Slide 1: 2013 Interim Results
2013 Interim Results 6 March 2013
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: Origin at a glance
Origin at a glance Leading provider of crop management systems and strategic inputs to primary food producers Market leading positions in Ireland, the UK and Poland Agri-Services - Highly seasonal business Agri-Services Integrated On-Farm Agronomy EBIT 55% Business-to-Business Agri Inputs EBIT 45% S
Slide 4: 2013 Interim Results Highlights
2013 Interim Results Highlights 4
Slide 5: 2013 Interim Results Highlights
2013 Interim Results Highlights 16.2% increase in adjusted fully diluted eps to 7.59c Solid operational and financial performance – H1 seasonally quiet trading period – Slower start within Agri-Services – Restricted on-farm activity in the UK reflecting unseasonal weather patterns Agri-Services deve
Slide 6: Agri-Services Trading Review
Agri-Services Trading Review 6
Slide 7: Agri-Services Market Commentary
Agri-Services Market Commentary Strong spot and forward output price environment for primary arable producers – Limited evidence of significant demand rationing Growers adopting a cautious approach to forward selling – 2012: challenging crop growing year – 2013: major focus on crop development Highe
Slide 8: Integrated On-Farm Agronomy Review
Integrated On-Farm Agronomy Review January 2013 January 2012 Change Underlying Agri-Services €m €m €m €m Revenue 567.7 507.4 60.3 27.4 Operating profit* 2.4 5.9 (3.5) (3.9) Operating margin % 0.4% 1.2% - - Return on capital employed 21.9% 21.0% 0.9% UK Poland Poland Sustained wet weather resulting i
Slide 9: B2B Agri Inputs Review
B2B Agri Inputs Review January 2013 January 2012 Change Underlying Agri-Services €m €m €m €m Revenue 567.7 507.4 60.3 27.4 Operating profit* 2.4 5.9 (3.5) (3.9) Operating margin % 0.4% 1.2% - - Return on capital employed 21.9% 21.0% 0.9% Fertiliser Lower H1 volumes largely reflecting delayed crop pl
Slide 10: Associates and joint ventures
Associates and joint ventures 10
Slide 11: Associates and joint ventures
Associates and joint ventures January 2013 January 2012 Change €m €m €m Share of revenue 298.6 229.2 69.4 Share of profits after tax 10.9 7.0 3.9 Marine Proteins and Oils Consumer Foods Direct Farming 50% 32% 24% Satisfactory performance in highly Publicly listed in 2011 Strong performance in H1 cha
Slide 12: Financial Review
Financial Review 12
Slide 13: January 2013 Interim Results - Financial Highlights
January 2013 Interim Results - Financial Highlights Jan 2013 Jan 2012 % Change €m €m Revenue - Agri –Services 567.7 507.4 +11.9% Group Operating Profit* - Agri-Services 2.4 5.9 (59.3%) - Share of profit of associates and 10.9 7.0 53.8% joint ventures** 13.3 12.9 +2.5% Financing cost (3.0) (3.1) (3.2
Slide 14: Revenue – Agri-Services
Revenue – Agri-Services €m 700 €27.4m €32.9m 5.4% 6.5% 600 €567.7m 567.7 500 11.9% €507.4m 507.4 400 300 200 100 0 FY 12 Currency Underlying FY 13 14
Slide 15: Operating Profit – Agri-Services
Operating Profit – Agri-Services €m 7 €0.4m (€3.9m) 6 €5.9m 5.9 5 4 3 2 2.4 €2.4m 1 0 FY 12 Currency Underlying FY 13 15
Slide 16: EPS year-on-year +16.2%: 11.0% underlying increase
EPS year-on-year +16.2%: 11.0% underlying increase € cent Per Share 0.72c 8.0 11.0% 0.34c 7.5 5.2% 7.59 7.59c 7.0 16.2% 6.5 6.53 6.53c 6.0 5.5 5.0 4.5 4.0 3.5 3.0 FY 12 Currency Underlying FY 13 16
Slide 17: Cash Flow/Net Debt
Cash Flow/Net Debt Continued strong cash generation - €15.3m reduction in debt Year to 6 months to 6 months to 12 months to July 2012 Jan 2013 Jan 2012 Jan 2013 €m’s €’m’s €m’s €m’s 72.8 Cashflow from operating activities 5.8 8.7 69.9 14.1 Change in working capital (92.8) (74.3) (4.4) (18.9) Interes
Slide 18: Maturity Profile of Net Debt
Maturity Profile of Net Debt (€m’s) Committed Banking facilities of €330 million January 2013 January 2012 €m’s €m’s Cash, net 47.5 49.3 Within 1 year (0.5) (0.5) Between 1 and 2 years - - Between 2 and 5 years (225.7) (242.8) Total Net Debt (178.7) (194.0) Weighted average Debt Maturity in years 3.
Slide 19: Agri-Services Positioning
Agri-Services Positioning 19
Slide 20: Record dislocation of world grain supply in 2012
Record dislocation of world grain supply in 2012 Limited capacity to absorb further supply/yield shocks in 2013 Soybeans* Wheat* Corn* 40.00% 30.00% 20.00% 10.00% 0.00% -10.00% -20.00% -30.00% -40.00% 01-2011 03-2011 05-2011 07-2011 09-2011 11-2011 01-2012 03-2012 05-2012 07-2012 09-2012 11-2012 01-
Slide 21: Global Wheat
Global Wheat Challenging backdrop for global inventories 45% 720,000 Production (1000 MT) 670,000 Consumption (1000 MT) 40% 620,000 Ending Stocks (1000 MT) Stock/Use Ratio 570,000 35% 520,000 470,000 30% 420,000 25% 370,000 320,000 20% 270,000 220,000 15% 170,000 120,000 10% 70,000 20,000 5% 2013E 1
Slide 22: EU Grains and Oil Seeds
EU Grains and Oil Seeds Stocks to use ratio in historical decline EU 27 "All" Grains Ending Stocks / Domestic Use 22.00% 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Years of Net Imports 22 Source: AgResource
Slide 23: Strategic Priority
Strategic Priority To be a leading provider of integrated crop management systems and sustainable agricultural technologies Weather and Environmental • Yield challenge Farming Soil and water Disease Context volatility stewardship • Sustaining management resistance impact and safety economic returns
Slide 24: Agri-Services 2013 Focus Points for sustainable growth
Agri-Services 2013 Focus Points for sustainable growth Change Management Establishing a single and simplified organisation for on-farm services Enhancing functional support and customer lead effectiveness Developing management capability with new structures, practices and processes Agronomists Integ
Slide 25: Summary and Outlook
Summary and Outlook 25
Slide 26: Summary
Summary Good progress in building intelligence led and scalable agri-services business – Significant business transformation being progressed – Leading UK position in on-farm service provision established Integration and transformation programmes well advanced – Emphasis on growing technological cap
Slide 27: Outlook
Outlook H2 key earnings period Agri-Services performance supported by increased on-farm activity in H2 – Reflecting larger spring planting area Sustained performance from associates and joint ventures – Prioritising integration and consolidation Higher profits from associates and joint ventures expe
Slide 28: 2013 Interim Results
2013 Interim Results 6 March 2013