Slide 1: Interim Results 2017
Interim Results 2017 9 March 2017 Preliminary Results 2016 28 September 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: 2017 Interim Highlights and Business Review
2017 Interim Highlights and Business Review Interim Results 2017 9 March 2017 3
Slide 4: 2017 Half Year Summary
2017 Half Year Summary Adjusted EPS of 0.25c – underlying increase of 3.24c Share of Profit Group Operating Adjusted Interim of Associates Net Debt Revenue Profit EPS Dividend and JV €564.4m €2.0m €1.7m 0.25c €161.6m +€57.2m +€3.8m +€0.2m +2.72c 3.15c » Encouraging start to FY17 with improved first
Slide 5: Agri-Services – The Business
Agri-Services – The Business Customer and geographic channel 42,000 Customers Customer Channel - 2016 600 Sales Force Revenue EBIT █ Direct Farm █ Business-to-Business €1.5bn €67.3m 11.8m Direct Farm Ha Customer Footprint 59% | 41% 60% | 40% 100 Distribution Points Geography - 2016 Input Formulation
Slide 6: Agri-Services – The Business
Agri-Services – The Business Service application and gross margin profile 2016 2016 Revenue Gross Margin 54% | 16% | 8% 52% | 22% | 12% 1% | 21% 7% | 7% Combinable Crops Grassland Crop Protection Nutrition Roots & Veg Amenity Seed Amenity Crop Marketing / Other Crop Marketing / Other 6
Slide 7: Trading Review
Trading Review Interim Results 2017 9 March 2017 7
Slide 8: 2017 Half Year Market Overview
2017 Half Year Market Overview Primary Producers » More stable near term planning environment » Tighter global dairy supply and favourable currency movement support improved output prices » Discernable inflationary trends maintain focus on investment return and margin optimisation » Recent years’ lo
Slide 9: Agronomy Service and Input Revenue Analysis
Agronomy Service and Input Revenue* Analysis Growth in Agronomy Service and Input Revenue from H1 2016 to H1 2017 +11.2% * 11.3% Currency Underlying Acquisitions (12.3%) +10.6% +12.9% Volume Price +12.8% (2.2%) * Excludes Crop Marketing revenues 9
Slide 10: Agri-Services Trading Review – Ireland & the UK
Agri-Services Trading Review Ireland & the UK » Underlying volume growth of 12.6%* » More favourable farm sentiment » Improved short term outlook for farm incomes » Settled autumn and winter weather supports good crop establishment and robust activity levels on-farm » Expected H2 inflationary enviro
Slide 11: Agri-Services Trading Review – Central & Eastern Europe
Agri-Services Trading Review Central & Eastern Europe » Underlying volume growth of 13.6%* » Technically based service and product portfolios performed well in H1 » Cautious farming sentiment » Highly competitive market backdrop » Greater just-in-time demand profile expected in 2017 Direct Farm Pola
Slide 12: Financial Review
Financial Review Interim Results 2017 9 March 2017 12
Slide 13: 2017 Interim Financial Highlights
2017 Interim Financial Highlights 2017 2016 Change Period ended 31 January €’m €’m €’m Group revenue 564.4 507.2 57.2 Group operating profit* Agri-Services 2.0 (1.8) 3.8 Associates and joint venture** 1.7 1.5 0.2 Total group operating profit/(loss) 3.7 (0.3) 4.0 Finance costs, net (3.8) (3.8) - Loss
Slide 14: Group Revenue
Group Revenue €m + €69.6m (€65.1m) + 13.7% (12.8%) + €52.7m + €57.2m 600.0 + 10.4% + 11.3% €564.4m 500.0 €507.2m 400.0 300.0 200.0 100.0 0.0 FY16 Underlying Acquisitions Currency FY17 14
Slide 15: Group Operating Profit
Group Operating Profit €m 4.0 3.0 + €0.3m (€0.2m) + €3.7m + €3.8m + 16.6% (11.1%) + 205.6% + 211.1% 2.0 €2.0m 1.0 FY16 0.0 Underlying Acquisitions Currency FY17 (1.0) (1.8m) (2.0) (3.0) 15
Slide 16: Earnings per Share
Earnings per Share € cent per share + 3.24c (0.16c) 1.00 + 131.2% (6.5%) (0.36c) (14.6%) + 2.72c + 110.1% FY16 0.25c 0.00 Underlying Acquisitions Currency FY17 (1.00) (2.00) (2.47c) (3.00) 16
Slide 17: Cash Flow/Net Cash
