Slide 1: Preliminary Results 2017
Preliminary Preliminary Results Results 20172016 28September 27 September 2016 2017
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 Highlights & Business Overview
2017 Highlights & Business Overview Preliminary Results 2017 27 September 2017 3
Slide 4: 2017 Performance Summary & Highlights
2017 Performance Summary & Highlights Underlying Group Operating Adjusted Volume Operating Net Debt ROCE Dividend Profit EPS Growth Margin + 4.7%2 €70.0m 4.6% 46.62c €31.5m 13.7% 17.85c final +4.1% (rc1) +20bps +4.7% (rc1) +10bps 21.00c total +12.3%(ucc1) +14.7%(ucc1) » Solid full year result ahead
Slide 5: 2017 Agri-Services in Overview
2017 Agri-Services in Overview Key Facts, Customer Channel and Geography 46,000 Customers Customer Channel1 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 Geography1 Input Formulatio
Slide 6: Agri-Services – The Business
Agri-Services – The Business Service application and gross margin profile 2017 2017 Revenue Gross Margin 59% | 14% | 6% 51% | 23% | 11% 2% | 19% 7% | 8% Combinable Crops Grassland Crop Protection Nutrition Roots & Veg Amenity Seed Amenity Feed / Other Feed / Other 6
Slide 7: Trading Review
Trading Review Preliminary Results 2017 27 September 2017 7
Slide 8: 2017 Market Overview
2017 Market Overview Cautious sector sentiment against more stable near-term planning environment Global Market Place Primary Producers On-Farm Service Providers » Cumulative impact of elevated » Weak currency supports improved » Sustained period of lower returns grain and oil seed production cash f
Slide 9: Agronomy Service and Input Revenue Analysis
Agronomy Service and Input Revenue 1 Analysis Growth in Agronomy Service and Input Revenue from FY 2016 to FY 2017 +0.62%1 Currency Underlying Acquisitions (8.90%) +5.12% +4.40% Volume Price +5.11% +0.01% 1 Excludes crop marketing revenues and volumes 9
Slide 10: Agri-Services Trading Review: Ireland & the UK
Agri-Services Trading Review Ireland & the UK 2017 2016 Change Underlying2 Year ended 31 July €’m €’m % % Revenue 955.0 1,023.6 (6.7%) 2.9% Operating profit1 53.4 52.7 1.3% 12.2% Operating margin1 5.6% 5.1% 50bps - Associates and joint venture 4.4 5.6 (21.4%) (14.3%) » Underlying volume growth of 4.
Slide 11: Agri-Services Trading Review: Ireland & the UK
Agri-Services Trading Review Ireland & the UK Business-to-Business Digital Direct Farm Agricultural Feed Ingredients Services Fertiliser Amenity incl. associates and joint venture » Margin and volume » Acquisition of Resterra » Strong early season » Good volume growth » Good volume growth in improve
Slide 12: Agri-Services Trading Review: Continental Europe
Agri-Services Trading Review Continental Europe1 2017 2016 Change Underlying3 Year ended 31 July €’m €’m % % Revenue 397.3 320.3 24.0% 12.2% Operating profit2 16.2 14.9 8.7% 10.3% Operating margin2 4.1% 4.6% (50bps) - » Underlying volume growth of 6.2%1 » Highly competitive market backdrop » Good pe
Slide 13: Agri-Services Trading Review: Continental Europe
Agri-Services Trading Review Continental Europe Direct Farm Poland Romania Ukraine » Solid performance in challenging » Growth in core sales channels drives » Very good year-on-year result with market conditions strong performance improved underlying business performance » Delayed 2017 spring season
Slide 14: Financial Review
Financial Review Preliminary Results 2017 27 September 2017 14
Slide 15: 2017 Financial Highlights
2017 Financial Highlights 2017 2016 % Year ended 31 July €’m €’m Change Group revenue 1,528.5 1,521.3 0.5 Group operating profit1 Agri-Services 70.0 67.3 4.1 Associates and joint venture2 4.4 5.6 (22.3) Total group operating profit 74.4 72.9 2.1 Finance costs, net (6.9) (7.4) 6.1 Profit before tax 6
Slide 16: Group Revenue
Group Revenue €m +€75.5m +€127.1m (€119.9m) 1,800.0 +€51.6m +5.0% +8.4% (7.9%) +€7.2m +3.4% +0.5% 1,600.0 €1,528.5m 1,400.0 €1,521.3m 1,200.0 1,000.0 800.0 600.0 400.0 200.0 0.0 FY16 Underlying Acquisitions FY17 (excl. Currency FY17 currency) 16
