annual general meeting · 2020. 5. 6. · annual general meeting 20 november 2019. forward-looking...
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Annual General Meeting20 November 2019
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.
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
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
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
Strategy and
Development
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
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
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
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
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
Summary
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
Thank You