TALKING FREIGHT

Who is Syngenta? l A world-leading agribusiness focused solely on delivering better food for a better world through outstanding crop solutions

Our Name l “Syn” is derived from Greek, reflecting synergy and synthesis, integration and consolidating strengths. l “genta” relates to humanity and the individual. It stems from the Latin ‘gens’, for people or community. Syngenta = bringing people together

A Leader in Product Innovation l Syngenta has an industry-leading portfolio of crop protection and seeds products l Syngenta offers more than 130 crop protection products to give farmers options for challenges they face Vegetables & Flowers Field Crops Professional Products Insecticides Fungicides Non-selective herbicides Selective herbicides 7% 8% 9% 14% 23% 10% 26%

Distribution Network l Plants 5 l Public Warehouses23 l Tollers34

Channel Sales: –Distributors –Wholesalers –Retailers End Use Customers: –Farmers –Industrial Users –Government Agencies Distribution Cycle

Modes of Transport Cost Efficient Changes to Modes of Transport Bulk Truck to Rail Truckload to Trailer on Flat Car Less than Truckload to Small Package Truckload to Less than Truckload Rail 3% Bulk Truck53% Truckload21% Less than Truckload20% Small Package 3%

Distribution Flow - Package Products Production Public Warehouses Distributors Public Warehouses Distributors Pickup Ship Pickup Ship Pickup

Flow of Bulk Production Customers Bulk TerminalsCarriers Customers Bulk Truck Rail ProductionBulk Terminals CarriersCustomers Carriers Customers R R – Rail T - Bulk Truck T T T T T

Trends l Streamline shipping/receiving operations l Extended gate hours l Reduce number of stop offs l Coordinate continuous moves l Analyze public warehouse network: –Balance cost vs. distribution requirements l Add warehouses at plant sites l Increase plant utilization-reduce tolling locations

Trends (cont’d) l Better position inventory across supply chain: “One Touch” l Better forecasting tools l Produce inventory closer to market need l Analyze Outsourcing options l Investigate optimization software solutions l Security Issues

Challenges for 2004 l New Emission Requirements –open issue for carriers –carriers have delayed equipment purchases l Increased Background Screening –may reduce driver pool –may reduce driver eligibility

Challenges for 2004 (cont’d) l Hours of Service –Cost increase –Driver shortages Carriers will require more drivers Drivers leave driver pool –Equipment Shortages Carriers will require more equipment Emissions related Bankruptcies –Increased transit times –Congestion –Reduction in free time for loading and unloading –Stricter enforcement of detention fees

Challenges for 2004 (cont’d) l Increase in surcharges: –Fuel –Security –Insurance –Labor –Healthcare

In Summary l Cost Creep –Price increases –Reduction in free time –Surcharges l Capacity Crunch –Number of tender attempts –Length of haul –Haz Mat haulers