Origin Enterprises Plc · EURONEXT:OIZ
Origin Enterprises — Shareholder Meeting (November 2013)
26 slides from Origin Enterprises's shareholder meeting presentation, Nov 18, 2013
Slide 1: 2013 Annual General Meeting
2013 Annual General Meeting 18 November 2013
Slide 2: Origin at a glance
Origin at a glance.... Premier provider of crop management systems and strategic inputs to primary food producers Market leading positions in Ireland, the UK and Poland Agri-Services Integrated On-Farm Agronomy Business-to-Business Agri Inputs Sustainable total crop production systems Fertiliser, fe
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 Review
Agri-Services Review 4
Slide 5: 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 6: 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 7: 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 8: Associates and joint ventures
Associates and joint ventures 8
Slide 9: 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 Consumer Foods Marine Proteins and Oils 32% 50% Challenging Irish consumer dynamic Strong EBIT and margin growth – Focus
Slide 10: Financial Review
= “(22 One ENTERPRISES PLC Financial Review ) 10
Slide 11: Progress since establishment
Progress since establishment 2007 2008 2009 2010 2011 2012 2013 Year Ended July CAGR €m €m €m €m €m €m €m EBITA* 42.8 74.1 81.0 82.4 89.8 85.7 97.1 22.8% 14.6 % Adjusted diluted EPS ** (cent) 19.63 34.05 36.16 37.26 43.34 45.16 52.11 17.7 % 23.8% Dividend per share (cent) - - 8.0 9.0 11.0 15.0 17.25
Slide 12: Strategy and positioning
ENTERPRISES PLC Strategy and positioning ) 12
Slide 13: 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 14: 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 15: 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. 15
Slide 16: Development since year ended 31 July 2013
Development since year ended 31 July 2013 16
Slide 17: Agroscope – The Business
Agroscope – The Business Conditional Acquisition Agreement – 30 October 2013 Founded in 2002 Leading provider in Ukraine of agronomy services, high specification inputs and advisory support – Arable and root crop growers Scale – 1,200 farm customers – 150 employees including 45 agronomists and produ
Slide 18: Transaction Highlights
Transaction Highlights €12.72m cash consideration for acquisition of 60% equity interest – Multiple of 4x maintainable EBIT Option to acquire balance of shareholding based upon an agreed formula linked to future profitability 2013 forecast revenues of €77.90m and EBIT of €5.21m Earnings enhancing fr
Slide 19: Investment Rationale
Investment Rationale Ukraine providing significant market potential – 33m hectares agricultural land area – 19m hectares cropped area – Direct access to Farm Opportunity – Intensification driving increased yield potential and growth in serviced agronomy – Scale Origin crop management system capabili
Slide 20: Summary
Summary 20
Slide 21: Summary
Summary 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 investment priority
Slide 22: Annual General Meeting
2013 Annual General Meeting 18 November 2013
Slide 23: Extraordinary General Meeting
2013 Extraordinary General Meeting 18 November 2013
Slide 24: Background to and reasons for the proposed Tender Offer
Proposed Tender Offer Background to and reasons for the proposed Tender Offer €100m proposed return of capital 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 at 31 July 201
Slide 25: Proposed Tender Offer Timetable
Proposed Tender Offer Timetable Record date for final dividend 20 November 2013 Latest time for receipt of Tender Forms and TTE instructions from CREST 21 November 2013 (1.00pm) Announcement of results of the Tender Offer 22 November 2013 CREST accounts credited with Ordinary Shares in respect of un
Slide 26: Extraordinary General Meeting
2013 Extraordinary General Meeting 18 November 2013
Origin Enterprises — Shareholder Meeting (November 2013) on 6ix