Slide 1: Preliminary Results 2014
Preliminary Results 2014 24 September 2014
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 2014 Highlights ……............................................................................................. 04 Agri-Services ………..……...................................................................................... 05 Associates and Joint Ventures…….........................
Slide 4: 2014 Highlights
2014 Highlights Group Group Agri-Services Adjusted Proposed Operating Net Debt Revenue Operating Profit EPS Annual Dividend Margin €1.4bn €79.5m 5.6% 57.51c €11.9m 20.0c (0.2%) +15.4% +70bps +10.4% +15.9% Good performance ahead of expectation with 10.4% increase in adjusted EPS – Growth achieved aga
Slide 5: Agri-Services
Agri-Services 5
Slide 6: Agri-services at a Glance
Agri-services at a Glance Operating Revenue Channel Applications Geography Services Profit Ireland Agronomy 15% Crop and variety selection Direct Farm Combinable Cultivation systems 53% Crops Nutrition management Decision support and €1.4bn UK €79.5m precision applications 77% Soil health and field
Slide 7: Context for Primary Producers in 2014
Context for Primary Producers in 2014 Challenging operational and planning backdrop Volatile output price backdrop reflecting record global supply side potential – Favourable growing conditions supporting excellent yield outcomes – Primary crop enterprises experience elevated operational intensity G
Slide 8: Agri-Services Financial summary
Agri-Services Financial summary July 2014 July 2013 Change on prior year Agri Services €m €m Change €m Underlying €m Revenue 1,415.2 1,418.2 (3.0) (46.5) Operating profit* 79.5 68.9 10.6 8.2 Operating margin* 5.6% 4.9% 70bps Return on capital 23.2% 23.3% (10bps) employed * Before amortisation of non
Slide 9: Integrated On-Farm Agronomy Review United Kingdom
Integrated On-Farm Agronomy Review United Kingdom UK | Agrii Higher revenues and profits – Increased demand reflecting strong recovery in winter cropping area – Excellent crop potential Strong operational performance – Breadth of technology portfolios complement highly responsive crop management pro
Slide 10: Integrated On-Farm Agronomy Review Eastern Europe
Integrated On-Farm Agronomy Review Eastern Europe Poland | Dalgety Ukraine | Agroscope Good overall performance Robust performance in period – Favourable cropping profile supporting good – Favourable sales mix agronomy demand – Planted area marginally ahead of last year – Lower crop marketing margin
Slide 11: B2B Agri Inputs Review
B2B Agri Inputs Review Business-to-business Agri Inputs Fertiliser Feed Ingredients Improved result through increased sales of specialist nutrition Solid performance on back of lower volumes – Greater adoption of prescription nutrition packages Reduced spot demand due to strong recovery in – Emphasi
Slide 12: Associates & Joint Ventures
Associates & Joint Ventures 12
Slide 13: Associates and Joint Venture
Associates and Joint Venture* July 2014 July 2013 Change on prior year €m €m €m Share of revenue 416.1 594.7 (178.6) Share of profits after tax** 13.4 21.8 (8.4) Consumer Foods Feed Milling 32% 50% Improved result reflecting first time contribution from Largest single site multispecies Rowse Honey a
Slide 14: Financial Review
f Financial Review ) 14
Slide 15: 2014 Financial Highlights
2014 Financial Highlights July 2014 July 2013 % Change €m €m Revenue Agri-Services 1,415.2 1,418.2 (0.2%) Group Operating Profit* Agri-Services 79.5 68.9 +15.4% Associates and joint ventures** 13.4 21.8 (38.7%) 92.9 90.7 +2.4% Financing cost, net (5.5) (6.1) (9.9%) Profit before tax* 87.4 84.6 +3.3%
Slide 16: Revenue – Agri-Services
Revenue – Agri-Services €1,500 +€44.0m (€46.5m) +3.10% (3.28%) €1,450 (€0.5m) (0.04%) (0.22%) €1,400 [CELLRANGE] €1,418.2m [CELLRANGE] €1,415.2m [VALUE] [VALUE] €1,350 €m €1,300 €1,250 €1,200 FY2013 Currency Acquisitions Underlying FY2014 16
Slide 17: Operating Profit – Agri-Services
Operating Profit – Agri-Services €85 +€8.23m +12.0% +15.4% €80 [CELLRANGE] €79.5m [VALUE] €75 +€2.3m +€0.07m +3.3% €70 +0.1% €m [CELLRANGE] €68.9m [VALUE] €65 €60 €55 €50 FY2013 Currency Acquisitions Underlying FY2014 17
Slide 18: EPS – Year-on-year Increase of 10.4%
EPS – Year-on-year Increase of 10.4% Underlying increase of 16.7% 60.0 +8.64c +16.7% +10.4% [CELLRANGE] 57.51c 55.0 (0.09c) (8.00c) [VALUE] (0.2%) (15.4%) +1.45c [CELLRANGE] 52.11c +3.40c +2.8% 50.0 € cent [VALUE] +6.5% per share 45.0 40.0 35.0 30.0 FY2013 Currency Welcon disposal Tender offer Acqui
Slide 19: Cash Flow/Net Debt
Cash Flow/Net Debt Continued strong cash generation - €17.7m reduction in debt 2014 2013 Year Ended 31 July €m €m Cashflow from operating activities 75.6 70.2 Change in working capital 11.5 1.3 Interest and tax (11.8) (17.1) Net cash flow from operating activities 75.3 54.4 Dividends received 2.3 6.
