Slide 1: 2011 Interim Results
2011 Interim Results 10 March 2011 Click to edit Master title style Click to edit Master subtitle style
Slide 2: Origin overview
Origin overview Leading Agri-Services Group with strategic investments in marine proteins and oils and consumer foods Operations in Ireland, the United Kingdom, Norway, Poland and Ukraine Public company – Established in 2006 – Listed in June 2007 – ESM (Dublin), AIM (London) – ARYZTA AG 71.4% shareh
Slide 3: 2011 Interim Highlights
Wa Origin ENTERPRISES PLC 2011 Interim Highlights
Slide 4: 2011 Interim Results Highlights
2011 Interim Results Highlights Excellent growth in Agri-Services – Increased demand for full service agronomy applications – Firm buying interest for farm inputs Strong performance from Associates and joint venture Development – Material funding release following strategic repositioning of Origin F
Slide 5: 2011 Interim Results – Financial Highlights
2011 Interim Results – Financial Highlights Revenues of €613.3m – Agri-Services increased 23.3% to €569.1m Operating profit* up 10.7% to €17.6m – Agri-Services increased 61.3% to €12.6m Share of profit from associates and joint venture up 23.9% to €6.4m Adjusted fully diluted earnings per share* 32%
Slide 6: Agri-Services Review
Can Origin ENTERPRISES PLC Agri-Services Review
Slide 7: Agri-Services
Agri-Services €m Revenue €15 m Operating profit* 700 +23% +61% 600 500 569.1 10 12.6 400 461.6 300 Margin 7.8 5 2.2% 200 Margin 100 1.7% 0 0 H1 11 H1 10 H1 11 H1 10 * before intangible amortisation and exceptional items. Market commentary On-Farm Recovery in most primary enterprises with Excellent f
Slide 8: Agri-Services
Agri-Services €m Revenue €15 m Operating profit* 700 +23% +61% 600 500 569.1 10 12.6 400 461.6 300 Margin 7.8 5 2.2% 200 Margin 100 1.7% 0 0 H1 11 H1 10 H1 11 H1 10 * before intangible amortisation and exceptional items. Market commentary Business to Business Recovery in most primary enterprises wit
Slide 9: Associates and joint venture
Associates and joint venture
Slide 10: Marine Proteins and Oils (Welcon)
Marine Proteins and Oils (Welcon) €8m Total share of profit of associates and joint +24% venture(PAT) 6 4 6.4 3.7 5.2 2 0 H1 11 H1 10 Market commentary Half year performance Strong finished product prices First half result in line with excellent performance last year Reduced South American productio
Slide 11: Valeo Foods
Valeo Foods Food fully consolidated for the €8m Total share of profit of associates and joint +24% venture(PAT) period 1 August 2010 to 26 6 November 2010 and shown as 15.8 a discontinued activity. 4 8.1 6.4 Treated as 5.1 5.1 an Associate from 6.4 2 5.1 6.4 5.2 5.2 27 November 2010. 0 H1 11 H1 10 M
Slide 12: Financial Review
Financial Review 12
Slide 13: 2011 Interim Results - Income Statement
2011 Interim Results - Income Statement Increase in profits and margins 2011 2010 Half Year Ended January €m’s €m’s Change Revenue - Agri-Services 569.1 461.6 23.3% - Food 44.2 135.2 (67.3%) Volume 8.0% Total revenue 613.3 596.8 2.8% Price 11.3% Operating profit * - Agri-Services 12.6 7.8 61.3% Curr
Slide 14: 2011 Interim Results - Income Statement
2011 Interim Results - Income Statement 32% increase in adjusted fully diluted EPS* 2011 2010 Half Year Ended January €m’s €m’s Change Group operating profit* 24.0 21.1 13.9% Financing cost, net (6.2) (7.8) (21.1%) Amortisation (1.6) (2.0) (17.1%) Profit before taxation 16.2 11.3 43.4% Taxation (1.8
Slide 15: Exceptional Items
2011 Interim Results Exceptional Items 2011 Half Year Ended January €m’s Net loss on disposal of operations - Valeo and Feed transactions (5.2) Exceptional loss relating to associates (0.3) Total (5.5) 15
Slide 16: 32% increase in EPS
2011 Interim Results 32% increase in EPS € cent Per Share Increase from Continuing 14 Operations 11.45 Total Impact of Disposal of +4.48 Cents 12 Currency Origin Foods 8.68 Total 0.29 Cents -2.0 Cents 10 3.19 Discontinued 8 8.26 6 5.19 Discontinued 8.26 4 Continuing 3.49 2 3.49 Continuing 0 FY 10 FY
Slide 17: Cash Flow/Net Debt
Cash Flow/Net Debt Continued strong cash generation - €91.8m reduction in debt 6 months to 6 months to 12 months to FY10 Jan 11 Jan 10 Jan 11 €m’s €’m’s €m’s €’m’s 69.5 Cashflow from operating activities 21.1 19.0 71.6 9.9 Change in working capital (54.9) (43.3) (1.8) (21.3) Interest and tax (9.9) (
Slide 18: Cashflow/Net debt
