Slide 1: Cli k t to edit Click dit M
Cli k tto edit Click dit M Master t titl title style t l Click to edit Master subtitle style
Slide 2: Table of Contents
Table of Contents Overview 3 2010 Highlights 5 Business Review – Agri-Nutrition 8 – Food 11 Financial Review 15 Strategy and Outlook 23 2
Slide 3: Origin - who we are
Origin - who we are Leading Agri Agri-Services Services company with interests in Food and Nutrition Operations in Ireland, the United Kingdom, Norway, Poland and Ukraine Public company – Listed Li t d in i JJune 2007 – ESM (Dublin), AIM (London) – ARYZTA AG 71.4% shareholder 3
Slide 4: Origin at a glance
Origin at a glance…. Agri-Nutrition Food Agri-Services Marine Proteins and Oils -Integrated agronomy services -Fertiliser Fertiliser and Feed ingredients FY 2010 Operating p g Profit * - €77.4m Agri-Nutrition 80% Food 20% Agri-Nutrition 81% Food 19% *incl. associates and joint venture (after tax) 4
Slide 5: 2010 Highlights
2010 Hi Highlights hli ht 5
Slide 6: 2010 Overview
2010 Overview Results ahead of expectations – Very strong second half – Continued strong cash generation – Improving outlook for primary food producers Agri-Nutrition Agri Nutrition – Masstock sustains performance within Agri-Services – Volume recoveries in fertiliser and feed ingredients – Excellen
Slide 7: 2010 Financial Highlights
2010 Financial Highlights Revenues of €1,337m Group EBITA* up 1.8% to €82.4m 12 2% increase in the seasonally more important second half – 12.2% Adjusted earnings per share** up 3.0% to 37.26 cent Dividend increased 12.5% to 9.0 cent per share Cash generation – Free cashflow €46.3m – Net debt of €11
Slide 8: Agri-Nutrition Review
Agri Nutrition Review Agri-Nutrition 8
Slide 9: Agri-Nutrition division – Agri-Services
Agri-Nutrition division – Agri-Services 67.5 65.1 * Group earnings before interest, tax and amortisation (‘Group EBITA’) includes our contribution from associates and joint venture (before tax) so as to compare year-on-year on a like-for-like basis. Market commentary Integrated agronomy Fertiliser a
Slide 10: Agri-Nutrition division – Marine proteins and oils (Welcon AS)
Agri-Nutrition division – Marine proteins and oils (Welcon AS) 67.5 65.1 11.6 3.7 Market commentary Full year performance St Strong k t ffundamentals market d t l E ll t performance Excellent f fl ti recordd reflecting – 10% growth in European aquaculture fishmeal pricing output Improved raw materia
Slide 11: Food Review
on Origin ENTERPRISES PLC Food Review 11
Slide 12: Food division
Food division 15.8 14.9 Market commentary Full year performance Intensely competitive market Resilient performance of consumer brands V l conscious Value i consumer iis centre t stage t – 6% volume decline – Significant price deflation Strong consumer support for Irish brands Strong category partner
Slide 13: Creation of strategic vehicle to facilitate consolidation of Irish consumer food brands
Creation of strategic vehicle to facilitate consolidation of Irish consumer food brands Acquiring 100% of Origin Foods and Irish I i h ffoodd company B Batchelors h l – Proforma turnover approx. €200m T ti conditional – Transaction diti l upon clearance l ffrom th the IIrish i hC titi A Competition
Slide 14: One of the strongest portfolios of iconic Irish food brands
One of the strongest portfolios of iconic Irish food brands Oi i F Origin Foods d B t h l Batchelors #1 Flour and bakery mixes #1 Canned vegetables g #1 Dried fruit and nuts #2 Gravy, Gravy dry sauces and #1 Baking sugars meal mixes #1 Branded pasta and tomatoes #1 Ambient juices #1 Purees and ppass
Slide 15: Financial Review
Fi Financial i lRReview i 15
Slide 16: 2010 Preliminary Results - Income Statement
2010 Preliminary Results - Income Statement 2010 2009 Year Ended July €m’s €m’s C Change Revenue 1,337.1 1,507.8 (11.3%) EBITA * 82.4 80.9 1.8% Operating profit before associates ** 65.9 75.7 (13.0%) Associates and joint venture - PAT 11.5 3.7 211.3% Operating profit ** 77.4 79.4 (2.5%) Operating pr
Slide 17: 2010 Preliminary Results - Income Statement
2010 Preliminary Results - Income Statement 3.0% increase in EPS* EPS and 12.5% increase in dividend 2010 2009 Year Ended July €m’s €m’s Change Operating profit 77.4 79.4 (2.5%) Financing cost, net (15.2) (17.4) 12.3% Amortisation (3.9) (3.2) (18.8%) Profit before taxation 58.3 58.8 (0.8%) Taxation
Slide 18: 2010 Preliminary Results – EPS year-on-year
