Slide 1: Preliminary Results FY2020
PRELIMINARY RESULTS FY2020 23 September 2020 INNOVATE COLLABORATE SUSTAIN
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: FY 2020 Performance Overview
FY 2020 PERFORMANCE OVERVIEW Financial Operational Strategic Resilient performance through Appointment of Sean Coyle as Group CEO Operating profit of €44.1m unprecedented challenges and TJ Kelly as Group CFO Continuity of operations and service Appointment of Alex Steel as Group Group operating marg
Slide 4: Business Review
BUSINESS REVIEW As \ 4 3
Slide 5: FY 2020 Overview
FY 2020 OVERVIEW 51,000+ Customers 103 >2,600 Employees Distribution Points 7 Countries €1.6bn Revenue €44.1m Operating Profit Geography Revenue EBIT Ireland & the UK Continental Europe 2% 2% 16% 10% Latin America 34% 73% 61% 64% 53% 37% 17% 2020 2019 31% 2020 2019 €1.6bn €1.8bn €44.1m €82.3m 100-10
Slide 6: Group Revenue Analysis
GROUP REVENUE1 ANALYSIS (13.3%)1 Movement in Group Revenue1 from FY 2019 to FY 2020 +0.1% Currency (13.5%) Underlying +0.1% Acquisitions (10.7%) Volume (2.8%) Price 1 Excludes crop marketing revenues and volumes 6
Slide 7: Trading Review: Ireland & the UK
TRADING REVIEW Ireland & the UK – Underlying volume reduction of 14.4% – Wettest autumn winter planting season in 30 years Operating Profit (€’m) – Significant shift from winter to spring cropping – Operating margin reduction of 2.8% as a smaller cropping area and prolonged unseasonal weather limite
Slide 8: Trading Review: Continental Europe
TRADING REVIEW Continental Europe – Reduction in underlying volumes of 1.9% – Successful delivery of working capital and operating margin optimisation initiatives Operating Profit (€’m) – Operating margin improvement in both Poland and Romania – Adoption of the Group’s single brand identity, Agrii,
Slide 9: Trading Review: Latin America
TRADING REVIEW Latin America – Strong underlying volume growth of 4.3% against a delayed season and start to in-field operations – Underlying profit growth of 4.8% was impacted by currency Operating Profit (€’m) headwinds in H2 – Capital investment increased dry powder capacity threefold 8.1 – Dispo
Slide 10: Financial Review
G pe FINANCIAL REVIEW
Slide 11: FY 2020 Performance Summary
FY 2020 PERFORMANCE Summary Revenue Operating Profit Adjusted EPS Dividend per share €1.6bn €44.1m 25.69c 3.15c (11.6%) (rc1) (46.4%) (rc1) (51.2%) (rc1) 2019: 21.32c (11.6%) (cc1) (44.5%) (cc1) (49.2%) (cc1) Free Cash Flow Working Capital inflow ROCE Net Debt €64.3m €30.3m 7.3% €53.2m 2019: €54.0m
Slide 12: FY 2020 Financial Highlights
FY 2020 FINANCIAL HIGHLIGHTS Year ended 31 July 2020 2019 Change Constant Currency €’m €’m % % Group revenue 1,589.1 1,798.2 (11.6%) (11.6%) Group operating profit1 Agri-Services 44.1 82.3 (46.4%) (44.5%) Associates and joint venture2 6.2 6.7 (8.4%) (8.6%) Total group operating profit 50.3 89.0 (43.
