Slide 1: Preliminary Results 2015
Preliminary Results 2015 23 September 2015
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: Table of Contents
Table of Contents Our Business ….……............................................................................................. 04 2015 Highlights ……............................................................................................. 07 Agri-Services Trading Review ........................
Slide 4: Our Business
ENTERPRISES PLC Our Business
Slide 5: Our Business
Our Business Premier provider of agronomy services, inputs and crop technologies Market leading positions in Ireland, UK, Poland, Ukraine and Romania * Focus on delivery of customised crop management systems – Addressing efficiency, quality and output requirements of primary producers – Maximising v
Slide 6: Agri-Services 2015 Overview
Agri-Services 2015 Overview Customer Operating Revenue Geography* Application* Services Channel* Profit Ireland Agronomy 11% Crop and variety selection Direct Farm Combinable (Integrated Agronomy & Services) Crops Cultivation systems 53% 55% Nutrition management UK 67% Decision support and €1.46bn €
Slide 7: 2015 Highlights
ENTERPRISES PLC 2015 Highlights
Slide 8: 2015 Financial Highlights
2015 Financial Highlights 3.3% underlying reduction in Agri-Services operating profit Agri-Services Group Proposed Group Adjusted Operating Operating Net Cash ROCE** Annual Revenue EPS Profit Margin Dividend €1.46bn €78.9m 5.4% 60.10c €88.8m* 20.5% 21.0c +3.0% -0.8% -20bps +4.5% +5% Full year result
Slide 9: 2015 Development Highlights
2015 Development Highlights Scale expansion of Agri-Services in Eastern Europe Capital re-allocation supporting Eastern European development Divestment of interest in Valeo Foods €86.6m Romanian Agri-Services expansion – Agreement reached to acquire Redoxim SRL* and Comfert SRL (€54.4m) Polish Agri-
Slide 10: Agri-Services Trading Review
Agri-Services Trading Review 10
Slide 11: 2015 Market Overview
2015 Market Overview Highly challenging farming backdrop Record global supply impacting primary output markets Price and currency volatility exerting pressure on incomes and cash flow of primary producers Limited near term visibility on new output price direction before mid calendar year 2016 Height
Slide 12: Integrated On-Farm Agronomy Review: United Kingdom
Integrated On-Farm Agronomy Review United Kingdom UK | Agrii Resilient performance in year against backdrop of lower demand – Combined winter and spring plantings down 1.2% on 2014 levels – Reduced service and input investment by growers in Q4 – Highly competitive trading conditions across input por
Slide 13: Integrated On-Farm Agronomy Review: Central and Eastern Europe
Integrated On-Farm Agronomy Review Central and Eastern Europe Poland | Dalgety Ukraine | Agroscope Good trading performance with higher margins and Strong result with higher revenues and profits profits – Favourable sales and customer development with offers – Sustained demand in year due to early s
Slide 14: B2B Agri-Inputs Review
B2B Agri-Inputs Review Business-to-business Agri-Inputs Fertiliser Feed Ingredients Stable volume performance underpinning satisfactory result Satisfactory performance on back of lower volumes in year – Reduced spot demand reflecting strong recovery in – Strong supply chain execution supporting high
Slide 15: Financial Review
Financial Review ) 15
Slide 16: 2015 Financial Highlights
2015 Financial Highlights July 2015 July 2014 % Change €m €m Revenue Agri-Services 1,458.1 1,415.2 3.0% Group Operating Profit* Agri-Services 78.9 79.5 (0.8%) Associates and joint ventures** 14.1 13.4 5.1% 93.0 92.9 0.1% Financing cost, net (4.8) (5.5) (13.1%) Profit before tax* 88.2 87.4 0.9% Adjus
Slide 17: Revenue – Agri-Services
Revenue – Agri-Services 1,600.0 (€34.6m) +€59.7m (2.4%) +€42.9m 1,500.0 +4.2% +3.0% +€17.8m +1.2% €1,458.1m €m 1,400.0 €1,415.2m 1,300.0 1,200.0 FY14 Acquisitions Currency Underlying FY15 17
Slide 18: Operating Profit – Agri-Services
Operating Profit – Agri-Services 82.0 +€3.3m (€2.6m) +4.1% (3.3%) 81.0 80.0 (€1.3m) (1.6%) (€0.6m) €79.5m €m 79.0 (0.8%) €78.9m 78.0 77.0 76.0 75.0 FY14 Acquisitions Currency Underlying FY15 18
Slide 19: EPS – Year-on-year Increase of 4.5%
EPS – Year-on-year Increase of 4.5% 62.00 +2.24c (0.71c) +3.9% (1.2%) +2.59c +4.5% 60.00 +2.16c +3.7% 60.10c (1.10c) (1.9%) 58.00 € cent 57.51c Per Share 56.00 54.00 52.00 50.00 FY14 Acquisitions Currency Tender Offer Underlying FY15 19
Slide 20: Cash Flow/Net Cash
