The past year has been a demanding one, but I am pleased to report that we have again been able to deliver a solid performance, improve financial returns and build a strong base for future value growth for our shareholders.

Our 2003 results testify to our ability to perform in even the most challenging economic circumstances. Earnings per share increased 36 per cent. Our confidence in the ability to further reinforce our financial performance has enabled the Board to propose a doubling of the dividend to CHF 1.70, to be paid by way of a nominal par value reduction.

One important decision we took last year was to withdraw from the London and Stockholm stock exchanges at the end of 2003. With trading volumes on these exchanges remaining low, we resolved to focus solely on the Swiss and New York stock exchanges, where the majority of transactions take place.

Other topics addressed at our five Board meetings included group strategy, R&D, finance and corporate governance. The Board's transparent and scrupulous governance structure meets the highest standards of capital markets around the world and assures investors of our ability to provide high-level strategic oversight as well as business integrity.

Over the last year Syngenta has again been faced with challenges, as agricultural issues have been prominent in many parts of the world. The level of international trade tension was highlighted by the failure of the World Trade Organization talks. The debate around US/European agricultural subsidies continued, somewhat overshadowing the conclusion of the EU's mid-term agricultural policy review. However, possible long-term implications for farmers are not yet clear. And unusually dry conditions in Europe served to compound a general mood of uncertainty among growers.

But there have also been new opportunities. The EU welcomed ten new Eastern European member countries from regions where we have established a strong and growing presence. Our early action to reinforce the strength and breadth of our Latin American operations, particularly in the major markets of Brazil and Argentina, enabled us to capitalize effectively on the buoyancy of farm economies in the region.

Looking further into the future, our long-term prospects are primarily governed by one overriding factor: an increasing, and increasingly prosperous, world population that seeks more and better food, placing a clear premium on the improved agricultural productivity we can help deliver. We are fully aware of the important factors we must bear in mind when addressing such growth in demand: the need to work with communities, helping to boost farm incomes and strengthen rural economies, and the need to safeguard the environment and achieve true sustainability.

That said, the prime driver of our industry's future is the forecast that global calorie demand will nearly double over the next two decades. In meeting that demand, we feel strongly that the potential of new technologies in agriculture, including biotechnology, will become steadily more significant. It is clear that robust and harmonized regulatory systems based on sound science will be crucial to ensure the responsible adoption of these technologies and foster consumer confidence. Biotechnology is a topic that continues to evoke strong emotions, so a genuine commitment to transparency and a frank and inclusive dialogue will be paramount.

In all areas of our business, such dialogue is becoming increasingly important. We are frequently asked how we can further improve the responsible use of our products once they have left our direct control. Our willingness to exchange views with all those concerned customers, regulatory authorities and non-governmental organizations will ensure that together we continue to enhance our product stewardship activities.

We can now look back on a year of solid achievement. We have continued investing in technologies that will generate the innovative products of tomorrow. Above all we have maintained our clear focus on continuing to build sustainable competitive advantage and generate shareholder value: a focus we will maintain in the years ahead.

I would like to thank our employees around the world for their commitment, talent and dedication, and you our shareholders for your continued confidence and trust in our company.

Heinz Imhof
Chairman