Origin Enterprises : 2021 Annual Report

ANNUAL REPORT & ACCOUNTS 2022

SHAPINGwww.originenterprises.com

A MORE

SUSTAINABLE

FUTURE

SHAPING A MORE SUSTAINABLE FUTURE THROUGH AGRONOMY AND AMENITY SOLUTIONS

STRATEGY

We have aligned our strategic priorities to focus on a model of sustainable land use.

BUSINESS REVIEW

Origin is a recognised market leader in the provision of Agronomy Services.

SUSTAINABILITY REPORT The Group has a standalone Sustainability Report, with highlights set out on pages 44 and 45. The full report can be accessed at: www.originenterprises.com

_ Read about it on page 26

_ Read about it on pages 32 to 41

15%	10.6 m	38%
hectares annually
decrease in	influenced by	of the Group's
fleet emissions	advice or products	purchased electricity
since 2017	delivered by an	now generated from
	Origin entity	renewable sources

CONTENTS

STRATEGIC REPORT		GOVERNANCE
At a Glance		6				Board of Directors	58
Our Segments		7				Directors' Report	60
Chairman's Statement	8			Chairman's Overview	64
Chief Executive's Review		10		Corporate Governance Statement	66
Financial Review	12				Nomination and Corporate Governance
Alternative Performance Measures	18	Committee Report	73
Our Business		20				Audit and Risk Committee Report	76
Business Model	24				Remuneration Committee Report	80
Strategy	26					FINANCIAL STATEMENTS
Key Performance Indicators	30
Business Review	32				Directors and Other Information		94
Sustainability Report	44
Risk Report		46				Statement of Directors' Responsibilities	95
						Independent Auditors' Report		96
						Consolidated Income Statement		104
						Consolidated Statement of Comprehensive Income	105
						Consolidated Statement of Financial Position	106
						Consolidated Statement of Changes in Equity	108
						Consolidated Statement of Cash Flows	110
						Group Accounting Policies	111
						Notes to the Group Financial Statements	120
						Company Balance Sheet	176
						Company Statement of Changes in Equity	177
						Company Accounting Policies		178
						Notes to the Company Financial Statements	181

2,643

Employees	_

Look out for our

OWN PRODUCT

PORTFOLIO

in the Business Review. See pages 42 and 43

Contents 1

HIGHLIGHTS

FY22 DELIVERED ADJUSTED EARNINGS PER SHARE OF 71.53 CENT AND AN IMPROVED RETURN ON CAPITAL EMPLOYED OF 18.3%.

_ Group revenue increase of 41.2% to €2.3 billion, reflecting commodity price growth

_ Operating profit of €119.7 million, an increase of 96.3% (88.5% on an underlying1 basis)

_ Group operating margin of 5.1% (2021: 3.7%)

_ Adjusted diluted earnings per share

of 71.53 cent (2021: 35.50 cent)

_ Strong cash generation, with free cash flow of €108.5 million (2021: €49.2 million)

_ Net cash2 of €43.4 million (2021: Net bank debt2 of €14.4 million)

_ Working capital inflow of €16.2 million (2021: Outflow of €4.0 million)

_ Proposed final dividend of 12.85 cent per share, giving total dividend of 16.00 cent

_ Completion of first phase of Cork property disposals, generating cash flow of €19.5 million

_ Completion of €40.0 million share buyback programme at an average price of €3.97 per share

_ Return on Capital Employed of 18.3% (2021: 9.3%)

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

2 Origin Enterprises plc Annual Report and Accounts 2022

THE GROUP'S KEY ALTERNATIVE PERFORMANCE MEASURES INCLUDE:

REVENUE	OPERATING PROFIT1
€2,342.1m	€119.7m
+41.2%	+96.3%
+38.0% at constant currency2	+89.7% at constant currency2

ADJUSTED DILUTED EPS3

71.53c

+101.5%

+94.7% at constant currency2

	FREE CASH FLOW4		ROCE5
€108.5m	18.3%
2022	€108.5m	2022	18.3%
2021	€49.2m	2021	9.3%
2020	€64.3m	2020	7.3%
2019	€54.0m	2019	13.2%
		DIVIDEND PER SHARE
	SHARE BUYBACK	16.00c
€40.0m	2022	16.00c
		2021	11.00c
		2020	3.15c
		2019	21.32c

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. Excluding currency movements.
3. Before amortisation of non-ERP intangible assets, net of related deferred tax (2022: €13.0m, 2021: €8.6m) and exceptional items, net of tax (2022: credit of €2.8m, 2021: credit of €1.2m).
4. The definition and calculation of Free Cash Flow is set out on page 18.
5. The definition and calculation of ROCE is set out on pages 18 and 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.

Highlights 3