Slide 17: Group Operating Profit
Group Operating Profit €m 90.0 +€1.6m +€8.3m +€9.9m (€7.2m) +2.4% +14.7% (10.6%) 80.0 +12.3% +€2.7m +4.1% 70.0 €70.0m €67.3m 60.0 50.0 40.0 30.0 20.0 10.0 0.0 FY16 Underlying Acquisitions FY17 (excl. Currency FY17 currency) 17
Slide 18: Earnings per Share
Earnings per Share € cent per share 60.00 + 0.61c +7.16c +6.55c (5.05c) +14.7% +1.4% +16.1% (11.4%) +2.11c 50.00 +4.7% 46.62c 44.51c 40.00 30.00 20.00 10.00 0.00 FY16 Underlying Acquisitions FY17 (excl. Currency FY17 currency) 18
Slide 19: Operating Margin Analysis
Operating Margin Analysis Operating margin % Operating margin – 2016 4.4% Business portfolio mix 1.1% Acquisitions and acquisitions timing (0.1%) Digital and sales infrastructure development (0.2%) Organisational design (0.2%) Currency (0.4%) Operating margin - 2017 4.6% 19
Slide 20: Cash Flow
Cash Flow 2017 2016 Year ended 31 July €’m €’m Cash flow from operating activities 78.5 72.4 Change in working capital (26.0) (20.7) Interest and tax (14.5) (18.2) Cash flow from ongoing operating activities 38.0 33.5 Exceptional and once off items (11.7) (17.9) Net cash flows from operating activit
Slide 21: Balance Sheet
Balance Sheet 2017 2016 As at 31 July €’m €’m Tangible assets 114.9 112.5 Goodwill and intangible assets 206.0 192.6 Associates and joint venture 34.7 41.6 Working capital 12.4 (10.9) Deferred and contingent acquisition consideration (14.7) (18.2) Provisions for liabilities, including pension (9.8)
Slide 22: Banking Facilities and Covenants
Banking Facilities and Covenants » Committed banking facilities of €430 million » Weighted average debt maturity in year 2017: 4.19 years Year ended 31 July 2017 2016 2015 Net debt to EBITDA 1 0.49 - - Covenant <3.50 <3.50 <3.50 EBITDA to net interest 11.45 11.06 17.84 Covenant >3.00 >3.00 >3.00 All
Slide 23: Strategy & Development
Strategy & Development Preliminary Results 2017 27 September 2017 23
Slide 24: Basis of Our Competitive Advantage
Basis of Our Competitive Advantage Our focus is service, crop technology transfer and developing strong direct farm linkages Own Research & External Outreach and Partner Development Collaboration » Market leadership Adaptive Crop Management Framework Genetics Establis Soil Manage Data Driven » Balan
Slide 25: Enhancing Relevance in Crop Technology Transfer
Enhancing Relevance in Crop Technology Transfer Integrating conventional agronomic research, data analytics, and digital know-how Origin & UCD Dynamic Crop Advisory Tools Partnership ICT AGRONOMIC CUSTOMER ENGAGEMENT WORK PACKAGES WORK PACKAGES WORK PACKAGES 1 2 3 4 CRO P ESTABLISHMENT 7 8 9 5 DAT A
Slide 26: 2017 Development Overview
2017 Development Overview Extending service capability and relevance to agronomists and farmers Digital Agronomy Accessing Complementary Service and Input Technologies Global Application B2B and B2C Extended Service Footprint Enhances Supply Chain and Manufacturer Relationships Custo
Slide 27: Key Strategic Priorities and Focus Points for Growth
Key Strategic Priorities and Focus Points for Growth Ireland and the UK Continental Europe Sales force 350 320 Customers 29,000 UK 17,000 Service footprint 1.4m Ha 10.4m Ha Farm size range 100 – 2,000 Ha Ireland 100 – 50,000 Ha Sector profile Competitive Fragmented Origin positioning 1 2/3 » Capital
Slide 28: Summary and Outlook
Summary and Outlook Preliminary Results 2017 27 September 2017 28
Slide 29: Summary and Outlook
Summary and Outlook » Well invested and focused business with established Group competencies » Scale geographical and sector positions with strong direct farm linkages » 2018 focus areas: – Defined priorities for customised crop technology transfer – Business integration, cash generation and operati
Slide 30: Preliminary Results 2017
Preliminary Preliminary Results Results 20172016 28September 27 September 2016 2017