Slide 1: 2009 Preliminary Results
2009 Preliminary Results 28 September 2009
Slide 2: Table of Contents
Table of Contents Introduction 3 Financial Review 7 Business Review – Agri-Nutrition 17 – Food 24 Strategy and Outlook 28 2
Slide 3: Origin at a glance
Origin at a glance…. Agri-Nutrition Food Integrated Direct Agri-inputs Marine proteins Flour milling Ambient food agronomy farming - Feed ingredients and oils services - Fertiliser FY 2009 Operating Profit * - €79.4m Agri-Nutrition 80% Food 20% Agri-Nutrition 80% Food 20% *incl. associates and joint
Slide 4: Expanding geographic spread
Expanding geographic spread … Marine proteins & oils Integrated agronomy services Agri-inputs Direct farming Food Norway UK Ireland Marine proteins Marine proteins & & oils oils Marine proteins & oils Agri-inputs Integrated Agri-inputs agronomy Food services Ukraine Poland Direct farming Integrated
Slide 5: 2009 Highlights
2009 Highlights Strong results in increasingly challenging environment – Profit before financing up 8.5% to €79.4m – Reduction in net debt to €153.8m from €175.1m – Adjusted fully diluted EPS +6.2% to 36.16c Integrated agronomy services leading Group performance Resilient Food performance Cash Manag
Slide 6: Current operating environment
Current operating environment Consumer Increasing value shopping Pricing and promotional support Differentiated supply chain Primary Food Producer Returns and incomes currently under sustained pressure Marked reversal in agricultural market Tightening farm credit Challenging environment for enterpri
Slide 7: Financial Review
Financial Review 7
Slide 8: 2009 Financial Highlights
2009 Financial Highlights Revenues of €1,508m Operating profit* increased 6.7% to €75.7m Profit before financing costs* up 8.5% to €79.4m Adjusted fully diluted EPS* up 6.2% to 36.16 cent per share Net cash flow from operating activities of €53.8m * Before intangible amortisation and exceptional ite
Slide 9: 2009 Preliminary Results - Income Statement
2009 Preliminary Results - Income Statement 8.5% increase in Profit before financing costs FY09 FY08 Year Ended July Growth €m’s €m’s Revenue 1,507.8 1,504.2 - Operating Profit * 75.7 70.9 6.7% Associates and Joint Venture - PAT 3.7 2.3 65.1% Profit before financing costs * 79.4 73.2 8.5% Operating
Slide 10: Segmental Analysis
Segmental Analysis Growth in Agri-Nutrition and Food in line with FY08 FY09 FY08 Change €m’s €m’s Revenue Agri-Nutrition 1,212.5 1,165.3 4.1% Food 295.3 338.9 (12.9%) Total 1,507.8 1,504.2 0.2% Operating Profit Agri-Nutrition 59.9 55.0 8.8% Food 15.8 15.9 - Total 75.7 70.9 6.7% Operating Margin Agri
Slide 11: 2009 Preliminary Results - Income Statement
2009 Preliminary Results - Income Statement 6.2% increase in EPS* FY09 FY08 Year Ended July Growth €m’s €m’s Profit before financing costs 79.4 73.2 8.5% Financing cost, net (17.4) (14.6) Amortisation (3.2) (2.4) Profit before taxation 58.8 56.2 4.6% Taxation (11.9) (11.7) Profit for the financial y
Slide 12: Exceptional items
Exceptional items Gross Tax Net Year Ended July 2009 €m’s €m’s €m’s Investment properties (134.5) 30.9 (103.6) Gain on disposal of operations 5.5 - 5.5 Profit on sale of fixed assets 1.2 (0.2) 1.0 Closure of Odlums mill (6.6) 0.1 (6.5) Total exceptional items (134.4) 30.8 (103.6) 12
Slide 13: Cash flow / Net Debt
Cash flow / Net Debt Continued strong cash generation FY09 FY08 Year Ended July €m’s €m’s Cash flow from operating activities 82.8 79.7 Change in working capital 2.4 17.6 Interest and tax (31.4) (22.7) Net cash flow from operating activities 53.8 74.6 Dividends received 4.2 0.2 Capital expenditure (
Slide 14: Balance Sheet
Balance Sheet July 2009 July 2008 €m’s €m’s Investment properties 59.2 192.4 Other tangible assets 86.8 106.1 Intangibles / Goodwill 115.9 116.4 Associates and joint venture 83.6 32.8 Working capital 13.9 35.5 Deferred consideration (12.1) (12.5) Net debt (153.8) (175.1) Taxation - incl. DT (16.7) (
Slide 15: Maturity Profile of Net Debt
Maturity Profile of Net Debt (€m’s) July 2009 July 2008 Cash, net 79.8 74.2 Within 1 year (0.9) - Between 1 and 2 years - (86.0) Between 2 and 5 years (232.7) (163.3) Total Net Debt (153.8) (175.1) Weighted average Debt Maturity in years 3.1 3.1 15
Slide 16: Bank Covenant Ratios
Bank Covenant Ratios July 2009 July 2008 Net Debt to EBITDA 1.99 2.15 Covenant < 3.50 < 3.25 EBITDA to Net Interest 5.09 4.60 Covenant > 3.00 > 3.00 Cash flow to Net Interest 3.96 3.58 Covenant > 2.00 > 2.00 EBITDA * - 12 months trailing (€m) 88.4 81.5 * EBITDA as defined for bank covenant testing p
Slide 17: Agri-Nutrition Review
Agri-Nutrition Review 17
Slide 18: Agri-Nutrition Review
Agri-Nutrition Review 2009 2008 Year Ended July Change €m’s €m’s Revenue 1,212.5 1,165.3 +4.1% Operating Profit 59.9 55.0 +8.8% Operating Margin 4.9% 4.7% +22 bps Associates and Joint Venture 3.7 2.3 +65.1% Integrated agronomy services – Strong organic growth with complementary acquisition developme
