Slide 1: 2012 Interim Results
Click to edit Master title style 2012 Interim Results 8 March 2012 Click to edit Master subtitle style
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 their approval of this presentation. Due to the inherent uncertainties, including both economi
Slide 3: Origin overview
Origin overview Focused Agri-Services Group with investments in marine proteins 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% shareholder 3
Slide 4: 2012 Interim Results Highlights
2012 Interim Results Highlights 4
Slide 5: 2012 Interim Results Highlights
2012 Interim Results Highlights H1 now typically accounts for approximately 15% of annual profits – Increased seasonality reflecting repositioned business profile – Comparisons impacted by FY11 acquisition activity Group performing in line with expectations – Strong performance from agronomy service
Slide 6: Agri-Services
WA Origin ENTERPRISES PLC tas
Slide 7: Agri-Services On-Farm Trading Review
Agri-Services On-Farm Trading Review Jan 2012 Jan 2011 Change on prior period €m €m Change Underlying €m €m Revenue 507.4 569.1 (61.7) 37.3 Operating profit* 5.9 12.6 (6.7)** (3.0) Operating margin % 1.2% 2.2% (100bps) * Before intangible amortisation and exceptional items ** Comparisons impacted by
Slide 8: Agri-Services Business-to-Business Trading Review
Agri-Services Business-to-Business Trading Review Jan 2012 Jan 2011 Change on prior period €m €m Change Underlying €m €m Revenue 507.4 569.1 (61.7) 37.3 Operating profit* 5.9 12.6 (6.7)** (3.0) Operating margin % 1.2% 2.2% (100bps) * Before intangible amortisation and exceptional items ** Comparison
Slide 9: Associates and joint venture
Associates and joint venture 9
Slide 10: Associates and joint venture
Associates and joint venture Jan 2012 Jan 2011 Change on prior period €m €m €m Share of revenue 155.1 126.8 28.3 Share of profits after tax 7.0 6.4 0.6 50% 24% Lower profits in comparison with very Proven farming know-how combined strong preceeding two years with operational scale Reduced raw materi
Slide 11: Associates and joint venture
Associates and joint venture Jan 2012 Jan 2011 Change on prior period €m €m €m Share of revenue 155.1 126.8 28.3 Share of profits after tax 7.0 6.4 0.6 32% Solid performance against very challenging consumer backdrop – Lower consumer activity underpinning relentless drive for value – Strong promotio
Slide 12: Financial Review
Financial Review 12
Slide 13: January 2012 Interim Results - Financial Highlights
January 2012 Interim Results - Financial Highlights Jan 2012 Jan 2011 Change €m €m Revenue – Continuing operations Agri -Services 507.4 569.1 (10.8%) Group Operating Profit* 12.9 19.0 (31.9%) Agri-Services 5.9 12.6 (53.4%) Associates and joint venture** 7.0 6.4 10.4% Financing cost (3.1) (6.1) (49.0
Slide 14: January 2012 Interim Results – Revenue – Agri-Services
January 2012 Interim Results – Revenue – Agri-Services €m 700 €84.5m 600 569.1 €569.1m €65.3m 500 507.4 €507.4m (€169.4m) (€14.1m) 400 (€28.0m) 300 200 100 0 Jan 2011 Acquisitions Disposals Currency Underlying Underlying Jan 2012 Volume Price 14
Slide 15: January 2012 Interim Results – Operating Profit – Agri-Services
January 2012 Interim Results – Operating Profit – Agri-Services €m 14 12 12.6 €12.6m 10 (€1.8m) (14.1%) (€1.6m) (€0.3m) 8 (12.5%) (2.7%) (53.4%) 6 (€3.0m) 5.9 €5.9m 4 (24.1%) 2 0 Jan 2011 Acquisitions Disposals Currency Underlying Jan 2012 15
Slide 16: January 2012 Interim Results – EPS
January 2012 Interim Results – EPS € cent Per Share 14 11.45c 12 3.19c 10 (1.56c) 8 (13.6%) 8.26 8.26c (2.44c) (0.15c) 6 (21.3%) (0.77c) 6.53c (1.3%) (6.8%) 5.76 4 2 0 Jan 2011 Acquisitions Dilutive Impact Currency Underlying Jan 2012 of Food / Feed Discontinued – Food Continuing 16
Slide 17: Cash Flow/Net Debt
Cash Flow/Net Debt Year to 6 months to 6 months to July 2011 Jan 2012 Jan 2011 €’m’s €’m’s €m’s Cashflow from operating activities 70.3 - Continuing 8.7 16.3 4.8 - Discontinued - 4.8 (2.3) Increase in working capital (74.3) (54.9) (25.3) Interest and tax (7.8) (9.9) 47.5 Net cash inflow/(outflow) fr
Slide 18: January 2012 Interim Results Exceptional Items
January 2012 Interim Results Exceptional Items January 2012 €m’s Fair value adjustment on investment properties (9.7) Gain on dilution of interest in Valeo 2.3 Valeo – Rationalisation/acquisition costs (2.3) - Total (9.7) 18
Slide 19: Maturity Profile of Net Debt
