Origin Regulatory News (OGN)

Preliminary Results Statement

Year Ended 31 July 2015

Results Summary

* Before amortisation of non-ERP intangible assets and exceptional items

** Profit after interest and tax before amortisation of non-ERP intangible assets and before exceptional items

*** Before amortisation of non-ERP intangible assets, net of related deferred tax (2015: €10.2m, 2014: €6.4m) and exceptional items, net of tax (2015: €12.0m credit, 2014: €5.1m charge)

**** Including restricted cash of €29.4m

Financial and Operating Highlights

· Adjusted diluted earnings per share up 4.5 per cent at 60.10 cent per share - in line with guidance

· Agri-Services operating profit broadly equivalent to last year with a more challenging demand backdrop for services and inputs largely offsetting the benefit of favourable currency translation

· Robust cash generation from operations against higher seasonal working capital investment earlier in the year

· Divestment of interest in consumer foods associate Valeo Foods

· Eastern European Agri-Services expansion with agreement to acquire Romanian based Redoxim and Comfert in July 2015 and Polish based Kazgod Group in August 2015

· 5 per cent increase in annual dividend to 21.00 cent per share

Origin Enterprises plc

Chief Executive Officer's comment:

Commenting on the announcement of the 2015 results, Origin Chief Executive Officer, Tom O'Mahony said:

"Origin has achieved a satisfactory result in line with expectations, recording a 4.5% increase in adjusted diluted earnings per share together with the delivery of robust cash generation during the year.

The ongoing development of the Group's integrated technology and agronomy service portfolios has helped to underpin a resilient performance from Agri-Services in 2015. This is against the backdrop of the current bearish crop cycle, which coupled with reduced seasonal intensity, resulted in lower overall market demand for services and inputs in the year.

The divestment of our interest in Valeo Foods together with the recently announced Agri-Services development in Eastern Europe furthers the Group's capital reallocation objectives and provides a solid growth platform from farm services in the years ahead.

Primary output markets continue to remain under sustained pressure with near term visibility on new price direction unlikely before the middle of calendar year 2016. This weaker backdrop is impacting farm sentiment and a lower demand profile for services and inputs is anticipated in 2016. While we remain cautious regarding our outlook in the short term, the Group is well positioned to respond to current market conditions and to benefit from a sustained improvement in primary producer returns.

We will provide a further update on the 2016 financial year following an assessment of autumn crop plantings at the time of our first quarter trading update on 27 November 2015."

ENDS 

The Preliminary Results Statement is available on the company website www.originenterprises.com. There will be a live conference call at 8.30am (GMT) today. To listen to this conference call, please dial the number below. Participants are requested to dial in 5 to 10 minutes prior to the scheduled start time.

Confirmation Code: 6343389

Participant access number:

Dublin: Tel: +353 (0)1 246 5602

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Replay:

A replay of this call will be available for seven days.

Replay Access Code: 6343389

Replay Access Numbers:

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Switzerland: Tel: +41 (0)22 592 7553

Enquiries:

Origin Enterprises plc

Imelda Hurley

Chief Financial Officer Tel: +353 (0)1 612 1259

Goodbody (ESM Adviser)

Kevin Keating Tel: +353 (0)1 667 0420

Davy (Nominated Adviser)

Anthony Farrell Tel: +353 (0)1 614 9993

Murray Consultants

Douglas Keatinge Tel: +353 (0) 86 037 4163

Preliminary Results Statement

Financial Review - Summary

Origin Enterprises plc ('Origin' or 'the Group'), announces a 4.5 per cent increase in adjusted diluted earnings per share*** for the year ending 31 July 2015 to 60.10 cent. On a like-for-like basis (adjusted for the impact of currency movements, the prior year Tender Offer and the annualised impact of Agroscope) there was an underlying decrease in adjusted diluted earnings per share of 1.2 per cent.

Revenue

Revenue from Agri-Services was €1,458.1 million compared to €1,415.2 million in the previous year, anincrease of 3.0 per cent. On a like-for-like basis (adjusted for the impact of currency movements and the annualised impact of Agroscope) Agri-Services revenues decreased by €34.6 million (2.4 per cent) principally reflecting a combination of lower crop protection and crop marketing volumes along with lower crop marketing, feed and fertiliser prices.

Operating profit*

Operating profit* from Agri-Services amounted to €78.9 million compared to €79.5 million in the previous year. Adjusted for currency and the annualised impact of Agroscope, operating profit* from Agri-Services decreased by €2.6 million (3.3 per cent) on a like-for-like basis. This was a satisfactory result against the background of a challenging trading environment.

