Slide 1: Interim Results 6 March 2014
2014 Interim Results 6 March 2014
Slide 2: 2014 Interim Highlights
2014 Interim Highlights Good first half performance – Robust activity levels on farm – Excellent winter cropping profile – Agri-Services well positioned for seasonally important H2 – H1 EPS now typically accounts for 10% of full year Satisfactory performance from associates and joint venture Agronom
Slide 3: Agri-Services Review
ENTERPRISES PLC J Agri-Services Review
Slide 4: Market Context for Primary Food Producers
Market Context for Primary Food Producers Primary output markets – Good demand and logistical capacity tightness support near term grain and oil seed values against recovery in global stocks – Dairy markets remain favourable – Potential for significant weather related production losses currently not
Slide 5: Integrated On-Farm Agronomy Review
Integrated On-Farm Agronomy Review ` January 2014 January 2013 Change on prior period Agri Services €m €m €m Underlying €m Revenue 517.6 567.7 (50.1) (30.7) Operating profit* 4.0 2.4 +1.6 +1.9 Operating margin % 0.8% 0.4% +40bps Return on capital employed** 23.2% 21.9% +1.3% Strong result with highe
Slide 6: B2B Agri Inputs Review
B2B Agri Inputs Review ` January 2014 January 2013 Change on prior period Agri Services €m €m Change €m Underlying €m Revenue 517.6 567.7 (50.1) (30.7) Operating profit* 4.0 2.4 +1.6 +1.9 Operating margin % 0.8% 0.4% +40bps Return on capital employed** 23.2% 21.9% +1.3% Business-to-Business Agri Inp
Slide 7: Associates and joint ventures
Associates and joint ventures 7
Slide 8: Associates and joint ventures
Associates and joint ventures January 2014 January 2013 Associates and Joint Ventures €m €m Change €m Revenue 207.6 298.6 (91.0) Share of profits after tax 6.7 10.9 (4.2) Consumer Foods Feed Milling 32% 50% Robust performance in highly competitive Largest single site multi species feed mill environm
Slide 9: Financial Review
ENTERPRISES PLC Financial Review )
Slide 10: January 2014 Interim Results Financial Highlights
January 2014 Interim Results Financial Highlights January 2014 January 2013 Change €m €m Revenue Agri –Services 517.6 567.7 (8.8%) Group Operating Profit* Agri-Services 4.0 2.4 +€1.6m Associates and joint ventures** 6.7 10.9 (€4.2m) 10.7 13.3 (€2.6m) Financing cost, net (2.4) (3.0) +€0.6m Profit bef
Slide 11: Revenue – Agri-Services
Revenue – Agri-Services €m 800.0 Vol: +4.1% Price: -9.5% 700.0 (€19.4m) (€30.7m) 600.0 (3.4%) (€50.1m) (5.4%) (8.8%) €567.7m 500.0 €517.6m 400.0 300.0 200.0 100.0 0.0 FY13 Currency Underlying FY14 11
Slide 12: Operating Profit – Agri-Services
Operating Profit – Agri-Services €m 5.0 +€1.6m +€1.9m +68.1% +82.1% 4.0 €4.0m 3.0 (€0.3m) (14.0%) €2.4m 2.0 1.0 0.0 FY13 Currency Underlying FY14 12
Slide 13: EPS year-on-year movement
EPS year-on-year movement 12.1% underlying increase Cent per Share 10.00 9.00 (0.16c) (2.60c) 8.00 (2.1%) (34.3%) 7.00 7.59c +0.92c +12.1% 6.00 +0.18c +2.4% 5.93c 5.00 4.00 3.00 2.00 1.00 0.00 FY13 Currency Welcon Disposal Tender Offer Underlying FY14 13
Slide 14: Cash Flow/Net Debt
Cash Flow/Net Debt Continued strong cash generation - €53.7m of free cashflow Year to Jan 2014 Jan 2013 12 months to July 2013 Period ended 31 January January 2014 €m €m €m €m 70.2 Cashflow from operating activities 6.0 4.4 71.8 1.3 Change in working capital (89.5) (91.5) 3.3 (17.1) Interest and tax
Slide 15: January 2014 Interim Results Balance Sheet
January 2014 Interim Results Balance Sheet January 2014 January 2013 €m €m Tangible assets 93.6 102.2 Intangibles / Goodwill 149.5 56.1% 131.9 of net assets – Associates and joint ventures 91.2 previously 165.9 75.3% Working capital 44.5 41.1 Acquisition related payables (15.8) (10.8) Net debt (163.
