Slide 1: 2011 Preliminary Results
2011 Preliminary Results (22) September 2011 yan Pasig | ye +f) } iy 4
Slide 2: Forward-Looking statement
Forward-Looking statement 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 their approval of this presentation. Due to the inherent uncertainties, including both economic
Slide 3: Origin overview
Origin overview Focused Agri-Services Group Operations in Ireland, the United Kingdom, Norway and Poland Public company – Established in 2006 – Listed in June 2007 – ESM (Dublin), AIM (London) – ARYZTA AG 71.4% shareholder 3
Slide 4: 2011 Preliminary Results Highlights
2011 Preliminary Results Highlights 4
Slide 5: 2011 Overview
2011 Overview Excellent results Strong revenue and earnings growth from Agri-Services – Buoyant environment for primary food producers – Earnings enhancing acquisitions Capital re-allocation supporting transformational realignment of business profile – Divestment of consumer foods €74.6m – All Irela
Slide 6: Agri-Services Review
Agri-Services Review 6
Slide 7: Agri-Services: Supporting the primary sectors of the food industry
Agri-Services Supporting the primary sectors of the food industry through ….. The provision of customised advice, inputs and smart farming solutions that address the yield, quality and output requirements of primary food producers. 7
Slide 8: On-Farm Agronomy
On-Farm Agronomy Design of Integrated Crop Management systems (‘ICM’) to maximise crop yield through… – An integrated advice and input prescription delivering… – Systems of sustainable intensification to… – Protect and enhance farm profitability Knowledge systems – Capital light – Integration of sci
Slide 9: Business to Business Inputs
Business to Business Inputs Feed and fertiliser sourcing, handling, manufacturing and distribution Consolidated position in Ireland and the UK – Leading market shares – Distribution footprint in excess of 4 million tonnes – Strategic global partnerships with major ingredient manufacturers and shippe
Slide 10: 2011 – Agri-Services overview
2011 – Agri-Services overview July 2011 July 2010 Change on prior year €m €m Change Underlying €m €m Revenue 1,257.5 1,077.0 180.5 204.1 Operating profit 66.0 51.0 15.0 4.2 Operating margin % 5.2% 4.7% +50bps Excellent performance with underlying operating profit growth of 8.2% Favourable output pri
Slide 11: Agri-Services strategic expansion
Agri-Services strategic expansion €79.3m investment delivering a step change in scale, service and technological capability United Agri Products – Premier provider of integrated crop production systems in the UK – Servicing over 8,000 growers – Highly complementary to existing integrated agronomy bu
Slide 12: Agri-Services strategic expansion
Agri-Services strategic expansion €79.3m investment delivering a step change in scale, service and technological capability Rigby Taylor – Extension of UK amenity channel – Premier service provider to professional sports turf, landscaping and amenity sectors – Brand strength with premium reputation
Slide 13: Associates and Joint Venture
Associates and Joint Venture 13
Slide 14: Marine Proteins and Oils and Direct Farming
Marine Proteins and Oils and Direct Farming Total Associates and JV July 2011 July 2010 Change on prior year €m €m €m Share of revenue 359.4 193.0 166.4 Share of profits after tax 14.8 11.5 3.3 Very strong result in line with last year Proven farming know-how combined with operational scale – Strong
Slide 15: Consumer Foods
Consumer Foods Total Associates and JV July 2011 July 2010 Change on prior year €m €m €m Share of revenue 359.4 193.0 166.4 Share of profits after tax 14.8 11.5 3.3 Solid progress in year of consolidation Agreement to acquire Fragile consumer backdrop Jacobs Fruitfield Food Group – Complementary bra
Slide 16: Financial Review
Financial Review 16
Slide 17: 2011 Financial Highlights
2011 Financial Highlights July 2011 July 2010 % Change €m €m Revenue – Continuing operations Agri -Services 1,257.5 1,077.0 +16.8% Group Operating Profit* 80.8 62.5 +29.2% Agri-Services 66.0 51.0 +29.3% Associates and joint venture 14.8 11.5 +28.4% Financing cost (10.5) (15.2) (30.9%) Food (disconti
Slide 18: 2011 Preliminary Results – Revenue – Agri-Services