The Group's earnings profile is significantly weighted towards the second half of the year with in excess of 90 per cent of earnings typically arising in this time period.

Associates and joint ventures**

Origin's share of the profit after interest and taxation (excluding exceptional items and non-ERP amortisation) from associates and joint ventures increased by €0.7 million (5.1 per cent) to €14.1 million. The increase was mainly driven by a higher contribution from our interest in Valeo which was disposed of in July 2015.

Finance costs and net debt

Net finance costs amounted to €4.8 million, a decrease of €0.7 million (13.1 per cent) on the prior year. Average net debt amounted to €186 million compared to €150 million last year, principally reflecting the prior year timing of the receipt of the proceeds from the disposal of our interest in Welcon and the return of capital to shareholders. Actual net cash at 31 July 2015 was €88.8 million**** compared to actual net debt of €11.9 million at the end of the previous year. This movement was driven primarily by robust cash generation and the receipt of €86.6 million of cash proceeds upon the disposal of our interest in Valeo.

Working capital

Investment in working capital remains a key area of focus for the Group given the associated funding costs. The year-end represents the low point in the working capital cycle for the Group reflecting the seasonality of the business.

Adjusted diluted earnings per share ('EPS') ***

EPS*** amounted to 60.10 cent per share, an increase of 4.5 per cent from 2014. The 4.5 per cent increase is driven by the positive effect of the prior year Tender Offer (3.9 per cent) and currency (3.7 per cent) partially offset by the annualised impact of Agroscope (1.9 per cent) and a decrease in underlying profits (1.2 per cent).

Exceptional items

Exceptional items amounting to a credit of €12.0 million were recorded in the period, principally relating to the gain recorded on the disposal of our interest in Valeo (€22.0 million), partially offset by rationalisation costs arising from a restructuring of Agri-Services in the UK (€11.4 million).

Dividend

The Board is recommending an increase in the dividend per ordinary share of 5.0 per cent to 21.0 cent per ordinary share. This represents a pay-out ratio of 35 per cent (2014: 35 per cent). Subject to shareholder approval at the Annual General Meeting, the dividend will be paid on 18 December 2015 to shareholders on the register on 4 December 2015.

Acquisitions

The Group has recently announced agreement to acquire three agri-services businesses in Eastern Europe - Redoxim and Comfert in Romania and the Kazgod Group in Poland. These acquisitions provide important geographic extension in Eastern Europe and build upon the Group's agronomy services platform and knowledge transfer capabilities. The acquisition of Redoxim completed on 17 September 2015. The remaining two acquisitions are expected to complete during the first half of the 2016 financial year.

Annual General Meeting (AGM)

The AGM will be held on Friday 27 November 2015 at 11.00 a.m. in the Westbury Hotel, Grafton Street, Dublin 2.

* Operating profit and group operating profit are stated before amortisation of non-ERP intangible assets and exceptional items

** Profit after interest and tax before amortisation of non-ERP intangible assets and before exceptional items

*** Before amortisation of non-ERP intangible assets, net of related deferred tax (2015: €10.2m, 2014: €6.4m) and exceptional items, net of tax (2015: €12.0m credit, 2014: €5.1m charge)

**** Including restricted cash of €29.4m

Review of Operations

Agri-Services

Agri-Services comprises integrated on-farm agronomy services and business-to-business agri inputs (fertiliser, feed ingredients and amenity). During the year these businesses were located in Ireland, the UK, Poland and Ukraine and provided customised solutions that address the efficiency, quality and output requirements of primary food producers.

Revenue increased by 3.0 per cent to €1,458.1 million. On a like-for-like basis (adjusting for currency movements and the annualised impact of Agroscope), revenue decreased by €34.6 million (2.4 per cent). Operating profit* decreased by 0.8 per cent to €78.9 million or 3.3 per cent on a like-for-like basis (excluding currency and the annualised impact of Agroscope).

Integrated On-Farm Agronomy

United Kingdom

Agrii delivered a solid performance against the backdrop of overall lower farm spending in the period. While sales margins were favourable, trading conditions limited service revenue and volume development, particularly in the fourth quarter. A combination of slower crop development, reflecting reduced seasonal intensity due to lower average temperatures and the backdrop of weaker output markets informed a cautious attitude to investment spend by farmers during the period.

Total winter and spring plantings for the principal arable, root and vegetable crops were some 1.2 per cent behind 2014 levels at approximately 4.34 million hectares. A noticeable switch by growers from higher yielding winter plantings to less intensive spring sown crops was evident and largely reflected strategies for disease management and grass weed control. This resulted in a 2.7 per cent reduction in the winter planted area and a 2.5 per cent increase in the spring planted area.

