Syngenta AG (SYT)

Net Income and Other Supplementary Income Data

Net income in 2004 was US$428 million, with US$460 million attributable to shareholders of Syngenta AG, compared to US$252 million in 2003, with US$248 million attributable to shareholders of Syngenta AG. Net income attributable to Syngenta AG in 2004 includes a loss on discontinued activities of US$83 million related to the disposal of Syngenta’s 75% interest in SF Chem AG. In addition, restructuring and impairment costs, net of related taxation, were higher in 2004 at US$219 million compared to US$97 million in 2003 due to the initial costs of the Operational Efficiency program initiated in 2004. Net income in 2004 benefited from the unusually large utilization of tax losses carried forward noted above.

Net Income and Other Supplementary Income Data

Net income in 2003 was US$254 million, compared to a net loss of US$59 million in 2002, with lower restructuring and impairment costs and higher net income before restructuring and impairment.

Net income excluding restructuring, impairment and discontinued operations was US$119 million higher than 2002 at US$343⁽¹⁾ million (2002: US$224⁽¹⁾ million). Operating income excluding restructuring and impairment was US$78 million higher at US$684⁽¹⁾ million (2002: US$606⁽¹⁾ million) and financial expense, net was US$80 million lower, so income before taxes and minority interests was US$164 million (43%) above last year at US$545⁽¹⁾ million (2002: US$381⁽¹⁾ million) and, combined with the lower effective tax rate, net income increased by 53% before inclusion of restructuring, impairment and discontinued operations.

Restructuring and impairment costs after tax, including gains on the minor business disposals and on the sale of intellectual property to Diversa and income from discontinued operations, were US$194 million lower than the previous year at US$89⁽¹⁾ million (2002: US$283⁽¹⁾ million).