™ PLUS in France, effective against all key foliar diseases in cereals. ELATUS™ has already achieved significant success in Latin America and is now being followed by the fungicide ADEPIDYN™, which received approval in Argentina in November. In the USA – where growers have been particularly affected by the weak corn price – the success of our weed management solutions has been reinforced with the launch of ACURON™. This new corn herbicide uses three modes of action for superior weed control and protects against rapid resistance development. It represents a game-changing solution for growers that also preserves soil and water resources – both key elements of The Good Growth Plan. Product innovation also drove growth in Asia Pacific, where farmers are increasingly adopting new technologies to enhance productivity and address the growing problem of labor scarcity. Syngenta Annual Review 2016Regional performance 23 Europe, Africa and Middle East EAME is our largest region in terms of sales. At present our business comes  mainly from Europe, which has some 20 percent of the world’s planted area – ranging from intensive farming of field crops in Western and Central Europe to production of high-value fruit and vegetables around the Mediterranean. An increasing share of future sales will come from growing markets including Russia, Ukraine and Africa. Sandro Giacobbe Wheat grower, Gavorrano, Italy 1 Including headquarters (Switzerland) Syngenta Annual Review 2016$ 3,793 mSales47Research and Development sites12,429Employees144Production and Supply sites24 Europe, Africa and Middle East The region delivered a solid performance in challenging conditions, with exceptionally wet weather affecting the cereals market in Western Europe. This was more than offset by dynamic growth in Russia and Ukraine and a resilient performance in other emerging markets. 3,793 3,884 4,547 Sales1 EAME $m $3,793m 2016 2015 2014 1 Excluding Lawn and Garden Performance highlights 3 Strong growth in Russia and Ukraine, led by cereals and sunflower 3 European launch of the fungicide ELATUS™ PLUS in France 3 Continuing success of ACTELLIC® 300CS against malaria vectors in Africa The CIS countries – particularly the growth markets of Russia and Ukraine – and South East Europe present substantial opportunities for modernization and intensification and will continue to make a significant contribution to our growth in this region. Africa and the Middle East currently account for less than 9 percent of our sales in EAME. There are major opportunities to increase yields and sustainably intensify production with modern technology. Working with local partners, we aim to help Africa ensure its self-sufficiency while developing into a major food exporter. Growth despite multiple challenges In 2016, we achieved sales growth against a background of significant challenges across the region. War and political instability resulted in currency weakness and difficult business conditions in many parts of the CIS, Africa and the Middle East. Rain and cold weather severely damaged cereals production in Northern and Central Europe and France. Low commodity prices were a continuing challenge, limiting growers’ willingness to invest. Sales: driven by CIS success Despite these headwinds, we achieved overall sales growth of 5 percent at constant exchange rates. Sales growth was driven mainly by a strong performance in Russia and Ukraine, primarily for cereals. We also registered market share gains in sunflowers and a strong performance in Seedcare. >50% Drop in malaria cases reported in Northern Ghana after the adoption of ACTELLIC® 300CS Western Europe, hit by exceptionally bad weather and weak commodity prices, saw a significant cereals market contraction. France reported the worst cereals harvest for 30 years. Nevertheless, our strong value proposition encouraged growers to invest in HYVIDO® hybrid barley. The poor cereals market was partially offset by strong demand for fungicides in specialty crops such as potatoes and grapes, and a good year for rice in Italy. The vegetable seed market across the region was challenging due to low prices across most of North Africa and the Middle East, and to political tension in Turkey. Lawn and Garden sales in EAME, not included in the regional figures reported above, rose by 10 percent (CER) in 2016. In the increasingly competitive Flowers market, we benefited from successful product launches with further new product introductions expanding our portfolio in 2017. In Europe and the Middle East, we had considerable success with our innovative tree care business, protecting species such as palm trees against invasive pests. Syngenta Annual Review 2016Regional performance 25 In Africa and the Middle East, we have reached some 350,000 smallholders, primarily by offering products in smaller pack sizes with pictograms on the labels. We are now building on a model originally developed in India, which involves training smallholders as lead farmers who help with knowledge transfer and product distribution to neighboring growers. We have linked our outreach to smallholders to the expansion of safe-use training, and we have been able to recruit many lead farmers into this activity through our train-the-trainer programs. In 2016, we started preparations for implementation of the Syngenta Fair Labor Program with seed suppliers in Germany, Italy, Spain and the UK. We expect implementation to be completed in 2017. Over 80 percent of commercial flowers farms in EAME hold GLOBALG.A.P. certification and more than 20 percent a G.R.A.S.P. assessment. Both certification and assessments are renewed yearly. Of our chemical suppliers in EAME, over 70 percent are included in our Supplier Sustainability Program. The principal growth driver in Lawn and Garden, however, was the outstanding success of the insecticide ACTELLIC® 300CS in controlling malaria-transmitting mosquitoes. This long-lasting insecticide is now helping to protect an estimated 20 million people across Sub-Saharan Africa. As an example of its impact, Northern Ghana has seen malaria cases fall by over 50 percent since adopting ACTELLIC® 300CS. And after a malaria control campaign with ACTELLIC® 300CS in Mutasa, Zimbabwe, there was a 38 percent decline in predicted malaria cases compared with the previous two years. Strong in cereals and sunflower Our excellent performance in the CIS countries is built on leading positions in both crop protection and seeds. We have particular strength in cereals, but were also helped in 2016 by our excellent sunflower portfolio and competitive offering in sugar beet. Our major new carboxamide fungicide SOLATENOL™ provides growers with a new tool for managing disease. EU registration at the end of 2015 cleared the way for us to introduce an array of new offers and combination products for the European cereals market. France issued our first European country registration in July 2016, and sales began for the 2016/17 season under the brand name ELATUS™ PLUS. SOLATENOL™ shows outstanding potency and long-lasting control against all key cereal diseases including septoria and yellow and brown rusts. It delivers very high levels of leaf protection and corresponding yield benefits for the grower. We have submitted registration applications across Europe, and in 2016 held demonstration days for growers in France, Germany and the UK. 717 Number of field trials undertaken to register ELATUS™ PLUS in France Supporting delivery of The Good Growth Plan We are making significant progress on all six Good Growth Plan commitments. Our focus on sustainability is having an increasing influence on our commercial performance and clearly differentiates our business model. Our EAME farm network covers 13 crops in 19 countries and reflects the region’s crop diversity, climatic range and focus on high-quality produce. In enhancing crop productivity, we consider quality as well as quantity to better meet the needs of the value chain and reduce crop wastage. We are continuously improving how soil conservation is built into our commercial activities such as HYVIDO® hybrid barley, the CONTIVO® solution or minimum tillage in South Russia. Commercial offers including biodiversity in loyalty programs account for half of the benefited acreage. We’ve had particular success in Germany. Our loyalty program provides biodiversity seed mixtures and planting support for better management of field margins. This, in turn, often attracts additional benefits for the farmer from local rural development plans. Syngenta Annual Review 201626 North America North America comprises Canada and the USA. It generates about 25 percent of Syngenta’s revenue. Its growers – among the most competitive and productive in the world – are typically early adopters of new technologies, from crop and seed protection to soil conservation and digital farming. The region has about 10 percent of the global planted area, but half the world’s genetically modified seed cultivation. Ryan Peterson Syngenta GOLDEN HARVEST® Seed Adviser, Pocahontas, Iowa, USA Syngenta Annual Review 2016$ 3,202 mSales33Research and Development sites4,176Employees31Production and Supply sitesRegional performance 27 In 2016, some weather challenges and depressed commodity prices made it harder for farmers to invest in technology. However, we maintained our reputation for innovation, with new products and new applications. Sales1 North America $m $3,202m 2016 2015 2014 3,202 3,410 3,582 1 Excluding Lawn and Garden Performance highlights 3 Launched 16 new crop protection products 3 Extended seed distribution footprint 3 Grew ENOGEN® market share and launched into promising new markets Around 70 percent of the region’s cultivated area is planted with corn, soybean and wheat, representing about 30 percent of world production in each case. The USA is the world’s largest seeds and traits market, and the second largest for crop and seed protection after Brazil. In Canada, key crops include cereals, canola, corn, soybean and pulses. 176ha Average size of a North American farm In US Seeds, soybean sales were limited by supply constraints, but we had a very good year for corn. In Canada, our soybean seed business was led by strong short-season varieties in Western Canada. We continued to increase both sales and margins in corn – benefiting from the continuing success of AGRISURE VIPTERA®, and further growth and adoption of AGRISURE® traits by independent seed companies through our GREENLEAF GENETICS® business. The market for ENOGEN® is broadening, with 24 ethanol plants signed up by year end. Our Vegetables business achieved steady growth and maintained its market share while enhancing profitability through portfolio mix improvement. Lawn and Garden sales are not included in the regional figures reported above. In North America, they rose by 1 percent in 2016. We further increased our market leadership in Turf & Ornamentals through continued emphasis on product innovation, and we also gained share in the pest, public health and vector control markets. In the increasingly competitive Flowers market, we benefited from successful new product introductions and strong partnerships across the value chain – with further launches due to extend the portfolio in 2017. The USA is our center for seeds biological research and development, including genetic engineering and new plant breeding innovations. Weed, disease and insect resistance are a persistent challenge in the region, and we continue to develop technologies to help growers combat these pressures while remaining competitive in a generally low commodity price environment. Helping growers tackle climate and commodity price challenges Water, a critical resource for agriculture, is challenging in parts of the region. Much of the Western and Midwest USA experienced droughts in the first part of 2016; and in the South, while timely rains supported good crop yields, the weather turned dry later in the season. As climate change brings less predictable and more extreme weather, we offer growers solutions such as AGRISURE ARTESIAN® corn, which delivers strong performance in both drought and excessively wet conditions. During 2016, low commodity prices had an increasing impact on North American farmers. While low commodity prices can reduce farmers’ willingness to invest in advanced technologies, our broad product portfolios enable us to offer growers a range of price points, and we are able to highlight technologies designed to protect yield. Innovation and strong products that perform Excluding the impact of non-recurring royalty income in 2015, sales were just 2 percent lower. We maintained Crop Protection sales, despite the dry weather in the West and South, which reduced demand for fungicides. Sales growth was led by strong new product introductions including ACURON™ corn herbicide – one of our most eagerly anticipated product launches in recent years – and a range of fungicides applying our SOLATENOL™ technology. Syngenta Annual Review 201628 North America Expanding in Crop Protection and Seeds We continue to meet our customers’ needs with innovative solutions, and in 2016 we launched 16 significant new crop protection products. The most important, ACURON™ selective herbicide, combines bicyclopyrone with three additional active ingredients for control of the most difficult weeds in corn. The four overlapping modes of action provide high effectiveness combined with strong protection against resistance. We also launched a range of fungicides applying our novel SOLATENOL™ technology: TRIVAPRO™ for corn, soybean and wheat; ELATUS™ for peanuts and potatoes; APROVIA™ for apples, grapes and pears; and APROVIA™ TOP for fruiting vegetables and cucurbits. For vegetables, potatoes and tobacco, we launched ORONDIS™, a new mode of action fungicide based on oxathiapiprolin. In Seeds, we expanded our distribution footprint by growing our seed advisor and GOLDEN HARVEST® dealer channel – where farmers are advisors and distributors to their neighbors. This helped to drive strong sales growth, particularly in corn. Through GREENLEAF GENETICS® we continued to expand strategic partnerships with other seed companies, growing our sales of traits and seeds for distribution under partners’ own brands. 95% Retention rate of growers in our AGRIEDGE EXCELSIOR® farm management program, combining Syngenta products with computer-aided management We have continued to build on long- standing partnerships with conservation groups to help farmers manage for increased biodiversity. In 2016, this work benefited a further 219,000 hectares of farmland. As part of our safe-use outreach, we have trained more than 900 pest control professionals in the safe and correct application of an insect control technology from our Lawn and Garden portfolio to help fight the spread of the Zika virus. We also work with our suppliers to improve processes and implement sustainability standards. In 2016, almost 50 percent of our chemical suppliers were covered by our Supplier Sustainability Program. ENOGEN® corn is a feedstock for ethanol plants: it delivers alpha amylase enzyme directly in the grain, substantially enhancing ethanol yield. It has been well received by ethanol plants, and we now have agreements with plants representing almost a fifth of the accessible market. Growers receive a premium price for ENOGEN® corn, and by targeting farms around ethanol plants we have rapidly ramped up our share in these local markets. Syngenta has been a leader in applying data analytics and predictive science to plant breeding programs, accelerating the development of new varieties with high- performing genetics. In the USA, this work began with soybean and we have been extending it successfully to other crops. Meanwhile, to maintain our leadership in seed treatment, in 2016 we opened a $ 21 million, 3,500-square-meter Seedcare Institute in Minnesota. Supporting delivery of The Good Growth Plan North America has a sophisticated agricultural industry achieving high levels of productivity through technology. But there is still potential to increase productivity while also ensuring that performance is sustainable. In 2016, we expanded our North America network of reference farms to more than 150, including the first Canadian reference farms, to capture additional sustainable productivity data for canola, wheat, peas and barley production. To promote soil conservation techniques more effectively, we seeded cover crop demonstrations at selected sites in our Grow More Experience network of demonstration farms. These will enable us to show channel partners, growers and other influencers the benefits of minimum- tillage techniques. Syngenta Annual Review 2016Regional performance Syngenta Annual Review 2016 29 Latin America This is the second largest of our four regions by sales. Latin America accounts for almost 10 percent of the world’s cropped area and is the global leader in soybean, sugar cane and coffee production. Farm scale ranges from a predominance of smallholders in Central America to highly-technified large-scale farms in Argentina and Brazil – where over 90 percent of soybean and 80 percent of corn includes genetically modified traits. Paulo Coutinho Veit Corn and soybean grower, Rio Grande do Sul State, Brazil $ 3,293 mSales12Research and Development sites5,161Employees12Production and Supply sites30 Latin America Despite political, economic and agricultural challenges in several major markets, our LATAM businesses successfully captured opportunities while managing risks. As a result, we retained our leading market position, maintained pricing discipline and improved profitability. Sales1 Latin America $m $3,293m 2016 2015 2014 3,293 3,632 4,279 1 Excluding Lawn and Garden Performance highlights 3 Further penetration of INTEGRARE™ corn and soybean solutions 3 Continued success of VIPTERA™ 3 New seeds operating model raising quality and margins The LATAM region’s main crops are soybean (40 percent of acreage) and corn (around 25 percent). Brazil and Argentina are among the world’s top three exporters of corn and soybean. Brazil is also the leading producer and exporter of orange juice, coffee and sugar cane, and accounts for 67 percent of our LATAM sales. Mexico is a key producer and exporter of vegetables. The region’s promise has been overshadowed in recent years by political and economic volatility – exemplified in 2016 by severe disruption in Venezuela, contrasting with business recovery in Argentina. Maintaining progress in unstable conditions After two years disrupted by El Niño – with floods in the South and drought in the North – a more moderate La Niña brought relatively benign weather conditions in 2016. However, a variety of country- specific political, economic and agricultural challenges made 2016 a volatile year across the region. In times of political and economic uncertainty, farmers are more reluctant to invest in technological solutions and can face problems in gaining access to finance. In Brazil, for example, while the currency stabilized, credit conditions remained tight. On the upside, Argentina had a very positive year with a turnaround in macroeconomic policies that favored agriculture. Andean countries saw improvements in agronomic conditions as rainfalls ended two years of drought, and conditions in Mexico were also favorable despite devaluation of the peso. Go-to-market strategies and financing solutions For the full year, sales were down by 9 percent at constant exchange rates. Excluding the change in sales terms implemented in 2015 and 2016 the reduction was 3 percent. 