Slide 13: Group Revenue
GROUP REVENUE Year ended 31 July €’m 2,000 (€210.9m) +€2.1m (€208.8m) (€0.3m) (€209.1m) €1,798.2m +0.1% (11.6%) 0% (11.6%) 1,600 (11.7%) €1,589.1m 1,200 800 400 0 FY19 Underlying Acquisitions FY20 Currency FY20 (excl. currency) 13
Slide 14: Group Operating Profit
GROUP OPERATING PROFIT Year ended 31 July €’m 80 €82.3m 60 (€36.7m) +€0.1m (€36.6m) (€1.6m) (€38.2m) (44.6%) +0.1% (44.5%) (1.9%) (46.4%) 40 €44.1m 20 0 FY19 Underlying Acquisitions FY20 Currency FY20 (excl. currency) 14
Slide 15: Earnings Per Share
EARNINGS PER SHARE Year ended 31 July € cent per share 60 52.65c 40 (26.47c) +0.60c (25.87c) (1.09c) (26.96c) (50.3%) +1.1% (49.2%) (2.0%) (51.2%) 25.69c 20 0 FY19 Underlying Acquisitions FY20 Currency FY20 (excl. currency) 15
Slide 16: Operating Margin Analysis
OPERATING MARGIN ANALYSIS Year ended 31 July % 5.0% 4.57% 4.0% (1.60%) (0.25%) +0.53% (0.47%) (1.79%) 3.0% (26.57c) (50.5%) 2.78% 2.0% 1.0% 0.0% FY19 Volume Fertiliser price Cost savings incl. Other (incl. FY20 deflation bonus currency) 16
Slide 17: Cash Flow
CASH FLOW Year ended 31 July Strong cash generation with free cash flow performance 2020 2019 €’m €’m Cash flow from operating activities 63.8 92.8 Change in working capital 30.3 (12.7) Interest and tax (16.6) (23.9) Cash flow from ongoing operating activities 77.5 56.2 Exceptional and one off items
Slide 18: FY 2020 Balance Sheet
FY 2020 BALANCE SHEET Year ended 31 July 2020 2019 €’m €’m Tangible assets 178.6 136.8 Goodwill and intangible assets 235.9 271.1 Associates and joint venture 41.2 47.7 Working capital 5.5 46.0 Deferred and contingent acquisition consideration (25.5) (43.0) Provisions for liabilities, including pens
Slide 19: Banking Facilities and Covenants
BANKING FACILITIES AND COVENANTS 2020 2019 Leverage Committed banking facilities Net debt to EBITDA 1.18 0.87 €430 million Covenant <3.50x <3.50x Interest Cover EBITDA to net interest 5.76 8.06 Weighted average debt maturity Covenant >3.00 >3.00 All terms as defined for bank covenant testing purpose
Slide 20: Capital Allocation
CAPITAL ALLOCATION Reinvestment Dividend People Suspended due Capex minimised to trading Digital platform Maintaining Product capabilities Financial Discipline & Balance Sheet Strength Acquisitions Paused for near-term 20
Slide 21: Strategy and Development
STRATEGY AND DEVELOPMENT 4 Wg Ni thse a Wy
Slide 22: Our 2023 Ambition
OUR 2023 AMBITION A balance of organic and acquisitive growth 5-9% Organic EBIT CAGR Acquired 3-4% 2-5% EBIT CAGR EBIT CAGR Ireland / UK Continental Europe Latin America 1-2% 3-5% 5-10% Focus on delivering Return on Investment Free Cash Optimising existing Sourcing Group ROCE Flow Ratio routes to ma
Slide 23: Brexit: Issue Overview and Origin's Approach
BREXIT Issue Overview Origin’s Approach Agriculture Bill • Framework to allocate UK government • Focus on farm ROI delivery spending on agricultural support • Capture market share • Continue to evolve product offering to support environmental goods End of transition • Failure to reach agreement on a
Slide 24: Working Towards a Sustainable Future
WORKING TOWARDS A SUSTAINABLE FUTURE Promoting On-farm products and services Pillar sustainable food Innovation 1 production systems Engagement and partnerships Conducting Resource efficiency and environmental impacts Pillar business Conducting business with integrity 2 responsibly Empowering our pe
Slide 25: Putting Sustainable Agriculture into Practice
PUTTING SUSTAINABLE AGRICULTURE INTO PRACTICE Legislation Loss of Climate Limited Access Reduced farm Pest, Weed Loss of Crop Public Industry Challenges Biodiversity Change to New Profitability and Disease Protection Perception of Breeding Resistance Products Food Technology Production EU Farm to Pr
Slide 26: Helping Growers Achieve a Greener Footprint
Helping growers achieve a greener Carbon Footprint Purchasing footprint Fertiliser carbon Encompassing our Measure footprints to enable operating strategies to manage informed choices for sustainability Production Independently Innovative Verified Product solutions Stewardship Nitrogen Use Nutrition
Slide 27: Summary
SUMMARY 27
Slide 28: Impact of Weather on UK Cropping
Impact of Weather on UK Cropping Cropping Mix FY2019 Q1 FY2020 H1 FY2020 Trading Update Trading Update Early Winter Late Winter Spring Crops Fallow Gross Margin Mix FY 2019 Q1 Trading Update H1 Trading Update 28
Slide 29: UK Wheat Area Has Historically Rebounded After Wet Autumns
UK WHEAT AREA HAS HISTORICALLY REBOUNDED AFTER PREVIOUS YEARS WHERE WET AUTUMNS REDUCED PLANTINGS Wheat Area planted vs Autumn Days Rainfall 2,200 1,996 2,000 1,936 +361 +321 1,797 1,800 ‘000 hectares 1,635 1,615 +435 1,600 1,400 1,363 1,200 1,000 *AHDB’s Planting and Variety Survey 2020 areas does
Slide 30: Summary and Outlook
SUMMARY AND OUTLOOK – FY20 saw prolonged, unseasonal weather variation in our largest market – Continuity of service maintained through COVID-19 – Excellent working capital and cash management by business divisions – Continued work towards strategic goals in product mix & margin improvement, sustain
Slide 31: Thank You
THANK YOU originenterprises.com 31