Slide 16: Banking Facilities and Covenants
Banking Facilities and Covenants Committed banking facilities of €330 million Weighted average debt maturity in years: 2.25 years Operating well within covenants January 2014 January 2013 Net Debt to EBITDA 1.97 2.81 Covenant <3.50 <3.50 EBITDA to Net Interest 14.86 10.29 Covenant >3.00 >3.00 All te
Slide 17: Agri-Services positioning
Agri-Services positioning 17
Slide 18: Agri-Services Positioning
Agri-Services Positioning Leading Service Support Through Two Complimentary Platforms Business to Business Agri-Inputs Integrated On-Farm Agronomy Comprehensive supply chain and risk Market leading crop management management capability systems capability Well invested infrastructure Specialist route
Slide 19: The Yield Challenge
The Yield Challenge Achieving sustained improvement in crop performance 400.00 9.0 350.00 8.0 300.00 7.0 250.00 200.00 6.0 Tn/Hectare £/tonne 150.00 5.0 100.00 4.0 50.00 0.00 3.0 Year UK Indexed Wheat Price per Tn* UK Wheat Yield per Ha *Average Annual Wheat Prices Indexed to 2012 Source: Burke, Par
Slide 20: Enhancing Yield Potential
Enhancing Yield Potential Connecting high visibility science with practical agronomy – Independently chaired Scientific Strategy Board guiding direction and development – Key priorities: Genetics – Nutrition & Soils – Precision Agronomy – Crop Protection – Emerging Technologies – Expansion of agrono
Slide 21: Applied research that is Relevant and Practical
Applied research that is Relevant and Practical Coordinated Knowledge Growing Communication Growers Systems Varietal Selection Growing Systems Soil Research & Management Decision Agronomists Development Making Nutrition Knowledge Application Transfer Partnership Deliver Crop Protection iFarms Approa
Slide 22: Development
ENTERPRISES PLC 2 Development ) 22
Slide 23: Agroscope – The Business
Agroscope – The Business Acquisition Completed – 30 January 2014 Founded in 2002 Leading provider of agronomy services, high specification inputs and advisory support in Ukraine – Arable and root crop growers Scale – 1,200 farm customers – 150 employees including 45 agronomists and product specialis
Slide 24: Agroscope Investment Rationale
Agroscope Investment Rationale Ukraine offers significant long term market potential – Direct access to farm for agronomy and service technologies – Total agricultural area - 33m hectares – Cropping area - 19m hectares Opportunity – Intensification driving increased yield potential and growth in ser
Slide 25: Strategy and Outlook
Strategy and Outlook 25
Slide 26: Strategic Priorities
Strategic Priorities Create scalable platform to capture growth opportunity in technology transfer of smart agriculture solutions and sustainable crop technologies Organisational effectiveness – Greater customer responsiveness through simplification – Maintain integrity of farming relationship while
Slide 27: Summary and Outlook
Summary and Outlook Clear business profile established with capability sets to capitalise on sustainable agriculture services model H2 key earnings period Agri-Services H2 performance supported by excellent cropping profile – Increased winter plantings – Normalisation of service and input demand Hig
Slide 28: Interim Results 6 March 2014
2014 Interim Results 6 March 2014