Slide 1: Interim Results 2016
Interim Results 2016 10 March 2016
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: Table of Contents
Table of Contents 2016 Interim Highlights and Business Review .................................. 04 Financial Review ……………………................................................. 11 Strategy and 2016 Outlook ………......................................................... 19 3
Slide 4: 2016 Interim Highlights and Business Review
2016 Interim Highlights and Business Review 4
Slide 5: 2016 Half Year Summary
2016 Half Year Summary Share of Profit Group Agri-Services Adjusted Interim Dividend of Associates Net Debt Revenue Operating Result and JV* Loss per Share per Share €507.2m (€1.8m) €1.5m (2.47c) 3.15c €168.3m (4.6%) (143.6%) (76.5%) (142.6%) Slower start to Agri-Services trading in seasonally quiet
Slide 6: Agri-Services Today
Agri-Services Today Revenue by Geography 70% 30% Ireland & UK Central & Eastern Europe Operating profit by Customer Channel Operating profit by Application Combinable Crops (64%) Grassland (14%) Direct Farm (60%) Customer Application Roots & Veg (4%) Channel Business-to-Business (40%) Amenity (7%) C
Slide 7: Agri-Services Half Year Business Review: Direct Farm UK
Agri-Services Half Year Business Review Direct Farm - UK UK Lower revenues in seasonally quiet first half – Unseasonal storms and record rainfall significantly curtailed in-field activity during Q2 Greater competitive intensity – Weaker economics on farm – Prioritising complete agronomy programmes t
Slide 8: Agri-Services Half Year Business Review: Central and Eastern Europe
Agri-Services Half Year Business Review Direct Farm – Central and Eastern Europe Poland Romania Good first half performance with higher agronomy revenues Redoxim and Comfert acquisitions completed on 17 and profits September 2015 and 16 December 2015, respectively – Solid volume achieved across seed
Slide 9: Agri-Services Half Year Business Review: Ukraine
Agri-Services Half Year Business Review Direct Farm – Central and Eastern Europe cont’d… Ukraine Good first half performance reflecting higher early season agronomy revenues – Increased level of contracted customer commitments for full year underpinning volume growth in H1 – Well positioned for key
Slide 10: Agri-Services Half Year Business Review: B2B Agri-Inputs
Agri-Services Half Year Business Review B2B Agri-Inputs Review Ireland and UK Fertiliser Challenging first half with lower volumes and margins – Weak early season demand reflecting weather impacts and current pressures on primary producer incomes – Limited incentive for farmers to purchase fertilise
Slide 11: Financial Review
i Financial Review 11 Origin ENTERPRISES PLC
Slide 12: 2016 Interim Financial Highlights
2016 Interim Financial Highlights January 2016 January 2015 % Change €m €m Revenue Agri-Services 507.2 531.6 (4.6%) Group operating (loss)/profit* Agri-Services (1.8) 4.1 (143.6%) Associates and joint venture** 1.5 6.3 (76.5%) (0.3) 10.4 (103.0%) Finance cost, net (3.8) (2.8) (35.1%) (Loss)/profit b
Slide 13: Revenue – Agri-Services
Revenue – Agri-Services 800.0 700.0 +€11.9m +€14.1m +2.2% 600.0 +2.7% (€24.4m) (4.6%) 500.0 €531.6m €507.2m (€50.4m) (9.5%) €m 400.0 300.0 200.0 100.0 0.0 FY15 Currency Acquisitions Underlying FY16 13
Slide 14: Operating Result – Agri-Services
Operating Result – Agri-Services 7.0 +€0.6m +14.3% 5.0 +€0.1m +2.3% €4.1m €m 3.0 1.0 (€1.8m) (1.0) (€6.6m) (€5.9m) (160.2%) (143.6%) (3.0) FY15 Currency Acquisitions Underlying FY16 14
Slide 15: Group EPS
Group EPS 7.00 +0.17c +0.04c +2.9% +0.7% 5.80c 5.00 3.00 € cent Per Share (3.92c) 1.00 (67.6%) (2.47c) (1.00) (4.56c) (8.27c) (3.00) (78.6%) (142.6%) FY15 Currency Acquisitions Valeo Disposal Underlying FY16 15
Slide 16: Cash Flow/Net Debt
Cash Flow/Net Debt €7.1m increase in debt Year to Jan 2016 Jan 2015 12 months to July 2015 Period ended 31 January January 2016 €m €m €m €m 80.8 Cash flow from operating activities (18.3) 5.2 57.3 (9.7) Change in working capital (145.8) (115.5) (40.0) (16.2) Interest and tax (4.4) (5.5) (15.1) 54.9
Slide 17: Banking Facilities and Covenants
Banking Facilities and Covenants Committed banking facilities of €430 million Weighted average debt maturity in years 2016: 4.02 years January 2016 January 2015 Net Debt to EBITDA * 2.18 1.74 Covenant < 3.50 < 3.50 EBITDA to Net Interest 14.12 15.06 Covenant >3.00 >3.00 All terms as defined for bank
Slide 18: Balance Sheet
Balance Sheet January 2016 January 2015 €m €m Tangible assets 115.8 102.2 Goodwill and intangible assets 181.6 156.2 Associates and joint venture 38.7 104.2 Working capital 131.7 70.7 Put option liability (16.7) (16.6) Provisions for liabilities, including pension (14.2) (21.9) Net debt * (168.3) (1
Slide 19: Strategy and 2016 Outlook
WF Origin ENTERPRISES PLC ! Strategy and 2016 Outlook ) 19
Slide 20: Scalable Platform Dedicated to Supporting the Primary Crop Production Sectors
Scalable Platform Dedicated to Supporting the Primary Crop Production Sectors of the Food Industry Integrated Seed Soil & Climate Disease Environment Approach Water Multi- Coordinated Data & Factor Crop Technology Growing Data Competitiveness Insight Centres Systems Analysis Trials Serviced Nutritio
Slide 21: Origin's Relevance Supported by Ever Increasing Complexity of Farming
Origin’s Relevance Supported by Ever Increasing Complexity of Farming and its Planning Environment Price / cost Managing risk squeeze and volatility Product quality Common and safety Agricultural Policy and farming support Greater efficiency of production systems Professionalisation Age profile and
Slide 22: Strategic Agenda and Enablers
Strategic Agenda Focus Technology Investment People & Organisation Scale Build leading sector positions Value added solutions based Application research creating crop intelligence New and devolved leadership in geographies providing Pillars approach to maximise returns platforms that provide relevan
Slide 23: 2016 Outlook
2016 Outlook More challenging demand year for farm services and inputs – Sustained pressure on returns and incomes of primary producers – Farm budgets and investment programmes under greater scrutiny – Difficult weather in H1 Well positioned for key H2 earnings period – Strong cropping base with exc
Slide 24: Interim Results 2016
Interim Results 2016 10 March 2016