Excellent progress was achieved in the further agronomising of Agrii's seed and nutrition portfolios which contributed to improved sales margins in the period. Key focus areas include an improved mix of value added applications that incorporate nutrient mapping, high specification seed advice and varietal selection, precision applications and variable rate input prescriptions.

Agrii's comprehensive research infrastructure and knowledge transfer based iFarm network combined with an extensive input portfolio, dedicated commercial support and a flexible input finance solution continue to support our agronomists in providing the leading and most innovative based solutions to their farm customers.

The adoption of a multi-factor technical focus that combines science and its translation into practical information on farm remains fundamentally strategic in addressing the competitiveness, profitability and sustainability requirements of farm enterprises. Less emphasis will be placed on traditional technologies and modes of action in the future as these become more restricted due to legislative requirements and less effective due to natural resistance factors. Production systems will increasingly focus on soil management and will incorporate new developments and technologies in the areas of seed genetics and traits, specialist nutrition and biological solutions.

A €25 million committed investment by Origin is supporting the expansion of Agrii's research and knowledge transfer infrastructure. This investment underpins a decentralised technical approach that meets the requirements for growers for a wider cropping focus while also creating a centre of excellence for emerging technologies supported by external innovation investment.

Poland

Dalgety achieved an improved performance in the period recording higher margins and profits. Increased agronomy revenues reflect the benefit of an early spring season and a favourable cropping profile. Total planted area for the principal cereals and oil seed crops was in line with last year at 8.7 million hectares. An increased level of winter cereal sowings was offset by lower spring maize plantings, largely as a result of below average yield performance from spring cropping in 2014.

Lower crop marketing revenues and volumes in the period reflected lacklustre export markets and greater competitive intensity in traditional consumption markets.

The business recorded good growth in the intensive and technically orientated farm channel with strong progress achieved in the development of integrated and higher specification input and technology offers. This was the principal driver of higher margins in the period.

Dalgety's differentiated channel focus continues to deliver benefits and is facilitating overall business performance. The demands of an increasingly sophisticated and professionally orientated farming base are being reflected in the requirement for deeper client engagement through expanded service provision. The business maintained solid momentum across a variety of process realignment programmes which was reflected in further improvements to supply chain and customer fulfilment execution.

Ukraine

Agroscope has delivered a resilient performance in its first full year of operations as part of the Group.

Higher revenues and profits in the period reflect solid progress achieved to date with the business securing favourable sales and customer development through differentiated offers that promote technology intensification.

Total plantings for the 2015 production year were approximately 20.5 million hectares, some 5 per cent lower than last year. From an operational perspective the impact of the current political and economic uncertainty is mostly reflected in pronounced currency weakness and tightening liquidity at farm level. Underlying advice and input spend is lower compared with 2014 with many farm holdings migrating to cheaper investment options.

Agroscope is adopting a cautious planning approach in light of the current uncertainty. This approach is concentrated on currency and receivables risk management and the establishment of partner programmes to implement jointly developed input financing solutions on farm.

Agroscope continued the development of its two crop technology centres in the period which now provide an established knowledge transfer platform within the business. The rollout of precision agronomy and satellite monitoring applications as part of an extended service offer was further progressed in the period.

Business-to-business Agri-Inputs - Ireland and the UK

Business-to-business Agri-Inputs achieved a solid result in the year reflecting an overall stable volume performance in fertiliser with a marginally lower contribution from feed.

Fertiliser achieved volume growth in the UK against lower market demand. This performance was supported by a combination of operational improvements underpinning strong supply chain execution and sales of customised and value added nutrition formulations achieving solid momentum in the period. The favourable volume performance across arable enterprises was partially offset by reduced fertiliser application in the case of livestock enterprises. This is principally driven by lower returns currently generated by UK primary dairy producers.

In Ireland the abolition of milk quotas supported demand in the second half of the year with farmers focused on maximising grass production to produce higher milk volumes.

The routine investment and operational improvement programmes across the Group's fertiliser blending facilities are addressing evolving structural changes in the market with just-in-time customer ordering systems and the requirement for enhanced technical support becoming more prevalent. The overall capability of the Group's fertiliser footprint was further enhanced during the year with the commissioning of expanded blending capacity within the UK.

Origin's amenity business achieved a good result in the year with momentum across the professional and niche agri sectors, offsetting the impact of lower demand within the amenity channel. Performance continues to be positively supported by a combination of ongoing business process alignment, industry leading partnership programmes and focused product development dedicated to the domestic and export Home & Garden channels. The Group's advanced product formulation capability ensures a highly responsive and flexible approach to meeting customers' requirements for innovation.

