Origin Enterprises Plc · EURONEXT:OIZ
Origin Enterprises — H1 2018 Earnings Presentation
28 slides from Origin Enterprises's earnings presentation, Mar 8, 2018
Slide 1: Preliminary Results – Interim Results 2018
Preliminary Results Interim Results 2018 2016 288September March 2018 2016
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: 2018 Interim Highlights and Business Overview
2018 Interim Highlights and Business Overview Interim Results 2018 8 March 2018 3
Slide 4: 2018 Half Year Summary & Highlights
2018 Half Year Summary & Highlights Share of Profit Group Operating Adjusted Interim of Associates Net Debt Revenue Profit EPS Dividend and JV €586.9m €2.3m €1.7m 0.27c €171.4m 3.15c + €22.5m +€0.3m + 0.02c » Good first half performance in seasonally quiet trading period – 12.6% increase in operatin
Slide 5: Agri-Services – The Business
Agri-Services – The Business Key Facts, Customer Channel and Geography1 46,000 Customers Customer Channel - 2017 670 Sales Force Revenue EBIT █ Direct Farm €1.53bn €70.0m █ Business-to-Business 11.8m Direct Farm Ha Customer Footprint 56% | 44% 55% | 45% 108 Distribution Points Geography - 2017 Input
Slide 6: Trading Review
Trading Review Interim Results 2018 8 March 2018 6
Slide 7: Agronomy Service and Input Revenue Analysis
Agronomy Service and Input Revenue1 Analysis Growth in Agronomy Service and Input Revenue from H1 2017 to H1 2018 +7.7%1 11.3% Currency Underlying Acquisitions (3.2%) +7.3% +3.6% Volume Price +1.2% +6.1% 1 Excludes crop marketing revenues and volumes 7
Slide 8: Agri-Services Trading Review – Ireland & the UK
Agri-Services Trading Review Ireland & the UK 2018 2017 Change Underlying2 Period ended 31 January €’m €’m % % Revenue 377.5 354.9 6.4% 5.0% Operating profit 1 1.2 0.9 35.4% 24.5% » Underlying volume growth of 0.4% » Margin development supported by favourable product and channel mix » Autumn and win
Slide 9: Agri-Services Trading Review – Ireland & the UK
Agri-Services Trading Review Ireland & the UK Digital Business-to-Business Direct Farm Agricultural Services Fertiliser Amenity Feed Ingredients » Solid volume and » Good performance » Lower underlying H1 » Good H1 performance » Higher volumes support margin development in supported by enhanced volu
Slide 10: Agri-Services Trading Review – Continental Europe
Agri-Services Trading Review Continental Europe1 2018 2017 Change Underlying3 Period ended 31 January €’m €’m % % Revenue 121.6 108.5 12.1% 14.7% Operating profit 2 0.9 0.7 28.5% 24.9% » Underlying volume growth of 3.9% » Technically based service portfolios perform well » Trading conditions remain
Slide 11: Agri-Services Trading Review – Continental Europe
Agri-Services Trading Review Continental Europe Direct Farm Poland Romania Ukraine » Improved business performance » Good first half underpinned by volume » Solid H1 performance across all driven by margin progression growth and new customer gains service and input portfolios » Good growth achieved
Slide 12: Financial Review
Financial Review Interim Results 2018 8 March 2018 12
Slide 13: 2018 Interim Financial Highlights
2018 Interim Financial Highlights 2018 2017 % Period ended 31 January €’m €’m Change Group revenue 586.9 564.4 4.0% Group operating profit1 Agri-Services 2.3 2.0 12.6% Associates and joint venture2 1.7 1.7 - Total group operating profit 4.0 3.7 5.8% Finance costs, net (4.0) (3.8) (4.8%) Loss before
Slide 14: Group Revenue
Group Revenue €m +€16.6m +€36.9m (€14.4m) +€20.3m +€22.5m +2.9% +6.5% (2.5%) +3.6% +4.0% 600.0 €586.9m €564.4m 400.0 200.0 0.0 FY17 Underlying Acquisitions FY18 Currency FY18 (excl. currency) 14
Slide 15: Group Operating Profit