Slide 19: Integrated agronomy services
Integrated agronomy services Continuing strong momentum with complementary acquisition development Record year from a financial and operating perspective – Organic growth in serviced agronomy business – Crop management programmes meeting challenges of delayed and difficult planting conditions – Focu
Slide 20: Integrated agronomy services: complementary acquisition development
Integrated agronomy services Complementary acquisition development CSC Crop Protection – Leading agronomy service provider in Scotland and North East England – Annual Revenue - €40m – Consolidation of Masstock’s fully serviced agronomy presence in UK – Access to enhanced precision farming technologi
Slide 21: Direct farming
Direct farming Continental Farmers - Significant operational development Continental Farmers providing: – Model extension into a developing, scalable and commercial farming operation – Farming do-how capability alongside Origin Agri platform – Technology transfer opportunity with integrated agronomy
Slide 22: Agri-inputs
Agri-inputs Margins secured against backdrop of unprecedented market volatility Ingredient price volatility driving extremely competitive market conditions Significant reduction in fertiliser consumption in year – Resistance to historical nutrient price levels – Purchasing power Margin protection ma
Slide 23: Marine proteins and oils
Marine proteins and oils Strong returns with strategic merger strengthening market position Combined marine proteins and oils activities under Welcon – Largest European manufacturer of fishmeal and fish oil – Austevoll - global integrated pelagic fishery specialist Performance since merger in line w
Slide 24: Food Review
(Fn Origin ENTERPRISES PLC 24
Slide 25: Food Review
Food Review 2009 2008 Year Ended July Change €m’s €m’s Revenue 295.3 338.9 (12.9%) Operating Profit 15.8 15.9 - Operating Margin 5.4% 4.7% +67 bps Resilient result – Strong performance from consumer brands Market challenges – Third party agency distribution – Industrial flour milling 25
Slide 26: Food: brand resilience
Food Brand resilience Shamrock, Roma and Odlums maintain market-leading positions – 3.5% underlying volume increase Consumer has remained substantially loyal – Increasingly focussed on staple food purchases – Pricing and promotional support strategies aligned to changes in consumer spending activity
Slide 27: Food: market challenges
Food Market Challenges Third Party Agency Distribution – Full route-to-market service support for food manufacturers • 19% reduction in underlying revenue • Lower margin activity – Direct sourcing of international food brands by customers – Customer response is principally supply chain dependent Ind
Slide 28: Strategy and Outlook
Strategy and Outlook 28
Slide 29: Primary food production
Primary food production Structural factors Temporary factors Global population growth Economic contraction Rising incomes in emerging impacting global agricultural economies trade Soil and water Speculative fund investment General underinvestment in Currency agriculture Credit markets Energy Weather
Slide 30: Building resilience into primary food production
Building resilience into primary food production Increasing definition between land ownership and food production – Reduces fragmentation and promotes scale – Different investor horizons and requirements Controllable process to moderate the effects of volatility – Knowledge-based establishment syste
Slide 31: Integrated capability to build and support profitable farming systems
Integrated capability to build and support profitable farming systems Growing Systems Farming Logistics and Input Sourcing Marketing and Yield technology Do-How Handling application Global supplier Global manufacturing Organisation Invested Strategic relationships partnerships infrastructure custome
Slide 32: Outlook for 2010
Outlook for 2010 2010 earnings will be lower than the record levels achieved in 2009 – Cautious approach in Irish Agri-Inputs business where trading conditions are difficult – Challenges for Food in the current economic environment – Cost reduction initiatives to moderate headwinds – Sustained perfo
Slide 33: Our progress since establishment
Our progress since establishment 2007 2008 2009 Year Ended July CAGR €m’s €m’s €m’s Operating Profit plus share of associates * 41.8 73.2 79.4 37.8% Adjusted Fully Diluted EPS ** (cent) 19.63 34.05 36.16 35.7 Acquisition Expenditure (cumulative) 0.0 157.4 193.9 Cashflow after Capex (cumulative) 38.8
Slide 34: Summary
Summary Enhanced business model through strategic development since IPO Well-invested business with operational scale and leading market positions Strong funding capacity for development Operational cost control remains a priority Outlook for primary food production remains positive supported by fav
Slide 35: 2009 Preliminary Results
2009 Preliminary Results 28 September 2009