90% Percentage of soybean production grown from GM seeds in Argentina and Brazil – reflecting the high degree of modernization in these two major markets Inevitably, sales were impacted by political and economic volatility in key markets. The most severely affected was Venezuela, where our temporary suspension of distribution due to difficulties in obtaining payment for deliveries reduced sales by around $ 75 million. However, we addressed difficult conditions across the region through action on pricing, go-to-market strategies and financing for farmers. We also continued to offer complete packages of products and services to address farmers’ needs, giving us the opportunity to demonstrate the value of the full breadth of our technologies. In the North, our strengthening position in Mexico offset challenges in the Andean countries. In Brazil, we benefited from our strong customer relationships as the economy started to recover. A good performance in the South was underpinned by political and macroeconomic change in Argentina. In Crop Protection, we expect to have increased market share with a strong contribution from Latin America South and some improvement in Brazil. In Seeds, we expect to show gains in germplasm share for corn, soybean and sunflower. Syngenta Annual Review 2016Regional performance 31 Smallholder inclusion programs provide improved farming practices, better market access and boost the prosperity of local communities. Examples include the MasAgro Program in Mexico, run in partnership with the International Maize and Wheat Improvement Center (CIMMYT), and NUCOFFEE™ Sustentia in Brazil, which has UTZ as a certification partner. On biodiversity, we have made excellent progress in Brazil. In partnership with The Nature Conservancy and local organizations in the Cerrado, the country’s main agricultural region, we support growers to preserve parts of their land as biodiversity habitats. This outstanding program encourages growers to go beyond meeting national legislation requirements. Through carefully planned landscape connectivity, the program benefited more than 2.8 million hectares of farmland in 2016 and is our largest Good Growth Plan biodiversity project. Over the last few years, we achieved impressive improvements in labor conditions on our seed supply farms in Argentina and Brazil. We have now taken this experience to other countries, and in 2016 we completed the implementation of our Fair Labor Program in all seed supplying countries in the region. Adding value across the portfolio Offering growers end-to-end products and services that meet their specific needs – helping them to increase yields, crop quality and productivity – has deepened customer relationships and strengthened both margins and market share. We can demonstrate added value not only in crop yield but elsewhere in the value chain. For instance, our Sillus corn solution offers increased milk yields for farmers who grow corn as cattle feed; and GranoTop increases productivity in feed grain for poultry and pork producers, with high nutrition quality that attracts premium prices. In Argentina and Brazil, we continue to increase the penetration of our high-yield INTEGRARE™ solution for soybeans and corn. Offering growers higher productivity per hectare, it combines best-in-class seeds, seed treatments and crop protection with robust protocols and a range of optional agronomic and financial services including nutritional advice and risk management tools. We now also offer the VIPTERA™ insect-resistance trait as part of an integrated solution including herbicide to deliver the industry’s most comprehensive corn insect control and yield protection. The fungicides ELATUS™ and MAZEN™, which are based on SOLATENOL™, are winning increased adoption as part of a sustainable approach to long-term fungal control for soybean in Brazil and Paraguay. Insecticide sales were constrained by high channel inventories, lower pest pressure and the growing trait adoption, which reduces the need for crop protection. ADEPIDYN™ Argentina was the first country in the world to register our new fungicide blockbuster ADEPIDYN™, which is expected to generate significant sales in the coming years Seed sales showed strong growth, driven by the success of VIPTERA™ corn in Brazil and an uplift in corn and sunflower sales in Argentina, where lower export tariffs resulted in increased planting. Profitability benefited from our new operating model for seeds, which has led to portfolio rationalization and improved product quality and availability. Supporting delivery of The Good Growth Plan We are making good progress on all six commitments in LATAM. As well as offering higher crop productivity, our integrated solutions generally incorporate other benefits that support The Good Growth Plan. For example, INTEGRARE™ in Brazil and INTEGRASOJA™ in Latin America South include water and soil nutrition management services that ensure more sustainable use of land. We’ve had significant successes in soil conservation across the region. We have extended safe-use training across the region. We doubled the number of people trained to close to 800,000. This increase was driven by the introduction of the safety multiplier train-the-trainer program in Latin America North and better inclusion of safe-use training in the sales team’s reporting tool in Brazil. Syngenta Annual Review 201632 Asia Pacific Accounting for 40 percent of the world’s cultivated land, APAC is a region dominated by smallholders farming less than 2 hectares. Changing diets and good scope for improving yields present significant opportunities for growth. Margareta Fatimah Corn grower, West Nusa Tenggara, Indonesia Syngenta Annual Review 2016$1,839 mSales27Research and Development sites6,044Employees20Production and Supply sitesRegional performance 33 40% Asia has 40 percent of the world’s cropped area, representing only 27 percent of the world’s agrochemicals, seeds and traits market As the middle class grows, diets are changing; this will result in increased demand for high-quality vegetables and for protein, which will be fed with cereals grown in the region. Farmers will continue to adopt new technology to drive yield, reliability and quality in food production. Crop protection technology will also need to demonstrate improved environmental profiles and to enable a reduction in farm labor. Corn and rice hybrids, as well as better seed varieties, are being adopted more widely across Asia and genetically modified corn has been introduced in a second market, Vietnam, after its successful introduction in the Philippines some 13 years ago. Syngenta is at the forefront of this evolution in APAC, with a broad portfolio in Seeds, Seedcare and Crop Protection chemistry that is being progressively adopted as farmers intensify production and as farming in APAC increases in complexity and scale. Business momentum across APAC built through the year despite a challenging start marked by drought across ASEAN and Australia, a variable monsoon in South Asia and low crop prices. Compelling solutions in corn, rice and vegetables – supported by differentiation in key markets – helped drive business growth. Sales1 Asia Pacific $m $1,839m 2016 2015 2014 1,839 1,837 2,033 1 Excluding Lawn and Garden Performance highlights 3 Focus on the grower through strong existing brands and new product introductions in both our Seeds and Crop Protection portfolios 3 New go-to-market model in India, Pakistan and Thailand 3 Differentiation through The Good Growth Plan and the creation of strong partnerships We are a market leader across Asia Pacific (APAC), a region characterized by large developed markets such as Japan and Australia on the one hand, and a variety of emerging markets on the other. We are well placed to capture the opportunities created by low levels of technology adoption, changing consumption patterns and demand for more food of better quality from a rapidly emerging middle class. Our portfolio is built around key brands in herbicides, insecticides, fungicides and seed treatment, supporting our overall position as market leader. We have successfully rejuvenated several key brands and introduced more than 15 new crop protection products into the region in 2016. We see further opportunities as farmers move to more intensive cropping cycles, greater scale in their operations and technology upgrades. Momentum built through the year The start to the year in APAC was challenging with drought in Vietnam and Thailand, extended dryness in Eastern Australia, heavy rainfall in southern China, and a delayed and variable late monsoon in South Asia. Crop prices for corn in particular remained low throughout the year, reducing growers’ incentive to invest. Weather conditions improved in the second half, which had a positive effect on farmers’ purchasing decisions. This led to increased investment in rice, corn, cereal and vegetable crops, and we saw a significant expansion of cotton acreage, leading to greater demand for our seed treatment products. For the full year, sales were up 2 percent (CER) having been significantly lower in the first half. Brand rejuvenation in ASEAN, led by SCORE® fungicide, resulted in a strong rebound in our performance. In China, strong sales of FORTENZA® DUO saw us make good gains in cereals. Our new product introductions in Crop Protection and Seeds in India continued to gain momentum and now account for more than 20 percent of our sales. Continued growth through differentiation Growth in APAC will predominantly come from developing markets, driven by an existing portfolio of strong brands and the delivery of value-adding customer solutions. Syngenta will continue to differentiate itself through innovative go-to-market models and through our commitment to sustainable agriculture under The Good Growth Plan. Syngenta Annual Review 201634 Asia Pacific In 2016, we introduced a new go-to- market model in India, focused on improving the capacity and capability of our major distributors who are a key link in the distribution chain. Investing in our key channel partners and deepening this relationship has differentiated Syngenta from competitors and is supporting strong demand creation at the grower level. We are also progressively introducing improved information systems to help drive better customer relationships through deeper insights and better data. In 2016, we announced the opening in APAC of our second Seedcare Institute. Located in Singapore, the Institute is focused on the effective application of seed treatment technology in tropical and sub-tropical markets, responding to intensification in the use of this innovative technology. Supporting delivery of The Good Growth Plan The Good Growth Plan is a key differentiator for Syngenta in APAC, helping to focus our efforts on improving the sustainability of agriculture, in particular empowering the 400 million smallholder farmers who are responsible for most of the agricultural activity in the region. The large number of smallholder farmers in APAC means that effective stewardship of our products is extremely important. In 2016, we reached almost 6 million farmers through farmer meetings, training them in safe use with the application of the “5 Golden Rules” of safe and effective use of crop protection products. We also continue to work with our distributors and retailers to ensure they understand the importance of safe use, recognizing that the channel is often a key source of information for farmers. Increasingly, we are working to partner with external organizations to extend the reach and impact of our stewardship training. In recognition of the importance of biodiversity, we have created several innovative partnerships to support improvements in pollinator health. Our early work with the Institute of Apicultural Research within the China Academy of Agricultural Science, the University of Western Sydney in Australia and the Indian Council of Agricultural Research holds great promise for establishing the key role that modern agriculture can play in ensuring the health of pollinating insects. We have also actively extended the application and reach of Operation Pollinator projects across APAC to provide essential habitats for feeding and nesting pollinators in field margins, tailored to local conditions. 400m APAC is home to some 400 million smallholders – they grow 80 percent of the region’s food In 2016, we initiated a project in partnership with Mercy Corps to address a key constraint faced by smallholder corn farmers in the Dompu, Bima and Sumbawa districts of Indonesia. Finance is crucial for these farmers if they are to access better technology to help improve productivity. We worked with Mercy Corps, which provides financial literacy training to help farmers understand their options and better manage risk, and a micro-finance institution that provides low interest loans and crop insurance. Syngenta offers agronomy knowledge and training, and the project has resulted in an average yield improvement of 12 percent and a 23 percent improvement in farmer profitability. The Good Growth Plan also commits Syngenta to achieving significant improvements in crop productivity. In Bangladesh, we have recognized that women farmers are often the key to improving rice productivity, and we are working to partner with local organizations to improve women farmers’ access to quality inputs, agronomy knowledge and market information, all of which help to drive significant improvements in overall productivity and profitability. Syngenta Annual Review 2016Operational performance 35 Making a habit of being ever better Our outlook is inherently long term. We exist to support the long-term success of the growers who feed the world. To play our part, we must be an organization that keeps on delivering sustainably. We aim to be flexible, innovative and efficient in all our operations – continuously, day after day. Making operational excellence a permanent way of life Our operational strategy aims to enable profitable growth by delivering outstanding, innovative products with scale, agility and efficiency. Since 2014, our Accelerating Operational Leverage (AOL) program has focused attention across the business on enhancing efficiency, profitability and the experience we provide for customers. AOL is the most recent in a series of programs that have aimed to realize significant operational efficiencies since Syngenta was founded in 2000. But AOL is more than a periodic cost efficiency intervention: it is a systematic approach to making sustainable productivity improvement a routine part of the way we work – a habit. People Sustainable operations Pages 36−37 Pages 37−40 Business integrity Public debates Pages 41–42 Pages 43–44 We are harnessing a key element of AOL to drive a systemic, continuous improvement capability using a standardized methodology in operational excellence and sustaining it over time. We are now embedding this as a permanent part of our culture. Long after AOL has concluded, operational excellence will continue to help us reach new and ever more ambitious goals. The keys to sustainable productivity Operational excellence is more than a methodology; it’s a state of mind for continuous improvement. Its results are delivered not by systems but by people. So our long-term, sustained success will continue to depend on our investment in the talent, skills and motivation of our people – and those who lead them. Just as we invest in our people, we invest in our production assets to ensure that we have the right facilities and capacity to satisfy demand resource efficiently and profitably. We also work in ever-closer partnership with our suppliers, who make a large and expanding contribution to our operations. As an integral element of our operational strategy, we focus on the long-term viability of our internal and external operations. Our approach is to maximize the pace and impact of our sustainability initiatives by focusing on the areas offering greatest scope for resource efficiency: energy, water and waste. We are treating our production and logistics suppliers as additional focus areas, given their growing role in the sustainability of our business. See Non-financial information and data on pages 53–60 Syngenta Annual Review 201636 People We strongly believe that leadership and culture, together with employee engagement, drive innovation and outperformance. We strive for continuous improvement in all these areas. Attrition rate % 2016 2015 2014 6.0 6.1 5.5 Recordable illness and injury rate per 200,000 hours 2016 2015 2014 0.39 0.38 0.37 Developing our people and capabilities Leadership development is a long-term investment, and in 2016 we implemented a new strategic approach. We see leadership development not as a one-time action but as an ongoing journey that enables individual growth aligned to organizational needs. To increase our pipeline of managers at every level and to accelerate the development of our leaders, we have launched new development “pathways” for leaders throughout the organization. To sharpen the strategic focus of our reporting on investment in talent development, in 2016 we adopted a new KPI: leadership and talent development investment. Our leadership and talent development investment in 2016 totaled $ 3.7 million (2015: $ 4.1 million). 