Cash Flow/Net Cash Year to January January 12 months to July 2016 Period ended 2017 2016 January 2017 €’m €’m €’m €’m 72.4 Cash flow from operating activities 5.8 (1.8) 80.0 (20.7) Change in working capital (129.3) (145.8) (4.2) (18.2) Interest and tax (8.0) (4.4) (21.8) 33.5 Cash flow from ongoing
Slide 18: Banking Facilities and Covenants
Banking Facilities and Covenants » Committed banking facilities of €430 million » Weighted average debt maturity in year 2017: 3.88 years Period ended 31 January 2017 2016 2015 Net debt to EBITDA 1.95 2.18 1.74 Covenant <3.50 <3.50 <3.50 EBITDA to net interest 11.51 14.12 15.06 Covenant >3.00 >3.00
Slide 19: Balance Sheet
Balance Sheet 2017 2016 As at 31 January €’m €’m Tangible assets 112.8 115.8 Goodwill and intangible assets 189.0 181.6 Associates and joint venture 33.6 38.7 Working capital 113.3 131.7 Deferred and contingent acquisition consideration (12.8) (23.7) Provisions for liabilities, including pension (14
Slide 20: Strategy, Positioning & Development
Strategy, Positioning & Development Interim Results 2017 9 March 2017 20
Slide 21: Strategic Agenda: Pillars and Enablers
Strategic Agenda Focus Technology Investment People & Organisation Scale Value added solutions Application research to build Build leading sector New and devolved based approach to crop intelligence platforms positions in geographies Pillars leadership capability to maximise returns and the that pro
Slide 22: Basis of Our Competitive Advantage
Basis of Our Competitive Advantage Integrated crop intelligence platforms Central capability, local delivery Knowledge Research & Partnership Development Approach Adaptive Crop Management Framework Varietal Growing Soil Nutrition Data Driven Crop Precision Environmental Selection Systems Management
Slide 23: Context for Digital Agricultural Services
Context for Digital Agricultural Services Developments are transforming how agronomists interact with farmers » Significant innovation drives taking place in digital related agri-technologies » Merging of conventional agronomy, prescriptive data analytics and digital technology » Software based deci
Slide 24: Origin & University College Dublin Research Partnership
Origin & University College Dublin Research Partnership €17.6m five year research programme jointly funded by Origin and Science Foundation Ireland Building digitally based crop intelligence advisory tools for localised decision support ICT AGRONOMIC CUSTOMER ENGAGEMENT WORK PACKAGES WORK PACKAGES W
Slide 25: Resterra
Resterra Adds complementary capability with increased service relevance for agronomists and farmers Business » Leading support provider to primary producers, input manufacturers and agri-service companies to create, automate and systemise information access for rapid decision making » Expertise in a
Slide 26: Nutrition Portfolio Development
Nutrition Portfolio Development Interim Results 2017 9 March 2017 26
Slide 27: Agreement to Acquire UK Based Bunn Fertiliser
Agreement to Acquire UK Based Bunn Fertiliser Providing complementary extension and enhanced distribution footprint within nutrition portfolio » Leading UK provider of prescription fertilisers and nutrition systems Business » Well established brand position with strong B2B and retail customer franch
Slide 28: Summary and Outlook
Summary and Outlook Interim Results 2017 9 March 2017 28
Slide 29: Summary and Outlook
Summary and Outlook » Encouraging H1 result following difficult trading year in 2016 – Favourable service and input demand plus margin recovery » Positive working capital performances across the Group » Executing research, technology and acquisition development agendas » Focus on strategic cost comp
Slide 30: Interim Results 2017
Interim Results 2017 9 March 2017 Preliminary Results 2016 28 September 2016