Slide 1: 2012 Preliminary Results
2012 Preliminary Results 19 September 2012
Slide 2: Origin at a glance
Origin at a glance Premier provider of crop management systems and strategic inputs to primary food producers Market leading positions in Ireland, the UK and Poland Agri-Services Integrated On-Farm Agronomy EBIT 55% Business-to-Business Agri Inputs EBIT 45% Sustainable total crop production systems
Slide 3: 2012 Overview
2012 Overview 3
Slide 4: 2012 Overview
2012 Overview Strong result in year of significant business transformation and integration Agri-Services - Trading – Excellent performance within on-farm agronomy services – Lower B2B input volumes – Positive investment momentum at primary producer level Integration of 2011 acquisitions on track and
Slide 5: Agri-Services Trading Review
Agri-Services Trading Review 5
Slide 6: Agri-Services Trading Review
Agri-Services Trading Review Change on prior period July 2012 July 2011 Change Underlying €m €m €m €m Revenue 1,340.0 1,257.5 82.5 92.6 Operating profit* 69.7 66.0 3.7 4.6 Operating margin % 5.2% 5.2% - - Return on capital employed 23.4% 23.9% (0.5%) * Before intangible amortisation and exceptional
Slide 7: Associates and joint ventures
Associates and joint ventures 7
Slide 8: Associates and joint ventures
Associates and joint ventures July 2012 July 2011 Change on prior period €m €m €m Share of revenue 475.6 359.4 116.2 Share of profits after tax 13.1 14.8 (1.7) Marine Proteins and Oils Consumer Foods Direct Farming 50% 32% 24% Lower profits in comparison with very Robust performance in challenging a
Slide 9: Financial Review
Financial Review 9
Slide 10: 2012 Financial Highlights
2012 Financial Highlights July 2012 July 2011 % Change €m €m Revenue – Continuing operations Agri –Services 1,340.0 1,257.5 +6.6% Group Operating Profit* Agri-Services 69.7 66.0 +5.6% Associates and joint ventures** 13.1 14.8 (11.6%) 82.8 80.8 +2.5% Financing cost (6.6) (10.5) (37.3%) Profit before
Slide 11: Revenue – Agri-Services
Revenue – Agri-Services €m 1,500 €153.2m 12.2% €92.6m 1,400 7.4% €6.1m +6.6% 1,300 0.5% 1342.1 €1,340.0 1,200 1257.5 €1,257.5m (€169.4m) (13.5%) 1,100 1,000 900 800 700 FY 11 Acquisitions Disposals Currency Underlying FY 12 11
Slide 12: Operating Profit – Agri-Services
Operating Profit – Agri-Services €m €4.6m 70 6.9% +5.6% €1.3m 69.7 €69.7m 2.0% 65 66 €66.0m (€0.6m) (0.9%) (€1.6m) 60 (2.4%) 55 50 45 40 FY 11 Acquisitions Disposals Currency Underlying FY 12 12
Slide 13: EPS year-on-year +4.2%: 11% underlying increase
EPS year-on-year +4.2%: 11% underlying increase 45.16c 43.34c 3.18c 40.16c Discontinued – Food Continuing 13
Slide 14: Cash Flow/Net Debt
Cash Flow/Net Debt Continued strong cash generation - €24.3m reduction in debt 2012 2011 Year Ended 31 July €’m’s €m’s Cashflow from operating activities 72.8 75.1 Change in working capital 14.1 (2.3) Interest and tax (18.9) (25.3) Net cash flow from operating activities +43% 68.0 47.5 Dividends rec
Slide 15: Maturity Profile of Net Debt
Maturity Profile of Net Debt (€m’s) Committed Banking facilities of €330 million July 2012 July 2011 €m’s €m’s Cash, net 88.8 50.1 Within 1 year (0.4) (0.5) Between 1 and 2 years - - Between 2 and 5 years (156.2) (141.7) Total Net Debt (67.8) (92.1) Weighted average Debt Maturity in years 3.7 4.9 15
Slide 16: Operating well within agreed Bank Covenants
Operating well within agreed Bank Covenants July 2012 July 2011 Net Debt to EBITDA 0.81 1.17 Covenant <3.50 <3.50 EBITDA to Net Interest 12.02 7.57 Covenant >3.00 >3.00 All terms as defined for bank covenant testing purposes. 16
Slide 17: Agri-Services Overview
ENTERPRISES PLC Agri-Services Overview 17
Slide 18: Business-to-Business Review
Business-to-Business Review 18
Slide 19: Agri-Services Business-to-Business Agri Inputs Review
Agri-Services Business-to-Business Agri Inputs Review Prescription Fertiliser Blending Amenity Prescription nutrition capability – handling 1.2m tonnes UK’s leading advisory and inputs provider to Extensive blending and packing footprint across professional sports turf, landscaping and amenity Irela
Slide 20: Agri-Services Business-to-Business Agri Inputs Review
Agri-Services Business-to-Business Agri Inputs Review Feed All Ireland feed raw material procurement, logistics and handling platform (50:50) Handling c.3m tonnes dry bulk ingredients Providing focused supply chain solutions and price risk management strategies Established global supply relationship
