Slide 1: 2007 Preliminary Results
(Fn Origin ENTERPRISES PLC 2007 Preliminary Results
Slide 2: Overview of Origin Enterprises
Overview of Origin Enterprises Focus on primary sectors of the food industry 2007 Revenue €889m Group activities – Ambient Food & Cereal Milling Shetland Islands Marine Proteins – Agri/Nutrition Fertiliser • Agri Inputs Aberdeen PB Kent • Marine Proteins Chemicals – Property Derry Animal Feed Ayr Fo
Slide 3: Operational Highlights
Operational Highlights Establishment of Origin Enterprises plc – IEX and AIM listing - €100m raised by Origin – €350m syndicated bank facility Strong performance across all operations Acquired controlling interest in Odlum Group – Completed 30th August 2007 Work continues on unlocking development pr
Slide 4: Preliminary Results Highlights to 31st July 2007
Preliminary Results Highlights to 31st July 2007 Revenue growth of 8.9% to €889.4m EBITDA growth of 8.6% to €45.7m Operating profit* increased 10% to €38.1m Profit before financing costs* up 7% to €41.8m Operating cashflow of €46.7m Group net borrowings of €71.7m post – €100m IPO proceeds – €256m to
Slide 5: 2007 Preliminary Results – Profit and Loss
2007 Preliminary Results – Profit and Loss FY07 FY06 Year Ended July Growth €m’s €m’s Revenue 889.4 816.9 8.9% EBITDA 45.7 42.0 8.6% Operating Profit 38.1 34.7 10% Associates – PAT 3.7 4.4 (15.9%) Profit before financing costs 41.8 39.1 7.0% EBITDA % 5.1% 5.1% Operating Profit % 4.3% 4.2% 5
Slide 6: Segmental Analysis
Segmental Analysis FY07 FY06 Growth €m’s €m’s Revenue Agri/Nutrition 647.7 582.0 11% Food 241.7 234.9 3% Total 889.4 816.9 9% Operating Profit Agri/Nutrition 27.7 24.8 12% Food 10.4 9.9 5% Total 38.1 34.7 10% Operating Margin Agri/Nutrition 4.3% 4.3% Food 4.3% 4.2% Total 4.3% 4.2% 6
Slide 7: 2007 Preliminary Results – Profit and Loss
2007 Preliminary Results – Profit and Loss FY07 FY06 Year Ended July Growth €m’s €m’s Profit before financing costs 41.8 39.1 7.0% Financing cost, net (2.6) (1.0) Amortisation (0.8) (0.7) Profit before tax 38.4 37.4 2.6% Taxation (6.4) (6.6) Profit for the financial year 32.0 30.8 3.8% Adjusted EPS*
Slide 8: Cash Flow
Cash Flow FY07 FY06 €m’s €m’s Cashflow from operating activities 46.7 41.8 +11.7% Interest (1.8) (0.5) Dividends 0.6 1.6 Capital Investment (6.1) (16.3) Insurance/ Disposal Proceeds 7.6 4.6 Cashflow 47.0 31.2 Issue of shares (net) 102.5 - Group restructuring / Payment to IAWS (255.6) (35.2) Opening
Slide 9: Balance Sheet
Balance Sheet FY07 FY06 Year Ended July €m’s €m’s Development Properties 165.5 0.0 Other Tangible Assets 71.1 81.9 Intangibles/Goodwill 15.2 16.6 Associates 26.5 19.6 Working Capital 25.4 31.3 Net Debt (71.7) 34.4 Taxation – incl DT (38.7) (8.7) Provisions/Grants (6.8) (13.1) Due to PLC (3.1) (72.7)
Slide 10: Key Financial Statistics
Key Financial Statistics €m €m Year Ended July FY07 FY06 Return on Investment* Excl Investment Properties 19.8% 18.8% Incl. Investment Properties 11.9% 11.2% Bank Borrowing (Net) 71.7 (34.4) Net Debt/EBITDA 1.6X N/A Effective tax rate** 18.5% 20% * Investment includes goodwill eliminated against res
Slide 11: Key Characteristics
Key Characteristics Strong market positions Businesses with predictable Strategically located demand & well invested asset base Expertise in primary processing, manufacturing, logistics & marketing Strong cash generation Focused new product development in Food 11
Slide 12: Agri-Nutrition 2007 Key Facts
Agri-Nutrition 2007 Key Facts 2007 Revenue €647.7m Total No. of employees 459 Total Volume (tonnes) 3.2m 2007 Revenues €889m No. of facilities 21 Food 27% Agri - Nutrition 73% 12
Slide 13: Food Demand & Supply – The Changing Dynamic
Food Demand & Supply – The Changing Dynamic World food demand could double by 2050 – 50% increase from world population growth – 50% increase from broad based economic growth in low income countries Climate change and energy security - Biofuels Global agricultural production – Grain production not k
Slide 14: World Grain Production Remains Behind Use
World Grain Production Remains Behind Use 14 Source: US Department of Agriculture
Slide 15: World Ending Stocks and the Role of China
World Ending Stocks and the Role of China in mln t and % 15
Slide 16: Commodity Price Trends – CBOT Wheat
Commodity Price Trends – CBOT Wheat - 10 year price trends 16
Slide 17: Commodity Price Trends – CBOT Corn
