Slide 1: Preliminary Results FY2019
Preliminary Results FY2019 25 September 2019
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of the preparation of this presentation. Due to the inherent uncertainties, including both econom
Slide 3: FY2019 Performance Highlights
FY2019 Performance Highlights Financial Operational Strategic – Results ahead of guidance: – Strong business & operational – Successful LATAM expansion execution in Ireland/UK and providing geographic and • 15.6% growth in operating LATAM portfolio diversification profit • Strong contribution from –
Slide 4: Business Review
Business Review
Slide 5: 2019 Overview
2019 Overview 50,000 112 >2,500 Customers Distribution Employees Points 7 €1.8bn €82.3m Countries Revenue Operating Profit Geography Revenue EBIT 2019 2018 2019 2018 64% 64% 73% 77% Ireland & the UK 2% Continental Europe 10% Latin America 34% 36% 17% 23% 100-10,000 ha €500m 2.5m Tns €160m Customer P
Slide 6: Group Revenue Analysis
Group Revenue1 Analysis 1 +11.16% Growth in Group Revenue1 from FY2018 to FY2019 +0.25% Currency +7.41% Underlying +3.50% Acquisitions +3.96% Volume +3.45% Price 1 Excludes crop marketing revenues and volumes 6
Slide 7: Trading Review: Ireland & the UK
Trading Review Ireland & the UK – Strong underlying volume growth of 6.8% – Speciality nutrition and bespoke fertiliser portfolios performed well Operating profit (€’m) – Operating margin reduction of 10bps reflecting higher commodity selling prices 60.0 – Volume in Amenity impacted by customer stoc
Slide 8: Trading Review: Continental Europe
Trading Review Continental Europe1 – Reduction in underlying volume of 2.9% – Lower profits and margins reflecting underperformance in Ukraine: • Reduced liquidity and excess inventories drive highly Operating profit (€’m) competitive marketplace in Ukraine CAGR (2.29%) • Focus on margin enhancement
Slide 9: Trading Review: Latin America
Trading Review Latin America – Excellent first-time contribution in line with expectations • Speciality nutrition segments deliver good growth Operating profit (€’m) – Business integration well advanced and progressing to plan 8.1 First-time – Expansion of production capacity to support future contr
Slide 10: Financial Review
Financial Review
Slide 11: FY2019 Financial Performance Summary
FY2019 Financial Performance Summary Revenue Operating Profit Profit After Tax Adjusted EPS €1.8bn €82.3m €66.7m 52.65c +10.5% (rc1) +15.6% (rc1) +8.1% (rc1) +7.9% (rc1) +10.4% (cc1) +15.5%(cc1) +7.8%(cc1) +7.8%(cc1) Underlying Volume Growth Group Operating Margin ROIC Total Dividend +3.96%2 4.6% 13
Slide 12: FY2019 Financial Highlights
FY2019 Financial Highlights Year ended 31 July 2019 2018 Change Constant Currency €’m €’m % % Group revenue 1,798.2 1,627.5 10.5% 10.4% Group operating profit1 Agri-Services 82.3 71.2 15.6% 15.5% Associates and joint venture2 6.7 7.2 (7.0%) (7.2%) Total group operating profit 89.0 78.4 13.5% 13.4% F
Slide 13: Group Revenue
Group Revenue €m +€168.6m €2.1m +€170.7m 2,000 +€51.3m +€117.3m +10.4% 0.1% +10.5% +3.2% 1,800 +7.2% €1,798.2m 1,600 1,400 €1,627.5m 1,200 1,000 800 600 400 200 0 FY18 Underlying Acquisitions FY19 Currency FY19 (excl. currency) 13
Slide 14: Group Operating Profit
Group Operating Profit €m +€8.5m +€11.0m €0.1m +€11.1m 90 +12.0% +15.5% 0.1% +15.6% +€2.5m 80 +3.5% €82.3m 70 60 €71.2m 50 40 30 20 10 0 FY18 Underlying Acquisitions FY19 Currency FY19 (excl. currency) 14
Slide 15: Earnings per Share
Earnings per Share € cent per share 60.00 + 3.74c +3.78c +0.07c +3.85c +0.04c + 7.7% +7.8% +0.1% +7.9% +0.1% 50.00 52.65c 48.80c 40.00 30.00 20.00 10.00 0.00 FY18 Underlying Acquisitions FY19 Currency FY19 (excl. currency) 15
