Origin Enterprises Plc · EURONEXT:OIZ
Origin Enterprises — Investor Day (June 2017)
43 slides from Origin Enterprises's investor day presentation, Jun 14, 2017
Slide 1: Capital Markets Day UK Site Visit
14 June 2017 Capital Markets Day UK Site Visit
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: Welcome
Welcome UK Site Visit Tom O’Mahony 14 June 2017 Group CEO 2
Slide 4: Agenda
2017 Capital Markets Day – UK Site Visit Agenda » Introductory background and current trading » Crop Technology Transfer overview » Fertiliser and Nutrition in focus » Q&A 3
Slide 5: Today's Origin Team
Today’s Origin Team Presentation Leads Imelda Hurley Professor Jimmy Burke David Langton Liam Larkin Group CFO Head of Research & Head of Crop Science Head of Knowledge Transfer Business-to-Business Agri-Inputs Declan Giblin Tim Buckley Ben Gillingham Head of Corporate Head of Digital Managing Direc
Slide 6: Agenda
Agenda Introduction Group Coach Tour Site Buffet B2B Role of & Research Q&A Departure Briefing Tour Lunch Overview Digital Overview Overview Time 11.00 – 11.15 11.15 – 11.35 11.35 – 11.45 11.45 – 1.15 1.15 – 2.00 2.00 – 2.20 2.20 – 2.45 2.45 – 3.15 3.30 12 9 3 6 5
Slide 7: Our Business Overview
Our Business Overview » We support the primary crop production sectors of the food industry » Leading provider of agronomy services, inputs and crop technologies » Ireland, UK, Poland, Romania and Ukraine » Focus on delivery of customised crop management systems » Address the quality, efficiency and
Slide 8: Our Business: Key Facts, Customer Channel and Geography
Our Business Key Facts, Customer Channel and Geography 42,000 Customers Geography - 2016 Revenue EBIT 600 Sales Force █ Ireland / UK €1.5bn €67.3m █ Central & Eastern Europe 11.8m Direct Farm 67% | 33% 78% | 22% Ha Customer Footprint 100 Distribution Points Customer Channel - 2016 Input Formulation
Slide 9: Our Business: Service Application and Gross Margin Profile
Our Business Service Application and Gross Margin Profile 2016 2016 Revenue Gross Margin 54% | 16% | 8% 52% | 22% | 12% 1% | 21% 7% | 7% Combinable Crops Grassland Crop Protection Fertiliser / Nutrition Roots & Veg Amenity Seed Amenity Crop Marketing / Other Crop Marketing / Other 8
Slide 10: Current Trading
Current Trading UK Site Visit 14 June 2017 9
Slide 11: Q3 Trading Update
Q3 Trading Update Higher underlying revenues and profits in seasonally important third quarter » Settled weather and an improved planning environment for primary producers supports higher demand for agronomy services and crop inputs » 4.1% increase in underlying revenue for Q3 – 5.9% underlying reve
Slide 12: Professor Jimmy Burke, Head of Research & Knowledge Transfer
Professor Jimmy Burke UK Site Visit Head of Research & 14 June 2017 Knowledge Transfer 11
Slide 13: Expanded Geographic Scale
Expanded Geographic Scale A Systematic Approach to Research and Knowledge Transfer iFarm Technology Centre 12
Slide 14: Knowledge Transfer
Knowledge Transfer Take UK as an Example….. We advise or influence agronomic decisions taken on: 33% of UK Combinable crops 55% of UK Fruit farms 45% of UK Vegetable crops 45% of UK Potato crops 13
Slide 15: Knowledge Transfer: Infrastructure Scale
Knowledge Transfer Infrastructure Scale 5 TECHNOLOGY CENTRES 55,000 TRIAL PLOTS across the UK representing all regions and crops 28 North Region 460 REPLICATED TRIALS DEMONSTRATION iFARMS NATIONALLY 53 VARIETY DEVELOPMENT South TRIALS OVER 8,332 PLOTS Region ACROSS 9 CROP TYPES • Established across
Slide 16: Knowledge Transfer: Technical Messaging
Knowledge Transfer Technical Messaging Direct to Customers and via Agronomists » Regional newsletters » Business updates » Biannual magazine » Monthly eBulletin » Daily updates on Twitter » Local team iFarm Facebook pages 15
Slide 17: Knowledge Transfer
Knowledge Transfer e Pe Origin rfarms VU rigin
Slide 18: The 'Freedom to Farm' Challenges Facing Farming
The ‘Freedom to Farm’ Challenges Facing Farming » Scientific barriers are limiting the development of novel modes of action » Loss of active ingredients in development due to increasing regulation » Escalating costs of fundamental research » Disease resistance and reducing product lifecycles » Water
Slide 19: CONSUS
CONSUS Crop Optimisation through Sensing, Understanding and Visualisation » An Origin-led partnership in connection with University College Dublin – Industry recognised academic institution, UCD Campus – The Science Foundation Ireland – 50% funding » CONSUS creates a pipeline for innovation – Bolste
Slide 20: Summary
Summary Our commitment to the highest standards of Crop Technology Transfer is central to » Facilitating the best industry knowledge, dissemination and translational capability » Positively influencing the profitability, competitiveness and sustainability of crop production systems 19
Slide 21: Throws Farm Technology Centre Tour Briefing
Throws Farm Technology Centre Tour Briefing UK Site Visit David Langton 14 June 2017 Head of Crop Science 20