Cashflow/Net debt Net debt at 31 January – Consistent reduction Summary cash flow 24 months to Jan 2011 Cashflow from operating activities 141.5 Change in working capital 12.2 Interest and tax (47.9) Net cash flow from operating activities 105.8 Dividends received - associates 10.1 Capital expenditu
Slide 19: Bank Covenants
Bank Covenants Operating well within agreed Bank Covenants January 2011 July 2010 Net Debt to EBITDA 1.23 1.41 Covenant <3.50 < 3.50 EBITDA to Net Interest 5.93 5.20 Covenant > 3.00 > 3.00 Cash flow to Net Interest 2.56 3.93 Covenant > 2.00 > 2.00 All terms as defined for bank covenant testing purpo
Slide 20: Balance Sheet
Balance Sheet Jan 2011 Jan 2010 July 2010 €m’s €m’s €m’s Tangible assets 96.9 143.7 145.2 Intangibles/Goodwill 68.6 113.2 114.5 Associates and joint venture 154.1 87.2 89.7 Working capital 8.8 48.6 4.0 Contingent acquisition consideration (12.9) (12.3) (13.0) Net debt (98.7) (190.5) (111.9) Taxation
Slide 21: Developments and Acquisitions
Developments and Acquisitions 21
Slide 22: Strategic Feed consolidation – Origin and W&R Barnett
Strategic Feed consolidation – Origin and W&R Barnett Creation of all Ireland Feed platform Transaction – Combine Origin’s wholly owned feed interests (‘R&H Hall’) and Origin- Barnett joint feed interests in Northern Ireland – Create a single logistics, handling and trading platform – Combined volum
Slide 23: United Agri Products Acquisition – the business
United Agri Products Acquisition – the business Evolved from business established in 1950’s Premier UK provider of integrated crop production systems for primary producers – arable, fruit and vegetable growers Scale – 8,000 farm customers – 100 agronomists – Top 5 player in serviced agronomy Well po
Slide 24: UAP transaction highlights
UAP transaction highlights Stg£33m initial consideration for acquisition of 100% of UAP – Further Stg£4m consideration payable in March 2013 – Multiple of 6x maintainable EBIT 2010 Revenue Stg£111.3m 2010 EBIT Stg£5.9m Earnings enhancing from date of acquisition 24
Slide 25: UAP – The investment rationale
UAP – The investment rationale Improved competitive positioning – Strongly complements the Masstock business model – Enhanced specialist route-to-market for new service and product applications Extension of presence in prescription farming systems design and delivery is highly attractive – Value sus
Slide 26: Rigby Taylor
Rigby Taylor Founded in 1919 Leading UK solutions provider servicing: – Professional sports turf – Landscaping and amenity sectors Brand strength with premium reputation Transaction summary – Stg£9.2m initial consideration – Stg£1.0m contingent consideration subject to future performance – Revenue S
Slide 27: Strategic positioning
Wa Origin ENTERPRISES PLC Strategic positioning 27
Slide 28: Origin as a focused Agri-Services group
Origin as a focused Agri-Services group Strategic Investments Agri-Services Marine Proteins & Oils Food On-Farm Business to Business 28
Slide 29: Building infrastructure and capability for farming systems
Building infrastructure and capability to optimise the productive capacity, profitability and environmental sustainability of farming systems. Growing Systems Farming Logistics and Input Sourcing Marketing and Yield technology Do-How Handling application Global supplier Global manufacturing Organisa
Slide 30: Agri-Services Positioning and Strategy
Agri-Services Positioning and Strategy Positioning Strategy – Leadership positions – Participate in industry consolidation in existing markets • Capital light and scalable where Origin has leading market position – Tailored production systems – Geographic extension for customers • Countries with lar
Slide 31: Outlook and Summary
Wa Origin ENTERPRISES PLC Outlook and Summary
Slide 32: Full Year Outlook
Full Year Outlook Excellent environment for farming providing backdrop for full year growth in Agri-Services in 2011 Sustained performance from Marine Proteins and Oils joint venture Valeo Foods concentrated on integration and consolidation Growth from existing Agri-Services businesses to offset fir
Slide 33: Summary
Summary Well-invested business with operational scale and leading service capability to support profitable systems of primary food production Agri-Services – Strong cash generative platform – Funding capacity for further development – Opportunities for earnings enhancing complementary acquisitions L
Slide 34: 2011 Interim Results
2011 Interim Results 10 March 2011