Origin Enterprises Plc · EURONEXT:OIZ
Origin Enterprises — Investor Day (June 2010)
43 slides from Origin Enterprises's investor day presentation, Jun 28, 2010
Slide 1: Origin Enterprises plc Investor Day
Origin Enterprises plc Investor Day 28th June 2010 Welcome to Throws Farm - Masstock Research and Development Centre
Slide 2: Masstock's Strategic Positioning
Masstock’s Strategic Positioning To be the leading provider of value added services, technologies and strategic inputs that support the delivery of sustainable and profitable food production solutions for primary producers.
Slide 3: Total area of UK agricultural land = 18.8m hectares
Total area of UK agricultural land = 18.8m hectares Set-aside & All other land and fallow land, 1% woodland, 6% Horticultural crops 1% Other arable crops & potatoes 7% Permanent grassland, 35% Cereal crops, 19% Sole right rough grazing, 25% Temporary grass, 7% Source: Defra
Slide 4: Land used for Combinable Crop Production
Land used for Combinable Crop Production Oats Rye, mixed corn & 3% triticale 1% OSR 15% Wheat 54% Barley 27% Source: Defra
Slide 5: Cereal Farm Stats: c.54k farms engaged in cereal production
Cereal Farm Stats: c.54k farms engaged in cereal production These farms account for over 3.1m hectares and >22m tonnes of production c.30k farms specialise in cereal production Traditionally annual exports amount to between 2m to 4m tonnes – (changing times - bio fuels) Source: HGCA, Defra
Slide 6: Integrated Agronomy Services Locations
Integrated Agronomy Services Locations Masstock Massstock CSC Crop Protection GB Seeds 6
Slide 7: Masstock's influence on yields
Masstock’s influence on yields UK has the highest rate of inputs application in Europe Accordingly delivers the highest yields Masstock service model is integral to delivering these higher yields and maintaining and improving them Average Wheat Yields – UK 8.0t/ha – Germany 7.5t/ha – France 7.3t/ha
Slide 8: Smarter Thinking Smarter Results
We provide access to the Our Agronomists take latest seed, fertiliser and responsibility for all crop protection technologies aspects of the production system on We advise growers on Smarter Working farm the best agronomic practices for their crops We take care of environmental Smarter Thinking Smar
Slide 9: How does agronomy work in the UK?
How does agronomy work in the UK? Agronomist visits farm (up to 25x per year) Analyse farmer‟s needs Prescription creation Establishment Seed Nutrition Transmission Delivery to of prescription farmer Crop Protection Precision Agriculture
Slide 10: Masstock's Business Profile
Masstock’s Business Profile Market leader in Agronomy services through the distribution of strategic inputs Most extensive distributor research and development capability in the UK – 32,000 trial plots to find new solutions for profitable crop production Work with over 10,000 farm businesses – repre
Slide 11: Evolution of Sustainable Agriculture
Precision Agronomy (Smarter decisions, better targeting of inputs, sustainable management ) Evolution of Sustainable Access To The New Opportunities (Food versus Fuel, energy conservation/ Agriculture generation, water resources, climate change) Supporting Farm Management Objectives (Spreading Workl
Slide 12: UK Agchem Market by Crop Segment
UK Agchem Market by Crop Segment 0.41% 2% 3% 5% Cereals 8% OSR 3% Legumes Potato 10% 68% Sugar Beet Fruit Veg Others Source: CSL, Agri-Insight, Farmstat
Slide 13: Providing Solutions Throughout The Whole Farm Profit Equation
Providing Solutions Throughout The Whole Farm Profit Equation Farm Management Crop Food Arable Inputs Arable R&D Consultancy Marketing Industry Farm Industrial Agronomy Stewardship Distribution Outlets
Slide 14: An introduction to arable technology in Masstock
An introduction to arable technology in Masstock Clare Bend, Technical Director – Why Masstock Research and Development is different – Technology transfer – how do we do it? – Importance of a partnership approach
Slide 15: Sustainable Food Production
Sustainable Food Production New Horizons: – By 2050, world population could reach 9 billion – Food production will need to increase by 70% New Challenges: – Changing consumption patterns – Growing scarcity of water and land – Uncertainties around climate change effects – Legislation protecting the e
Slide 16: Average Wheat Yield of countries producing more than 300,000 tons
Average Wheat Yield of countries producing more than 300,000 tons Source: AIC conference 2009
Slide 17: An Introduction to Research and Development in Masstock
An Introduction to Research and Development in Masstock – Who are we and why are we different? – Why Research and Development matters – Using Science to Sell
Slide 18: Research and Development Goals
Research and Development Goals “To identify and confidently market the optimum combination of crop and agronomy that will maximise our customers‟ gross margin (yield and quality).”
Slide 19: Research and Development Functions
Research and Development Functions
Slide 20: UK Sites
UK Sites Replicated Trials Sites – 32,000 plots/yr – Innovative trials – Technical data – Guides product selection SMART Farms – Technology demos – Discussion groups – Integrated approach Demo sites – Simpler variety plots
Slide 21: Extensive Plant Growth Regulator testing at Throws
Extensive Plant Growth Regulator (PGR) testing at Investigations into other Throws.. crops at Throws … Goring – a high Agrifocus site maintained to disease site, ideal for ..And at Tiptree support south & west “COGS” studies ..And SMARTfarms now extended
Slide 22: Research and Development why it matters
Research and Development why it matters Fundamental to business Enables early evaluation of Huge competitive advantage philosophy potential chemistry • Technically driven • Best chance of securing • Delivers innovation our exclusivities customers seek R & D will become even Allows older (more profit
Slide 23: What's different about Masstock Research and Development?