Group Operating Profit €m 2.5 +€0.2m +€0.3m +7.1% +12.6% +€0.1m +5.5% €2.3m 2.0 €2.0m 1.5 1.0 0.5 0.0 FY17 Underlying Acquisitions FY18 15
Slide 16: Earnings per Share
Earnings per Share € cent per +0.01c +0.07c (0.05c) +0.06c +4.0% (20.0%) share +28.0% +24.0% 0.30 0.02c 8.0% 0.27c 0.25c 0.20 0.10 0.00 FY17 Underlying Acquisitions FY18 (excl. Currency FY18 currency) 16
Slide 17: Summary Cash Flow Statement
Summary Cash Flow Statement Year to 12 months to July 2017 Period ended January 2018 January 2017 January 2018 €’m €’m €’m €’m 78.5 Cash flow from operating activities 6.3 5.8 79.0 (26.0) Change in working capital (92.6) (129.3) 10.7 (14.5) Interest and tax (6.8) (8.0) (13.3) 38.0 Cash flow from ong
Slide 18: Banking Facilities and Covenants
Banking Facilities and Covenants » Committed banking facilities of €430 million » Weighted average debt maturity in year 2018: 3.8 years At 31 January 2018 2017 2016 Net debt to EBITDA 2.17 1.95 2.18 Covenant <3.50 <3.50 <3.50 EBITDA to net interest 11.24 11.51 14.12 Covenant >3.00 >3.00 >3.00 All t
Slide 19: Balance Sheet
Balance Sheet 2018 2017 As at 31 January €’m €’m Tangible assets 127.1 112.8 Goodwill and intangible assets 215.7 189.0 Associates and joint venture 32.7 33.6 Working capital 98.0 113.3 Deferred and contingent acquisition consideration (14.7) (12.8) Provisions for liabilities, including pension (4.0
Slide 20: Business Overview & Strategy
Business Overview & Strategy Interim Results 2018 8 March 2018 20
Slide 21: Business Positioning
Business Positioning We focus on supply and technology partnerships and service to build strong farm linkages » Origin is strongly differentiated in the Agri-Services supply chain – We are a specialist route-to-market for crop inputs, technologies and services – Through business-to-business and reta
Slide 22: Accessing the Farm Relationship
Accessing the Farm Relationship Capital light buy and build through proven consolidation capability Ireland & the UK Continental Europe Ireland & the UK Poland | Romania | Belgium | Ukraine Market Buy & Build Market Buy & Build Sector Profile Farm Size Customers Sector Profile Farm Size Customers Po
Slide 23: Fertiliser and Speciality Nutrition
Fertiliser and Speciality Nutrition Building scale and direct farm linkages Tonnes 2.5m » Leading provider of standard 2.0m and prescription fertilisers » Business Overview: ― c. 220k tonnes 1.5m ― Well invested infrastructure ― Strategically located in 1.0m Flanders and Wallonia » Maintainable EBIT
Slide 24: Leveraging Crop and Digital Technologies
Leveraging Crop and Digital Technologies Combining Market Proven Digital Capabilities with Origin’s Established Routes-to-Market » Monetises Origin R&D resources » More efficient use of agronomist time » Systemised data acquisition at scale » Differentiated advice on a per field basis » Micro knowle
Slide 25: Strategic Priorities
Strategic Priorities On-Farm Crop People and Scale UK Farming Technology Transfer Organisation » Buy and build farm services » Brexit has the potential to lead » Differentiated business » Creating new and devolved and crop inputs distribution to a fundamental change in propositions delivering capabi
Slide 26: Summary and Outlook
Summary and Outlook Interim Results 2018 8 March 2018 26
Slide 27: Summary and Outlook
Summary and Outlook » Good result in seasonally quiet first six months, with favourable activity levels on farm – Well established autumn and winter cropping ahead of main seasonal activity in H2 – Improved working capital performances in H1 » Continue to prioritise new growth opportunity in Agri-Se
Slide 28: Preliminary Results
Preliminary Results Interim Results 2018 2016 288September March 2018 2016