Slide 1: 2009 Half Yearly Results
2009 Half Yearly Results 09 March 2009
Slide 2: Operational Highlights to 31 January 2009
Operational Highlights to 31 January 2009 Agri-Nutrition – Excellent performance from Masstock and Dalgety – Strong performance by Marine Proteins – Continued market volatility in primary producer markets Food – Growth in own food brands – Weakening consumer sentiment – Value conscious consumption S
Slide 3: Half Yearly Results Highlights to 31 January 2009
Half Yearly Results Highlights to 31 January 2009 Revenue growth of 30% to €710.1m. Operating profit* increased 35% to €27.2m. Profit before financing costs* up 31% to €27.8m. Adjusted fully diluted EPS* up 19% to 11.17cent per share. Net borrowings of €200.3m . *Before intangible amortisation 3
Slide 4: 2009 Half Yearly Results – Condensed Income Statement
2009 Half Yearly Results – Condensed Income Statement 35% increase in Operating Profit* 2009 2008 Half Year Ended January Growth €m’s €m’s Revenue 710.1 546.4 30% EBITDA 31.5 23.9 32% Operating Profit * 27.2 20.2 35% Associates – PAT 0.6 1.0 (40%) Profit before financing costs * 27.8 21.2 31% EBITDA
Slide 5: 2009 Half Yearly Results – Segmental Analysis
2009 Half Yearly Results – Segmental Analysis Strong growth in Agri-Nutrition 2009 2008 Half Year Ended January Growth €m’s €m’s Revenue Agri-Nutrition 553.5 375.4 47% Food 156.6 171.0 (8%) Total 710.1 546.4 30% Operating Profit* Agri-Nutrition 18.0 11.7 54% Food 9.2 8.5 8% Total 27.2 20.2 35% Opera
Slide 6: 2009 Half Yearly Results – Income Statement
2009 Half Yearly Results – Income Statement 19% increase in Adjusted Fully Diluted EPS* 2009 2008 Half Year Ended January Growth €m’s €m’s Profit before financing costs 27.8 21.2 31% Financing cost, net (9.2) (5.9) 56% Amortisation (1.5) (0.8) 88% Profit before tax 17.1 14.5 18% Taxation (3.0) (2.6)
Slide 7: Cash Flow
Cash Flow 6 months to 6 months to 12 months to FY08 Jan 09 Jan 08 Jan 09 €m’s €’m’s €m’s €m’s 80.6 Cashflow from operating activities 31.9 24.1 88.4 16.8 Change in working capital (54.9) (37.3) (0.9) (9.7) Interest (9.7) (3.7) (15.6) (13.1) Taxation (5.0) - (18.1) 74.6 Net cash flow from operating a
Slide 8: Balance Sheet
Balance Sheet Jan 2009 Jan 2008 July 2008 €m’s €m’s €m’s Development Properties 193.0 192.4 192.4 Other Tangible Assets 100.0 93.9 106.1 Intangibles/Goodwill 99.8 53.0 116.4 Associates 31.9 15.5 32.8 Working Capital 78.8 75.2 35.5 Net Debt (200.3) (164.4) (175.1) Taxation – incl deferred (42.9) (46.