746 The Syngenta Awards 2016 received 746 entries, which represented more than 7,000 employees from 51 countries Employee engagement We believe it is important to recognize employees’ exceptional commitment and enterprise – both to celebrate excellence and to share inspiration and best practice. That is the aim of the biennial Syngenta Awards. In 2016, the program attracted 746 entries from 51 countries; the 20 finalists gathered in Basel in November to receive their awards and share their stories. To foster employee engagement, it is important to listen to our people and act on what we learn. During the year, we formalized and expanded our global feedback program with the launch of regular employee pulse surveys. A significant development, which we believe will help us retain talented people, is the flexible working policy introduced in 2016. This is designed for global implementation, with local variations in line with local legislation. It introduces greater flexibility on working hours, work location and job- sharing to help people manage their lives better, strike a more satisfying work/life balance and live healthier lives. We maintained a high level of retention in 2016. The number of voluntary leavers – excluding retirement and restructuring – was 6.0 percent (2015: 6.1 percent). As part of our diversity and inclusion agenda, we have been actively working to develop women into leadership roles. This is now resulting in increased promotion of women into senior management, where the proportion of women rose to 16 percent in 2016 (2015: 14 percent). During the year we received external recognition for our employment policies and performance. Science magazine again placed Syngenta in its annual Top 20 employers list and ranked us 14th in 2016. In the magazine’s worldwide survey of some 25,000 individuals and 400 HR professionals, Syngenta was cited in particular for its social responsibility, alignment of work culture values and the loyalty of its people. And in Russia, Syngenta received an AON Best Employer Award reflecting the high level of employee engagement there. Women in Agribusiness (WIA) named Syngenta as Company of the Year in its Demeter Awards of Excellence, for our achievements in initiating programs to support the professional development, achievements and overall growth of women in the industry. Keeping our people safe We aim to be an industry leader in health and safety standards and performance. To this end, we make continuous investments in our safety program to sustain a top-tier Illness and Injury Rate (IIR) of below 0.5. The rate remained low in 2016, at 0.39 recordable incidents per 200,000 hours (2015: 0.38). Sadly, there was one fatality during the year: a sales employee in India was found dead on the road beside his motorcycle. Reports indicate that he was struck by a speeding vehicle, which then left the scene. Syngenta Annual Review 2016Operational performance 37 We maintain a number of programs aimed at reducing driving-related risks, including online e-training focused on accident causes. In 2016, we extended the satellite tracking of fleet vehicles introduced in Latin America in 2015. This monitors parameters such as speed, seat belt use and driving time, enabling us to identify opportunities for improvement. It now covers some 60 percent of our fleet vehicles in Brazil, and we have launched it in 11 countries across Africa and Asia, including Kenya and Bangladesh. Further improvement is expected to come from the integration in 2016 of our fleet management under a single global service team, allowing more sophisticated monitoring and management. Across Syngenta, the number of incidents per million kilometers driven was 1.5 in 2016 – up slightly from 1.3 in 2015. We believe every incident is preventable, and since 2011 our Goal Zero initiative has targeted zero harm to people and zero safety incidents. It is deepening our understanding of risks and how to mitigate them, and sharing this knowledge globally has underpinned the strong safety performance of our sites worldwide. In 2016, several of our North American Research and Development (R&D) and production sites were honored by external organizations for outstanding safety performance. In North America, we also launched a program to assess site-safety culture and further improve performance, with encouraging initial results. In Brazil, 25 R&D sites completed 500 days without a recordable incident. All our seeds facilities in South Asia completed 1,000 days without a lost-time accident, and the Mezotur site in Hungary completed 1,500 days without a lost-time accident. When it comes to accidents, it’s not about luck After several serious road accidents in Africa, we were determined to prevent further accidents. Working with leaders in Africa and the Middle East, we sought to build a culture of road safety through “behind the wheel” driver training for employees, leader- led discussions and GPS monitoring for risky driving behaviors. A campaign to raise awareness of driver safety highlighted life-changing stories of colleagues involved in road accidents. Thanks to these efforts, we’re saving lives on the road. Sustainable operations To be a sustainable business with a long-term future, we need to invest in efficient production capacity to meet demand profitably. And we must understand what we have to do to ensure we use resources with ever greater efficiency. CO2e emissions intensity g/$sales 2016 2015 2014 Water usage intensity liters/$sales 2016 2015 2014 Hazardous waste intensity g/$sales 2016 2015 2014 121 124 114 2.5 2.6 2.5 15.2 14.4 15.6 The capacity to deliver efficiently We aim to produce high-quality seeds and crop protection products safely, reliably, responsively and cost effectively. This involves continually reviewing and adjusting our own production assets and building on established relationships with suppliers and tollers who have demonstrated their ability to deliver to our quality and cost standards. Syngenta Annual Review 201638 Sustainable operations In 2016, capacity expansion projects were completed at three key sites. We expanded our corn seed factory in Formosa, Brazil, and opened a new ELATUS™ fungicide plant in Paulínia, Brazil. This is a zero effluent plant, further improving our environmental footprint. At Kaisten in Switzerland we stepped-up our ability to produce the S-Metolachlor herbicide used in many of our successful brands. In June, we divested our active ingredient (AI) manufacturing site in Goa, India, to one of our strategic suppliers, Deccan Fine Chemicals. The other seven global AI sites continued to increase efficiency while maintaining their ability to deliver at high capacity. Our principal finished- product processing sites maintained their Operational Excellence approach to continuous efficiency improvement. Our partnership approach – together with a structured consolidation of the number of our key suppliers – provides a platform that drives continuous improvement in our supply chain. We concentrate our investment in compatible and complementary technology and processes. To maintain the quality of our partnerships, we select and monitor our suppliers to ensure their internal ways of working are consistent with our own. Ensuring our future viability Our strategy for reducing external impacts is to identify and focus on the areas where there is the greatest opportunity for improvement. Since 2015, we have been working on the five focus areas set out in the table “Making our operations more sustainable” on this page. Making our operations more sustainable These are the principal activities currently underway to help us understand what’s necessary to ensure sustainable operations and monitor our progress. Action by focus area Progress in 2016 Energy Carry out detailed audits of our top 10 sites, accounting for over 80 percent of our energy use Set targets for Syngenta managed facilities Water Establish the water footprint for the seed supply business Waste Establish waste footprints for top 10 active ingredients generating over 80 percent of our hazardous waste Supplier impacts Audits completed at 30 sites, based on EU energy requirements Action plans created for our top 10 sites Footprint assessment completed. Developed water-use-optimization plans for high-risk areas Footprints completed. Now assessing principal opportunities and actions for improvement, both within Syngenta manufacturing sites and at key active ingredient suppliers Rank 100 percent of procurement categories to establish sustainability risks Ranking assessments completed and focus areas identified Actively participate in the Together for Sustainability (TfS) initiative Agreement completed and suppliers categorized by sustainability risk. Roll-out plan implemented Engage key suppliers in our audit and support program, and key third-party waste treatment providers in our audit program Supported key suppliers and providers with audits and driving continuous improvement initiatives targeting process efficiency CO2 from distribution Adopt fourth-party logistics (4PL) to cover our global operations in Crop Protection and field crops 4PL roll-out underway. CO2 baselines set for sea logistics globally and overland logistics in Europe and North America Syngenta Annual Review 2016Operational performance 39 107 Number of Production and Supply sites In 2016, we completed EU-standard energy efficiency audits at 30 sites, covering well over 80 percent of our energy use. These audits enabled us to identify the actions and investments offering the greatest opportunities for improvement, and we have developed action plans for 2017 accordingly. Water In 2016, water use at our manufacturing sites was down 7 percent in absolute terms and 2 percent in intensity. The principal factor was the reduction in cooling water used at our Monthey production site. We are focusing on more efficient water use in field production, including sustainable water abstraction rates. In 2016, we completed the water footprint study commissioned in 2015 across our seed production supply chains, as well as our own sites, and established a reporting framework for field production. We undertook water risk assessments for crops in high-risk areas as a basis for setting management plans for optimizing water use in these areas. By metering and measuring in more sophisticated ways, we are increasing our understanding of the balance between rain-fed and irrigation-fed water use in fields, and how to optimize it. We aim to implement water management plans for all our field production in high-risk areas by 2020. Waste Our active ingredient manufacturing sites generate hazardous waste. As well as working to reduce waste generation, we also aim to convert or reuse more of what we do produce, and our percentage rates of recycling and reuse are high. We constantly review opportunities for optimizing both new and existing processes, and for regenerating or reusing unavoidable waste – usually as an additional source of energy. In 2016, hazardous waste generation remained constant at 195,000 tonnes. Reductions in manufacturing due to efficiencies and lower production were offset by a remediation project in Paulínia, Brazil. This accounted for the generation of an additional 9,500 tonnes to landfill above normal operating activities. Ongoing waste reduction initiatives continue at individual site level. Although our main focus so far has been on our own sites, our technical teams are working with our suppliers on how to develop waste-efficient processes. We also completed waste footprints for the top 10 active ingredients producing more than 80 percent of our waste. We are now undertaking deeper investigations into optimizing our waste- reduction programs. Three of these areas concern the way we use resources: energy, waste and water. Our energy and waste impacts come primarily from our production sites; our focus has been the top 10 sites that account for about 80 percent of our energy footprint. While some of our manufacturing sites use large amounts of water, our greatest water-consuming activity by far is seed production. So, while we continue to work on reducing our industrial water consumption, our focus has been on understanding and managing water use on our seed supply farms. The two other focus areas concern the way we work with suppliers and logistics service providers. As our operating model evolves – with greater emphasis on partnerships – external suppliers account for a large and growing part of our environmental footprint. We are paying closer attention to the ways in which we can work with them to help them to manage their environmental impacts. As well as working with our production supply chain, we are also transforming the way we transport and store our products, to reduce both CO2 emissions and costs. Using resources more efficiently A summary of our performance in each of our focus areas follows. For more detailed performance data, see pages 58–59. We report our performance both in absolute terms and as intensity, expressed per dollar of sales. Energy In 2016, our absolute energy consumption reduced by 10 percent to 8,341 TJ, driven primarily by the reduction in production over the year. Energy intensity decreased by 5 percent. We have energy efficiency programs at all our sites. These are continuous and permanent: when targets are met, we will set more demanding ones, and we are focusing on the areas with the greatest potential for improvement. Syngenta Annual Review 201640 Sustainable operations In 2016, we grouped our existing chemical suppliers into high-, medium- and low- impact categories. We tested the TfS audit and assessment methodology, and started rolling-out the TfS supplier program across our chemical suppliers. We have continued to refine the way we manage third parties, working in partnership with them. Having ranked all our third-party suppliers for sustainability risk and established a governance process to track their performance, we continue to work with key suppliers on aspects such as process efficiency and process safety. In 2016, our fair labor programs, which to date have focused on countries with the highest risk of labor abuses, include 82 percent of our suppliers. We are on track to cover 100 percent of our suppliers including chemicals, seeds and flowers suppliers. For more details, see “Look after every worker” on pages 20–21. CO2 from distribution We are committed to long-term CO2 intensity reduction for all our distribution logistics: by air, sea and overland. We are currently implementing a global program of outsourcing, primarily to “fourth- party logistics” partners who integrate and co-ordinate all logistics operations across supply chains. By standardizing and optimizing processes and gaining economies of scale, we expect to improve energy- and cost-efficiency, compliance and CO2 emissions. Over 50 percent of our logistics footprint will be covered by this approach by the end of 2017, with a focus on North America and Europe. To help us manage and measure the benefits accurately, in 2016 we set CO2 baselines for sea logistics globally and overland in Europe and North America. These enable us to calculate our CO2 impacts and set targets. Baseline work will continue for overland logistics across the rest of the world over the next two years. 