Feed ingredients performed resiliently in the period against a lower volume result. Reduced feed consumption for the year largely reflected a combination of increased substitute fodder availability and the impact on demand of weaker returns from dairy and beef enterprises due to lower output prices. Pronounced price and currency volatility across raw material markets in the year drove generally weaker buying sentiment and delayed customer purchasing decisions.

Associates and joint ventures

Valeo Foods ('Valeo')

The Group's principal strategic investment during the year, the consumer foods group Valeo, performed in line with expectations in the context of a grocery market that remains highly challenging in both Ireland and the UK. A key success factor was the performance of Valeo's brands which continue to consolidate market share and maintain category leading positions driven by investment in innovation and consumer communications.

In February 2015, Valeo acquired the Robert Roberts, Findlater Wines & Spirits and Kelkin food businesses from DCC. In addition, in May 2015 Valeo acquired the Italian packaged food company, Balconi, which has given access to a pan-European sales and distribution network in a fast growing category backed by highly efficient manufacturing capabilities.

In July 2015, Origin announced the disposal of its 32 per cent equity interest in Valeo. €86.6 million of cash proceeds was received in connection with the transaction comprising €42.5 million in respect of the equity proceeds and €44.1 million in full settlement of the vendor loan note. An exceptional gain of €22.0 million relating to the disposal is reflected in the 2015 financial statements.

John Thompson & Sons Limited ('John Thompson')

John Thompson, the largest single site multispecies animal feed mill in the European Union, in which Origin has a 50 per cent shareholding, delivered a satisfactory performance during the year.

Agri-Services development

In July 2015, Origin announced it had reached agreement to acquire the Romanian based Redoxim SRL and Comfert SRL ('the Transactions'). The Transactions build upon the Group's integrated agronomy services platform and on-farm knowledge transfer capabilities. The acquisition of Redoxim completed on 17 September 2015.

Redoxim, headquartered in Timisoara, Romania and founded in 1991, is a leading provider of agronomy services, macro and micro inputs to arable, vegetable and horticulture growers. Redoxim, which employs over 190 people services approximately 2,000 customers through an established distribution network of 55 retail outlets and a team of 50 agronomists and product specialists.

Under the terms of the transaction Origin acquired a 100 per cent interest in Redoxim for a total consideration of €35 million. €31.5 million was paid upon completion with €3.5 million payable on the first anniversary of completion. Revenue and operating profit before goodwill amortisation and non-recurring items for the year ended 31 December 2014 were RON 238.3 million (€53.6 million) and RON 24.7 million (€5.6 million), respectively.

Comfert, headquartered in Bacau, Romania and founded in 1998, is a leading provider of agronomy services, integrated inputs and crop marketing support to arable and vegetable growers. The business which employs over 180 people operates a comprehensive distribution network servicing approximately 1,900 largely intensive and technically orientated farming customers through a team of 32 agronomists and product specialists.

Under the terms of the transaction Origin will acquire 100 per cent of Comfert based upon an enterprise value of RON 87.0 million (€19.4 million). Additional deferred consideration will be payable based upon the achievement of specific annual profit targets over a five year period following completion. The transaction is subject to a number of conditions including clearance from the Romanian Competition Council and is expected to complete during October 2015. Revenue and operating profit before goodwill amortisation and non-recurring items for the year ended 31 December 2014 were RON 447.2 million (€100.6 million) and RON 14.4 million (€3.2 million), respectively.

In August 2015 Origin reached agreement to acquire a 100 per cent interest in the Polish based Kazgod Group ('Kazgod' or 'the Business'). Kazgod significantly augments Origin's existing operations in Poland which are currently servicing approximately 3,500 largely arable farmers under the Dalgety brand.

Founded in 1989, Kazgod is a leading provider of agronomy services, inputs, crop marketing solutions as well as being a manufacturer of micro nutrition applications. The Business, which employs over 200 people, services some 2,600 customers across an established direct farm and retail distribution network throughout central and eastern Poland. Kazgod strongly complements Dalgety's activities which are principally concentrated in western Poland.

Under the terms of the transaction Origin will acquire 100 per cent of Kazgod based upon an enterprise value of PLN92.8 million (€22.4 million) incorporating average working capital. Approximately PLN84.3 million (€20.3 million) of the total consideration will be payable on completion with PLN8.5 million (€2.1 million) deferred and payable three years following completion. Kazgod's revenues and normalised earnings before interest, tax and amortisation for the year ended 31 December 2014 were PLN837 million (€200 million) and PLN 5.1 million (€1.2 million), respectively. Tangible integration benefits across Kazgod and Dalgety are targeted to be achieved over the three year period following completion of the acquisition.

