Slide 1: Interim Results 2021
INTERIM RESULTS 2021 4 March 2021 INNOVATE COLLABORATE SUSTAIN
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: Half Year 2021 Performance Overview
HALF YEAR 2021 PERFORMANCE OVERVIEW Financial Operational • Group revenue of €572.4 million (down 5.4%) • Recovery in UK planting area to a more normalised profile (Flat on prior year at underlying level) • Operating profit of €1.2m (2020: loss €2.8m) • Improved on farm sentiment supported by crop p
Slide 4: Business Review
BUSINESS REVIEW As \ 4 3
Slide 5: Group Revenue Analysis
GROUP REVENUE1 ANALYSIS (2.6%)1 Movement in Group Revenue1 from H1 2020 to H1 2021 (5.6%) Currency 3.0%Underlying 0.0%Acquisitions 6.8% Volume (3.8%) Price 1 Excludes crop marketing revenues and volumes 5
Slide 6: Trading Review: Ireland & the UK
TRADING REVIEW Ireland & the UK – Operating Loss of (€2.7m) vs (€9.1m) in 2020 • Underlying performance improved by €6.1m – Return to a more normalised cropping profile Operating Profit (€’m) • Fertiliser and feed ingredients drove a c.10% increase in underlying business volumes • Crop protection an
Slide 7: Trading Review: Continental Europe
TRADING REVIEW Continental Europe1 – Underlying operating profit decreased by €0.7m – 5.7% reduction in underlying product volumes (excl. crop marketing) Operating Profit (€’m) – Drought led to slower start to planting season but crop emergence has been good following better weather conditions in Q2
Slide 8: Trading Review: Latin America
TRADING REVIEW Latin America – Underlying operating profit grew by 6.2% in the seasonally important H1 period – Depreciation of BRL vs Euro significantly impacted the regions reported Operating Profit (€’m) contribution during the period – Brazilian soy area increased by 3.5% to 38.3m ha’s FX – Unde
Slide 9: Financial Review
FINANCIAL REVIEW As \ 4 3
Slide 10: 2021 Interim Performance Summary
2021 INTERIM PERFORMANCE Summary Revenue Operating Profit Adjusted EPS Interim Dividend €572.4m €1.2m (1.53c) 3.15c (€32.5m) (rc1) €4.0m (rc1) 3.00c (rc1) 2020: 3.15c (€0.5m) (cc1) €5.7m (cc1) 4.08c (cc1) Finance costs Working Capital Net Bank Debt2 Net Debt/EBITDA (€4.5m) €101.2m €158.3m 2.76x H1 2
Slide 11: 2021 Interim Financial Highlights
2021 INTERIM FINANCIAL HIGHLIGHTS Period ended 31 January 2021 2020 Change Constant Currency €’m €’m €’m €’m Group revenue 572.4 604.9 (32.5) (0.5) Group operating profit1 Agri-Services 1.2 (2.8) 4.0 5.7 Associates and joint venture2 0.8 1.1 (0.3) (0.3) Total group operating profit/(loss) 2.0 (1.7)
Slide 12: Group Revenue
GROUP REVENUE Period ended 31 January €’m (€0.5m) (€32.0m) (€32.5m) (0.1%) (5.3%) (5.4%) 600 €604.9m €604.4m €572.4m 400 200 0 H1 2020 Underlying H1 2021 Currency H1 2021 (excl. Currency) 12
Slide 13: Group Operating Profit
GROUP OPERATING PROFIT Period ended 31 January €’m 6 5 4 + €5.7m (€1.7m) +203.5% (60.7%) 3 €1.2m 2 €2.9m €2.7m €4.0m +142.8% 1 €1.2m 0 -1 -2 (€2.8m) -3 H1 20 Underlying H1 21 Currency H1 21 (excl. Currency) 13
Slide 14: Cash Flow
CASH FLOW Period ended 31 January January January 12 months to Year to July 2020 2021 2020 January 2021 €’m €’m €’m €’m 63.8 Cash flow from operating activities 11.1 6.5 68.4 30.3 Change in working capital (98.6) (138.4) 70.1 (16.6) Interest and tax (5.8) (7.8) (14.6) 77.5 Cash flow from ongoing ope
Slide 15: Banking Facilities and Covenants
BANKING FACILITIES AND COVENANTS 31 January 31 January 12 month rolling EBITDA 2021 2020 Committed banking facilities Leverage Net debt to EBITDA 2.76x 3.24x €430 million Covenant <3.50x <3.50x Interest Cover EBITDA to net interest 6.75x 7.57x Weighted average debt maturity Covenant >3.00x >3.00 All
Slide 16: Origin Proposition
as ORIGIN PROPOSITION *y \, fi
Slide 17: Integrated Agronomy & On-Farm Services
INTEGRATED AGRONOMY & ON-FARM SERVICES Established routes to market UK Continental Europe UK Poland Romania Ukraine Market Market Market Market position #1 position #3 position #2 position #3 Direct farm Direct farm Direct farm Direct farm customers 19k customers 5k customers 7k customers 3k 17
Slide 18: Origin Portfolio
ORIGIN PORTFOLIO Building inhouse product capabilities to complement our on-farm offering 18
Slide 19: Continental Europe
CONTINENTAL EUROPE Leveraging group capabilities to deliver margin growth Supplier focus Portfolio Optimisation Product Proprietary mix products Value Customer proposition Logistics segmentation Trials optimisation co-ordination Commercial Operational Excellence Excellence Agronomic Working capital
Slide 20: Capital Allocation
CAPITAL ALLOCATION Reinvestment Dividend People Resumption of dividend payout Capex for organic growth Digital platform Maintaining Product capabilities Financial Discipline & Balance Sheet Strength Acquisitions and Disposals Continuous review of portfolio to deliver increased returns over time 20
Slide 21: Sustainable Solutions
SUSTAINABLE SOLUTIONS 21
Slide 22: Working Towards a Sustainable Future
WORKING TOWARDS A SUSTAINABLE FUTURE On-farm products, services and advice Pillar Promoting sustainable food Innovation 1 production systems Engagement and partnerships Resource efficiency and environmental impacts Pillar Conducting business Conducting business with integrity 2 responsibly Empowerin
Slide 23: Putting Sustainable Agriculture into Practice
PUTTING SUSTAINABLE AGRICULTURE INTO PRACTICE ADVISING GROWERS ON BEST PRACTICE TO MEET CHANGING REGULATIONS Legislation Loss of Biodiversity Climate Change Limited Access to Reduced farm Pest, Weed and Loss of Crop Public Perception Industry Challenges New Breeding Profitability Disease Resistance
Slide 24: Transitioning the Theory into Practice
Pillar Transitioning the theory into practice 1 ● Establishing a forum for likeminded growers to work collaboratively to address key questions facing sustainable food production, such as: Farmer Network - Regenerating soils - techniques to increase carbon sequestration. - Improving water quality, bi
Slide 25: Helping Growers Achieve a Greener Footprint
Helping growers achieve a greener footprint and optimise soil health with Carbon Purchasing Nutrition Solutions Footprint Fertiliser carbon Encompassing our Measure footprints to enable operating strategies to manage informed choices for sustainability Production Independently Innovative Verified Pr
Slide 26: Summary
SUMMARY 26
Slide 27: Summary and Outlook
SUMMARY AND OUTLOOK – Cropping profile much improved on FY20 – Farm sentiment is positive, supported by strong global grain prices – Some challenges in H1 with stock on farm and reduced OSR area – Further six months of excellent working capital and cash management by business divisions – Continued w
Slide 28: Thank You
THANK YOU originenterprises.com 28