82% Percentage of suppliers in our fair labor programs Air emissions Intensity-based and absolute greenhouse gas emissions decreased by 2 and 7 percent respectively. Emissions from our own operations were reduced by 22 percent partly due to the abatement measures implemented at Huddersfield, UK, and at Monthey, Switzerland, and to the divestment of our manufacturing site in Goa, India. Supplier impacts As we increase our reliance on external suppliers, we seek out partners who meet our own standards of operation. In our drive to ensure sustainable procurement – and to audit suppliers rigorously and efficiently – we have joined the chemical industry’s Together for Sustainability (TfS) initiative. The TfS members work jointly on supplier audits and assessments on health, safety and the environment, as well as social and ethical issues. The TfS framework supports the principles of the UN Global Compact, Responsible Care and the International Labor Organization. By auditing together, TfS enables us to focus on raising standards for our suppliers with greater efficiency. A safety journey with our suppliers Our process-safety management program aims to drive commitment, understanding and improvement of safety standards at our Asian chemical manufacturers. The program includes engagement sessions with senior management, visits to our own manufacturing sites in Europe and a platform to encourage the sharing of safety practices between our suppliers. Working collaboratively with our partners is driving a step change in their safety culture and ensuring safe working conditions for employees within our supply chain. Syngenta Annual Review 2016Operational performance 41 Business integrity We comply with all local, national and international laws, codes and conventions, and uphold the principles of the Universal Declaration of Human Rights and the International Labor Organization’s Core Conventions. We expect our suppliers to do the same. Compliance cases reported 2016 2015 2014 214 196 96 Corporate community investment $m 2016 2015 2014 24 24 25 True business integrity demands more than regulatory and legal compliance. We believe that a culture of doing the right thing is crucial to managing risk and growing a sustainably successful business. It is also the essential foundation on which The Good Growth Plan is built. We look beyond a rules-based approach and strive to build a values-based culture, which we share with our partners and suppliers. We aim to preserve the security and integrity of our organization, operations and products, and to engage actively with the communities in which we operate, to build mutual understanding and benefit. Building a “do the right thing” culture Our Code of Conduct sets out clear ethical, environmental and social responsibilities for all employees; we expect them to honor these and report any suspected breaches. We also monitor our suppliers’ compliance – with both our own standards and external regulations – on issues such as health and safety, the environment, fair labor practices and animal welfare. Building a “do the right thing” culture is an explicit line management responsibility. We want to create a climate in which people feel confident about speaking to their leaders without hesitation, so that ethical issues can be addressed before they become problems. To drive this, we now hold annual “leader-led” compliance sessions throughout the organization, in which managers discuss with their teams relevant compliance topics and encourage people to speak up if they have concerns. We held the second round of these sessions in 2016. We also began recording the number of leaders engaged: 1,741 either attended or led a session in 2016 – which represents 95 percent of all leaders required to participate. Building on our experience in 2015, we sought to engage participants more actively in 2016 by giving them real scenarios to discuss as a group. We plan to build on this approach year on year, and for 2017 the scenarios will be updated to focus team dialogues on locally relevant issues. We recognize that compliance – not just with legal and regulatory requirements but with society’s evolving expectations – is an unending journey. Maintaining the right culture requires investment and constant effort. So it is vital to create a climate where people feel safe and encouraged to raise concerns with their managers or through our confidential compliance helpline. In 2016, the total number of cases raised rose by 9 percent to 214. 95% Percentage of leaders attending or leading compliance sessions Significantly, this increase was concentrated on the period during and immediately following the compliance sessions – clearly indicating that they are successfully influencing the values, risk awareness and openness of our culture. Compliance and risk management is a standing item on the regional, territory and functional leadership agenda. This builds the culture we seek and drives responsibility down the line through the leader-led compliance sessions. It underlines the importance Syngenta attaches to compliance and risk management and line managers’ responsibility for building a “do the right thing” culture. We have continued working to make our approach to compliance more systematic and consistent globally. We are currently rolling out a new due diligence process to screen third-party service providers for compliance risks as part of the appointment process. Following successful pilots in Argentina, China, Morocco and Turkey in 2015, we introduced it in nine countries including Brazil, India, Kazakhstan, and Vietnam in 2016. We will take a major step further in 2017 by implementing it in the countries where we have the largest number of suppliers and supply contracts: Switzerland, the UK and the USA. Syngenta Annual Review 201642 Business integrity 326 t Amount of counterfeit and illegally imported chemicals seized In 2016, we held workshops in nine countries across all relevant functions – R&D, Production and Supply, Stewardship, Commercial and Marketing – to consider how we can make life harder for counterfeiters. Outcomes included enhancement of our safe-use training to increase grower awareness of counterfeiting in 2017, and targeted projects to improve the security of our seeds throughout the product life cycle. Earning the support of our neighbors We believe it’s in our interests to listen to local communities and share knowledge, protect our common environment, promote health and improve their quality of life. By actively engaging with our neighbors, we build mutual understanding – protecting our reputation and becoming a welcome and trusted partner wherever we operate. Fostering open and constructive dialogue with the local community is part of every site manager’s job. We expect them to be visible, available and responsive to local concerns – whether these relate to the impact of our operations or to community needs that we can help to address. Each year we report a total for our “corporate community investment”: in 2016, it was $ 24 million (2015: $ 24 million). But this figure understates the value we bring to the community. In addition to offering donations and facilities, we believe we contribute best when we transfer knowledge – applying the practical skills and expertise we’ve gained from our operations. Common examples include improving farming practices for local growers, providing technical support to keep communities and schools pest-free, or applying our expertise in managing waste. Growing support for US food banks Food security is not an issue for poorer nations alone. Even in rich countries, there are people going hungry. Since 2014, we’ve partnered with Future Farmers of America to help young volunteers in rural parts of the USA grow food in community gardens. So far, in three years, they’ve harvested almost 16 tonnes of fresh food – donating it to needy families and using it in their community outreach programs. Protecting our critical assets Our security team works with functions across the organization to protect our people, assets, information and products. We assess emerging risks proactively and train local staff in appropriate measures to protect people and sites, focusing on areas and activities where the risks are greatest. Under our Security 360° program, we evaluated 122 sites in 2016 – reflecting a modest increase in locations classified as risk-relevant sites compared with 2015. Our Information Security and Information Systems teams collaborate closely to preserve the security and integrity of our data. We constantly evaluate our resources and enhance our capabilities in cybercrime detection and prevention. Counterfeiting of our products is not just a commercial risk. It can harm users, the public, the environment – and our reputation. We work with our commercial teams, the distribution chain, trade associations, local law enforcement bodies and Interpol to detect and disrupt criminal activity. In 2016, we handled 761 cases – up from 677 in 2015, reflecting better intelligence and detection as well as increased activity in what is still a relatively low-risk area for criminals. We helped to secure seizures of 326 tonnes of counterfeit and illegally imported chemicals (2015: 323 tonnes) and 615 tonnes of counterfeit seeds (2015: 91 tonnes). The sharp increase in seeds seizures resulted in part from our “big fish” strategy of targeting larger cases and criminals higher up the distribution chain. Syngenta Annual Review 2016Operational performance 43 Public debates Our business environment is partly shaped by society’s view of us, and what it expects from corporations like Syngenta. Over time, different topics come to the fore: three that we debated with a variety of external stakeholders in 2016 were open data, the UN’s Sustainable Development Goals (SDGs) and human rights. Open data: accelerating progress In a world where population growth threatens to outstrip food production, our ambition is to make a meaningful contribution to food security. The challenge is unprecedented in magnitude and complexity: it won’t be met if everyone works in isolation. Collaboration is a necessity. We’re partnering increasingly with governments, universities, NGOs and other businesses – and sharing our knowledge in new ways. Openness is not the norm in our industry – nor in any industry that relies on innovative R&D and the resulting intellectual property. But we’re finding that greater openness can benefit all stakeholders, including us. Technology is helping to monitor and measure more things, and generates huge amounts of data that can be used to accelerate technological progress. For instance, our R&D teams doubled the efficiency of our soybean breeding program by using satellite imagery, soil and weather datasets released to the public under open data licenses. Open data is a public good. So shouldn’t we be sharing more of our own in return? We think so. Open data In 2016, we became the first agrochemical company to share RNA-based biocontrol research as open data Our Good Growth Plan is generating unprecedented amounts of agronomic and socio-economic data, primarily from our network of over 3,700 benchmark and reference farms in 42 countries. We’ve collaborated with The Open Data Institute, a non-profit organization, to put this information into the public domain in a way that’s easy to access and understand, is safe to reuse and protects individual farmers’ privacy. In this way, we aim to extend our cooperation with partners and universities in exploring the drivers and impacts of technology adoption, resource efficiency, sustainable practices and grower livelihoods. Publishing the data also gives us a chance to improve our metrics and data collection processes with external partners and stakeholders. One of our most exciting development areas is RNA-based biocontrols. It’s a new technology that could bring significant benefits to farmers and the environment. But it’s still in its early stages: rapid progress will depend on stimulating informed dialogue with scientists and researchers. To help make that happen, in 2016 we became the first agrochemical company to share RNA-based biocontrol research as open data. The datasets we’ve published include screening data for our lead biocontrols candidate covering both pests and beneficial species. We’re committed to being transparent as this technology develops. As well as publishing open data, we’re also improving access to the patented intellectual property that we develop from our data. As a founding member of the International Licensing Platform, we provide access to Syngenta patented native vegetable traits and enabling technologies through our e-licensing website – making it easier to exchange know-how and breeding material and to speed the development of diverse crop varieties. So far, we’ve made some significant strides in increasing openness and transparency. But as a competitive, private R&D company, where do we draw the line about what data to make public? And how do we decide? The fact is, we’re still finding out – and we welcome continuing debate. Global goals that challenge old habits In 2015, the UN Sustainable Development Summit in New York adopted 17 Sustainable Development Goals (SDGs). These define the UN’s development agenda up to 2030. We welcome and support them. They underscore the relevance and significance of our own Good Growth Plan: its six commitments directly contribute to SDG2 (“zero hunger”) and significantly support seven of the other goals. The way we measure and report on our progress is also closely aligned with the SDGs and their performance measures. As goals for humanity, the SDGs should not excite controversy. They’re about showing respect and consideration for our fellow humans. But if they’re going to be more than just aspirations, both the business and non-business sectors are going to have to change. Just as The Good Growth Plan has done for Syngenta, the SDGs require the world to abandon old habits. We need new ways of thinking and working, fresh approaches that create new learning and new opportunities. And that will mean dismantling traditional corporate versus non-profit silos. Syngenta Annual Review 201644 Public debates There is still too much polarization, whether ideological, cultural or just habitual. If we, as a society, are going to create the rapid change that the SDGs envision, we’ll have to challenge people who may not be in one another’s comfort zones to embark on deep and sustained collaboration. The corporate sector will have to look beyond immediate profit and embrace its responsibility for the planet at large; the non-business sector will need to move beyond suspicion and find more areas of common ground. Things have begun to change – but too often partnerships still fail because the constituencies behind the organizations are too conservative and defensive. To mobilize action and unlock the innovation needed, we have to build multi-stakeholder partnerships, address governance challenges, and invest in new technologies and business models. We also need better data for sustainable development, monitoring and accountability. As discussed earlier, more open accessibility of key data will stimulate collaboration and accelerate sustainable innovation and technological advancement for people and planet. This is the journey we have begun with The Good Growth Plan and its focus on improving the sustainability of agriculture. Our ambition is to facilitate a paradigm shift in collaboration among governments, NGOs, businesses, financial and donor institutions, schools and universities. The shared goal should be to depolarize debate and make educated decisions for a sustainable future where economic growth goes hand in hand with a healthy environment and respect for human rights. Getting human rights right Syngenta is a business built on a fundamental human right. Our declared business goal is to make a meaningful contribution to food security – a human right recognized by the UN. For many years, we have worked to build respect for people and human dignity into everything we do – from the way we interact with our colleagues and suppliers to our commitment to the UN SDGs. And we’ve made an important contribution to supporting human rights through the role our products, services and training play in improving not only food security but also access to water, farmers’ livelihoods and rural development. As an organization operating in over 90 countries – with supply chains employing many thousands and with millions of customers – we know it’s not easy. Nor do we always get everything right. How does an organization ensure that the wages it pays to a seed farm end up in the farmworkers’ pockets? How does it ensure that its products are used safely in remote corners of developing countries? Finding better answers to challenges like these is what many Syngenta people do for a living – day in, day out. It takes vigilance, determination and persistence. Since 2004, we have been collaborating with the Fair Labor Association to set and verify fair working conditions for workers on our seed farms: the program now covers over 24,000 farms. For more on our fair labor practices, see “Look after every worker” on pages 20–21. We built specific standards and actions on human rights into the Code of Conduct we published in 2008. When the UN published its Guiding Principles on Business and Human Rights in 2011, we welcomed them as a unique product of multi-stakeholder consultation, resulting in agreed roles and responsibilities for both states and corporations. In 2012, we joined the Global Business Initiative on Human Rights, a collaboration of corporations coming together to share experiences and learn from one another. In 2013, the launch of The Good Growth Plan was a further sign of our determination to engage our whole organization in making a difference in areas beyond traditional corporate concerns. Over the years we have continued refining our policies and standards to reflect current conditions and thinking. And we have been working with other companies to accelerate changes that help to improve conditions for workers and communities: in particular, we have been encouraging peer companies in the value chain to adopt common standards. But frameworks and policies and standards can only take us so far. So, we have also been working hard to foster a culture where respect for human rights is explicit and instinctive. For more on this, see “Building a ‘do the right thing’ culture” on page 41. By ensuring a culture where rights are respected and concerns are freely shared, we aim to be an organization that’s united in constant improvement to make people’s lives better. See Syngenta’s point of view on a variety of subjects at www.questions.syngenta.com Syngenta Annual Review 2016Performance data Product line performance 45 Crop Protection Selective herbicides Sales1 $m 2016 2015 2014 2,853 2,894 3,083 Sales growth was driven by EAME and North America. In Europe, AXIAL® continued its success on cereals and CALLISTO® expanded on corn in Africa and the CIS. In North America, the main growth driver was the continued adoption by US growers of the novel corn herbicide ACURON™, combining three modes of action and four active ingredients. Non-selective herbicides Sales1 $m 2016 2015 2014 773 913 1,445 Performance reflected the deliberate reduction in solo glyphosate, now complete, undertaken in order to improve profitability. At the same time, glyphosate prices continue to decline. Sales of GRAMOXONE® were also lower, with volumes in the first half affected by dry weather in ASEAN and some price pressure from generics in North America. saw a strong recovery, with late season demand in cereals and good demand on specialty crops. Innovation continued to expand the portfolio with the launch in the fourth quarter of ELATUS™ PLUS in France and MIRAVIS™ Duo (based on the fungicide ADEPIDYN™) in Argentina. Insecticides Sales1 $m 2016 2015 2014 1,643 1,705 2,066 Insecticides saw growth across the northern hemisphere, with particularly good performances by ACTARA®, DURIVO® and KARATE®. In Brazil, sales were affected by low insect pressure and soybean trait penetration, with channel inventories remaining high. Sales in Asia Pacific, which were affected by drought in the first half of the year, rebounded strongly in the second half. Seedcare Sales1 $m 2016 2015 2014 1,003 994 1,115 CRUISER® showed good growth in a number of European markets despite limitations on its use for certain crops. Sales in Canada staged a strong recovery, led by the fungicide VIBRANCE®, which was more than offset by lower treatment intensity and higher inventory in the USA. Fungicides Sales1 $m 2016 2015 2014 3,157 3,357 3,518 Seeds North America saw good growth as new products ORONDIS™ and TRIVAPRO™ (based on SOLATENOL™) gained momentum. EAME registered growth for the full year despite a difficult first half, when wet weather resulted in missed sprays; the second half Corn and soybean Sales $m 2016 2015 2014 1,375 1,564 1,665 Sales in the fourth quarter were affected by the non-recurrence of the $ 200 million corn trait royalty received from KWS/ Limagrain in the fourth quarter of 2015. This revenue was recorded in North America ($ 145 million) and Latin America ($ 55 million). Full-year branded corn seed sales were slightly higher in the USA but lower in Europe due to reduced acreage. In Latin America we saw strong underlying growth in both Brazil and Argentina supported by the adoption of VIPTERA™ trait technology. Soybean sales were lower in a competitive environment. Diverse field crops Sales $m 2016 2015 2014 666 658 827 Sunflower sales grew strongly in Russia and Ukraine. In addition to increased acreage, growers continue to adopt superior genetics with a proven track record on the field. Sugar beet sales also increased. Vegetables Sales $m 2016 2015 2014 616 616 663 Demand was strong in Latin America, notably in Brazil and Mexico, as favorable currency rates improved growers’ profitability in export markets. South Asia also performed well in crops such as cabbage, cauliflower and okra. Price increases were achieved in all regions, reflecting the ability to capture value from a high-quality portfolio of hybrids. 