Slide 1: Interim Results 2020
Interim Results 2020 5 March 2020
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: 2020 Highlights & Trading Review
2020 Highlights & Trading Review
Slide 4: 2020 Interim Results Highlights
2020 Interim Results Highlights Financial Operational – Highly challenging first half against prior year: – Ireland & the UK • 40% decline in UK cropping base due to highly adverse • Group revenue of €604.9m down 13.8% weather conditions • Lowest planted area in 30 years • Group operating loss of €2
Slide 5: 2019 Origin at a glance
2019 Origin at a glance 50,000 112 >2,500 Customers Distribution Employees Points 7 €1.8bn €82.3m Countries Revenue Operating Profit Revenue by Customer Operating Profit by Channel Geographical Segment €500m €160m 34 61% Crop Seed Revenue Protection 73% 17% Revenue 770 Sales Force 10% 2.5m Tns 1m Tn
Slide 6: Group Revenue Analysis
Group Revenue1 Analysis 1 (16.89%) Decline in Group Revenue1 from H1 2019 to H1 2020 +1.54% Currency (18.68%) Underlying +0.25% Acquisitions (19.14%) Volume +0.46% Price 1 Excludes crop marketing revenues and volumes 6
Slide 7: Trading Review: Ireland & the UK
Trading Review Ireland & the UK – Underlying business volumes reduction of 25.6% • Extreme weather drives a 1.1m decline in H1 UK cropping hectares to 1.7m hectares • Reduced sales demand reflecting lower plantings and poorly established crops • Strong feed and fertiliser volume comparatives due to
Slide 8: UK Wheat Production
UK Wheat Production Lowest planted area in over 30 years Wheat Area planted vs Autumn Days Rainfall 2,300 60 2,100 50 1,900 1,700 40 – 5th wettest autumn on record Area Planted Rainfall Days 1,500 30 1,300 – >2x more continuous days of 1,100 20 rainfall of 5mm vs prior year 900 10 700 500 0 Harvest
Slide 9: Trading Review: Continental Europe
Trading Review Continental Europe1 – Reduction in underlying business volumes of 3.4% – Satisfactory performance in seasonally quiet H1 reflecting generally favourable crop establishment and improved business mix Operating profit (€’m) – Strong working capital performance 0.9 – New supply chain mode
Slide 10: Trading Review: Latin America
Trading Review Latin America – Underlying operating profit growth of 7.3% in seasonally significant first half Operating profit (€’m) – Underlying business volume growth of 2.9% – Product margins stable 5.5 5.7 – Market demand influenced by delayed soybean planting season Market Entry – Additional p
Slide 11: Financial Review
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Slide 12: 2020 Interim Performance Summary
2020 Interim Performance Summary Revenue Operating Loss Adjusted EPS €604.9m (€2.8m) (4.53c) (€96.7m) (€11.9m) (8.14c) Net Debt Net Debt / EBITDA Interim Dividend €264.2m 3.24x 3.15c 2019: €238.8m 2019: 2.57x 2019: 3.15c 12
Slide 13: Impact of Weather on UK Cropping
Impact of Weather on UK Cropping Cropping Mix FY2019 Q1 Trading H1 Trading Update Update Early Winter Late Winter Spring Crops Fallow Gross Margin Mix FY 2019 Q1 Trading Update H1 Trading Update 13
Slide 14: 2020 Interim Financial Highlights
2020 Interim Financial Highlights Period ended 31 January 2020 2019 Change €’m €’m €’m Group revenue 604.9 701.6 (96.7) Group operating (loss)/profit1 Agri-Services (2.8) 9.1 (11.9) Associates and joint venture2 1.1 1.8 (0.7) Total group operating (loss)/profit (1.7) 10.9 (12.6) Finance costs, net (
Slide 15: Group Revenue
Group Revenue Period ended 31 January €m 800 (€108.1m) +€1.5m +€9.9m (€96.7m) (15.4%) +0.2% +1.4% (13.8%) 600 €701.6m €604.9m 400 200 0 H1 19 Underlying Acquisitions Currency H1 20 15
Slide 16: Group Operating Profit
Group Operating Profit Period ended 31 January €m (€11.4m) +€0.1m (€0.6m) (€11.9m) (125.3%) +1.1% (6.6%) (130.8%) €9.1m 5 H1 19 Underlying Underlying Acquisitions Currency H120 H1 20 (€2.8m) (5) 16
Slide 17: Earnings per Share
Earnings per Share Period ended 31 January € cent per share 6.00 (8.02c) + 0.27c (0.39c) (8.14c) 4.00 3.61c 2.00 0.00 H1 19 Underlying Underlying Acquisitions Currency H1 20 (2.00) (4.00) (4.53c) (6.00) 17
Slide 18: Summary Cash Flow Statement
Summary Cash Flow Statement 12 months to Year to July 2019 2020 2019 January 2020 €’m Period ended 31 January €’m €’m €’m 92.8 Cash flow from operating activities 6.5 13.6 85.7 (12.7) Change in working capital (138.4) (137.5) (13.6) (23.9) Interest and tax (7.8) (9.0) (22.7) 56.2 Cash flow from ongo
Slide 19: Balance Sheet
Balance Sheet Period ended 31 January 2020 2019 €’m €’m Tangible assets 185.9 136.5 Goodwill and intangible assets 273.1 285.3 Associates and joint venture 41.8 43.4 Working capital 189.2 161.1 Deferred and contingent acquisition consideration (37.8) (46.5) Provisions for liabilities, including pens
Slide 20: Banking Facilities and Covenants
Banking Facilities and Covenants Period ended 31 January 2020 2019 Committed banking facilities Net debt to EBITDA 3.24 2.57 €430 million Covenant < 3.50x < 3.50x Weighted average debt maturity in year 2020 EBITDA to net interest 7.57 9.25 Covenant >3.00x >3.00x 3.9 years (2019: 3.3 years) All terms
Slide 21: Business Review
Business Review
Slide 22: The Origin Business Model
The Origin Business Model Delivering enhanced outcomes for customers in challenging in-field conditions Research + Development Own Crop Crop Technology Own Digital Input Formulation Partnerships 50,000+ Services 12,000+ customer 1,200,000 ha fertiliser serving on-boarded prescriptions 12m ha Field L
Slide 23: Addressing the Challenges
Addressing the Challenges Key commercial and operational actions Growth through New business Raising the Plan Focus existing footprint models profile of Agrii – Focused development of new – Expand presence in new – Strengthened presence agronomised product agronomy channels focused on Origin portfol
Slide 24: Addressing the Challenges
Addressing the Challenges Balance Sheet Pause M&A Optimising Cash Generation Drive improved Working Capital efficiency 24
Slide 25: Mitigating Climate Change through Responsible Stewardship
Mitigating Climate Change through Responsible Stewardship Climate Policy Goals Enhancing Efficient Zero Climate Minimising Productivity Pesticide and Pollution Resilience Food Waste Fertiliser Usage Nutri-match Digital enhanced Methane reducing efficiency reducing carbon and Origin’s animal feed opt
Slide 26: Summary
Summary
Slide 27: Summary
Summary – Poor first half performance reflecting most challenging autumn cropping season in UK in 30 years – Continental Europe and Latin America performance in line with expectation – FY20 performance predicated on robust seasonal activity in Ireland and the UK in second half – Full year outlook wi
Slide 28: Thank You
Thank You