Slide 16: Operating Margin Analysis
Operating Margin Analysis % 4.80 +0.4% 4.60 +0.1% (0.3%) 4.6% 4.40 4.4% 4.20 4.00 3.80 3.60 3.40 3.20 3.00 FY18 Business Increased fertiliser Acquisitions FY19 portfolio mix input prices 16
Slide 17: Cash Flow
Cash Flow Year ended 31 July Strong cash conversion achieving FCF ratio of 90% within target range of 70 – 100% 2019 2018 Year ended 31 July €’m €’m Cash flow from operating activities 92.8 80.0 Change in working capital (12.7) 0.7 Interest and tax (23.9) (17.4) Cash flow from ongoing operating acti
Slide 18: Balance Sheet
Balance Sheet Year ended 31 July 2019 2018 As at 31 July €’m €’m Tangible assets 136.8 129.8 Goodwill and intangible assets 271.1 216.3 Associates and joint venture 47.7 48.6 Working capital 46.0 17.2 Deferred and contingent acquisition consideration (43.0) (13.1) Provisions for liabilities, includi
Slide 19: Banking Facilities and Covenants
Banking Facilities and Covenants Year ended 31 July 2019 2018 Committed banking facilities Net debt to EBITDA 0.87 0.54 €430 million Covenant < 3.50x < 3.50x Weighted average debt maturity in year 2019 EBITDA to net interest 8.06 9.81 Covenant >3.00x >3.00x 4.3 years (2018: 3.66 years) All terms as
Slide 20: Capital Allocation
Capital Allocation Acquisitions: Focused on Return on Investment Accretive earnings multiple Opportunities to use Reinvestment Dividend People existing routes to market Strategic Capex Maintaining Strong pay-out of >45% of Financial Product Capabilities Discipline & Free Cash Flow Sourcing opportuni
Slide 21: Strategy and Development
Strategy and Development
Slide 22: Promoting Sustainable Food Production Systems
Promoting Sustainable Food Production Systems The evolution of agronomy 35+ Potential 24 1 ha feeds 24 people Top 25% to feed 35+ people per ha 21 1 ha feeds 21 people Average 18 1 ha feeds UK Average 16 1 ha feeds 18 people 16 people 11 1 ha feeds 11 people 6 1 ha feeds 6 people Static Crop Yields
Slide 23: The Origin Business Model
The Origin Business Model Our purpose: Sustaining land and lives through our expertise, innovation and R&D Research + Development Own Crop Crop Technology Own Digital Input Formulation Partnerships Services 50,000+ 11,000+ customers 1,000,000 ha fertiliser on-boarded serving prescriptions 12m ha Fie
Slide 24: Strategy For Growth
Strategy For Growth Our Vision To be the leading and trusted partner of choice to the farmers, growers and amenity professionals we serve Market Portfolio People & Scale Focus Positioning Organisation Strategy Concentrate on Customisation and Maintain differentiated Ongoing people and target geograp
Slide 25: Our Focus Points for Growth
Our Focus Points for Growth Sustain Perform Grow Poland Ukraine Brazil UK Belgium Paraná Ireland Romania Ireland and the UK Continental Europe Latin America – Accelerate product and service – Grow volume and market share – Build volume and market share in extension – Leverage own-product based growi
Slide 26: Our Progress, Our Opportunity
Our Progress Our Opportunity 2023 2019 Ambition Results Customer Portfolio enhancement – Agronomy-led – Value added input segments – New models Organic EBIT CAGR ✔ 3-4% 3.5% Supply & Technology Partnerships Digital 2023 Diversified EBIT On Track – Group-wide partnerships – Agronomist & farmer enable
Slide 27: Summary and Outlook
Summary and Outlook
Slide 28: Summary and Outlook
Summary and Outlook – Well invested and focused Agri-Services Group with good geographic and business balance – Strong FY19 performance driven by good organic and acquisitive growth – Demand for agronomy services and inputs in Ireland and UK expected to normalise in FY20, against strong prior year c
Slide 29: Thank You
Thank You