1 Includes sales of Crop Protection products to Seeds and excludes non-product line sales Syngenta Annual Review 201646 Financial information A summary of Syngenta’s consolidated financial statements and other financial information is provided on pages 46 to 52. For full details and analysis of the Group’s audited financial results, prepared  in accordance with IFRS, please refer to our comprehensive Financial Report 2016, which is available on our website www.ar2016.syngenta.com. References to EBITDA in the following financial information excludes the impact of restructuring, impairment and discontinued operations.1 Summarized financial information 2016 and 2015 Excluding restructuring and impairment 1 Restructuring and impairment As reported under IFRS 2015 – – – – (388) (388) (388) 88 (300) – (300) (3.26) (3.26) 2016 12,790 6,283 (2,117) (1,299) (1,220) 1,647 1,361 (180) 1,181 (3) 1,178 12.80 12.79 2015 13,411 6,369 (2,210) (1,362) (956) 1,841 1,592 (248) 1,344 (5) 1,339 14.57 14.52 Year ended December 31 ($ m, except per share amounts) Sales Gross profit Marketing and distribution Research and development General and administrative Operating income Income before taxes Income tax expense Net income Attributable to non-controlling interests Attributable to Syngenta AG shareholders Earnings/(loss) per share ($) 2 Basic Diluted Gross profit margin excluding restructuring and impairment EBITDA4 EBITDA margin Tax rate on results excluding restructuring and impairment Free cash flow 5 Trade working capital to sales6 Debt/Equity gearing 7 Net debt 7 Cash flow return on investment 8 2016 – (6) (26) (8) (437) (477) (477) 87 (390) – (390) (4.24) (4.24) 2016 CER3 49.6% 21.5% 2016 12,790 6,289 (2,091) (1,291) (783) 2,124 1,838 (267) 1,571 (3) 1,568 17.04 17.03 2015 13,411 6,369 (2,210) (1,362) (568) 2,229 1,980 (336) 1,644 (5) 1,639 17.83 17.78 2016 2015 49.2% 2,659 20.8% 15% 1,357 40% 29% 2,281 12% 47.5% 2,777 20.7% 17% 795 38% 31% 2,586 11% 1 For further discussion of restructuring and impairment charges, see page 52. 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 The weighted average number of ordinary shares in issue used to calculate earnings per share are as follows: For 2016 basic EPS 92,020,494 and diluted EPS 92,092,649; for 2015 basic EPS 91,908,128 and diluted EPS 92,206,535. 3 For a description of CER, see page 52 4 EBITDA is defined on page 52 5 For a description of free cash flow, see page 52 6 Period-end trade working capital as a percentage of twelve-month sales 7 For a description of net debt and the calculation of debt/equity gearing, see page 52 8 For a description of cash flow return on investment and the calculation, see page 52 Syngenta Annual Review 2016Performance data 47 Full year sales Year ended December 31 Group sales Europe, Africa and Middle East North America Latin America Asia Pacific Total regional sales Lawn and Garden Group sales Crop Protection by region Europe, Africa and Middle East North America Latin America Asia Pacific Total Seeds by region Europe, Africa and Middle East North America Latin America Asia Pacific Total Sales by business Crop Protection Seeds Elimination of Crop Protection sales to Seeds Total regional sales Lawn and Garden Group sales Full year product line sales Year ended December 31 Selective herbicides Non-selective herbicides Fungicides Insecticides Seedcare Other crop protection Total Crop Protection Corn and soybean Diverse field crops Vegetables Total Seeds Elimination of Crop Protection sales to Seeds Lawn and Garden Group sales 2016 ($ m) 2015 ($ m) Actual % CER % 3,793 3,202 3,293 1,839 12,127 663 12,790 2,862 2,306 2,860 1,543 9,571 973 933 448 303 2,657 9,571 2,657 (101) 12,127 663 12,790 2016 ($ m) 2,853 773 3,157 1,643 1,003 142 9,571 1,375 666 616 2,657 (101) 663 12,790 3,884 3,410 3,632 1,837 12,763 648 13,411 2,892 2,326 3,249 1,538 10,005 1,017 1,116 400 305 2,838 10,005 2,838 (80) 12,763 648 13,411 2015 ($ m) 2,894 913 3,357 1,705 994 142 10,005 1,564 658 616 2,838 (80) 648 13,411 -2 -6 -9 – -5 +2 -5 -1 -1 -12 – -4 -4 -16 +12 -1 -6 -4 -6 n/a -5 +2 -5 Actual % -1 -15 -6 -4 +1 - -4 -12 +1 - -6 n/a +2 -5 +5 -6 -9 +2 -2 +4 -2 +6 – -12 +2 -2 +4 -16 +11 +2 -3 -2 -3 n/a -2 +4 -2 CER % +2 -13 -4 -2 +5 - -2 -11 +11 +3 -3 n/a +4 -2 Syngenta Annual Review 2016 48 Financial information Condensed consolidated income statement Year ended December 31 ($ m, except share and per share amounts) Sales Cost of goods sold Gross profit Marketing and distribution Research and development General and administrative: Restructuring Other general and administrative Operating income Income from associates and joint ventures Financial expense, net Income before taxes Income tax expense Net income Attributable to: Syngenta AG shareholders Non-controlling interests Net income Earnings per share ($ ): Basic Diluted Weighted average number of shares: Basic Diluted All activities were in respect of continuing operations. Restructuring Year ended December 31 ($ m) Accelerating operational leverage programs: Cash costs Non-cash costs Integrated crop strategy programs: Cash costs Acquisition, divestment and related costs: Cash costs Associated with industry consolidation, including ChemChina Other acquisition and related integration costs Non-cash items Other non-cash restructuring and impairment: Other non-current asset impairments Total 2016 12,790 (6,507) 6,283 (2,117) (1,299) (407) (813) 1,647 5 (291) 1,361 (180) 1,181 1,178 3 1,181 12.80 12.79 2015 13,411 (7,042) 6,369 (2,210) (1,362) (388) (568) 1,841 7 (256) 1,592 (248) 1,344 1,339 5 1,344 14.57 14.52 92,020,494 92,092,649 91,908,128 92,206,535 2016 214 9 1 50 24 (12) 121 407 2015 228 12 27 62 29 1 29 388 Syngenta Annual Review 2016Performance data 49 Condensed consolidated balance sheet At December 31 ($ m) Assets Current assets: Cash and cash equivalents Trade receivables Other accounts receivable Inventories Derivative and other financial assets Other current assets Income taxes recoverable Total current assets Non-current assets: Property, plant and equipment Intangible assets Deferred tax assets Financial and other non-current assets Investments in associates and joint ventures Total non-current assets Total assets Liabilities and equity Current liabilities: Trade accounts payable Current financial debt and other financial liabilities Income taxes payable Other current liabilities Provisions Total current liabilities Non-current liabilities: Financial debt and other non-current liabilities Deferred tax liabilities Provisions Total non-current liabilities Total liabilities Shareholders’ equity: Total shareholders’ equity Non-controlling interests Total equity Total liabilities and equity 2016 2015 1,284 4,543 570 3,884 500 386 189 11,356 3,298 2,863 941 440 170 7,712 19,068 (3,338) (1,047) (526) (1,174) (182) (6,267) (3,077) (610) (1,143) (4,830) (11,097) (7,950) (21) (7,971) (19,068) 1,141 4,128 721 4,345 401 338 124 11,198 3,383 3,040 783 396 177 7,779 18,977 (3,311) (730) (444) (983) (193) (5,661) (3,501) (668) (727) (4,896) (10,557) (8,401) (19) (8,420) (18,977) Syngenta Annual Review 201650 Financial information Condensed consolidated cash flow statement Year ended December 31 ($ m) Income before taxes Reversal of non-cash and other reconciling items Cash (paid)/received in respect of: Interest and other financial receipts Interest and other financial payments Income taxes Restructuring costs Contributions to pension plans, excluding restructuring costs Other provisions Operating cash flow before change in net working capital Change in net working capital: Change in inventories Change in trade and other working capital assets Change in trade and other working capital liabilities Cash flow from operating activities Additions to property, plant and equipment Purchases of intangible assets, investments in associates and other financial assets Proceeds from disposals of non-current assets Acquisitions and divestments, net Cash flow used for investing activities Proceeds from increases in third party interest-bearing debt Repayments of third party interest-bearing debt Sales/(purchases) of treasury shares and options over own shares, net Distributions paid to shareholders Cash flow used for financing activities Net effect of currency translation on cash and cash equivalents Net change in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Free cash flow Year ended December 31 ($ m) Cash flow from operating activities Cash flow used for investing activities Cash flow used for marketable securities Cash flow (from)/used for foreign exchange movements and settlement of hedges of inter-company loans Free cash flow 2016 1,361 1,300 363 (684) (219) (73) (150) (55) 1,843 252 (374) 86 1,807 (425) (203) 47 60 (521) 400 (586) 92 (1,040) (1,134) (9) 143 1,141 1,284 2016 1,807 (521) 53 18 1,357 2015 1,592 1,203 472 (623) (482) (125) (156) (80) 1,801 32 (868) 225 1,190 (453) (119) 120 (10) (462) 1,098 (1,174) (34) (1,078) (1,188) (37) (497) 1,638 1,141 2015 1,190 (462) – 67 795 Syngenta Annual Review 2016Performance data Full year segmental results excluding restructuring and impairment 2016 ($ m) Sales Cost of goods sold Gross profit Marketing and distribution Research and development General and administrative Operating income/(loss) 2015 ($ m) Sales Cost of goods sold Gross profit Marketing and distribution Research and development General and administrative Operating income/(loss) Europe, Africa, Middle East 3,793 (1,801) 1,992 (545) – (136) 1,311 Europe, Africa, Middle East 3,884 (1,889) 1,995 (586) – (126) 1,283 North America 3,202 (1,718) 1,484 (520) – (103) 861 North America 3,410 (1,779) 1,631 (537) – (84) 1,010 Latin America 3,293 (1,765) 1,528 (488) – (57) 983 Latin America 3,632 (2,118) 1,514 (557) – (39) 918 Asia Pacific 1,839 (986) 853 (277) – (41) 535 Asia Pacific 1,837 (1,012) 825 (286) – (35) 504 Unallocated – 51 51 (100) (1,239) (406) (1,694) Unallocated – 54 54 (83) (1,310) (274) (1,613) Total Regional 12,127 (6,219) 5,908 (1,930) (1,239) (743) 1,996 Total Regional 12,763 (6,744) 6,019 (2,049) (1,310) (558) 2,102 Lawn and Garden 663 (282) 381 (161) (52) (40) 128 Lawn and Garden 648 (298) 350 (161) (52) (10) 127 Segmental operating income reconciled to segmental results excluding restructuring and impairment Europe, Africa, Middle East 1,204 107 North America 793 68 Latin America 933 50 2016 ($ m) Operating income/(loss) Restructuring and impairment Operating income/(loss) excluding restructuring and impairment Operating margin (%) 1,311 34.6 861 26.9 983 29.9 535 29.1 (1,694) n/a 1,996 16.5 128 19.3 Asia Pacific 508 27 Unallocated (1,908) 214 Total Regional 1,530 466 Lawn and Garden 117 11 2015 ($ m) Operating income/(loss) Restructuring and impairment Operating income/(loss) excluding restructuring and impairment Operating margin (%) Europe, Africa, Middle East 1,155 128 North America 973 37 Latin America 890 28 Asia Pacific 484 20 Unallocated (1,781) 168 Total Regional 1,721 381 Lawn and Garden 120 7 1,283 33.1 1,010 29.6 918 25.3 504 27.5 (1,613) n/a 2,102 16.5 127 19.6 51 Group 12,790 (6,501) 6,289 (2,091) (1,291) (783) 2,124 Group 13,411 (7,042) 6,369 (2,210) (1,362) (568) 2,229 Group 1,647 477 2,124 16.6 Group 1,841 388 2,229 16.6 Syngenta Annual Review 2016 52 Financial information Constant exchange rates (CER) Results in this report from one period to another period are, where appropriate, compared using constant exchange rates (CER). To present that 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. EBITDA EBITDA is defined as earnings before interest, tax, non-controlling 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. Management excludes restructuring and impairment 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. Restructuring and impairment before taxes Restructuring represents the effect on reported performance of initiating and enabling business changes that are considered major and that, 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 incremental costs of closing, restructuring or relocating existing operations, and gains or losses from related asset disposals. Restructuring also includes the costs of analyzing and preparing for potential industry consolidation transactions, including costs associated with the ChemChina takeover offer, as well as the effects of completing and integrating significant business combinations and divestments, including related transaction costs, gains and losses. Recurring costs of normal business operations and routine asset disposal gains and losses are excluded. Impairment includes impairment losses associated with major restructuring as well as impairment losses and reversals of impairment losses resulting from major changes in the markets in which a reported segment operates. 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. Syngenta’s definition of restructuring and impairment may not be comparable to similarly titled line items in financial statements of other companies. Free cash flow Free cash flow comprises cash flow from operating and investing activities: excluding investments in and proceeds from marketable securities, which are included in investing activities; excluding cash flows from and used for foreign exchange movements and settlement of related hedges on inter-company loans, which are included in operating activities; and including cash flows from acquisitions of non-controlling interests, which are included in financing activities. 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 identical to similarly titled measures in other companies. Free cash flow has been included as many investors consider it to be a useful supplementary measure of cash generation. Net debt reconciliation Net debt comprises total debt net of 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 many investors consider it to be a useful measure of financial position and risk. The following table presents the derivation of the debt/equity gearing ratio: At December 31 ($m) Net debt Shareholders’ equity Debt/Equity gearing ratio (%) 2016 2,281 7,950 2015 2,586 8,401 29 31 Cash flow return on investment Cash flow return on investment is a measure used by Syngenta to compare cash returns to average invested capital. Gross cash flow used in the calculation comprises cash flow before change in net working capital, excluding interest and other financial receipts and payments. Invested capital comprises: total current assets, excluding cash and derivative and other financial assets; total non-current assets, excluding non-current derivative and other financial assets and defined benefit pension assets, and adjusted to reflect the gross book values of property, plant and equipment and intangible assets; total current liabilities, excluding current financial debt and other financial liabilities; and deferred tax liabilities. Syngenta Annual Review 2016Performance data Non-financial information At Syngenta, non-financial information refers to quantitative and qualitative information on strategies, policies or activities pursued towards our business, environmental and social goals. 