Maturity Profile of Net Debt (€m’s) Committed Banking facilities of €300 million Jan 2012 July 2011 €m’s €m’s Cash, net 49.3 50.1 Within 1 year (0.5) (0.5) Between 1 and 2 years - - Between 2 and 5 years (242.8) (141.7) Net Debt (194.0) (92.1) Weighted average Debt Maturity in years 4.4 4.9 19
Slide 20: Operating well within agreed Bank Covenants
Operating well within agreed Bank Covenants Jan 2012 July 2011 Net Debt to EBITDA 2.43 1.17 Covenant <3.50 < 3.50 EBITDA to Net Interest 10.39 7.57 Covenant >3.00 > 3.00 All terms as defined for bank covenant testing purposes. 20
Slide 21: Group Review
Group Review 21
Slide 22: Business to Business Fertiliser and Amenity overview
Business to Business Fertiliser and Amenity overview Leading Ireland and UK blended fertiliser solutions provider – Prescription nutrition offering tailored to soil characteristics and farm production systems – Just-in-time delivery capability handling c.1.2m tonnes – Acquisitions enhancing value-ad
Slide 23: Business to Business Feed Ingredients
Business to Business Feed Ingredients All Ireland feed procurement, logistics and handling platform (50:50) – Extension of long term partnership – 3m tonne dry bulk ingredients – Enlarged platform improving competitiveness, flexibility and market relevance – Scale enhancing risk management processes
Slide 24: Launch of UK agronomy services platform
Launch of UK agronomy services platform Masstock and UAP combine to form Agrii New identity conveys the essential focus of the business around… – The relationship between agronomy expertise and farming – Placing agri-intelligence and innovation at the heart of the business – Conveying Agrii’s ‘Agron
Slide 25: Research and Development: Why has the rate of crop yield slowed?
Research and Development Why has the rate of crop yield slowed? Stagnation of genetic progress? – Unlikely More likely causes: – Spring drought – High temperatures during grain fill – Loss of fungicide effectiveness Applied Agronomy – Herbicide resistance – Lack of nutrition innovation – Depletion o
Slide 26: Research and Development Positioned at core of the business
Research and Development Positioned at core of the business Seed Crop Nutrition Agronomy Business Environmental Precision Protection Management Stewardship Agriculture Innovative Research IT Farming Platform & Development Comprises: Comprises: Replicated R&D + Farm recommendation software + Agrii Te
Slide 27: Integration progress to date
Integration progress to date Organisation – Simplified and decentralised structure – Building regional leadership capabilities driving… – An integrated approach to customer management Research and Intelligence – Strengthened connectivity with science • Securing early access to crop genetics • Linkin
Slide 28: Leading position in UK agronomy-service provision
Leading position in UK agronomy-service provision Accounts Agronomists Staff Sites 25,000 300 860 47 300 980 31% of all practicing agronomists 22,000 54,000 40% of farms engaged in cereal production 1.4m ha 4.2m ha 33% of primary combinable crop advice 16k ha 29k ha 55% of primary fruit crop advice
Slide 29: Total Crop Management System
Total Crop Management System Agronomy plus plus IT/ Decision Support Effective, Efficient, Electronic, Evidence based. 29
Slide 30: Agri-Services strategic positioning
Agri-Services strategic positioning • Leadership position established • Needs of Customer • Maintain integrity of • Tailored offering local relationship • Integrated solutions • Farm structure • Advice and service • Cropping • Technical support • Service and technology • Technology transfer route-to
Slide 31: Outlook and Summary
ie Origin ENTERPRISES PLC Outlook and Summary
Slide 32: Outlook
Outlook Current environment for farming providing positive backdrop – Established cropping profile providing excellent platform for full year result – Favourable grower returns supporting crop investment – Slower start to B2B season in H1 – similar to 2010 On track to deliver full year consensus ear
Slide 33: Summary
Summary Focused on building an intelligence led, sustainable agri-services model – Leading position in on-farm service provision established – Well positioned to respond to requirements of professionalised and automated farming sector Integration across Agrii and B2B platforms well advanced – Emphas
Slide 34: 2012 Interim Results
2012 Interim Results 8 March 2012