Slide 21: Integrated On-Farm Agronomy Review
Integrated On-Farm Agronomy Review 21
Slide 22: Markets overview
Markets overview UK Poland – Over 220,000 farm units – Over 1.0m farm units – 6.1m hectares total croppable area – 14m hectares total croppable area – Combinable crop production 21m tonnes – Combinable crop production 25m tonnes – Land reform supporting consolidation Agrii Dalgety – Agronomy, strate
Slide 23: Integrated On-Farm Agronomy Review - UK
Integrated On-Farm Agronomy Review - UK 23
Slide 24: Masstock and UAP combine to form Agrii
New identity established Strong organisational alignment Masstock and UAP combine to form Agrii New identity providing platform to clearly and simply convey the essential focus of the enlarged business around – The relationship between agronomy expertise and farming – Positioning agri-intelligence a
Slide 25: A year of significant business transformation and integration
A year of significant business transformation and integration Organisation – Migration to a simplified and decentralised regionally accountable structure – Facilitating the integration of agronomy teams and co-ordination of product strategy – Operational alignment and restructuring New Decision Supp
Slide 26: Leading service provider supporting primary food production
Leading service provider supporting primary food production Accounts Agronomists Staff Sites 25,000 300 850 47 300 980 31% of all practicing agronomists 22,000 54,000 40% of farms engaged in cereal production 1.4m ha 4.2m ha 33% of primary combinable crop advice 16k ha 29k ha 55% of primary fruit cr
Slide 27: Delivering Agri-Intelligence
Delivering Agri‐Intelligence 27 Connecting agri-science with farming
Slide 28: Declining yield growth
Declining yield growth 28 Source: Arvalis Connecting agri-science with farming
Slide 29: Why has the rate of crop yield slowed?
Why has the rate of crop yield slowed? Stagnation of genetic progress? – Unlikely More likely causes: – Spring drought – High temperatures during grain fill – Loss of fungicide effectiveness Applied Agronomy – Herbicide resistance – Lack of nutrition innovation – Depletion of soils and soil knowledg
Slide 30: Defining crop yield estimates and the gaps
Defining crop yield estimates and the gaps Target Technological gap = estimated yield potential versus trials Practitioner gap = trials versus actual Systems gap = farm / farmer limitations Typical Best Research Bio-physical Genetic farmers farmers trials possibilities potential 30 Connecting agri-s
Slide 31: Have we made progress?
Have we made progress? Sources: - Defra observatory monitoring framework average (south-west + south east regions) 31 - Agrii data from aggregated customer data (south-west + south east regions) Connecting agri-science with farming
Slide 32: Connecting with science
Connecting with science Translators of choice for on‐farm technology transfer P M L A A N N U T F A B C R T E U E R D E E R R R S System promoting leading edge S agronomic innovation 32 Connecting agri-science with farming
Slide 33: Total Crop Management System
Total Crop Management System Providing customers with transparent indicators of value add Agronomy plus plus IT/ Decision Support Effective, Efficient, Electronic, Evidence based. 33 Connecting agri-science with farming
Slide 34: Strategic positioning
Strategic positioning 34
Slide 35: Farming's Transitioning
Farming’s Transitioning Planning Environment Agri-intelligence Professionalisation Greater Product Volatility customisation of specification support offer Knowledge Regulation & Increasingly ROI based farming Complexity influenced Reliance systems Influencing On Slowing yield Whole farm Emphasis on
Slide 36: Our Strategic Priority
Our Strategic Priority To be the leading provider of integrated crop production systems and sustainable agricultural technologies Focus points for Sustainable Growth Business transformation Connecting Agri-Science Geographic extension with Farming Customised go-to-market Investment supporting agri-
Slide 37: Summary and Outlook
Summary and Outlook 37
Slide 38: Summary and Outlook
Summary and Outlook Good progress to-date in building sustainable and intelligence led agri-services platform – Implementing significant transformation agenda – Emphasis on growing technological capabilities Well invested and cash generative business model with capacity for extended international fo
Slide 39: 2012 Preliminary Results
2012 Preliminary Results 19 September 2012