53 Our non-financial performance is reported throughout this Annual Review and quantified in the “Non-financial performance summary” on pages 55 to 60. Corporate Responsibility Corporate Responsibility (CR) is integral to our business. Our ambition is to bring greater food security to an increasingly populous world in an environmentally sustainable way by creating a worldwide step change in farm productivity. The Good Growth Plan sets specific, ambitious and measurable targets focused on boosting resource efficiency, rejuvenating ecosystems and strengthening rural communities. We are also committed to developing our people, reducing our environmental footprint, enhancing Materiality matrix our social engagement, raising supply chain sustainability and doing business responsibly. Syngenta is guided by the conviction that short-, medium- and long-term value creation depends on successfully integrating business, social and environmental performance. Corporate Responsibility governance Our Board-level Corporate Responsibility Committee, chaired by the Syngenta Chairman, acts as custodian on all CR matters for Syngenta. At senior executive level, the Syngenta Executive Committee directs CR-related standards, strategy, objectives and partnerships. Materiality and stakeholder engagement We regularly assess stakeholder concerns and expectations, as well as the issues that we believe present the greatest risks and opportunities for our business. We engage with and collect feedback from stakeholders in a variety of ways. We listen to the grower community through satisfaction surveys and farmers’ direct contact with our sales teams on the ground. We also engage directly with our employees and locally with the communities close to our operations. Focus areas Monitored activities l s r e d o h e k a t s o t e c n a t r o p m I Positions Importance to Syngenta We have three levels of disclosure based on the importance of the issues to our stakeholders and to Syngenta. Focus areas We share our views, we measure and evaluate performance, and we have set or plan to set goals or quantitative targets on the most important issues, in particular our contribution to food security. 3 Biodiversity 3 Employee wellbeing 3 Energy, hazardous waste and water use 3 Greenhouse gas emission management 3 Health and safety 3 Human rights and fair labor practices 3 Land productivity 3 Logistics optimization 3 Safe and sustainable use of our products 3 Science and intellectual property 3 Smallholder empowerment 3 Soil and water conservation 3 Supply chain sustainability 3 Talent attraction and retention Monitored activities We share our views and we measure and evaluate performance on these issues to sustain the trust and confidence of our stakeholders, and for us to be a responsible business. 3 Animals in research 3 Community relations and stakeholder engagement 3 Corporate conduct 3 Corporate governance 3 Economic value shared 3 Environmental compliance and liabilities 3 Other air emissions 3 Product compliance 3 Security practices Positions We share our views on the issues that engage public interest and have a bearing on our business. 3 Biofuels 3 Biotechnology 3 Chemicals of concern 3 Climate change adaptation 3 Consolidation in the industry 3 Diminishing crop diversity and monoculture practices 3 Food availability, affordability and waste 3 Foreign investments in farmland 3 Local investment, hiring and sourcing 3 Marketing practices 3 Organic agriculture 3 Pollinators and pesticide use 3 Product registration 3 Public policy and advocacy 3 Responsible practices for product development 3 Rural development 3 Tax transparency 3 Trade Syngenta Annual Review 2016 54 Non-financial information Our interaction with industry associations, non-governmental organizations, governments and the investor community enables us to gather feedback on our activities and monitor issues important to stakeholders. We conduct research to better understand consumers’ perceptions of topics associated with agriculture and our industry; and we aim to be open and accessible – for example, answering their frequently asked questions under “Questions about Syngenta” on our website. Our materiality matrix, developed in 2015 and revised in 2016, sets out the most important issues for Syngenta and our stakeholders. This helps us identify where we can provide the most value, drive our strategy, allocate effort and resources, and direct our external communication and reporting. The most important issue to our stakeholders is our contribution to food security. In particular, they want to know how our technologies and products will enable growers to deliver sustainably the quality and quantity of food needed by a growing population. We contribute to addressing this challenge through our Good Growth Plan. Approach to non-financial reporting The Non-financial performance summary on the following pages presents data on our progress towards four goals: 3 The Good Growth Plan Help shape the future sustainability of agriculture, and deliver solutions that are better, more productive and more beneficial to rural economies 3 People Attract and retain talent while creating an environment that stimulates innovation and personal performance and development 3 Sustainable operations Manage our environmental footprint and maintain the highest standards in our operations 3 Business integrity Maintain the highest standards across our entire business and go beyond regulatory compliance, while benefiting the communities and economies wherever we operate Our non-financial reporting covers the operations of Syngenta Group, including material interactions with selected third parties as reported in the Non-financial performance summary. Our non-financial reporting is guided by the Global Reporting Initiative principles and is externally assured: see page 61. The non-financial reporting period is October 1 to September 30. Syngenta is a signatory to the United Nations Global Compact. Syngenta’s Annual Report serves as our Communication on Progress (COP) in implementing these principles. Approval of Non-financial performance summary The information in the Non-financial performance summary on pages 55 to 60 of the Annual Review was approved by the Board of Directors on February 7, 2017. Syngenta’s Board of Directors and management are responsible for establishing and maintaining adequate internal controls over non-financial reporting. Syngenta’s internal controls over non- financial reporting were designed to provide assurance to Syngenta’s Board of Directors and management regarding the reliability of non-financial reporting and the preparation and fair presentation of the information published in the Non-financial performance summary. All internal controls, no matter how well designed, have inherent limitations and therefore may not prevent or detect misstatements. In designing internal controls over non-financial reporting, Syngenta used the criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). PricewaterhouseCoopers AG, Switzerland, an independent registered public accounting firm, has issued an opinion on Syngenta’s Non-financial performance summary, which is included in the Annual Review on page 61. Read more on: www.cr.syngenta.com www.questions.syngenta.com www.gri.syngenta.com Syngenta Annual Review 2016Performance data 55 Non-financial performance summary The Good Growth Plan Make crops more efficient 1 Total number of reference farms Total number of benchmark farms Average increase on reference farms 2: Land productivity Land productivity of smallholders Nutrient efficiency Pesticide field application efficiency Average increase on benchmark farms 2: Land productivity Land productivity of smallholders Nutrient efficiency Pesticide field application efficiency Rescue more farmland Hectares of benefited farmland (m) Help biodiversity flourish Hectares of benefited farmland (m) Empower smallholders Smallholders reached (m) 3 Help people stay safe People trained on safe use (m) Of which: % of smallholders Countries with established Syngenta product toxicovigilance programs Crop Protection sales represented Look after every worker Suppliers included in fair labor programs 4 Syngenta seed producing countries included in Syngenta Fair Labor Program 5 Seed supply farms included in Syngenta Fair Labor Program Of which: farms in Fair Labor Association (FLA)’s audit scope Of which: seed supply farms monitored 5 Chemical suppliers included in Supplier Sustainability Program 5, 6 HSE audits at chemical suppliers 7 HSE audits at formulation, fill and packaging suppliers and seed toll manufacturing 7 HSE audits at warehouse/logistics service providers Commercial flowers farms with valid GlobalG.A.P. certification 5 Commercial flowers farms with valid G.R.A.S.P. assessment 5 Cumulative since baseline 2014 2016 2015 2014 1,039 2,694 1,062 2,586 860 2,738 1.2% 8.0% 1.5% -16.2% -2.6% 1.6% 5.3% -19.3% 1.9% – – – – – – – – – – – – – – – 4.3 1.9 1.6 0.8 4.9 3.3 0.9 0.7 16.6 17.2 13.8 17.2 71% 6.8 68% 100 94% 82% 41% 82% 62% 18% 67% 67 48 137 73% 24% 5.7 71% 100 93% – 33% 84% 69% – – 84 34 118 – – 4.7 74% 100 93% – 20% 53% 100% – – 72 74 156 – – 1 Reference farms were selected by Syngenta and are recommended to use Syngenta products and follow optimized protocols. Benchmark farms were randomly selected by a third-party research agency and represent grower practice. Reference and benchmark farms are grouped in clusters. A cluster presents homogeneous agro-climatic conditions and contains reference and/or benchmark farms with similar grower characteristics 2 Policy on land productivity reporting was revised in 2016. Starting 2016, instead of outlining the distribution of percentage increases in land productivity, nutrient efficiency and pesticide field application efficiency on a cluster basis, we are representing the corresponding percentage increases as global averages based on full-year harvest data. The change is to ensure consistent progress measurement while allowing better readability. Figures are compared to baseline 2014 3 Number of smallholders reached through sales per year 4 New KPI introduced in 2016 to capture overall participation of seed supply farms, chemical suppliers and commercial flowers farms in fair labor programs 5 New KPI introduced in 2016 6 Includes only chemical suppliers categorized as posing a high or medium sustainability risk 7 Policy on HSE audit reporting was revised in 2016. Starting 2016, HSE screening assessments are excluded Read more about how we are measuring The Good Growth Plan on www.data.syngenta.com Syngenta Annual Review 201656 Non-financial performance summary People Employment Employees 1 Europe, Africa and Middle East 2 North America Latin America Asia Pacific Part-time employees Turnover rate 3 of which: <35 years 35–50 years >50 years Attrition rate 4 Senior managers Headquarters Europe, Africa and Middle East North America Latin America Asia Pacific Diversity Nationalities in senior management Female employees Female employees in management roles Female employees in senior management Employee development Leadership and talent development investment ($ m) 5 Reward and recognition Employees eligible to participate in Employee Share Purchase Plan (ESPP) of which: employees participating Employees participating in long-term equity incentive plans 1 Permanent full-time equivalent (FTE) 2 Including headquarters (Switzerland) 3 Includes voluntary and involuntary leavers and restructuring 4 Includes only voluntary leavers 5 New KPI introduced in 2016 to capture investment in leadership and talent development 2016 2015 2014 27,810 12,429 4,176 5,161 6,044 919 12.2% 38% 44% 18% 6.0% 334 42% 19% 18% 11% 10% 34 30% 23% 16% 28,704 13,047 4,335 4,962 6,360 984 12.5% 41% 43% 16% 6.1% 332 44% 16% 18% 12% 10% 33 30% 22% 14% 29,340 13,300 4,636 4,945 6,459 948 9.9% 43% 41% 16% 5.5% 359 42% 18% 18% 12% 10% 37 29% 21% 13% 3.7 4.1 3.5 20,066 49% 1,453 20,088 44% 1,370 20,666 44% 1,304 Syngenta Annual Review 2016Performance data 57 People continued Health, safety and wellbeing Recordable injury and illness rate (IIR) per 200,000 hours 1 Recordable injury rate per 200,000 hours 1 Europe, Africa and Middle East 2 North America Latin America Asia Pacific Recordable occupational illness rate per 200,000 hours 1 Europe, Africa and Middle East 2 North America Latin America Asia Pacific First aid cases Recordable injuries Bruise, strain, sprain and dislocation Cut and abrasion Bone fracture Concussion and internal injury Multiple injuries Other Cases of recordable occupational illness Cases of work-related stress 1 According to US OSHA definition for injuries and illness 2 Including headquarters (Switzerland) 2016 2015 2014 0.39 0.33 0.47 0.72 0.23 0.10 0.06 0.03 0.16 0.10 0.04 387 152 39% 20% 20% 4% 1% 16% 28 9 0.38 0.35 0.48 0.69 0.24 0.11 0.03 0.04 0.04 0.06 0.01 413 154 39% 31% 13% 3% 1% 13% 14 26 0.37 0.33 0.41 0.54 0.41 0.10 0.04 0.03 0.02 0.12 0.01 420 145 52% 19% 11% 4% 3% 11% 17 35 Syngenta Annual Review 201658 Non-financial performance summary Sustainable operations Energy Energy intensity (MJ/$sales) Energy (TJ) Gas (TJ) Electricity (TJ) Steam (TJ) Oil (TJ) Other (TJ) Greenhouse gases Total CO2e emissions intensity (g/$sales) Total CO2e emissions (000s tonnes) Within direct control: CO2e emissions from own operations (000s tonnes) CO2 emissions from company vehicles (000s tonnes) Within indirect control: CO2e emissions from purchased energy (000s tonnes) CO2 emissions from business trips (000s tonnes) CO2 emissions from distribution (000s tonnes) Other air emissions Other air emissions intensity (g/$sales) Other air emissions (tonnes) NOx (tonnes) Non-halogenated VOCs (tonnes) Halogenated VOCs (tonnes) Particulates (tonnes) SO2 (tonnes) NH3 (tonnes) HCl (tonnes) Water Water usage intensity (liters/$sales) Water usage (million cubic meters) Cooling (million cubic meters) Irrigation (million cubic meters) Processing and washing (million cubic meters) Product ingredient (million cubic meters) Sewage and sanitary (million cubic meters) Other (million cubic meters) Origin of water: Surface fresh water (million cubic meters) Underground water (million cubic meters) Drinking water from municipal network (million cubic meters) Recovered rain water (million cubic meters) Saline water (million cubic meters) 2016 2015 2014 0.65 8,341 3,207 2,400 1,503 336 895 0.69 9,222 3,840 2,349 1,547 536 950 0.66 9,930 3,946 2,460 1,633 854 1,037 121 1,551 124 1,660 114 1,730 445 71 381 43 611 0.071 914 402 354 17 84 42 5 10 2.5 32.6 19.0 6.5 5.2 0.2 0.9 0.8 22.6 7.2 2.7 0.1 0.0 574 70 400 36 580 0.088 1,176 462 384 26 79 210 6 9 2.6 35.0 20.8 6.8 5.3 0.2 1.1 0.8 24.4 7.8 2.7 0.1 0.0 620 75 419 43 573 0.099 1,500 523 435 32 101 386 6 17 2.5 37.8 21.2 7.0 7.3 0.3 1.0 1.0 26.7 7.7 2.9 0.1 0.4 Syngenta Annual Review 2016Performance data 59 Sustainable operations continued Wastewater effluents Industrial wastewater discharge intensity (liters/$sales) Industrial wastewater discharge (million cubic meters) Total organic carbon (TOC) (tonnes) Chemical oxygen demand (COD) (tonnes) Biological oxygen demand (BOD) (tonnes) Total suspended solids (tonnes) Soluble salts discharged (000s tonnes) Direct discharge of uncontaminated cooling water (million cubic meters) Waste Hazardous waste intensity (g/$sales) Hazardous waste (000s tonnes) Recycled and re-used (000s tonnes) Incinerated (000s tonnes) Landfill (000s tonnes) Other (000s tonnes) Hazardous waste by type: Chemical Solvents Other Non-hazardous waste intensity (g/$sales) Non-hazardous waste (000s tonnes) Recycled and re-used (000s tonnes) Incinerated (000s tonnes) Landfill (000s tonnes) Other (000s tonnes) Non-hazardous waste by type: Plant and seed waste from seed sites Inerts Packaging materials Household Other Environmental compliance Significant unplanned releases 1 1 Releases that escape beyond the site boundary and cause either environmental impact and/or concern from neighbors and regulators 2016 2015 2014 0.79 10.1 504 1,556 165 295 118 19.0 0.70 9.4 649 1,953 189 294 125 20.5 15.2 195 88 83 10 14 56% 36% 8% 9.1 117 87 5 17 8 58% 9% 5% 5% 23% 14.4 193 95 83 1 14 55% 36% 9% 9.7 130 96 3 21 10 58% 8% 6% 4% 24% 0.66 10.0 687 2,059 197 370 137 21.0 15.6 236 114 106 1 15 59% 33% 8% 9.4 143 106 9 20 8 65% 4% 6% 5% 20% 0 3 0 Syngenta Annual Review 201660 Non-financial performance summary Business integrity Corporate conduct Compliance cases reported 1 Leaders engaged in Leader-Led Compliance Sessions 2 Completion rate 2 Security management Sites included in Syngenta Security 360° Program Product Security cases 3 Suspect counterfeit Crop Protection product seized by authorities (tonnes) 3 Suspect counterfeit Seed product seized by authorities (tonnes) 3 Animal testing compliance Management system audits performed in contract laboratories Management system non-compliances found Biotechnology and regulatory compliance Employees completing trial regulatory compliance training Trial locations requiring a permit 4 Trial inspections performed by Syngenta Economic value shared Economic value shared ($ m) Payments to suppliers 5 Employee wages and benefits Payments to governments (taxes) 6 Payments to providers of capital 7 Capital expenditure Corporate community investment 8 2016 214 1,741 95% 122 761 326 615 14 0 1,378 166 123 12,350 7,301 2,801 400 1,263 561 24 2015 196 – – 117 677 323 91 13 0 1,627 155 169 13,440 8,453 2,725 432 1,223 583 24 2014 96 – – 105 – – – 17 0 1,711 411 203 14,982 9,613 2,888 366 1,285 805 25 1 Policy on reporting of compliance cases was revised in 2015. Starting 2015, the number of cases reported includes all cases managed by Group Compliance: cases reported through the compliance helpline, line management, directly to Group Compliance or other channels. In previous years, the figure only included cases reported via the helpline 2 New KPI introduced in 2016 to capture compliance training 3 New KPI introduced in 2015 to capture counterfeiting of our products 4 In 2016, an additional 141 North American trial locations not requiring a permit were handled as regulated and managed in accordance with the North American Regulatory Compliance Program 5 Decrease in Payments to suppliers mainly reflects a continuing reduction in inventories 6 Consists of income and other taxes paid, excluding VAT (included in Payments to suppliers) and employment-related taxes (included in Employee wages and benefits) 7 Consists of expenditures for