Interim Results 2020 5 March 2020
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. 2
2020 Highlights & Trading Review
2020 Interim Results Highlights Financial Operational – Ireland & the UK – Highly challenging first half against prior year: • 40% decline in UK cropping base due to highly adverse • Group revenue of €604.9m down 13.8% weather conditions • Lowest planted area in 30 years • Group operating loss of €2.8m (2019: +€9.1m) – CE • Significant year-on-year reductions in Ireland & UK • Cropping base in line with expectation • Strong working capital performance • Good CE and LATAM performances – LATAM • Good performance against delayed soya planting season – Increase in net debt to €264.2m (2019: €238.8m) – Digital – Interim dividend 3.15c per share (2019: 3.15c) • 1.2m active hectares 4
2019 Origin at a glance 112 >2,500 50,000 Distribution Employees Customers Points 7 €1.8bn €82.3m Revenue Countries Operating Profit Operating Profit by Revenue by Customer Geographical Segment Channel €160m €500m 34 61% Seed Revenue Crop Protection 770 Revenue 73% 17% Sales Force 2.5m Tns 10% Formulation 1m Tns 39% Fertiliser & & Processing Crop Crop Nutrition Facilities Marketing Direct Ireland & the UK Business-to-Business Continental Europe 5 Latin America
Group Revenue 1 Analysis (16.89%) 1 Decline in Group Revenue 1 from H1 2019 to H1 2020 +1.54% (18.68%) +0.25% Currency Underlying Acquisitions (19.14%) +0.46% Volume Price 1 Excludes crop marketing revenues and volumes 6
Trading Review Ireland & the UK – Underlying business volumes reduction of 25.6% • Extreme weather drives a 1.1m decline in H1 UK cropping hectares to 1.7m hectares • Reduced sales demand reflecting lower plantings and poorly established crops • Strong feed and fertiliser volume comparatives due to higher demand intensity in 2019 Operating profit (€’m) • Significant catch-up cropping activity anticipated for H2 2.8 0.9 1.2 – Increased working capital investment reflecting lower sales activity 2017 2018 2019 2020 – Amenity achieved higher underlying revenues and profits against the prior year (9.1) – Digital Services enablement progressing well Period ended 31 January 2020 2019 Change Underlying 3 Constant Currency 4 €’m €’m €’m €’m €’m Revenue 337.4 433.9 (96.5) (103.8) (102.7) Operating (loss)/profit 1 (9.1) 2.8 (11.9) (11.7) (11.7) Associates and joint venture 2 0.9 1.8 (0.9) (0.9) (0.9) 1 Before amortisation of non-ERP intangible assets and exceptional items 3 Excluding currency movements and the impact of acquisitions 2 Profit after interest and tax 4 Excluding currency movements 7
UK Wheat Production Lowest planted area in over 30 years Wheat Area planted vs Autumn Days Rainfall 2,300 60 2,100 50 1,900 1,700 40 – 5 th wettest autumn on record Area Planted Rainfall Days 1,500 30 – >2x more continuous days of 1,300 rainfall of 5mm vs prior year 1,100 20 900 10 700 500 0 Harvest Season Wheat Days Autum Rain 8 Source, rainfall days: Met office National Climate Information Centre Source , wheat area: AHDB, Management Estimates
Trading Review Continental Europe 1 – Reduction in underlying business volumes of 3.4% – Satisfactory performance in seasonally quiet H1 reflecting generally Operating profit (€’m) favourable crop establishment and improved business mix – Strong working capital performance 0.9 – New supply chain model implemented in Ukraine 0.7 0.7 0.6 – Romania and Ukraine adopt group wide brand identity for direct farm services 2017 2018 2019 2020 – Digital adoption progressing well with over 300k hectares on- boarded Period ended 31 January 2020 2019 Change Underlying 3 Constant Currency 4 €’m €’m €’m €’m €’m Revenue 142.1 147.9 (5.8) (9.5) (9.5) Operating profit 2 0.7 0.6 0.1 0.2 0.2 1 Excluding crop marketing revenues, volumes and operating profits 3 Excluding currency movements and the impact of acquisitions 2 Before amortisation of non-ERP intangible assets and exceptional items 4 Excluding currency movements 9