Slide 20: Banking Facilities and Covenants
Banking Facilities and Covenants Committed banking facilities of €330 million Weighted average debt maturity in years 2014: 1.7 years July 2014 July 2013 Net Debt to EBITDA 0.14 0.38 Covenant < 3.50 < 3.50 EBITDA to Net Interest 15.59 13.15 Covenant >3.00 > 3.00 All terms as defined for bank covenan
Slide 21: Balance Sheet
Balance Sheet July 2014 July 2013 €m €m Tangible assets 98.0 88.2 Intangibles / Goodwill 151.4 129.8 Associates and joint ventures 97.5 84.7 Working capital (46.0) (47.6) Due from sale of joint venture - 94.0 Put option liability (16.4) - Provisions for liabilities, including pension (8.0) (15.7) Ne
Slide 22: Group Positioning & Strategy
Group Positioning & Strategy 22
Slide 23: Agri-Services Operating profit development since IPO
Agri-Services Operating profit development since IPO Operating Profit* ROI* €100m 24% €90m 24.4% 23.5% 23.3% 23.2% 23.1% 23.2% €80m 22% €70m 20% €60m Operating Profit 19.2% 18% ROI €50m €40m 16.6% €80m 16% €69m €69m €30m €61m 14% €45m €42m €20m €39m 12% €10m €12m €0m 10% 2007 2008 2009 2010 2011 201
Slide 24: Building a Scalable Farm Services Capability
Building a Scalable Farm Services Capability 60% 55% 50% 45% 40% 35% 30% 25% ▬ Agri-Services B2C share of Group EBIT 20% 2008 2009 2010 2011 2012 2013 2014 Direct Interface Strategic Review Organisational Transformation and Focused selling With Primary Producer Alignment change management strategies
Slide 25: Established Leadership Position in Agronomic Application
Established Leadership Position in Agronomic Application Integrated Data & insight Innovation Knowledge transfer Fulfilment approach ● Seed ● Variety ● Varieties ● iFarms ● Trust and genetics relationship ● Soils and water ● Nutritional ● Soil performance requirements ● Nutrition & soils ● Analyse g
Slide 26: Strategic Priority
Strategic Priority Capture growth opportunity in the technology transfer of smart agriculture solutions and sustainable crop technologies Focus Prioritise customisation and maintain comprehensive service and technology portfolio to maximise value add Organisation Simplification to unlock benefits of
Slide 27: 2015 Key Performance Priorities and Focus Points
2015 Key Performance Priorities and Focus Points Drive growth and performance through managed led sales teams – Team centric approach to guide acres expansion and service extension – Leverage local market insights to create more focused selling strategies Optimise research application and knowledge
Slide 28: Summary and Outlook
ENTERPRISES PLC ( Summary and Outlook ) 28
Slide 29: Summary and Outlook
Summary and Outlook Fully integrated and scalable platform established and aligned to requirements of primary food producers for specialist crop solutions – Clear priorities for on-farm technology transfer – Increased emphasis on value added technologies Investment priority focussed on geographic an
Slide 30: Preliminary Results 2014
Preliminary Results 2014 24 September 2014