Origin Enterprises Plc · EURONEXT:OIZ
Origin Enterprises — H1 2010 Earnings Presentation
25 slides from Origin Enterprises's earnings presentation, Mar 11, 2010
Slide 1: 2010 Interim Results
2010 Interim Results 11 March 2010
Slide 2: Origin at a glance
Origin at a glance…. Agri-Nutrition Food Integrated Direct Agri-inputs Marine proteins Flour milling Ambient food agronomy farming - Feed ingredients and oils services - Fertiliser H1 2010 Group EBITA* - €23.0m Agri-Nutrition 80% Food 20% Agri-Nutrition 65% Food 35% *Group earnings before interest,
Slide 3: 2010 Interim Results - Overview
2010 Interim Results - Overview First Half performance behind last year but in line with our expectations – H1 seasonally quiet period of activity – More pronounced seasonality in current year Agri-Nutrition – Slower Agri-Inputs activity – Sustained performance from Masstock and Dalgety – Excellent
Slide 4: Financial Review
Financial Review 4
Slide 5: 2010 Interim Results - Highlights
2010 Interim Results - Highlights Revenues of €596.8m Group EBITA * of €23.0m Second quarter ahead of the corresponding period last year Adjusted fully diluted EPS** of 8.68 cent per share – reduction of 22% Net debt of €190.5m – €10m lower following spend of €46m on development/capex Year on year r
Slide 6: 2010 Interim Results – Income Statement
2010 Interim Results – Income Statement 2010 2009 Half Year Ended January Change €m’s €m’s Revenue 596.8 710.1 (16%) EBITA * 23.0 28.0 (18%) Operating Profit ** 15.9 27.2 Associates and joint venture – PAT 5.2 0.6 Profit before financing costs ** 21.1 27.8 (24%) EBITA* % 3.9% 4.0% *Group earnings be
Slide 7: 2010 Interim Results – Segmental Analysis
2010 Interim Results – Segmental Analysis 2010 2009 Half Year Ended January Change €m’s €m’s Revenue Agri-Nutrition 461.6 553.5 (17%) Food 135.2 156.6 (14%) Total 596.8 710.1 (16%) Operating Profit* Agri-Nutrition 7.8 18.0 (57%) Food 8.1 9.2 (12%) Total 15.9 27.2 (42%) Associates - PAT 5.2 0.6 767%
Slide 8: 2010 Interim Results – Income Statement (EPS)
2010 Interim Results – Income Statement 2010 2009 Half Year Ended January Change €m’s €m’s Profit before financing costs 21.1 27.8 (24%) Financing cost, net (7.8) (9.2) Amortisation (2.0) (1.5) Profit before tax 11.3 17.1 (34%) Taxation (1.1) (3.0) Profit for the period 10.2 14.1 (28%) Adjusted full
Slide 9: Cash Flow/Net Debt
Cash Flow/Net Debt Continued strong cash generation Debt €10m lower following spend of €46m on development/capex 6 months to 6 months to 12 months to FY09 Jan 10 Jan 09 Jan 10 €m’s €’m’s €’m’s €m’s 82.8 Cashflow from operating activities 19.0 31.9 69.9 2.3 Change in working capital (43.3) (54.9) 13.
Slide 10: Balance Sheet
Balance Sheet Jan 2010 Jan 2009 July 2009 €m’s €m’s €m’s Investment properties 59.2 193.0 59.2 Other tangible assets 84.5 100.0 86.8 Intangibles/Goodwill 113.2 99.8 115.9 Associates and joint venture 87.2 31.9 83.6 Working capital 48.6 78.8 13.9 Deferred consideration (12.3) (10.8) (12.1) Net debt (
Slide 11: Maturity Profile of Net Debt
Maturity Profile of Net Debt (€m’s) Committed Bank facilities of €450m Renewed in May 2009 to August 2012 January 2010 July 2009 Cash, net 12.4 79.8 Within 1 year (0.6) (0.9) Between 1 and 2 years (0.5) - Between 2 and 5 years (201.8) (232.7) Total Net Debt (190.5) (153.8) Weighted average Debt Matu
Slide 12: Bank Covenant Ratios
Bank Covenant Ratios Operating well within agreed Bank Covenant ratios January 2010 July 2009 Net Debt to EBITDA 2.67 1.99 Covenant < 3.50 < 3.50 EBITDA to Net Interest 4.78 5.09 Covenant > 3.00 > 3.00 Cash flow to Net Interest 4.50 3.96 Covenant > 2.00 > 2.00 All terms as defined for bank covenant
Slide 13: Agri-Nutrition Review
Agri-Nutrition Review 13
Slide 14: Agri-Nutrition Review
Agri-Nutrition Review 2010 2009 Half Year Ended January Change €m’s €m’s Revenue 461.6 553.5 (17%) Group EBITA 14.9 18.8 (21%) Group EBITA % 3.2% 3.4% (17 bps) Integrated agronomy services – Strong performance in seasonally quiet period Direct farming – Very good operational progress Agri-Inputs – S
Slide 15: Integrated Agronomy Services
Integrated Agronomy Services Providing specialist agronomy and farm management expertise to arable and grassland farm enterprises. Strong performance in seasonally quiet H1 – Masstock full service agronomy offering well supported – SMART Farming centre stage in profiling profitable arable production
Slide 16: Direct farming
Direct farming Continental Farmers Large scale producer of combinable and root crops in Poland and Ukraine – Provides model extension Very good operational progress during period – Successful harvests with very satisfactory yield outcomes – Structural scale to manage flexible cropping patterns – Tar
Slide 17: Agri-Inputs
Agri-Inputs Business-to-business feed ingredients and fertiliser importing, blending and distribution Mixed performance during seasonally quiet H1 – Delayed customer purchasing decisions impacting Feed – Fertiliser volumes in line with expectations Primary Producer Returns – Irish farm incomes under
Slide 18: Marine proteins and oils
Marine proteins and oils Welcon Leading European producer of fishmeal and fish oil Positive market fundamentals – Increased European Atlantic salmon production driving higher fish feed consumption – Reduced South American fishmeal availability Excellent H1 performance – Improved selling prices – Sat
Slide 19: Food Review
Food Review 19
Slide 20: Food Review
Food Review 2010 2009 Half Year Ended January Change €m’s €m’s Revenue 135.2 156.6 (14%) Group EBITA 8.1 9.2 (12%) Group EBITA % 6.0% 5.9% - Robust performance in difficult economic and trading conditions – Consumers migrating to value offerings – Increased Sterling based imports – Direct sourcing o
Slide 21: Food: Securing consumer brand loyalty
Food Securing consumer brand loyalty Leading category management – Category partner with major retailers – Actively advising on categories Pricing and Promotional support – Increased advertising – In-store theatre – Offering value to the consumer Continued product development – Expanding offering in
Slide 22: Outlook and Summary
Outlook and Summary 22
Slide 23: Outlook for 2010
Outlook for 2010 While the business environment remains challenging the Group remains on track to deliver consensus earnings for the full year - Adjusted EPS of c.33 cent per share – H2 key earnings period – Sustained performance within integrated agronomy services – Cautious approach in Irish Agri-
Slide 24: Summary
Summary Well-invested business with operational scale and leading service capability to support profitable systems of primary food production Strong funding capacity for development Complementary bolt-on acquisitions to consolidate leading market positions and extend geographic footprint The long te
Slide 25: 2010 Interim Results
2010 Interim Results 11 March 2010