Slide 1: Interim Results 2019
Interim Results 2019 6 March 2019
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: 2019 Highlights & Business Overview
2019 Highlights & Business Overview
Slide 4: 2019 Half Year Highlights
2019 Half Year Highlights Revenue: + 19.5% Positive start to year Operating Profit: €9.1 million (2018: €2.3 million) Good volume & margin driven performance Operating profit: €5.5 million Good first-time contribution Seasonality balance to Group earnings from Latin America Performance in line with
Slide 5: Agri-Services in Overview: Key Facts, Customer Channel and Geography
Agri-Services in Overview Key Facts, Customer Channel and Geography Geography1 Direct Farm Customers Customer Footprint 63% >50,000 12.7m ha Input Formulation Revenue & Processing Facilities Trial Units 34 62,000 2% 35% 70% Sales Force Distribution Points 770 112 EBIT Ireland/UK Demonstration Farms
Slide 6: Trading Review
Trading Review
Slide 7: Agronomy Service and Input Revenue Analysis
Agronomy Service and Input Revenue1 Analysis +20.9% Growth in Agronomy Service and Input Revenue from H1 2018 to H1 2019 Currency Underlying Acquisitions (0.1%) +13.6% +7.4% Volume Price +9.3% +4.3% 1 Excludes crop marketing revenues and volumes Interim Results 2019 7
Slide 8: Trading Review: Ireland & the UK
Trading Review Ireland & the UK • Underlying business volume growth of 12.4% Operating profit (€’m) • Strong performance driven by a combination of early season demand and improved product mix • Settled weather facilitated robust on‐farm activity and 2.8 higher autumn and winter crop plantings • Fav
Slide 9: Trading Review: Continental Europe
Trading Review Continental Europe1 • Reduction in underlying business volume of 0.3% Operating profit (€’m) • Trading performance reflects challenging market backdrop driven by demanding operating environment for farmers • Farm cash flow impacted by poor autumn crop 0.9 establishment and delayed tim
Slide 10: Trading Review: Latin America
Trading Review Latin America Brazilian Grain production, planted area and fertiliser consumption • Acquisition of Fortgreen completed in August 2018 300 Production (million t) 45 • Grain production (million tons) Business focused on development and marketing of Planted area (million ha) 40 Planted a
Slide 11: Financial Review
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Slide 12: 2019 Interim Performance Summary & Highlights
2019 Interim Performance Summary & Highlights Operating Associates Adjusted Revenue Profit and JV EPS €701.6m €9.1m €1.8m 3.61c +€114.7m +€6.8m +€0.1m +3.34c Underlying Net Debt/ Volume Growth Net Debt EBITDA Dividend +9.3%1 €238.8m 2.57x 3.15c 2018: 1.2%1 2018: €171.4m 2018: 2.17x 2018: 3.15c 1 Rep
Slide 13: 2019 Interim Financial Highlights
2019 Interim Financial Highlights Period ended 31 January 2019 2018 Change Period ended 31 January €’m €’m €’m Group revenue 701.6 586.9 114.7 Group operating profit1 Agri‐Services 9.1 2.3 6.8 Associates and joint venture2 1.8 1.7 0.1 Total group operating profit 10.9 4.0 6.9 Finance costs, net (5.9
Slide 14: Group Revenue
Group Revenue Period ended 31 January €m 800 +€36.9m +€116.3m (€1.6m) +€114.7m +€79.4m +6.3% +19.8% (0.3%) +19.5% 700 +13.5% €703.2 €701.6m 600 500 €586.9m 400 300 200 100 0 H1 18 Underlying Acquisitions H1 19 (excl. Currency H1 19 curency) Interim Results 2019 14
Slide 15: Group Operating Profit
Group Operating Profit Period ended 31 January €m 10 +€5.8m +€6.8m +252.2% +295.7% €9.1m 8 6 4 +€1.0m +43.5% 2 €2.3m 0 H1 18 Underlying Acquisitions H1 19 Interim Results 2019 15
Slide 16: Earnings per Share
Earnings per Share1 Period ended 31 January € cent per share 4.00 +2.83c +0.04c +3.34c 3.61c 3.00 2.00 1.00 +0.47c 0.27c 0.00 H1 18 Underlying Acquisitions Currency H1 19 1 Adjusted fully diluted EPS – before non‐ERP intangible amortisation net of related deferred tax and exceptional items Interim R
Slide 17: Summary Cash Flow Statement
Summary Cash Flow Statement Year to 12 months to July 2018 Period ended January 2019 January 2018 January 2019 €’m €’m €’m €’m 80.0 Cash flow from operating activities 13.6 6.3 87.3 0.7 Change in working capital (137.5) (92.6) (44.2) (17.4) Interest and tax (9.0) (6.8) (19.6) 63.3 Cash flow from ong
Slide 18: Balance Sheet
Balance Sheet Period ended 31 January 2019 2018 Period ended 31 January €’m €’m Tangible assets 136.5 127.1 Goodwill and intangible assets 285.3 215.7 Associates and joint venture 43.4 32.7 Working capital 161.1 98.0 Deferred and contingent acquisition consideration (46.5) (14.7) Provisions for liab
Slide 19: Banking Facilities and Covenants
Banking Facilities and Covenants Period ended 31 January Committed Period ended 31 January 2019 2018 banking facilities Net debt to EBITDA 2.57 2.17 €430 million Covenant <3.50 <3.50 Weighted average debt maturity in year 2019 EBITDA to net interest 9.25 11.24 Covenant >3.00 >3.00 3.3 years All term
Slide 20: Strategy & Development
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Slide 21: Primary Crop Production
Primary Crop Production Consolidation, Farm Professionalisation and Technology Adoption increasingly taking centre stage Seasonality & Climate Supply Chain Change Yield Enhancement Competitiveness Sustainability of Primary Food Environmental of Farm Production Stewardship incomes Systems Technology
Slide 22: Origin's Business Model
Origin’s Business Model Research & Development Own Formulation Crop Technology Digital Capabilities Partnerships >50,000 Services 10,000+ fertiliser customer 800,000 ha prescriptions serving on‐boarded 12.7m ha • Bespoke crop input development • High Service route‐to‐market • Advanced visualisation
Slide 23: Building Sustainable Value
Building Sustainable Value Our Vision Our Purpose To be the leading and trusted Sustaining land and lives through our partner of choice to the farmers, Expertise, Innovation and R&D growers and amenity professionals we serve Scale Market Focus Portfolio Positioning People & Organisation Concentrate
Slide 24: Focus Points for Growth
Focus Points for Growth Ireland and the UK Continental Europe Latin America Sales force 380 330 60 Customers 30,000 19,000 1,200 Brazil Farm size range 100 – 2,000 Ha 100 – 50,000 Ha 100 – 10,000+ Ha Sector profile Competitive Fragmented Fragmented Origin positioning 1 2/3 5 » Capitalise on existing
Slide 25: Summary & Outlook
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Slide 26: Summary
Summary Positive first half result driven by good volume and margin performances Good first time contribution from Latin America as guided Autumn and winter cropping profile provides a solid foundation for seasonally more important second half Full year outlook will be provided at time of Quarter 3
Slide 27: IR Calendar & Contact
IR Calendar & Contact Capital Markets Day (London) 8 May 2019 Q3 Trading Update 19 June 2019 FY 19 Financial Year End 31 July 2019 FY 19 Full Year Results 25 Sept 2019 Q1 Trading Update 20 Nov 2019 Annual General Meeting 20 Nov 2019 Brendan Corcoran Head of Investor Relations Investorrelations@origi