Slide 22: Throws Farm: HQ for Origin R&D
Throws Farm HQ for Origin R&D » R&D at Throws Farm for over 50 yrs » Buildings and equipment investment in 2014 » Team of R&D staff » Trials address all aspects of crop agronomy » 4 other technology centres throughout the UK » Trials on combinable crops, fruit, vegetables and potatoes 21
Slide 23: Throws Farm Trials Tour
Throws Farm Trials Tour » Split into 4 groups at the plots » 20 mins per station You are currently here 22
Slide 24: Throws Farm Trials Tour
Throws Farm Trials Tour » Varieties & Genetics » Trials Equipment, Adjuvants & Application » Crop Protection » Crop Nutrition, Fertilisers & Precision Farming » Return to this Conference Room for lunch at 1.15pm 23
Slide 25: Fertiliser Overview
Fertiliser Overview Liam Larkin UK Site Visit Head of 14 June 2017 Business-to-Business Agri-Inputs 24
Slide 26: Fertiliser Overview – Origin Group Financial Overview
Fertiliser Overview – Origin Group Financial Overview Gross Margin Customer Channel by Product Channel 2016 2016 EBIT Group 60% | 40% 52% | 22%| 12% 7% | 7% Crop Protection Nutrition Direct Farm Seed Amenity Business-to-Business Crop Marketing / Other Other 25
Slide 27: Fertiliser Overview: Where We Operate
Fertiliser Overview Where We Operate 26
Slide 28: Fertiliser Overview: Product Origins
Fertiliser Overview Product Origins UK Belgium Holland Germany Lithuania France Russia Portugal Ukraine Spain Turkey Morocco Austria Tunisia Poland Egypt Greece 27
Slide 29: Raw Materials - Global Production
Fertiliser Overview Raw Materials - Global Production Urea (175m Tonnes) Potash (64m Tonnes) 52% | 19% |14% AN (48m Tonnes) DAP (35m Tonnes) 10% | 5% CAN (15m Tonnes) » Components blended to required recipes 28
Slide 30: Speciality Nutrition Development
Speciality Nutrition Development Driving Relevance to Customer and Farmer » Provides clear market differentiation » Opportunity to be relevant to the customer and farmer » Opportunity to offer branded presence on farm » Win for farmer, win for customer, win for Origin 29
Slide 31: OATMASTER with Wolf Trax Manganese
OATMASTER with WOLF TRAX MANGANESE _ Bs . ~~ fm : a. OATMASTER 10N sP 22K +S+MN Noel Hickey, Hage Farrer, Cunamaggie, Co. Kihkerry. Poot Grede Out Catagory Wetnet and overall Giants Qualty Grain feord Wineer 2014 “in jute spring 2014 / weed OATMASILA with Way Troe Mongosese ated Yt goer my trap the
Slide 32: Agrii-Start
Agrii-Start iz
Slide 33: Now Made with Wolf Trax Trace Elements
NOW MADE WITH WOLF F TRAX TRACE ELEMENTS Puts Back In What Farming Takes Out! 22.7 : 2%: 5 + 3% Sulphur oi RICHLAND tii rsenim copper Manganese Zinc woiltene Benefits of Richland + Richland enables you to spread a well balanced mix of NPK and trace elements at a cost effective price. + Increases die
Slide 34: Origin-Grass and -Grass K+
O rigin -Grass and -Grass K+ grassland fertiliser enriched with sodium for ‘sweeter’ grass us Sodium improves sward palatability / Sodium increases dry matter intake / Sodium maximises milk and meat from grass Apply Sweet-Grass to get the #M\S@EVEVEl) Ai imal l™ benefits of sodium SELENIUM & COBALT
Slide 35: The Role of Digital & Agri-Technology
Tim Buckley Head of Digital The Role of Digital & Agri-Technology UK Site Visit 14 June 2017 Ben Gillingham Managing Director Resterra Group 34
Slide 36: Backdrop
Backdrop » Crop technology and digital technology are aligning to drive market penetration and new go-to market opportunities 35
Slide 37: Context for Digital Agricultural Services
Context for Digital Agricultural Services Developments are Transforming how Agronomists Interact with Farmers » Digital is supporting the next generation of new products and services to farm » Agronomists’ know-how and crop research are combining with digital data, analytics and decision support cap
Slide 38: Adaptive Agronomy
Adaptive Agronomy Models to Optimise Crop Performance Architecture Functionality and Visualisation 37
Slide 39: Summary
Summary » Understanding digital linkages and engagement for today’s Primary Producer » Establishing a dedicated digital vertical to secure multiple channel access on-farm – Our Agronomists – Independent Agronomy Sector – Agri-Service Providers – 3rd Party Software Providers » Strategic focus points
Slide 40: Resterra Overview Introduction
Resterra Overview Introduction Resterra 39
Slide 41: Digital Technology
Digital Technology » Changes in technology and farming practices » Digital farming has already begun to revolutionise farming » Increasing interest in soils is changing farming practice » Growing crop resistance is changing rotations » Big Data is on the cusp of changing how decisions are made 40
Slide 42: Summary
Summary » Understanding digital linkages and engagement for today’s Primary Producer » Access proven know-how and do-how capabilities » Clear innovation priorities » Deliver effective customer commercialisation 41
Slide 43: Capital Markets Day UK Site Visit
14 June 2017 Capital Markets Day UK Site Visit