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Annual General Meeting 20 November 2019

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Page 1: Annual General Meeting · 2020. 5. 6. · Annual General Meeting 20 November 2019. Forward-looking statements This presentation contains forward-looking statements. These statements

Annual General Meeting20 November 2019

Page 2: Annual General Meeting · 2020. 5. 6. · Annual General Meeting 20 November 2019. Forward-looking statements This presentation contains forward-looking statements. These 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 economic and business risk factors underlying

such forward-looking information, actual results may differ materially from those

expressed or implied by these forward-looking statements.

The Directors undertake no obligation to update any forward-looking statements

contained in this presentation, whether as a result of new information, future

events or otherwise.

Page 3: Annual General Meeting · 2020. 5. 6. · Annual General Meeting 20 November 2019. Forward-looking statements This presentation contains forward-looking statements. These statements

Origin at a glance

50,000Customers

112Distribution Points

>2,500Employees

7Countries

€1.8bnRevenue

€82.3mOperating Profit

3

Revenue by Customer

Channel

Direct

Business-to-Business

Operating Profit by

Geographical Segment

Crop

Protection

Revenue

€500m

2.5m Tns

Fertiliser &

Crop Nutrition

€160mSeed Revenue

770

Sales Force

1m TnsCrop

Marketing

34

Formulation

& Processing

Facilities

61%

39%

73%17%

10%

Ireland & the UK

Continental Europe

Latin America

Page 4: Annual General Meeting · 2020. 5. 6. · Annual General Meeting 20 November 2019. Forward-looking statements This presentation contains forward-looking statements. These statements

FY2019 Financial PerformanceSummary

Operating Profit

€82.3m

Adjusted EPS

52.65c

Free Cash Flow

€54.0m

Revenue

€1.8bn+10.5% (rc1)+10.4% (cc1)

2018: €56.6m

Associates & JV Contribution

€6.7M

Group Operating Margin

4.6%

ROIC

13.2%

Total Dividend

21.32c(30bps)

Profit After Tax

€66.7m

Working Capital Outflow

€12.7m

Net Debt

€75.6m

Net Debt / EBITDA

0.87x

+8.1% (rc1)+7.8%(cc1)

+20bps

2018: 0.54x2018: (€0.7m) 2018: €38.4m

+15.6% (rc1)+15.5%(cc1)

+7.9% (rc1)+7.8%(cc1)

1 rc denotes reported currency; cc denotes constant currency

2 Represents underlying volume growth in agronomic services and inputs (excluding crop marketing volumes)

+1.5%

4

+7.0% (rc1)+7.2%(cc1)

Interim 3.15c

Final 18.17c

Page 5: Annual General Meeting · 2020. 5. 6. · Annual General Meeting 20 November 2019. Forward-looking statements This presentation contains forward-looking statements. These statements

FY2019 Highlights

Operational

– Strong business & operational execution in

Ireland/UK and LATAM

– Highly challenging market dynamics in

Ukraine drives lower performance in

Continental Europe

– Digital services enablement & coverage

progressing to plan with over 1m hectares on-

boarded

Strategic

– Successful LATAM expansion providing

geographic and portfolio diversification

– Enhanced product based capabilities drives

differentiation and momentum in value added

agronomy portfolios

– Continued strengthening of organisation and

leadership

5

Page 6: Annual General Meeting · 2020. 5. 6. · Annual General Meeting 20 November 2019. Forward-looking statements This presentation contains forward-looking statements. These statements

Strategy and

Development

Page 7: Annual General Meeting · 2020. 5. 6. · Annual General Meeting 20 November 2019. Forward-looking statements This presentation contains forward-looking statements. These statements

Global Grain & Oilseeds 12%

growth to 2025

Negligible increase in global area

cultivated for crops

Greater management

complexity at farm level

Evolution in farm servicesK

ey

Tre

nds

7

Ireland and the UK Continental Europe Latin America

Expected Market Growth 2019 - 2023

CP & Seed €1.2bn

CAGR: <1%

Fertiliser 6m Tns

CAGR: Flat

Market Profile Consolidated

Origin Position # 1

CP & Seed

Fertiliser

Market Profile

Origin Position

14m Tns

CAGR: 1%

€3.2bn

CAGR: 4%

Fragmented

# 1 - 3

CP & Seed

Speciality Inputs

Market Profile

Origin Position

€1.3bn

CAGR: 6%

€11bn

CAGR: 5%

Fragmented

# 5

Source: Informa Agribusiness Consulting

Our market place

Page 8: Annual General Meeting · 2020. 5. 6. · Annual General Meeting 20 November 2019. Forward-looking statements This presentation contains forward-looking statements. These statements

