Slide 1: 2013 Preliminary Results
2013 Preliminary Results 25 September 2013
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: 2013 Highlights
2013 Highlights Group Agri Services Adjusted Net ProposedFull Proposed Full Proposed Proposed Revenue Operating Profit EPS Debt YearDividend Year Dividend Tender return Offer of capital 17.25c €1.4bn €68.9m 52.11c €29.6m 17.25c +15.0% €100m €100m +5.8% - +15.4% +15.0% Excellent financial and operati
Slide 4: Agri-Services Profile
ENTERPRISES PLC Agri-Services Profile
Slide 5: Business Positioning
Business Positioning Optimising crop productivity Comprehensive supply chain Premier provider of total Strong through leading knowledge and risk management crop management translation capability and support capability for macro customised focus systems integrated product offer farm inputs Integrated
Slide 6: Context for Primary Food Producers - 2013
Context for Primary Food Producers - 2013 Operationally, a highly challenging year – Lower crop yield potential impacting returns – Cautious approach to forward selling Favourable output price backdrop – Countering input price volatility – Positive attitude to investment maintained Focus on innovati
Slide 7: Integrated On-Farm Agronomy Review
Integrated On-Farm Agronomy Review July 2013 July 2012 Change on prior year Agri Services €m €m Change €m Underlying €m Revenue 1,418.2 1,340.0 78.2 60.8 Operating profit* 68.9 69.2 (0.3) (1.0) Operating margin % * 4.9% 5.2% (30bps) - Return on capital employed 23.3% 23.5% (20bps) Lower year-on-year
Slide 8: B2B Agri Inputs Review
B2B Agri Inputs Review July 2013 July 2012 Change on prior year Agri Services €m €m Change €m Underlying €m Revenue 1,418.2 1,340.0 78.2 60.8 Operating profit* 68.9 69.2 (0.3) (1.0) Operating margin % * 4.9% 5.2% (30bps) - Return on capital employed 23.3% 23.5% (20bps) Business-to-Business Agri Inpu
Slide 9: Associates and joint ventures
Associates and joint ventures 9
Slide 10: Associates and joint ventures
Associates and joint ventures July 2013 July 2012 Change on prior year Underlying €m €m €m €m Share of revenue 594.7 475.6 119.1 115.4 Share of profits after tax 21.8 13.1 8.7 8.4 Marine Proteins and Oils Consumer Foods 50% 32% Strong EBIT and margin growth Challenging Irish consumer dynamic – Focus
Slide 11: Financial Review
ENTERPRISES PLC Financial Review ) 11
Slide 12: 2013 Financial Highlights
2013 Financial Highlights July 2013 July 2012 % Change €m €m Revenue Agri –Services 1,418.2 1,340.0 +5.8% Group Operating Profit* Agri-Services 68.9 69.2 - Associates and joint ventures** 21.8 13.1 +66.4% 90.7 82.3 +10.2% Financing cost, net (6.1) (6.6) (6.8%) Profit before tax * 84.6 75.7 +11.7% Ad
Slide 13: Revenue – Agri-Services
Revenue – Agri-Services €m 1,500 €60.8m 4.5% +5.8% €17.4m 1,400 1.3% 1418.2 €1,418.2m 1,300 1340 €1,340m 1,200 1,100 1,000 900 800 700 FY 12 Currency Underlying FY 13 13
Slide 14: Operating Profit – Agri-Services
Operating Profit – Agri-Services €m 72 €0.7m (€1.0m) 1.0% (1.5%) 70 69.2 €69.2m 68.9 €68.9m 68 66 64 62 60 FY 12 Currency Underlying FY 13 14
Slide 15: EPS year-on-year +15.4%: 14.1% underlying increase
EPS year-on-year +15.4%: 14.1% underlying increase € cent Per Share 55 6.38c 14.1% 50 52.11 52.11c 0.57c 1.3% 45 45.16 45.16c 40 35 30 FY 12 Currency Underlying FY 13 15
Slide 16: Cash Flow/Net Debt
Cash Flow/Net Debt Continued strong cash generation - €38.2m reduction in debt 2013 2012 Year Ended 31 July €m €m Cashflow from operating activities 70.2 72.8 Change in working capital 1.3 14.1 Interest and tax (17.1) (18.9) Net cash flow from operating activities 54.4 68.0 Dividends received 6.9 10
Slide 17: Banking Facilities and Covenants
Banking Facilities and Covenants Committed banking facilities of €330 million Weighted average debt maturity in years 2013: 2.7 years Operating well within covenants July 2013 July 2012 Net Debt to EBITDA 0.38 0.81 Covenant <3.50 <3.50 EBITDA to Net Interest 13.15 12.02 Covenant >3.00 >3.00 All term
Slide 18: Associates and Joint Ventures
Associates and Joint Ventures Disposal of interest in Welcon Conditional disposal of Welcon announced on 4 July 2013 – Cash consideration of 740m NOK – Subject to a number of conditions Average profits from Welcon in three years to July 2012 of €8.4m Current year profits higher offsetting impact of
Slide 19: Balance Sheet
Balance Sheet July 2013 July 2012 €m €m Tangible assets 88.2 104.4 Intangibles / Goodwill 129.8 142.6 66.8% Associates and joint ventures 84.7 of net assets – 162.1 now 30.9 % Working capital (47.6) (43.7) Due from sale of joint venture 94.0 - Provisions for liabilities, including pension (15.7) (23
Slide 20: Background to and reasons for the proposed Tender Offer
Proposed Tender Offer Background to and reasons for the proposed Tender Offer Return of capital to shareholders – up to €100m Funded from sale of interest in Welcon against the backdrop of – Strong cash generation – Cumulative profits after tax since IPO (€356m) converted to cash – Net debt - €29.6m
Slide 21: FY14 Outlook
FY14 Outlook EPS expected to be broadly in line with FY13 FY13 EPS c6% ahead of consensus expectations – Strong performance from Associates and Joint Ventures – Welcon – Agri-Services impacted by lower activity levels FY14 – Outlook for Agri Services is positive Expect FY14 EPS to be broadly in line
Slide 22: Strategy and positioning
ENTERPRISES PLC Strategy and positioning ) 22
Slide 23: Farming and Increasing Professionalisation
Farming and Increasing Professionalisation The changing dynamic for agri-service support provision Greater customisation Differentiated offers and bespoke advice packages Strongly Return on Investment (ROI) influenced Emphasis on early stage risk management Increasing uptake of electronic decision s
Slide 24: Strategic Priority
Strategic Priority Capture growth opportunity in technology transfer of smart agriculture solutions and sustainable crop technologies Organisational alignment – Simplification and transparency – Maintain integrity of local relationships while unlocking benefit of scale Acquisition strategy to build
Slide 25: Agri-Services 2013 Business Transformation Focus
Agri-Services 2013 Business Transformation Focus Change management • Establishing a single organisation for on-farm services • Enhancing functional support and customer lead effectiveness • Developing management capability with new structures, practices and processes Agronomists • The cultural integ
Slide 26: Total Crop Management System
Total Crop Management System Providing customers with transparent indicators of value add Agronomy plus plus Decision Support Effective, Efficient, Electronic, Evidence based. 26
Slide 27: Summary and Outlook
Summary and Outlook 27
Slide 28: Summary and Outlook
Summary and Outlook Clear business profile positioned to capitalise on a sustainable agriculture model – Central elements of business transformation programme implemented – Clear technology priorities established to underpin total service offering – Trusted brands and relationships Near term investm
Slide 29: 2013 Preliminary Results
2013 Preliminary Results 25 September 2013