2010 Preliminary Results – EPS year-on-year € cent Per Share 40 5.4% 39 Underlying Impact p of Increase Impact of 38 +1.95 Cents Currency 2009 37 ‐0.35 Cents Acquisitions ‐0.5 Cents 37.26 37.26 36 36 16 36.16 16 36.16 36 35 34 33 32 31 30 FY 09 FY 10 18
Slide 19: Cash flow / Net Debt
Cash flow / Net Debt Continued strong cash generation - €41.9m reduction in debt. 2010 2009 Year Ended July €m’s €m’s Cash flow from operating activities 69 5 69.5 82 8 82.8 Reduction in working capital 9.9 2.3 Interest and tax (21.3) (31.4) Net cash flow from operating activities +8 0% +8.0% 58.1 5
Slide 20: Balance Sheet
Balance Sheet July 2010 July 2009 € ’ €m’s € ’ €m’s Tangible assets 129.2 86.8 Investment properties 16.0 59.2 Intangibles / Goodwill 114.5 115.9 Associates and joint venture 89.7 83.6 Working capital 40 4.0 13 9 13.9 Contingent acquisition consideration (13.0) (12.1) Net debt (111.9) (153.8) Taxati
Slide 21: Bank Covenants
Bank Covenants Operating well within agreed Bank Covenants July 2010 July 2009 N t Debt Net D bt to t EBITDA 1 41 1.41 1 99 1.99 Covenant < 3.50 < 3.50 EBITDA to Net Interest 5.20 5.09 Covenant > 3.00 > 3.00 Cash flow to Net Interest 3.93 3.96 Covenant > 2.00 2 00 > 2.00 2 00 All terms as defined fo
Slide 22: Our progress since establishment
Our progress since establishment 2007 2008 2009 2010 Year Ended July €m’s €m’s €m’s €m’s CAGR EBITA 42.8 74.1 81.0 82.4 24.4% 22.8% Adjusted fully diluted EPS * (cent) 19 63 19.63 34 05 34.05 36 16 36.16 37 26 37.26 23.8% 23 238% 23.8% 8% Acquisition expenditure (cumulative) 0.0 157.4 193.9 195.1 Ca
Slide 23: Strategy and Outlook
St t Strategy and d Outlook O tl k 23
Slide 24: Agri-Services Overview
A iS i Agri-Services Overview O i 24
Slide 25: Agri-Services and the evolution of sustainable agriculture
Agri-Services and the evolution of sustainable Precision Agronomy (Smarter decisions, better targeting agriculture of inputs, sustainable management) Access To The New Opportunities (Food versus Fuel, energy conservation/ generation, ti watert resources, climate li t change) h ) Supporting Farm Mana
Slide 26: Agri-Services – Structural growth drivers and relevance
Agri-Services – Structural growth drivers and relevance Increasing average farm size – Commercialisation of the farm enterprise – Separation of land ownership from food production driving increasing specialisation Yield Yi ld andd productivity d ti it enhancement h t essential ti l counter t tto mis
Slide 27: Technical agri-service platform to underpin Origin's strategic development
Technical agri-service platform to underpin Origin’s strategic development Extension of current platform – From infrastructure based B2B agri business to.. S t – Systems b d on-farm based f l ti solutions l tf platform Key Characteristics… – IP based with strong technical barriers to entry – Geograp
Slide 28: Earnings stability
Earnings stability GR 11 Nutrition Historic EBITA ~=—SP GS Agri Index 800 700 €65.1m €67.5m | 79 ENTERPRISES PLC
Slide 29: Established platform for sustainable and profitable primary food production solutions
Established platform for sustainable and profitable primary food production solutions Primary Food Knowledge Prescription Communication Producer Varietal Selection Growing Systems Soil Research & Management SMART Decision Development Farming Making Nutrition Influence Application Global Technology P
Slide 30: 2011 Outlook
2011 Outlook Improving confidence at primary producer level provides positive backdrop for stronger performance from Agri-Services in 2011 Sustained pperformance from Marine Proteins and Oils Valeo Foods focused on integration and consolidation Growth G th ffrom existing i ti AAgri-Nutrition i N t i
Slide 31: Summary
Summary Strategic repositioning of Marine Proteins and Food – Catalysts for further consolidation in their sectors – Transforms Origin to a focused Agri Agri-Services Services Group Agri-Services – Strong St cashh generative ti platform l tf – Funding capacity for further development – Opportunities
Slide 32: Appendix
A Appendix di 32
Slide 33: Strategic development since formation
Strategic development since formation Sept 2010 Creation of Valeo Foods Group June 2009 Acquisition of GB Seeds April 2009 Acquisition of CSC Crop Protection February 2009 Marine Protein Strategic Consolidation July 2008 Acquisition of interest in Continental Farmers Group February 2008 Acquisition
Slide 34: 2010 Preliminary Results
2010 P Preliminary li i R Results lt 22 September 2010