Cash Flow/Net Cash Continued strong cash generation - €100.7m reduction in debt 2015 2014 Year Ended 31 July €m €m Cashflow from operating activities 80.8 75.6 Change in working capital (9.7) 11.5 Interest and tax (16.2) (11.8) Net cash flow from operating activities 54.9 75.3 Dividends received 2.9
Slide 21: Banking Facilities and Covenants
Banking Facilities and Covenants Committed banking facilities of €430 million Weighted average debt maturity in years 2015: 3.73 years July 2015 July 2014 Net Debt to EBITDA * - 0.14 Covenant < 3.50 < 3.50 EBITDA to Net Interest 17.84 15.59 Covenant >3.00 >3.00 All terms as defined for bank covenant
Slide 22: Balance Sheet
Balance Sheet July 2015 July 2014 €m €m Tangible assets 105.5 98.0 Intangibles / goodwill 161.4 151.4 Associates and joint ventures 39.0 97.5 Working capital (32.5) (46.0) Put option liability (16.5) (16.4) Provisions for liabilities, including pension (18.8) (8.0) Net cash / (debt)* 88.8 (11.9) Tax
Slide 23: Central and Eastern Europe (‘CEE’) - Development
Central and Eastern Europe (‘CEE’) - Development 23
Slide 24: Farm Services: 2015 Expanding Footprint
Farm Services 2015 Expanding Footprint Post Development Poland Ukraine Pre Romania Development Poland Ukraine 24
Slide 25: Farm Services: Comparative Market Analysis CEE
Farm Services Comparative market analysis – Central & Eastern Europe (‘CEE’) UK Poland Romania Ukraine Total Farm Units (No.) 187,000 1,507,000 3,859,000 43,000 Total Cropping Area 4.7m Ha 10.8m Ha 8.3m Ha 21.5m Ha Average Farm size 81 Ha 10 Ha 3 Ha 500 Ha % of Agriculture Area for Farm Units > 50 H
Slide 26: 2015 CEE Development
2015 CEE Development Business Overview Farming Footprint 0.55m Ha 1.05m Ha 1.20m Ha Customers (No.) 2,000 1,900 2,600 Advisory and crop input provision Advisory, crop input and crop Advisory, crop input and crop Focus marketing service provision marketing service provision Leader in micro packaged s
Slide 27: 2015 CEE Development: Transaction Summary
2015CEE 2015 CEEDevelopment Development Transaction Transaction summary Summary Total Enterprise €35.0m €19.4m €22.4m €76.8m Valuation EBIT €5.6m €3.2m €1.2m €10.0m EBIT multiple 6.3 6.1 18.7 7.7 Acquisition 28 Jul 2015 28 Jul 2015 18 Aug 2015 Announcement Completion Date 17 Sept 2015 H1 2016 H1 201
Slide 28: 2015 Development: Investment Rationale
2015 Development Investment rationale Consistent with Origin's strategic priority to scale its crop management systems, services and technology sets – Strong on-farm brand positioning Target geographies offering market leading positions and long term market potential – Intensification and farm conso
Slide 29: Farm Services Summary
Farm Services Summary UK Poland Romania Ukraine Agronomy/Sales Force (No.) 280 112 82 60 Customers (No.) 20,000 6,100 3,900 1,250 Farming Footprint 1.4m Ha* 3.0m Ha** 1.6m Ha** 4.0m Ha** Principal Farm Size Range 100 – 2,000 Ha 100 – 1,000 Ha 100 – 600 Ha 5,000 – 50,000 Ha Sector Profile Competitive
Slide 30: Strategic Priorities and 2016 Focus Points
Strategic Priorities and 2016 Focus Points 30
Slide 31: Strategic Priorities
Strategic Priorities Aligned to core capabilities and market opportunities Focus Prioritise value added solutions approach and customisation Simplification unlocking scale benefits and improving customer and channel performance Organisation Strengthening management resources and deployment of new ca
Slide 32: 2016 Key Priorities and Focus Points
2016 Key Priorities and Focus Points Performance Management – Manage business through current more challenging backdrop for primary producers – Improved insight and organisation creating more focused selling strategies – Drive performance through managed led sales teams CEE Platform - Integration –
Slide 33: Summary and Outlook
ENTERPRISES PLC ( Summary and Outlook ) 33
Slide 34: Summary
Summary Well invested and focused business with established capability sets – Trusted brands and farming relationships underpinning excellent customer franchise – Clear priorities for on-farm technology transfer Expanded farm services footprint with strong sector positions providing meaningful futur
Slide 35: 2016 Outlook
2016 Outlook Primary output markets remain under sustained pressure with near term visibility on new price direction unlikely before mid 2016 Weaker backdrop impacting farm sentiment in the short term Lower demand profile for services and inputs anticipated in 2016 Business is well positioned to res
Slide 36: Preliminary Results 2015
Preliminary Results 2015 23 September 2015