dividends, share repurchases (excluding those for employee share plans) and interest on debt 8 The PwC Independent Assurance Report includes in its scope only the Corporate community investment figure used in the calculation of Economic value shared Syngenta Annual Review 2016Performance data 61 Independent Assurance Report on the Syngenta Non-financial Reporting 2016 To the Board of Directors of Syngenta AG, Basel We have been engaged to perform assurance procedures to provide assurance on the Non-financial performance summary of Syngenta AG (‘Syngenta’) included in the Annual Review 2016 (‘Report’). Scope and Subject matter Our assurance engagement and the related levels of assurance focused on the data and information disclosed in the aggregated non-financial reporting of Syngenta for the financial year ended December 31, 2016. Reasonable Assurance The following subject matter contained in the Report is within the scope of the reasonable assurance: – The application of the Syngenta reporting guidelines for the non-financial reporting published on The Good Growth Plan Progress Data website; and – The internal reporting system and procedures to collect and aggregate the non-financial data for the six Good Growth Plan commitments on page 54; and – The data and information in the Non-financial performance summary, in all material aspects, on page 55, of the Report. Limited Assurance The related Non-financial performance summary disclosed, in all material aspects, on pages 56 to 60 of the Report is within the scope of the limited assurance. Our assurance procedures do not cover the indicators on payments to suppliers, employee wages and benefits, payments to governments and providers of capital, and capital expenditure presented in the related Non-financial performance summary on page 60 of the Report. Criteria The reporting criteria used by Syngenta are described and disclosed on The Good Growth Plan Progress Data website and in the internal non-financial reporting guidelines. These define those procedures based on the related sections of the ‘Standard Disclosure’ of the Sustainability Reporting Guidelines G4 published in 2013 by the Global Reporting Initiative (GRI), by which the non-financial performance data are internally gathered, collated and aggregated. Inherent Limitations The accuracy and completeness of non- financial performance indicators are subject to inherent limitations given their nature and methods for determining, calculating and estimating such data. Accordingly, our assurance report should therefore be read together with the related reporting criteria. Board of Directors’ Responsibilities The Board of Directors of Syngenta AG is responsible for both the subject matter and the reporting criteria as well as for the entire reporting process of the selected information in accordance with the criteria. This responsibility includes the design, implementation and maintenance of related internal control relevant to this reporting process that is free from material misstatement, whether due to fraud or error. Our Responsibility Our responsibility is to perform a limited or reasonable assurance engagement to express an opinion on positions in the related Non-financial performance summary on pages 55 to 60. We planned and conducted our engagement in accordance with International Standard on Assurance Engagements (ISAE 3000) (revised) ‘Assurance engagements other than audits or reviews of historical financial information’. That standard requires that we comply with ethical requirements and plan and perform our procedures to obtain reasonable or limited assurance whether the related Non-financial performance summary was prepared, in all material aspects, in accordance with the reporting criteria. A limited assurance engagement under ISAE 3000 (revised) is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. Consequently, the nature, timing and extent of procedures for gathering sufficient appropriate evidence are deliberately limited relative to a reasonable assurance engagement and therefore less assurance is obtained with a limited assurance engagement than for a reasonable assurance engagement. The procedures selected depend on the assurance practitioner’s judgment. Our Independence and Quality Control We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior. Our firm applies International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Summary of work performed Our assurance procedures included the following work but are not limited to: – Evaluation of the application of group guidelines; – Visits of different sites and offices for various areas in France, the Netherlands, Switzerland, and the USA selected based on quantitative and qualitative criteria; – Testing the specified performance indicators on a sample basis for evidence supporting the Non-financial performance summary relative to completeness, accuracy, adequacy and consistency; – Reviewing the documentation supporting relevant data on a sample basis, including management and reporting structures and documentation; – Reviewing the management and reporting processes. Assessing the consolidation process of data at the group level. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our assurance conclusions. Reasonable assurance conclusion In our opinion, – The Good Growth Plan guidelines as published on The Good Growth Plan Progress Data website are applied, in all material aspects; and – The internal reporting systems to collect and aggregate The Good Growth Plan data are functioning as designed and provide an appropriate basis for the reporting on page 55; and – The data and information disclosed in the Non-financial performance summary in the Report on page 55 give a fair picture of Syngenta’s non-financial performance. Limited assurance conclusion Based on our work performed on the related Non-financial performance summary nothing has come to our attention causing us to believe that disclosed data and information in the related Non-financial performance summary in the Report on pages 56 to 60 does not give a fair picture of Syngenta’s non-financial performance, in all material aspects, in accordance with the reporting criteria. PricewaterhouseCoopers AG Zurich, February 15, 2017 Gerd Tritschler Bettina Buomberger Syngenta Annual Review 201662 Syngenta Annual Review 2016 Corporate Governance and Compensation Corporate Governance and Compensation at Syngenta is designed to support the  Company in its efforts to create and foster sustainable value for all stakeholders. The following pages give a summary of our approach. For full details, please refer to our comprehensive Corporate Governance Report and Compensation Report 2016, which is available on our website www.ar2016.syngenta.com Corporate Governance The term “Corporate Governance” encompasses the entirety of all principles, structures, processes and practices at Syngenta aiming at safeguarding the sustainable interests of the Company and its stakeholders by guaranteeing both transparency and a healthy balance of management and control. Since the foundation of the Company, its Board of Directors (the Board) has given highest priority to the Corporate Governance framework by proactively and continuously implementing, improving and disclosing best corporate governance standards. Syngenta’s Corporate Governance is aligned and fully compliant with international standards and practice. In particular, the Company meets: 3 the legal requirements as set forth in the Swiss Code of Obligations 3 the SIX Exchange Regulation Directive on Information relating to Corporate Governance 3 the standards set out in the Swiss Code of Best Practice for Corporate Governance, including its appendix stipulating recommendations on compensation for Boards of Directors and Executive Committees 3 the Corporate Governance Standards of the New York Stock Exchange (NYSE), as applicable for foreign private issuers 1 3 the applicable requirements of the US Sarbanes-Oxley Act of 2002, including the certification of the Company’s Annual Report on Form 20-F 2 by the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO). Board of Directors Syngenta is led by a strong and experienced Board. It currently includes representatives with six nationalities, drawn from broad international business and scientific backgrounds. Its members bring diversity in expertise and perspective to the leadership of a complex, highly regulated, global business. The Board of Directors is the highest level of management in the Company and exercises general supervision over the objectives and the conduct of business. In addition, the Board takes an active role in reviewing and enhancing corporate governance within Syngenta. The Board has the following non-transferable and inalienable responsibilities: 3 ultimate direction of the business of the Company and the giving of the necessary directives 3 determination of the organization of the Company 3 administration of accounting, financial control and financial planning 3 appointment and removal of the persons entrusted with the management and representation of the Company 3 appointment of an Independent Proxy in cases where the Independent Proxy elected by the General Meeting of Shareholders is not capable of acting 3 ultimate supervision of the persons entrusted with the management of the Company, specifically in view of their compliance with the law, the Articles of Incorporation, regulations and directives 3 preparation of the Business Report and the Compensation Report and of the General Meeting of Shareholders and the carrying out of the resolutions adopted by the General Meeting of Shareholders 3 notification of the court if liabilities exceed assets 3 adoption of resolutions concerning the increase of the share capital to the extent that such power is vested in the Board (article 651 paragraph 4 CO), as well as resolutions concerning the confirmation of capital increases and respective amendments to the Articles of Incorporation 3 examination of the professional qualifications of the external auditor. The Board has delegated the authority to manage the Company’s operations to the Chief Executive Officer and the Executive Committee. Executive Committee Under the leadership of the Chief Executive Officer, the Executive Committee is responsible for the active leadership and the operative management of the Company. The duties of the Executive Committee comprise in particular: 3 formulation of the fundamentals of corporate policy 3 designing the Company’s strategy and strategic plans for the approval of the Board 1 See section “Information policy” in the Corporate Governance Report and Compensation Report 2016 2 The Annual Report on Form 20-F is available on www.syngenta.com, in the section “Investors/ Financial Results” Corporate information Syngenta Annual Review 2016 63 3 implementation of the strategies, strategic plans and the periodic assessment of the attainment of goals Compensation principles Syngenta’s compensation system is based on the following principles: 3 submission of regular reports for the attention of the Board or its Committees 3 promotion of a modern and active leadership culture 3 provision and optimal utilization of resources (finances, management capacity) 3 establishment of an active communications policy within and outside the Company 3 systematic selection, development and promotion of new and potential management personnel 3 examination and approval of significant agreements with third parties and business activities involving extraordinary high risks 3 establishment of guidelines for planning, organization, finance, reporting, information and other technology, etc. Compensation Compensation governance The Compensation Committee of the Board of Directors is the supervisory and governing body for the Syngenta compensation policy and practices for members of the Executive Committee and members of the Board of Directors. It has the responsibility to propose, determine and review compensation and benefits in accordance with the authorization levels as set out in the Compensation Report. The Committee consists of three independent non-executive Directors. 3 attract and retain highly qualified, successful employees to deliver the strategic plans and objectives of the Company 3 encourage and reward personal contribution and individual and team performance in accordance with the Company’s values 3 align reward with sustainable performance and recognize superior results 3 align the interests of employees, shareholders and other stakeholders. Overall, the Company seeks to position itself around the relevant market median for base salary and benefits. Variable compensation, both short- and long-term, is designed to ensure high performers may achieve around upper quartile actual total compensation. Performance management All employees, including senior executives, are subject to a formal annual performance management process. This process aims to align individual, team and organizational objectives, stretch performance, and support individual development. The process begins with goal setting at the start of the calendar year. Corporate goals are defined to set out the annual priorities for the Company and to which all employees’ individual goals are aligned. The goals of the Executive Committee members are reviewed and approved by the Compensation Committee. Performance is reviewed regularly throughout the year, culminating in a formal year-end performance review and an individual performance rating. The individual performance rating influences the variable compensation payments and thereby differentiates, recognizes and ultimately rewards individual performance. Compensation of the Executive Committee and the Board of Directors The Compensation Committee annually reviews the compensation and, periodically, pension, insurance and other benefits of the members of the Executive Committee. The benchmarks used are a set of relevant, comparable companies that are selected to provide the best representation of the labor markets and industries in which Syngenta competes for top talent. The compensation of members of the Board of Directors of Syngenta is determined by reference to the Swiss peer group. Compensation of employees and managers The compensation of all employees is reviewed on a regular basis and is determined by reference to total compensation levels for comparable jobs in relevant benchmark companies. For example, an individual who achieves his or her performance goals is generally awarded compensation comparable to the median level of compensation provided by benchmark companies. Each country regularly conducts market reviews and participates in salary surveys such as those conducted by Korn Ferry Hay Group, Aon Hewitt, Mercer and Willis Towers Watson plus any appropriate local surveys. Compensation elements Syngenta’s total compensation package includes: 3 fixed compensation – base salary 3 variable compensation – short-term incentive plans and, for selected leaders, long-term incentive plans 3 benefits (including all insured benefits and retirement/pension plans). 64 Board of Directors at December 31, 2016 Syngenta is led by a strong and experienced Board of Directors. The Board includes representatives with six nationalities, drawn from broad international business and scientific backgrounds. Its members bring diversity in expertise and perspective to the leadership of a complex, highly-regulated global business. 1 3 5 7 2 4 6 8 1 Michel Demaré Chairman of the Board, non-executive Director. Chairman of the Governance & Nomination Committee and of the Corporate Responsibility Committee He is also Chairman of the Syngenta Foundation for Sustainable Agriculture Born: 1956 Nationality: Belgian/Swiss Initial appointment: 2012 Professional background Michel Demaré was Chief Financial Officer and Executive Vice President of ABB from 2005 to February 2013, serving in addition, between late 2008 and March 2011, as the company’s President of Global Markets. Between February and September 2008, he was ABB’s acting Chief Executive Officer. Previously he had been Chief Financial Officer Europe for Baxter International Inc. He joined Baxter in 2002 after 18 years at the Dow Chemical Company, where he held various treasury and division CFO positions in Europe (including Switzerland) and the USA. Apart from his functions in Syngenta, Michel Demaré is currently holding the following Board memberships: – Listed companies: Vice Chairman of UBS Group AG – Non-listed companies: Member of the Supervisory Board of Louis Dreyfus Company Holdings B.V. In addition, he is Vice-Chairman of the Supervisory Board of IMD Business School in Lausanne and a member of the Advisory Board at the Institute of Banking and Finance at the University of Zurich. Michel Demaré holds a License in Applied Economics from the Université Catholique de Louvain (UCL) and an MBA from the Katholieke Universiteit Leuven (KUL) in Belgium. 2 Jürg Witmer Vice Chairman, non-executive Director. Chairman of the Compensation Committee and member of the Governance & Nomination Committee Born: 1948 Nationality: Swiss Initial appointment: 2006 Professional background Jürg Witmer joined Hoffmann-La Roche in Basel in 1978 and subsequently held a number of positions including Legal Counsel, Assistant to the CEO, General Manager and China Project Manager of Roche Far East based in Hong Kong, Head of Corporate Communications and Public Affairs at Roche headquarters in Basel, Switzerland, and General Manager of Roche Austria. From 1999 to 2005, he acted as Chief Executive Officer of the Givaudan Group in Vernier/Geneva. From 2008 to 2012, he was also Chairman of Clariant AG, Basel. Apart from his functions in Syngenta, Jürg Witmer is currently holding the following Board memberships: – Listed companies: Chairman of Givaudan Group – Non-listed companies: Non-executive Director of A. Menarini IFR Florence. Syngenta Annual Review 2016Corporate information 65 Jürg Witmer has a doctorate in Law from the University of Zurich, as well as a degree in International Studies from the Graduate Institute of the University of Geneva. 