Slide 1: Preliminary Results 2016
Preliminary Results 2016 28 September 2016 Preliminary Results 2016 28 September 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: 2016 Performance Summary
2016 Performance Summary Preliminary Results 2016 28 September 2016 2
Slide 4: 2016 Performance Summary
2016 Performance Summary Group Proposed Group Operating Adjusted Operating Net Cash ROCE** Final Revenue Profit EPS Margin Dividend €1.5bn €67.3m 4.4% 44.5c €3.1m* 13.6% 17.85c +4.3% -14.7% -100bps -25.9% » Solid full year performance in a very difficult trading year for Agri-Services – Highly unsea
Slide 5: 2016 Agri-Services in Overview
2016 Agri-Services in Overview 42,000 Customers Geography Revenue EBIT 600 Sales Force █ Ireland / UK €1.5bn €67.3m █ Central & Eastern Europe 11.8m Direct Farm 67% | 33% 78% | 22% Ha Customer Footprint 100 Distribution Points Customer Channel Input Formulation & 24 Processing Facilities Revenue EBI
Slide 6: 2016 Market Overview
2016 Market Overview Responding to the challenging macro environment for primary producers » Sustained pressure on farm incomes – Rising global stock-to-usage ratios for grains and oilseeds against weaker demand – Credit availability and liquidity – Lag in input cost deflation » Discernable marketpl
Slide 7: Trading Review
Trading Review Preliminary Results 2016 28 September 2016 6
Slide 8: Agri-Services Financial Summary
Agri-Services Financial Summary 2016 2015 Change Underlying ** Year ended 31 July €’m €’m €’m €’m Revenue 1,521.3 1,458.1 63.2 (54.3) Operating profit * 67.3 78.9 (11.6) (21.9) Operating margin * 4.4% 5.4% (100bps) - Return on capital employed 13.6% 18.5% (490bps) - * Before amortisation of non-ERP
Slide 9: Integrated Agronomy and On-Farm Services: United Kingdom
Integrated Agronomy and On-Farm Services United Kingdom » Lower revenues and margins – Extended and unsettled winter weather limiting crop potential and curtailing service and input application – Weaker farm economics and shortened demand window drive greater competitive intensity » Good recovery in
Slide 10: Integrated Agronomy and On-Farm Services: Poland
Integrated Agronomy and On-Farm Services Poland » Lower underlying revenues and margins » Reduced service and input application largely reflecting impact of highly adverse weather conditions – Prolonged frost conditions resulted in loss of 20% of winter cropping area and reduced growing season for s
Slide 11: Integrated Agronomy and On-Farm Services: Romania, Ukraine
Integrated Agronomy and On-Farm Services Romania » Excellent maiden contribution » Higher underlying volumes, revenues and margins – Good growth across all service and input portfolios within retail and direct farm – New customer gains support market share growth – Favourable spring weather supporti
Slide 12: Business-to-Business Agri-Inputs
Business-to-Business Agri-Inputs Fertiliser » Solid performance against weaker demand » Lower volumes and margins » Reduced application in UK partially offset by robust volume performance in Ireland » Bespoke and specialist nutrition programmes continue to maintain solid momentum Amenity » Very sati
Slide 13: Finance Review
Finance Review Preliminary Results 2016 28 September 2016 12
Slide 14: 2016 Financial Highlights
2016 Financial Highlights 2016 2015 % Year ended 31 July €’m €’m Change Group revenue 1,521.3 1,458.1 4.3 Group operating profit* Agri-Services 67.3 78.9 (14.7) Associates and joint venture** 5.6 14.1 (60.1) Total group operating profit 72.9 93.0 (21.6) Finance costs, net (7.4) (4.8) (53.2) Profit b
Slide 15: Revenue – Agri-Services