Slide 9: Maturity Profile of Net Debt (€m’s)
Maturity Profile of Net Debt (€m’s) January 2009 July 2008 Cash, net 43.6 74.2 Within 1 year - - Between 1 and 2 years (73.3) (86.0) Between 2 and 5 years (170.6) (163.3) Total Net Debt (200.3) (175.1) Weighted average Debt Maturity in years 2.7 3.1 9
Slide 10: Bank Covenant Ratios
Bank Covenant Ratios January 2009 July 2008 Net Debt* to EBITDA 2.21 2.15 Net Debt to EBITDA – for covenant purposes 0.94 0.74 Covenant <3.25 <3.25 EBITDA to Net Interest 5.05 4.60 Covenant >3.00 >3.00 EBITDA** - 12 months trailing (€m) 90.6 81.5 *Total Net Debt **EBITDA as defined for bank covenant
Slide 11: Business Review – Agri-Nutrition
Business Review – Agri-Nutrition
Slide 12: Partners in Profitable Farming
Partners in Profitable Farming Leading provider of integrated agronomy services directly to arable and grassland farm enterprises Excellent first half performance – Enhanced leadership position in high performance seed market – Effective application of research to 2009 crop management programmes – S
Slide 13: Agri Inputs – Feed Ingredients
Agri Inputs – Feed Ingredients Market leader in the importation of animal feed ingredients and cereals Satisfactory half year performance Product origins – Stable feed consumption Cereals, Rape, Suns & Milling – Higher inclusion of domestic wheat Soya, Rape, Organic wheat cereals Peas Soya, Gluten &
Slide 14: Agri Inputs – Fertiliser
Agri Inputs – Fertiliser Leading supplier of blended fertilisers in Ireland and the UK Satisfactory half year performance – UK • Reduced off-take – Delayed purchasing – Price expectations • Well positioned to service customer demand in a more concentrated off-take period during the second half of th
Slide 15: Marine Proteins
Marine Proteins Leading producer of fishmeal and fish oil in Ireland & the UK Very Satisfactory first half performance – Demand momentum – Stable raw material intake – Focused cost reduction 4 Feb 2009, reached agreement with Austevoll ASA to combine our respective Irish, UK and Norwegian fishmeal a
Slide 16: Marine Proteins Strategic Consolidation
Marine Proteins Strategic Consolidation Enhancing the position of the combined businesses Major realignment of North Atlantic manufacturing capacity – Improved raw material landing and conversion efficiencies – Enhanced market access – Optimise production capacity North Atlantic Raw Material Intake
Slide 17: Continental Farmers Group plc – Direct Farming
Continental Farmers Group plc – Direct Farming Large scale producer of agricultural crops in Poland and Ukraine Progress to date Swincz Poland & Ukraine – Ukraine primary development focus since 2006 – 20,000 hectares of leased arable land assembled L’Viv – Key infrastructure programme completed and
Slide 18: Business Review – Food
(Con Origin ENTERPRISES PLC Business Review - Food
Slide 19: Food – Shamrock
Food – Shamrock Leading ambient food sales, marketing and distribution business Satisfactory first half performance – Robust performance from Roma and Shamrock brands • 6% Sales Growth • Increased home meal preparation – Increasing value conscious consumption – Reduced agency distribution activity –
Slide 20: Food – Odlums
Food – Odlums Irelands largest cereal miller Satisfactory first half performance – Retail • Integration extending distribution reach • Increased consumption – Industrial • Stable volumes • Competitive landscape Ongoing integration and process review Disposal of McCann’s oatmeal brand 20
Slide 21: Outlook for Primary Food Producers
Outlook for Primary Food Producers
Slide 22: LIFFE Wheat Futures (Mar’09 v Nov’09) £/t
LIFFE Wheat Futures (Mar’09 v Nov’09) £/t £/t 22
Slide 23: Global Wheat – Production
Global Wheat – Production 680mt, +70mt on last year 09/10 F’cast 650m,-30m 2009 F 23 Source: AgResource
Slide 24: Global Population and Agricultural Land Area (ha) Forecast, 1965-2030f
Global Population and Agricultural Land Area (ha) Forecast, 1965-2030f Source FAO and World Bank 24
Slide 25: Managing On-Farm Returns
Managing On-Farm Returns Global demand and supply remains finely balanced – Less plantings and reduced inputs – Slowdown in Yield Growth Primary Producers are committed Maximising Economic Yield – Where Output price is uncertain… – Manage for Crop Yield – Strategic input investment critical link to
Slide 26: Sustainable and Profitable Food Production Solutions
Sustainable and Profitable Food Production Solutions Primary Food Knowledge Prescription Communication Producer Varietal Selection Growing Systems Soil Masstock Research & Management Decision Smart Development Making Farming Nutrition Influence Application Global Technology Product Manufacturing Tra
Slide 27: Positioning and Outlook
(Con Origin ENTERPRISES PLC Positioning and Outlook 27
Slide 28: Origin’s integrated capability to support primary food production
Origin’s integrated capability to support primary food production Scale B2B Inputs Sourcing and Distribution Direct Farming Extension Prescriptive Farming Systems “Do How” Risk Management Yield Enhancing Technology “Know How” Strategic Global Supply Relationships 28
Slide 29: 2009 Outlook
2009 Outlook Excellent first half performance Second Half of the year – main earnings period Current environment – Volatility in global primary producer markets – Credit markets – Consumer purchasing patterns Outlook for the second half of the year – Agri-Nutrition • Sustained performance from Masst
Slide 30: 2009 Half Yearly Results
2009 Half Yearly Results 09 March 2009