What’s different about Masstock Research and Development? Integrated Agronomy Machinery Associates Supported by Science • Stronger links with • CLASS, Vaderstadt, • Collaboration with ADAS fertiliser manufacturers, Opico and others to to check our hands-on seed breeders and ensure we are exploring p
Slide 24: Research and Development focus is on the major UK crops
Research and Development focus is on the major UK crops UK Cropping Pattern (2009/10) Crop Spend £ /ha Hectares (million‟s) Winter wheat £120 - 190 1.96 Winter barley £100 – 150 0.42 Spring barley £70 – 85 0.53 W. Oilseed rape £120 - 160 0.62 Sugar beet £65 0.1 Field beans £50 - 85 0.16 Source: Mass
Slide 25: SEED
We integrate the three pillars of Agronomy to produce a high quality output SEED
Slide 26: But..it all needs communication
But..it all needs communication Both internal – To agronomists and field staff And external – To customers (farmers, manufacturers, CRD etc) Probably the biggest challenge
Slide 27: A Typical SMARTfarm Open Day – Communication in practice
A Typical SMARTfarm Open Day – Communication in practice Never miss an opportunity for branding… Last minute preparations! In field presentations on… ...Variety choice / seed rate ... Soil management & cultivations ..and chemistry
Slide 28: Arable Research Priorities 2009/10
Arable Research Priorities 2009/10 Successful Second wheats High output Oilseed Rape Agronomy RHIBAC - Use of bacteria to aid nutrition Exploring the benefits of Precision Agriculture – SoilQuest Integrated Grassweed Management
Slide 29: Using Science to Sell
Using Science to Sell… ….products, ….increased yields and farm profit An example – Disease management (Fungicides)
Slide 30: Yield (tonnes/ha)
Yield (tonnes/ha) O 10 12 14 0 2 4 6 8 ak le C or y d H ial e er ef or Source: Masstock Trials data Sa d ha D ra ux fo So rd ls ti R ce ob ig us G ul l iv H er um b Ei e r ns te in M on t Ti y m b Ve er lo ci ty R oc Ze ky be de M e as G cot la di at G or at sb y D M o v ar er ks M ma us n ke 3t/ha
Slide 31: Margin Over Fungicide Cost (£/ha)
Throws Trials Data Proved Investment in Fungicides is Key to Profit 400 350 300 Margin Over Fungicide Cost (£/ha) 250 £60/t 200 £100/t £130/t 150 An extra £40K across 100 a 200ha farm over a basic programme 50 0 Increasing fungicide investment
Slide 32: What makes the Masstock Business successful?
What makes the Masstock Business successful? 1. Innovation puts the customer first – Technically led 2. We refresh and continually renew the Serviced offer – Agronomist role has changed significantly.. 3. We are also involved in the Supply side – Gives flexibility to meet manufacturer‟s aspirations
Slide 33: Model Replication
Model Replication Declan Giblin, Corporate Development Director
Slide 34: What is the model?
What is the model? Providing value added services, technologies and strategic inputs that support the delivery of sustainable and profitable food production solutions for primary producers
Slide 35: Technical Agri Service Provision – Key Characteristics
Technical Agri Service Provision – Key Characteristics Repeat revenue with track record of customer retention Geographically scalable / Partnership based IP based with strong technical barriers to entry Margin sustainability and balanced product portfolio
Slide 36: Trends in the provision of Agri Services
Trends in the provision of Agri Services Agri services Agri services providers have seen increased Agri inputs demand for their services driven by: – Increasing average size of farms (especially in countries such as Ukraine and Russia) – Increased pressure on yields to meet international demand fo
Slide 37: Where are the opportunities?
Where are the opportunities? 37
Slide 38: Exporting the 'model'
Exporting the ‘model’ Poland Ukraine UK 38
Slide 39: Exporting the 'model'
Exporting the ‘model’ Poland Ukraine UK Model required to optimise arable output beyond 8 tons per Ha, getting that extra 1 ton is essential 39
Slide 40: Exporting the 'model'
Exporting the ‘model’ Poland Model required to lift arable output Ukraine towards and beyond 6 tons per Ha UK Model required to optimise arable output beyond 8 tons oer Ha, getting that extra 1 ton is essential 40
Slide 41: Exporting the 'model'
Exporting the ‘model’ Poland Model required to lift arable Ukraine output towards and beyond 6 tons per Ha Model required to lift agricultural output from current low averages of 2.5 tons per Ha UK Model required to optimise arable output beyond 8 tons per Ha, getting that extra 1 ton is essential 4
Slide 42: Smart Farming (Technology Transfer)
Smart Farming (Technology Transfer) Objective Approach – Identify suitable agronomy – Seek to extend Smart Farming business in new location Technology reach beyond UK market – Establish „technology transfer‟ programme (trials and training programme) Target Agronomy/ Typically gives Agri input access
Slide 43: The Masstock Team Working For You
The Masstock Team Working For You Your Partner In Profitable Farming