Trading Review Latin America – Underlying operating profit growth of 7.3% in seasonally significant first half Operating profit (€’m) – Underlying business volume growth of 2.9% 5.7 5.5 – Product margins stable – Market demand influenced by delayed soybean planting season Market Entry – Additional production capacity commissioned in period 2018 2019 2020 Period ended 31 January 2020 2019 Change Underlying 3 Constant Currency 4 €’m €’m €’m €’m €’m Revenue 21.9 21.3 0.6 0.7 1.1 Operating profit 1 5.7 5.5 0.2 0.4 0.4 Associate 2 0.2 - 0.2 - 0.2 1 Before amortisation of non-ERP intangible assets and exceptional items 3 Excluding currency movements and the impact of acquisitions 2 Profit after interest and tax 4 Excluding currency movements 10
Financial Review
2020 Interim Performance Summary Revenue Operating Loss Adjusted EPS €604.9m (€2.8m) (4.53c) (€96.7m) (€11.9m) (8.14c) Net Debt Net Debt / EBITDA Interim Dividend 3.15c €264.2m 3.24x 2019: €238.8m 2019: 3.15c 2019: 2.57x 12
Impact of Weather on UK Cropping Cropping Mix Q1 Trading H1 Trading FY2019 Update Update Early Winter Late Winter Spring Crops Fallow Gross Margin Mix FY 2019 Q1 Trading Update H1 Trading Update 13
2020 Interim Financial Highlights Period ended 31 January 2020 2019 Change €’m €’m €’m Group revenue 604.9 701.6 (96.7) Group operating (loss)/profit 1 Agri-Services (2.8) 9.1 (11.9) Associates and joint venture 2 1.1 1.8 (0.7) Total group operating (loss)/profit (1.7) 10.9 (12.6) Finance costs, net (5.5) (5.9) 0.4 (Loss)/Profit before tax (7.2) 5.0 (12.2) Adjusted diluted EPS 3 (4.53c) 3.61c (8.14c) Dividend per share 3.15c 3.15c - Net debt (264.2) (238.8) (25.4) 1 Before amortisation of non-ERP intangible assets and exceptional items 2 Profit after interest and tax 3 Before amortisation of non-ERP intangible assets, net of related deferred tax (2020: € 3.9m, 2019: € 3.4m) and exceptional items, net of tax (2020: gain of € 0.3m, 2019: charge of € 0.7m) 14
Group Revenue Period ended 31 January €m 800 (€108.1m) (€96.7m) +€1.5m +€9.9m (15.4%) +0.2% +1.4% (13.8%) €701.6m 600 €604.9m 400 200 0 H1 19 Underlying Acquisitions Currency H1 20 15
Group Operating Profit Period ended 31 January +€0.1m €m (€11.4m) (€0.6m) (€11.9m) (125.3%) +1.1% (130.8%) (6.6%) €9.1m 5 H1 19 Underlying Acquisitions Currency H1 20 Underlying H1 20 (€2.8m) (5) 16
Earnings per Share Period ended 31 January € cent per share 6.00 (8.02c) + 0.27c (0.39c) (8.14c) 4.00 3.61c 2.00 0.00 Underlying H1 19 Underlying Acquisitions Currency H1 20 H1 20 (2.00) (4.53c) (4.00) (6.00) 17
Summary Cash Flow Statement 12 months to Year to July 2019 2020 2019 January 2020 €’m Period ended 31 January €’m €’m €’m 92.8 Cash flow from operating activities 6.5 13.6 85.7 (12.7) Change in working capital (138.4) (137.5) (13.6) (23.9) Interest and tax (7.8) (9.0) (22.7) 56.2 Cash flow from ongoing operating activities (139.7) (132.9) 49.4 (3.1) Exceptional and one off items (1.5) (1.2) (3.4) 53.1 Net cash flow from operating activities (141.2) (134.1) 46.0 18
Balance Sheet Period ended 31 January 2020 2019 €’m €’m Tangible assets 185.9 136.5 Goodwill and intangible assets 273.1 285.3 Associates and joint venture 41.8 43.4 Working capital 189.2 161.1 Deferred and contingent acquisition consideration (37.8) (46.5) Provisions for liabilities, including pension (3.9) (7.7) Net debt (264.2) (238.8) Lease Liability (IFRS 16) (43.5) - Taxation – including deferred tax (24.8) (28.9) Other (1.0) (0.4) Shareholders’ funds 314.8 304.0 19
Banking Facilities and Covenants Committed Period ended 31 January 2020 2019 banking facilities €430 million Net debt to EBITDA 3.24 2.57 Covenant < 3.50x < 3.50x Weighted average debt maturity in year 2020 EBITDA to net interest 7.57 9.25 3.9 years Covenant >3.00x >3.00x (2019: 3.3 years) All terms as defined for bank covenant testing purposes 20
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