Origin Enterprises Plc · EURONEXT:OIZ
Origin Enterprises — Q2 2023 Earnings Presentation
18 slides from Origin Enterprises's earnings presentation, Mar 7, 2023
Slide 1: Interim Results
Origin ENTERPRISES PLC Pas INTERIM RESULTS 7 March 2023
Slide 2: Forward-Looking Statements
FORWARD- This presentation contains forward- may differ materially from those expressed looking statements. These statements or implied by these forward-looking LOOKING have been made by the Directors in good statements. STATEMENTS faith based on the information available to them up to the time of t
Slide 3: Strong H1 performance driven by planting profile and LATAM contribution
STRONG H1 PERFORMANCE DRIVEN BY PLANTING PROFILE AND LATAM CONTRIBUTION Delivering Earnings Growth Strong Operational Performance Achieving Strategic Objectives Good early season seed and crop protection volumes €1,180.0m (excluding Ukraine) set against tempered pre season fertiliser demand as pri
Slide 4: Ireland & the United Kingdom Trading Review
TRADING REVIEW Operating Profit (€’m) IRELAND & THE 2.8 3.2 2.9 Ireland UNITED KINGDOM -9.1 -2.7 UK > Favourable in-field conditions and an encouraging level of plantings H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 • Underlying volumes reduced by 4.5% • Strong volumes across seed portfolio Operational R
Slide 5: Continental Europe Trading Review
TRADING REVIEW Operating Profit (€’m) Poland Ukraine CONTINENTAL EUROPE > Underlying volumes* decreased by 3.8% • Good seed and crop protection growth 0.6 0.7 0.1 1.1 2.6 Romania H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 • Offset by lower fertiliser volumes > Positive cropping profiles and favourable
Slide 6: Latin America Trading Review
TRADING REVIEW Operating Profit (€’m) LATIN AMERICA Brazil > Underlying volumes increased by 35.2% Paraná State • Strong demand for Fortgreen product range Minas 5.5 5.7 3.9 6.7 14.2 Gerais State • Controlled release fertiliser facilities operating at full capacity H1 2019 H1 2020 H1 2021 H1 2022 H1
Slide 7: Financial Review
FINANCIAL REVIEW originenterprises.com 2023
Slide 8: 2023 Interim Performance
2023 INTERIM PERFORMANCE REVENUE OPERATING PROFIT ADJUSTED EPS DIVIDEND PER SHARE €1,180.0m €20.3m 8.70c 3.15c + €302.9m (rc1) + €9.2m (rc1) +3.71c (rc1) H1 2022: 3.15c + €311.5m (cc1) + €6.1m (cc1) +1.67c (cc1) FINANCE COSTS WORKING CAPITAL NET BANK DEBT NET BANK DEBT/EBITDA €8.6m €138.3m €130.9m 1
Slide 9: Group Revenue Analysis
GROUP REVENUE ANALYSIS1 +35.2% GROWTH IN GROUP REVENUE 6 MONTHS TO JANUARY 2023 (0.7%) +35.6% +0.3% CURRENCY UNDERLYING ACQUISITIONS (4.6%) +40.2% VOLUME PRICE 1 Excludes crop marketing revenues and volumes originenterprises.com 2023 9
Slide 10: 2023 Interim Financial Highlights
2023 INTERIM FINANCIAL HIGHLIGHTS PERIOD ENDED 31 JANUARY 2023 2022 Change Constant Currency €’m €’m €’m €’m Group revenue 1,180.0 877.1 302.9 311.5 Group operating profit1 Agri-Services 20.3 11.1 9.2 6.1 Associates and joint venture2 1.6 1.3 0.3 0.3 Total group operating profit 21.9 12.4 9.5 6.4 Fi
Slide 11: Group Operating Profit Bridge
GROUP OPERATING PROFIT BRIDGE PERIOD ENDED 31 JANUARY 25 20 15 €’m 10 5 0 H1 2022 Underlying Acquisition H1 2023 Currency H1 2023 (excl. currency) originenterprises.com 2023 11
Slide 12: 2023 Interim Cash Flow
2023 INTERIM CASH FLOW PERIOD ENDED 31 JANUARY 6 months to 6 months to 12 months to Year to July 2022 January 2023 January 2022 January 2023 €’m €’m €’m €’m 146.0 Cash flow from operating activities 33.1 23.4 155.7 16.2 Change in working capital underlying business (149.6) (53.2) (80.2) (34.3) Inter
Slide 13: Strong Credit Metrics
STRONG CREDIT METRICS HEADROOM ACROSS ALL KEY BANKING COVENANTS Covenant 2023 2022 Half year times Half year times Net bank debt: EBITDA Maximum 3.5x 1.03x 0.61x EBITDA: Net interest Minimum 3.0x 9.91x 11.10x Credit facility pricing is linked to Origin’s strengthening ESG performance originenterpris
Slide 14: Strategy in Practice
STRATEGY IN PRACTICE originenterprises.com 2023
Slide 15: Investing for Growth, Delivering on Strategic Priorities
Invest INVESTING FOR GROWTH CONTINENTAL EUROPE for growth DELIVERING ON STRATEGIC PRIORITIES IRELAND AND THE UK Expansion of foliar fertiliser capabilities • New products based on nanoparticles Ecology Services acquisition Broadening Amenity Offering • Double production capacity • Trusted ecological
Slide 16: Accelerating Our Sustainability Agenda: SMART Targets
ACCELERATING OUR SUSTAINABILITY AGENDA SMART TARGETS* for Reduction in absolute greenhouse gas Increase emissions by 2032 from a 2019 baseline year Nitrogen Use Efficiency (NUE) of crops by OPTIMISING 20% 54.6% RESOURCE Scope 1 and Scope 2 EFFICIENCY » 100% renewable electricity » Alternative/HVO fu
Slide 17: Summary & Outlook
SUMMARY & OUTLOOK originenterprises.com 2023
Slide 18: Summary & Outlook
SUMMARY & OUTLOOK • Solid start to the year with reasonable on-farm sentiment, a favourable planting profile and good early season winter crop establishment • Strong volume led result in LATAM and encouraging performance from Continental Europe offsetting a reduction in Ireland/UK operating profit •