Commodity Price Trends – CBOT Corn - 10 year price trends 17
Slide 18: Future Farm Enterprise Landscape
Future Farm Enterprise Landscape Removal of link between production & support payments – Farm management decisions divorced from subsidies – Focus on commercial returns from farming enterprise – Trend towards fewer, larger and more efficient farm enterprises – Farmers in control of farm management d
Slide 19: Agri Inputs – Feed Ingredients
Agri Inputs – Feed Ingredients Market leader in the importation of animal feed ingredients and cereals Business model – Logistics – Operational scale – Key supplier relationships 2007 performance – Buoyancy in key feed sectors – Stable livestock population – Management refocus 19
Slide 20: Agri Inputs – Fertiliser
Agri Inputs – Fertiliser Market leader in importing and distribution of blended fertiliser in Ireland and the UK. Business model – Proximity business – Prescription fertilisers – Well invested facilities 2007 performance – Improved performance in Ireland – Volume growth in the UK – Record cereal pri
Slide 21: Marine Proteins
Marine Proteins Leading producer of fishmeal and fishoil in Ireland & the UK Strategically located facilities close to major fisheries – Killybegs – Aberdeen Origin – Grimsby – Shetland Islands 2007 performance – Record high finished product prices – Continued growth in aquaculture Expansion – Incre
Slide 22: Food - Shamrock Foods
Food - Shamrock Foods 2007 Revenue of €241.7m Leading ambient food sales, marketing and distribution business Focussed on two core business areas: – Owner of two leading Irish brands – Shamrock & Roma – Foremost provider of distribution and supply chain solutions 2007 Revenues €889m 2007 performance
Slide 23: Food – Odlums
Food – Odlums Acquisition of balance (50%) of Odlum Group – Consideration of €35m – Assumption of debt (100%) €22m – Completed 30th August 2007 Single largest cereal milling company in Ireland Annual flour production capacity in excess of 175,000t Odlums: – Leading Irish brand in retail flour – Grow
Slide 24: Food - Odlums Relevance
Food - Odlums Relevance Flour – Service – Customisation of flours – Growing demand for convenience products – NPD and Target marketing Oatmeal – Growing category – Synonymous with health – Export focused • McCann’s is the No.1 imported oatmeal brand in the US 24
Slide 25: New Product Development
New Product Development ee a 7) 7771) DO Quick cookiés oatmeal 25 ENTERPRISES PLC
Slide 26: Food - Odlums Opportunities
Food - Odlums Opportunities Market growth – Flour – Oatmeal Milling strategy Momentum within the Cork Docklands Integration synergies with Shamrock and R&H Hall 26
Slide 27: Property
Property Dedicated team in place Cork South Docks – Origin - 32 acres close to City Centre – 121 acres – 2 kms of Waterfront – Cork Docklands Development Strategy Newhall – 55 acre greenfield site – Zoned industrial/warehouse – Masterplan being prepared for submission to Kildare Council Kilcock – 11
Slide 28: Origin Cork South Docks Footprint
Origin Cork South Docks Footprint Origin City Centre Origin Odlums Origin Origin SM Origin Origin 28
Slide 29: Cork South Docks
Cork South Docks SDLAP published by Cork City Council in June 2007 – Detailed plan outlining the redevelopment of docklands – Unique opportunity for development of Cork City – Supporting 20,000 residents and working population of 25,000 Submisssion by Origin of – A strategic masterplan in Sept. 2006
Slide 30: Outlook
Outlook Growth dynamic within core operations – Fundamental supply/demand shift – Market confidence – Repositioning within primary food production • Focus on commercial returns • Evolution of business model • Consolidation 30
Slide 31: Outlook cont.
Outlook cont. Origin ideally positioned to support change – Strong market positions – Cash generative business model – Funding capacity for future development Experienced and focused management team Track record of business acquisition and integration Consolidation and acquisition opportunities Shar
Slide 32: Origin Investor Relations contact
Origin Investor Relations would be happy to facilitate any further information requests. Contact Name: Marion Caulwell Phone: +353 1 612 1311 Fax: +353 1 612 1321 E-mail: caulwellm@originenterprises.ie Website: www.originenterprises.com/investor_centre Contact us: Origin Investor Relations 151 Thoma