The Transaction, which is subject to a number of conditions including clearance from the Office for the Protection of Competition and Consumers ('OCCP') in Poland, is expected to complete during December 2015.

Outlook

Farmers are currently facing a most challenging period as price and currency volatility exert considerable pressure on their incomes and cash flow. Agri-service providers, through their application know-how and knowledge transfer capabilities, play a pivotal role in the development of flexible production systems that support profitable investment decisions by primary producers and which also address the competitiveness, productivity and sustainability requirements of their farming enterprises.

Primary output markets continue to remain under sustained pressure with near term visibility on new price direction unlikely before the middle of calendar year 2016. This weaker backdrop is impacting farm sentiment and a lower demand profile for services and inputs is anticipated in 2016. While we remain cautious regarding our outlook in the short term, the Group is well positioned to respond to current market conditions and to benefit from a sustained improvement in primary producer returns.

We will provide a further update on the 2016 financial year following an assessment of autumn crop plantings at the time of our first quarter trading update on 27 November 2015.

ENDS

About Origin Enterprises plc

Origin Enterprises plc is a focused Agri-Services group providing on-farm advice and the supply of agri-inputs. The Agri-Services business through its manufacturing and distribution operations in Ireland, the United Kingdom, Poland, Ukraine and Romania has leading market positions in the supply of specialist agronomy services, crop nutrition and feed ingredients. The Group is listed on the ESM and AIM markets of the Irish and London Stock Exchanges.

ESM ticker symbol: OIZ

AIM ticker symbol: OGN

Website: www.originenterprises.com

Origin Enterprises plc

Consolidated income statement

Year ended 31 July 2015

Origin Enterprises plc

Consolidated statement of comprehensive income

Year ended 31 July 2015

Origin Enterprises plc

Consolidated statement of financial position

As at 31 July 2015

Origin Enterprises plc

Consolidated statement of financial position (continued)

As at 31 July 2015

Origin Enterprises plc

Consolidated statement of changes in equity

Year ended 31 July 2015

Origin Enterprises plc

Consolidated statement of cash flows

Year ended 31 July 2015

Origin Enterprises plc

Consolidated statement of cash flows (continued)

Year ended 31 July 2015

Origin Enterprises plc

Notes to the preliminary results statement

for the year ended 31 July 2015

1 Basis of preparation

The financial information included on pages 14 to 34 of this preliminary results statement has been extracted from the Group financial statements for the year ended 31 July 2015 on which the auditor has issued an unqualified audit opinion.

The financial information has been prepared in accordance with the accounting policies set out in the Group's consolidated financial statements for the year ended 31 July 2015 which were prepared in accordance with International Financial Reporting Standards as adopted by the EU.

The consolidated financial information is presented in euro, rounded to the nearest thousand which is the functional currency of the parent.

2 Segment information

IFRS 8, 'Operating Segments' requires operating segments to be identified on the basis of internal reports that are regularly reviewed by the Chief Operating Decision Maker ('CODM') in order to allocate resources to the segments and to assess their performance. Two operating segments have been identified; Agri-Services and Associates and Joint Ventures.

Origin's Agri-Services segment comprises integrated agronomy services and agri-inputs. The Associates and Joint Ventures operating segment is comprised of our consumer foods and feed ingredients businesses.

Information regarding the results of each reportable segment is included below. Performance is measured based on segment operating profit as included in the internal management reports that are reviewed by the Group's CODM, being the Origin Board of Directors. Segment operating profit is used to measure performance, as this information is the most relevant in evaluating the results of the Group's segments. Segment results include all items directly attributable to a segment.

Origin Enterprises plc

Notes to the preliminary results statement (continued)

for the year ended 31 July 2015

2 Segment information (continued)

(i) Segment revenue and results

Origin Enterprises plc

Notes to the preliminary results statement (continued)

for the year ended 31 July 2015

2 Segment information (continued)

(ii) Segment earnings before financing costs and tax is reconciled to reported profit before tax and profit after tax as follows:

Origin Enterprises plc

Notes to the preliminary results statement (continued)

for the year ended 31 July 2015

3 Exceptional items

Exceptional items are those that, in management's judgement, should be separately presented and disclosed by virtue of their nature or amount. Such items are included within the Consolidated Income Statement caption to which they relate. The following exceptional items arose during the year;