Origin Enterprises : 2021 Annual Report

ANNUAL REPORT & ACCOUNTS 2021

Prescriptive Solutions,

Sustainable Production

Nurturing Growth

For the first time, the Group has developed a standalone Sustainability Report for 2021. Highlights from the report are set out on pages 50 and 51 and the full report can be accessed at www.originenterprises.com

10.7m	38%	11%
hectares annually	of the Group's	decrease in
influenced by advice or	purchased electricity	fleet emissions
products delivered by	now supplied from	since 2017
an Origin entity	renewable sources

Strategic Report

At a Glance	6
Our Segments	7
Chairman's Statement	8
Chief Executive's Review	10
Financial Review	12
Alternative Performance Measures	18
Our Business	20
Strategy	24
Business Model	28
Key Performance Indicators	30
Business Review	32
› Ireland and the United Kingdom	34
›	Continental Europe	40
›	Latin America	46
Sustainability Report	50
Risk Report	52

Governance

Board of Directors	62
Directors' Report	64
Chairman's Overview	67
Corporate Governance Statement	69
Nomination and Corporate Governance
Committee Report	76
Audit and Risk Committee Report	79
Remuneration Committee Report	83

Financial Statements

Directors and Other Information	100
Statement of Directors' Responsibilities	101
Independent auditors' report	102
Consolidated Income Statement	109
Consolidated Statement of Comprehensive Income	110
Consolidated Statement of Financial Position	111
Consolidated Statement of Changes In Equity	113
Consolidated Statement of Cash Flows	114
Group Accounting Policies	115
Notes to the Group Financial Statements	123
Company Accounting Policies	180
Company Balance Sheet	183
Company Statement of Changes in Equity	184
Notes to the Company Financial Statements	185

Read about our progress in Continental Europe on pages 44 and 45

Read about Origin Amenity Solutions on page 37

Read about Our Business on page 20

1

Highlights

FY21 was an improved year for the Group with solid earnings recovery and continued strong cash generation and reduced net bank debt1.

Group revenue increase of 4.4% to €1,658.4 million, 6.6% on an underlying2 basis.

Operating profit of €61.0 million, an increase of 38.3%, 42.1% on an underlying2 basis.

Group operating margin of 3.7% (2020: 2.8%).

Adjusted diluted earnings per share of 35.50 cent.

Strong cash generation with free cash flow of €49.2 million (2020: €64.3 million).

Net bank debt1 of €14.4 million (2020: €53.2 million).

1. Before the impact of IFRS 16 leases.
2. Excluding currency movements and the impact of acquisitions.

2

Working capital outflow of €4.0 million (2020: Inflow of €30.3 million).

Proposed final dividend of 7.85 cent

per share giving total dividend of 11.00 cent.

Agronomy and Inputs volume growth of 4.9%, pricing improvements of 3.5% and an acquisition contribution of 0.7%, on a constant currency basis.

Acquisition of Green-tech, the UK's leading landscaping, forestry and ground maintenance equipment provider.

Divestment of Pillaert, the Group's Belgian fertiliser business.

Origin Enterprises plc Annual Report and Accounts 2021

Revenue

€1,658.4m

+4.4%

+7.2% at constant currency3

Adjusted Diluted EPS2

35.50C

+38.2%

+44.6% at constant currency3

ROCE4

9.3%

(2020: 7.3%)

Operating Profit1	HIGHLIGHTS
€61.0m

+38.3%

+44.2% at constant currency3

Free Cash Flow

€49.2m

(2020: €64.3m)

Dividend per Share

11.00C

(2020: 3.15c)

1. Before amortisation of non-ERP intangible assets and exceptional items, and before the Group's share of profits of associates and joint venture.
2. Before amortisation of non-ERP intangible assets, net of related deferred tax (2021: €8.6m, 2020: €7.7m) and exceptional items, net of tax (2021: credit of €1.2m, 2020: expense of €5.2m).
3. Excluding currency movements.
4. The definition and calculation of ROCE is set out on page 19.

Note: All references to constant currency in this Annual Report are due to the fact that the translation of non-euro denominated earnings are impacted by movements in local currency rates versus the euro, the Group's presentation currency. In order to reflect underlying performance more accurately in the period, the Group calculates results on a constant currency basis by retranslating non-euro denominated current year earnings at prior year exchange rates.

3