2011 Preliminary Results – Revenue – Agri-Services €m Price €162.0m 1,300 €109.3m 14.5% +16.8% 10.2% 1,200 1257.5 €1,257.5m €17.5m 1,100 1.6% 1077 €1,077.0m Volume 1,000 (€150.4m) €42.1m (14.0%) 4.5% 900 800 700 600 FY 10 Acquisitions Disposals Currency Underlying FY 11 18
Slide 19: 2011 Preliminary Results – Operating Profit – Agri-Services
2011 Preliminary Results – Operating Profit – Agri-Services €m 70 €4.2m €11.7m 8.2% +29.3% €1.0m 65 22.9% 1.9% 66 €66.0m 60 (€1.9m) (3.7%) 55 50 51 €51.0m 45 40 35 30 FY 10 Acquisitions Disposals Currency Underlying FY 11 19
Slide 20: 2011 Preliminary Results – EPS year-on-year +16.3%
2011 Preliminary Results – EPS year-on-year +16.3% € cent Per Share 50 5.75c 3.32c 45 15.5% 0.73c 8.9% 43.34c 1.9% 40 37.26c 43.34 3.18c (3.72c) 40.16c 35 37.26 9.44c (10.0%) 30 25 27.82c 20 15 10 5 0 FY 10 Acquisitions Discontinued Currency Underlying FY 11 (Food) Discontinued – Food Continuing 20
Slide 21: Cash Flow/Net Debt
Cash Flow/Net Debt Continued strong cash generation - €19.8m reduction in debt 2011 2010 Year Ended 31 July €’m’s €m’s Cashflow from operating activities 75.1 69.5 Change in working capital (2.3) 9.9 Interest and tax (25.3) (21.3) Net cash flow from operating activities 47.5 58.1 Dividends received
Slide 22: Maturity Profile of Net Debt
Maturity Profile of Net Debt (€m’s) Committed Banking facilities of €300 million July 2011 July 2010 €m’s €m’s Cash, net 50.1 72.6 Within 1 year (0.5) (0.4) Between 1 and 2 years - (184.1) Between 2 and 5 years (141.7) - Total Net Debt (92.1) (111.9) Weighted average Debt Maturity in years 4.9 2.1 2
Slide 23: Operating well within agreed Bank Covenants
Operating well within agreed Bank Covenants July 2011 July 2010 Net Debt to EBITDA 1.17 1.41 Covenant <3.50 < 3.50 EBITDA to Net Interest 7.57 5.20 Covenant >3.00 > 3.00 All terms as defined for bank covenant testing purposes. 23
Slide 24: Origin's Transitioning
ie Origin ENTERPRISES PLC Origin’s Transitioning 24
Slide 25: Journey and positioning
Journey and positioning Phase 1 Phase 2 Phase 3 Marine Origin’s Proteins & Consumer Feed formation IPO Oils Foods Consolidation 2006 2006 2007 2007 2009 2009 2010 2010 2011 2011 Specialist focus on original Realignment of business portfolio Repositioned for growth activities of IAWS Reducing complex
Slide 26: Origin - UK's Premier Agri-Service Provider
Origin - UK’s Premier Agri-Service Provider We are influencing… – 33% of total arable production – 55% of primary fruit production Through… – 33% of all agronomists Prescribing and applying… – 40% of serviced agronomy advice – 25% of certified seed – 40% of blended fertiliser Supported by… – The mos
Slide 27: Earnings stability
Earnings stability Historic EBITA vs S&P Goldman Sachs Agri Index 27
Slide 28: Our progress since establishment
Our progress since establishment 2007 2008 2009 2010 2011 Year Ended July €m’s €m’s €m’s €m’s €m’s CAGR EBITA* 42.8 74.1 81.0 82.4 89.8 22.8% 20.4% Adjusted diluted EPS ** (cent) 19.63 34.05 36.16 37.26 43.34 23.8% 21.9% Acquisition expenditure 0.0 157.4 193.9 195.1 274.4 (cumulative) Cashflow after
Slide 29: Strategic Positioning
ie Origin ENTERPRISES PLC Strategic Positioning 29
Slide 30: Strategic Context for Farming – The Opportunity
Strategic Context for Farming – The Opportunity Farming has embarked on an exciting transformation – Positive structural backdrop to primary food production and food supply Increasing output prices and static yields are driving demand for new technologies Primary producers are facing an increasingly
Slide 31: Origin's Strategic Priority
Origin’s Strategic Priority Leading provider of integrated crop production systems and sustainable agricultural technologies Research and science Integrated and driving innovation customised customers seek value propositions - agronomist led Common ICT Farm structure, platform, logistics cropping, s
Slide 32: Summary and Outlook
ie Origin ENTERPRISES PLC Summary and Outlook
Slide 33: Summary and Outlook
Summary and Outlook Origin repositioned with clear business strategy focused on capitalising on a sustainable agriculture model – Trusted brands and relationships – Advanced research and development capability driving innovation – Leverage leading sector position through breadth and scale of offerin
Slide 34: 2011 Preliminary Results
(Fn Origin ENTERPRISES PLC 2011 Preliminary Results 34