Origin plays an integral role in the crop services value chain

8

50,000 + Customer Relationships(100 – 10,000 hectare footprint)

Independence

& trust

Evidence based

& localised

advice

Management of

supply chain

complexity

Integrated

solutions

Input

financing &

credit

Full range of

agronomic

expertise & crop

inputs

Origin’s Value

Sustainable

market access

& technology

uptake

Underpin

market value &

returns

Technical

leverage and

strengthening

brand reach

Simplified

supply chain

Support

market

objectives

Strong

counterparty

Crop Input & Digital Service Supply Partnerships

Page 9: Annual General Meeting · 2020. 5. 6. · Annual General Meeting 20 November 2019. Forward-looking statements This presentation contains forward-looking statements. These statements

Research + Development

Our Business Model

Our purpose: Sustaining land and lives through our expertise, innovation and R&D

Crop Technology

Partnerships

Own Digital

Services

Own Crop Input Formulation

50,000+customers

serving12m ha

1,000,000 haon-boarded

11,000+fertiliser

prescriptions

Amenity ProfessionalsFarmers and Growers

Environmental

SustainabilityProfitability and

Competitiveness

Input

Supply ChainYield

Enhancement

InfluenceService Relationship

Field Level Application

Our Brands

9

Page 10: Annual General Meeting · 2020. 5. 6. · Annual General Meeting 20 November 2019. Forward-looking statements This presentation contains forward-looking statements. These statements

ScaleMarket Focus

PortfolioPositioning

People &Organisation

Strategy

Priority

Strategy For Growth

Concentrate on target geographies with long-term growth potential

Build complementary product-based and distribution capabilities

Customisation and localisation

Investments in digital and agronomic capabilities to promote sustainable food production systems

Maintain differentiated position as specialist route-to-market for crop technologies

Optimise Group position through balanced business portfolio and geographical diversification

Ongoing people and talent development

Devolved accountability and autonomy to execute growth agenda

To be the leading and trusted partner

of choice to the farmers, growers and

amenity professionals we serve

Our Vision

10

Page 11: Annual General Meeting · 2020. 5. 6. · Annual General Meeting 20 November 2019. Forward-looking statements This presentation contains forward-looking statements. These statements

Sustain Perform Grow

Ireland

UK

Belgium

Poland

Ukraine

Romania

Brazil

Paraná

Our Focus Points for Growth

Ireland and the UK

– Accelerate product and service extension

– Establish leading digitally enabled crop technology and advice capability

– Broaden agronomy portfolios in adjacent channels

– Maintain strong technical differentiation

– Optimise scale and efficiency benefits

Continental Europe

– Grow volume and market share

– Leverage own-product based formulation capabilities

– Develop complementary own-brand and segmented offers

– Leverage supply chain partnerships and synergistic input portfolios

– Expand digital agronomy

– Improve margin through product mix

Latin America

– Build volume and market share in growing specialty nutrition segments in Brazil

– Leverage agronomy distribution to scale route-to-market

– Optimise technical and product development capability to create opportunities in the wider Group

– Promote product innovation

– Develop digital agronomy

11

Page 12: Annual General Meeting · 2020. 5. 6. · Annual General Meeting 20 November 2019. Forward-looking statements This presentation contains forward-looking statements. These statements

Summary

Page 13: Annual General Meeting · 2020. 5. 6. · Annual General Meeting 20 November 2019. Forward-looking statements This presentation contains forward-looking statements. These statements

2023 Ambition 2019

Results

Organic EBIT CAGR

3-4%

Progressive Dividend Pay-out Ratio

>35%

2023 Diversified EBIT outside Ireland / UK

40%+

Group ROIC

12-15%

3.5%

27%

13.2%

40.5%

On Track

13

– Well invested and focused Agri-Services Group with good geographic and

business balance

– Good FY19 performance in line with 5 year targets to 2023

– Slow start to FY20 in Q1 reflecting highly challenging crop planting

conditions in UK:

– 2019 recorded highest Sep & Oct rainfall in 19 years

– c.25% reduction in autumn and winter plantings

– Prudent approach to risk management and capital allocation in FY20 against

current more challenging backdrop for farming and the uncertain nature of

Brexit

Summary

– On track to deliver medium term strategic and

financial objectives

Page 14: Annual General Meeting · 2020. 5. 6. · Annual General Meeting 20 November 2019. Forward-looking statements This presentation contains forward-looking statements. These statements

Thank You