3 Vinita Bali Non-executive Director. Member of the Corporate Responsibility Committee Born: 1955 Nationality: Indian Initial appointment: 2012 Professional background Vinita Bali started her career in India with the Tata Group, and then joined Cadbury India, subsequently working for Cadbury in the UK, Nigeria and South Africa. From 1994 onwards, she held a number of senior positions in marketing and general management at The Coca-Cola Company in the USA and Latin America, becoming Head of Corporate Strategy in 2001, and then joined the Zyman Group as Head of its Business Strategy practice in the USA in 2003. From 2005 to 2014 Vinita Bali was the Managing Director of Britannia Industries, India’s publicly listed premier food company. Apart from her functions in Syngenta, Vinta Bali is currently holding the following Board memberships: – Listed companies: Non-executive Director of Titan Industries, CRISIL and Smith & Nephew PLC – Non-listed companies: Chairman of GAIN (Global Alliance for Improved Nutrition), Vice Chairman of CARE India Solutions for Sustainable Development, non-executive Director of Katsuri & Sons Ltd., and Advisory Board member of PwC in India. She also holds Advisory or Governing Board mandates in several institutions in the education sector. Vinita Bali holds an MBA from The Jamnalal Bajaj Institute of Management Studies, University of Bombay and a Bachelor degree in Economics from the University of Delhi. 4 Stefan Borgas Non-executive Director. Member of the Compensation Committee and of the Audit Committee Born: 1964 Nationality: German Initial appointment: 2009 Professional background Stefan Borgas is President and Chief Executive Officer of RHI AG in Austria since December 1, 2016. Previously he served as CEO of Israel’s ICL Group from September 2012 to 2016 and as CEO of Lonza Group (Switzerland) from June 2004 to January 2012. Before this he spent 14 years with BASF Group where he held various leadership positions in Fine Chemicals and Engineering Plastics in the USA, Germany, Ireland and China. Apart from his functions in Syngenta, he holds no other mandates in the supreme executive bodies of listed or non-listed companies. Stefan Borgas holds a degree in Business Administration from the University of Saarbrücken and an MBA from the University of St. Gallen. 7 David Lawrence Non-executive Director. Member of the Audit Committee He is also Chairman of the Science and Technology Advisory Board 5 Gunnar Brock Non-executive Director. Chairman of the Audit Committee and member of the Governance & Nomination Committee Born: 1950 Nationality: Swedish Initial appointment: 2012 Professional background Gunnar Brock worked for the Tetra Pak Group for many years, with spells in Asia, Australia and Europe, returning – after a period as President and Chief Executive Officer of Alfa Laval – to become President and Chief Executive Officer of the Tetra Pak Group, headquartered in Switzerland. From 2002 to 2009 he served as President and Chief Executive Officer of the Atlas Copco Group. Apart from his functions in Syngenta, Gunnar Brock is currently holding the following Board memberships: – Listed companies: Chairman of Stora Enso and non-executive Director of Investor AB – Non-listed companies: Chairman of Mölnlycke Health Care and non-executive Director of Patricia Industries (both 100 percent affiliates of Investor AB), and non-executive Director of Stena AB. Gunnar Brock holds an MBA from the Stockholm School of Economics. 6 Eleni Gabre-Madhin Non-executive Director. Member of the Corporate Responsibility Committee Born: 1964 Nationality: Swiss Initial appointment: 2013 Professional background Eleni Gabre-Madhin is the co-founder and CEO of eleni LLC, which supports the formation of commodity exchanges across Africa, helping to promote food security. She also founded and was CEO of the Ethiopia Commodity Exchange. Previously, she was a Senior Program Leader for Strategy issues at the International Food Policy Research Institute in Addis Ababa and worked for several institutions, such as the World Bank in Washington (2003–2004). Apart from her functions in Syngenta, she holds no other mandates in the supreme executive bodies of listed or non-listed companies. Eleni Gabre-Madhin holds a BA in Economics from Cornell University, a Master of Science in Agricultural Economics from Michigan State University and a PhD in Applied Economics (Food Research Institute) from Stanford University. She received the Outstanding Dissertation Award from the American Agricultural Economics Association for her research on grain markets in Ethiopia. Born: 1949 Nationality: British Initial appointment: 2009 Professional background David Lawrence was Head Research & Development at Syngenta from 2002 to 2008. Prior to this role, David Lawrence was Head Research & Technology Projects (2000–2002) for Syngenta. Prior to this, he was Head International R&D Projects for Zeneca Agrochemicals, having previously held several senior scientific roles. Apart from his functions in Syngenta, David Lawrence is currently holding the following Board memberships: – Non-listed companies: Chairman of the UK Knowledge Transfer Network Ltd. and of Agrimetrics Ltd., and non-executive Director of Spectrum Ltd. He is also a non-executive Director of the John Innes Foundation (a charitable body), a member of the UK Industrial Biotechnology Leadership Forum, the UK Agri-FoodTech Council, the Nottingham University Synbio Centre Advisory Board, and the Nuffield Council on Bioethics. David Lawrence graduated in Chemistry from Oxford University with an MA and DPhil in Chemical Pharmacology. 8 Eveline Saupper Non-executive Director. Member of the Compensation Committee Born: 1958 Nationality: Swiss Initial appointment: 2013 Professional background Eveline Saupper was a partner at the commercial law firm Homburger AG in Zurich until June 2014. Since then, she has been Of Counsel at this law firm. Before joining Homburger in 1985, she worked as a tax specialist with Peat Marwick Mitchell (today KPMG) in Zurich (1983–1985). Apart from her functions in Syngenta, Eveline Saupper is currently holding the following Board memberships: – Listed companies: Non-executive Director of Flughafen Zürich AG, Georg Fischer AG and Clariant AG – Non-listed companies: Chairman of Mentex Holding AG, non-executive Director of hkp group AG, Stäubli Holding AG and Hoval Group. Eveline Saupper holds a degree and PhD in Law from the University of St. Gallen. She is admitted to the Bar of Zurich and is a certified tax expert. Syngenta Annual Review 201666 Executive Committee at December 31, 2016 Under the leadership of the Chief Executive Officer, the Executive Committee is responsible for the active leadership and the operative management of the Company. 2 4 6 1 3 5 7 1 J. Erik Fyrwald Chief Executive Officer Member of the Corporate Responsibility Committee Born: 1959 Nationality: American Appointment: 2016 Professional background J. Erik Fyrwald was previously President and Chief Executive Officer of Univar, a leading distributor of chemistry and related products and services (2012–2016); President of Ecolab, a cleaning and sanitation, water treatment, and oil and gas products and services provider (2011–2012); and Chairman, President and Chief Executive Officer of Nalco, a water treatment and oil and gas products and services company (2008–2011). He was Group Vice President of the Agriculture and Nutrition Division of the E. I. du Pont de Nemours and Company – DuPont (2003–2008). Apart from his functions in Syngenta, J. Erik Fyrwald serves on the Board of Directors for Eli Lilly and Company (including their Science and Technology Committee), CropLife International and the Swiss- American Chamber of Commerce. He holds a Bachelor’s degree in Chemical Engineering from the University of Delaware and completed the Advanced Management Program at Harvard Business School. 2 Christoph Mäder Head Legal & Taxes and Company Secretary Born: 1959 Nationality: Swiss Appointment: 2000 Professional background Christoph Mäder was Head of Legal & Public Affairs for Novartis Crop Protection (1999–2000) and Senior Corporate Counsel for Novartis International AG (1992–1998). He is Vice Chairman of economiesuisse, the main umbrella organization representing Swiss economy. He is also a non- executive Director of Lonza AG (listed company), a member of the Board of scienceindustries, the association of Swiss chemical, pharmaceutical and biotech industries, and a member of the Board of the Basel Chamber of Commerce. He graduated from Basel University Law School, and is admitted to the Bar in Switzerland. Syngenta Annual Review 2016Corporate information 67 7 Jeff Rowe President Global Seeds and North America Born: 1973 Nationality: American Appointment: 2016 Professional background Prior to his current function as President Seeds and North America, Jeff Rowe was Vice President, Strategic Services and Planning at DuPont Pioneer (2015–2016) and also sat on the company’s Leadership Team (DPLT). Before, he was Regional Director for DuPont Pioneer Europe (2011–2015), Vice President Biotech Affairs and Regulatory (2008–2011) and Corporate Counsel (2001–2008). Jeff Rowe started his career with Pioneer in 1995 in Supply Management. Apart from his function in Syngenta, he has been a member of the U.S.- Ukraine Business Council (USUBC) Executive Committee since 2003. Jeff Rowe holds no other mandates in the supreme executive bodies of listed or non-listed companies. He has a Bachelor of Science in Agricultural Economics from the Iowa State University, a Juris Doctorate from Drake Law School, and a Global Executive MBA from the NYU Stern School of Business and the London School of Economics. 3 Patricia Malarkey Head Research & Development Born: 1965 Nationality: British/American Appointment: 2014 5 Mark Patrick Chief Financial Officer Born: 1969 Nationality: British Appointment: 2016 Professional background Prior to his appointment as Chief Financial Officer, Mark Patrick was Head Commercial Finance at Syngenta (2011–2016). Prior to that, he was Head Crop Protection Finance (2008–2011 and 2005–2006), Head Finance North America Crop Protection (2006–2008), Head Business Reporting (2003–2005) and APAC Regional Supply Finance Head Syngenta in Hong Kong. He joined AstraZeneca in 1993. Mark Patrick holds no other mandates in the supreme executive bodies of listed or non-listed companies. He is a Chartered Management Accountant and also holds an honors degree in Quantity Surveying and a Post Graduate degree in Economics. 6 Mark Peacock Head Global Operations Born: 1961 Nationality: British Appointment: 2007 Professional background Mark Peacock was previously Head of Global Supply (2003–2006) and Regional Supply Manager for Asia Pacific (2000–2003) for Syngenta. Prior to this he was a Product Manager in Zeneca Agrochemicals and General Manager of the Electrophotography Business in Zeneca Specialties. Mark Peacock holds no other mandates in the supreme executive bodies of listed or non-listed companies. He has a degree in Chemical Engineering from Imperial College, London, and a Master in International Management from McGill University in Montreal. Professional background Prior to her current function as Head Research & Development, Patricia Malarkey was Head Research & Development for Lawn & Garden at Syngenta (2012−2013). Before that, she held a number of senior scientific functions in Crop Protection, Seeds and Biotechnology at Syngenta in Europe and the United States. Patricia Malarkey holds no other mandates in the supreme executive bodies of listed or non-listed companies. She graduated from the University of Glasgow in Agricultural Chemistry and holds a master’s degree in Toxicology from the University of Surrey. 4 Jonathan Parr President Global Crop Protection and EAME, LATAM and APAC Born: 1961 Nationality: British Appointment: 2015 Professional background Prior to his current function as President Global Crop Protection and EAME, LATAM and APAC, Jonathan Parr was Chief Operating Officer (COO) EAME & Latin America (2015–2016). Before that, he was Head of Global Crops & Assets for Syngenta (2014), Regional Director for EAME (2009–2013), Head of Syngenta Flowers (2007–2008), Head of Marketing and Strategy (2004–2007) and European Manufacturing Manager (2000–2003). Before joining Syngenta, he worked for AstraZeneca as a Factory Manager (1998–2000), Global Product Manager Fungicides (1996–1998) and Supply Chain Project Manager (1994–1996). From 1987 to 1994, he held Project and Engineering Management functions at Imperial Chemical Industries (ICI). Jonathan Parr holds no other mandates in the supreme executive bodies of listed or non-listed companies. Jonathan Parr is a Chartered Engineer and also holds an honors Bachelor degree in Civil Engineering from the University of Southampton as well as a Master in Management from the University of McGill, Canada, and a diploma in International Management from the INSEAD Institute. Syngenta Annual Review 201668 Shareholder information % 15 10 5 0 -5 -10 -15 -20 Syngenta share price performance January 1, 2016 – December 31, 2016 (Indexed to zero at closing price on December 31, 2015) Dec 31, 2016 CHF402.50 High: CHF432.70 Low: CHF351.20 * Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Syngenta Eurotop 300 SMI * Closing high/low during the year Syngenta ADS price performance January 1, 2016 – December 31, 2016 (Indexed to zero at closing price on December 31, 2015) % 15 10 5 0 -5 -10 -15 High: $88.95 Low: $70.05 * Dec 31, 2016 $79.05 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Syngenta ADS S&P 500 Dow Jones * Closing high/low during the year Syngenta shares are listed on the SIX Swiss Exchange and on the New York Stock Exchange, where the shares are traded as ADS (American Depositary Shares).1 Trading symbols Shares SIX Swiss Exchange SYNN New York Stock Exchange SYT Shares in issue At December 31, 2016 Total shares in issue of which treasury shares Number of shares 92,578,149 357,658 Share price and market capitalization 2 At December 31, 2016 Share price (CHF) Share price ($ ) (ADS) Market capitalization (CHF million) Market capitalization ($ million) 402.50 79.05 37,119 36,391 Dividend history 2012 2013 2014 2015 CHF 9.50 10.00 11.00 11.00 1 1 share = 5 ADS 2 For the purposes of calculating market capitalization the number of shares stood at 92.2 million A full form 20-F is accessible at: www.investors.syngenta.com Investors can subscribe to media releases by email or via RSS at: www.investors.syngenta.com The full year results press release can be viewed at: www.media.syngenta.com Syngenta Annual Review 2016Shareholder information Syngenta share price performance January 1, 2012 – December 31, 2016 (Indexed to zero at closing price on December 31, 2011) CHF366.60 CHF355.20 CHF320.00 CHF392.30 69 Dec 31, 2016 CHF402.50 % 70 60 50 40 30 20 10 0 -10 -20 Q1 Q2 Q3 Q4 2012 Q1 Q2 Q3 Q4 2013 Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3 Q4 2015 Q1 Q2 Q3 Q4 2016 Syngenta Eurotop 300 SMI Syngenta ADS price performance January 1, 2012 – December 31, 2016 (Indexed to zero at closing price on December 31, 2011) $80.80 $79.94 $64.24 $78.73 % 80 70 60 50 40 30 20 10 0 -10 Dec 31, 2016 $79.05 Q1 Q2 Q3 Q4 2012 Q1 Q2 Q3 Q4 2013 Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3 Q4 2015 Q1 Q2 Q3 Q4 2016 Syngenta ADS S&P 500 Dow Jones Syngenta share price performance since creation of the Company November 17, 2000 – December 31, 2016 (Indexed to zero at closing price on November 17, 2000) % 950 900 800 700 600 500 400 300 200 100 0 -50 Dec 31, 2016 $79.05 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Syngenta Syngenta ADS Syngenta Annual Review 2016Syngenta supports the 10 principles of the United Nations Global Compact through an established commitment to Corporate Responsibility and ongoing implementation of policies on human rights, fair labor, environmental protection and anti-corruption. 6 1 0 2 w e i v e R l a u n n A a t n e g n y S Switzerland Investor Relations T +41 61 323 5883 F +41 61 323 5880 E global.investor_relations@syngenta.com Media Relations T +41 61 323 2323 F +41 61 323 2424 E media.relations@syngenta.com Share Register T +41 41 798 4833 F +41 41 798 4849 E syngenta@devigus.com Shareholder Services T +41 61 323 2121 F +41 61 323 5461 E shareholder.services@syngenta.com Corporate Responsibility E csr@syngenta.com Syngenta switchboard T +41 61 323 1111 F +41 61 323 1212 USA Investor Relations T +1 202 737 6521 E global.investor_relations@syngenta.com Media Relations T +1 202 737 8913 Contacts for ADS holders T +1 866 253 7068 – from within the USA T +1 201 680 6825 – from outside the USA E shrrelations@cpushareownerservices.com Syngenta AG Corporate Affairs P.O. Box CH-4002 Basel Switzerland www.syngenta.com For the business year 2016, Syngenta has published three books: the Annual Review 2016 (including information about our non-financial performance), the Financial Report 2016, and the Corporate Governance Report and Compensation Report 2016. All documents were originally published in English. The Annual Review 2016 and the Corporate Governance Report and Compensation Report 2016 are also available in German. These publications are available on the Internet: www.syngenta.com © 2017 Syngenta AG, Basel, Switzerland. All rights reserved. Editorial completion: February 2017 Copywriting: KainesLang, Berwick-upon-Tweed, UK Design and production: Radley Yeldar, London, UK ® Registered trademarks of a Syngenta Group Company ™ Trademarks of a Syngenta Group Company The SYNGENTA Wordmark and BRINGING PLANT POTENTIAL TO LIFE are registered trademarks of a Syngenta Group Company. 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 US 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. 

Continue reading text version or see original annual report in PDF format above