Revenue – Agri-Services €m 2,000.0 1,800.0 +€161.9m (€54.3m) +€63.2m (€44.4m) +11.1% (3.7%) +4.3% 1,600.0 (3.1%) 1,400.0 €1,521.3m €1,458.1m 1,200.0 1,000.0 800.0 600.0 400.0 200.0 0.0 FY15 Currency Acquisitions Underlying FY16 14
Slide 16: Operating Profit – Agri-Services
Operating Profit – Agri-Services €m 100.0 +€10.9m (€21.9m) +13.8% (27.7%) 90.0 (€0.6m) (0.8%) 80.0 (€11.6m) €78.9m (14.7%) 70.0 €67.3m 60.0 50.0 40.0 30.0 20.0 10.0 0.0 FY15 Currency Acquisitions Underlying FY16 15
Slide 17: Earnings per Share
Earnings per Share € cent per share + 6.59c (8.53c) 70.00 (0.41c) +11.0% (14.2%) (0.7%) (13.24c) 60.00 (22.0%) 60.10c 50.00 (15.59c) (25.9%) 40.00 44.51c 30.00 20.00 10.00 0.00 FY15 Currency Acquisitions Disposal Underlying FY16 16
Slide 18: Cash Flow/Net Cash
Cash Flow/Net Cash 2016 2015 Year ended 31 July €’m €’m Cash flow from operating activities 72.4 86.1 Change in working capital (20.7) (9.7) Interest and tax (18.2) (16.2) Cash flow from ongoing operating activities 33.5 60.2 Exceptional and once off items (17.9) (5.3) Net cash flows from operating
Slide 19: Balance Sheet
Balance Sheet 2016 2015 As at 31 July €’m €’m Tangible assets 112.5 105.5 Goodwill and intangible assets 185.2 161.4 Associates and joint venture 41.6 39.0 Working capital (3.5) (32.5) Deferred and contingent acquisition consideration (18.2) (16.5) Provisions for liabilities, including pension (13.6
Slide 20: Banking Facilities and Covenants
Banking Facilities and Covenants » Committed banking facilities of €430 million » Weighted average debt maturity in year 2016: 4.28 years Year ended 31 July 2016 2015 2014 Net debt to EBITDA * - - 0.14 Covenant <3.50 <3.50 <3.50 EBITDA to net interest 11.06 17.84 15.59 Covenant >3.00 >3.00 >3.00 All
Slide 21: Strategy and Positioning
Strategy and Positioning Preliminary Results 2016 28 September 2016 20
Slide 22: Externalities
Externalities Input Manufacturers Primary Producers Global Grain Complex Escalating Sustainability Elevated Grain & Cost of Innovation of Farm Incomes Oilseeds Production Speed of ROI Competitiveness of Emerging Markets & Product Lifecycle Production Systems & FX Volatility Manufacturing Regulation
Slide 23: Consolidation, Professionalisation and Technology are Centre Stage
Consolidation, Professionalisation and Technology are Centre Stage Stakeholders Input On-Farm Technology Primary Manufacturers Service Providers Providers Producers » Consolidation » Multi disciplinary capability » Innovations in crop » Professionalisation sets management systems » Prioritise higher
Slide 24: Uniquely Positioned in Value Chain
Uniquely Positioned in Value Chain Highly relevant route-to-market and service capability Capability Sets Integrated Agronomy and On-Farm Benchmarking & ROI Analysis Evidencing Value Add Yield Enhancement & Guiding On-Farm Decision B2B Agri-Inputs Knowledge Transfer Making Services Solution Developm
Slide 25: Strategies to Deliver Growth
Strategies to Deliver Growth Organic and acquisition » Expand service footprint in existing and broader relevant geographies » Progress localisation of growing systems knowledge transfer roll out » Leverage synergistic product portfolio – Focused segmentation and product lifecycle management » Servi
Slide 26: Summary and Outlook
Summary and Outlook Preliminary Results 2016 28 September 2016 25
Slide 27: Summary and Outlook
Summary and Outlook » Solid performance in very challenging year for Agri-Services in 2016 » Strong sector positions providing meaningful future development potential » Clear priorities for investment in technology capability and acquisition opportunities » Rigorous focus on strategic cost competiti
Slide 28: Preliminary Results 2016
Preliminary Results 2016 28 September 2016 Preliminary Results 2016 28 September 2016