Origin Enterprises plc Investor Day28th June 2010

Welcome to Throws Farm -

Masstock Research and Development Centre

Masstock’s Strategic Positioning

To be the leading provider of value added

services, technologies and strategic inputs that

support the delivery of sustainable and

profitable food production solutions for primary

producers.

Total area of UK agricultural land = 18.8m hectares

All other land and woodland, 6%

Set-aside & fallow land, 1%

Horticultural crops 1%

Other arable crops & potatoes

7%

Cereal crops, 19%

Temporary grass, 7%

Sole right rough grazing, 25%

Permanent grassland, 35%

Source: Defra

Land used for Combinable Crop Production

Wheat54%

Barley27%

OSR15%

Oats3%

Rye, mixed corn & triticale

1%

Source: Defra

Cereal Farm Stats:

c.54k farms engaged in cereal

production

These farms account for over 3.1m

hectares and >22m tonnes of

production

c.30k farms specialise in cereal

production

Traditionally annual exports amount

to between 2m to 4m tonnes

– (changing times - bio fuels)

Source: HGCA, Defra

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Integrated Agronomy Services Locations

6

Massstock

CSC Crop

Protection

GB Seeds

Masstock

Masstock’s influence on yields

UK has the highest rate of inputs application in Europe

Accordingly delivers the highest yields

Masstock service model is integral to delivering these higher

yields and maintaining and improving them

Average Wheat Yields

– UK 8.0t/ha

– Germany 7.5t/ha

– France 7.3t/ha

– Denmark 7.0t/ha

– Poland 4.0t/ha

– Ukraine 3.1t/haSource: USDA

We invest in innovative

research to find new ways

to grow profitable crops

We advise growers on

the best agronomic

practices for their

crops

Our Agronomists take

responsibility for all

aspects of the

production system on

farm

We organise technical

events to communicate

new thinking and share

best practiceWe provide impartial

advice and access to

crop markets

We provide access to the

latest seed, fertiliser and

crop protection technologies

Profitable

Sustainable

Environmentally Responsible

Primary Food Production

We help farmers explore

new opportunities such

as energy generation

We take care of

environmental

stewardship and safety

compliance

What Is

SMART Farming ?

Sm

art

er

Th

inkin

g

Smarter Working

Sm

arte

r Resu

lts

How does agronomy work in the UK?

Agronomist

visits farm(up to 25x per year)

Analyse

farmer‟s

needs

Prescription

creation

Transmission

of prescription

Delivery to

farmer

Seed

Crop Protection

Nutrition

Precision Agriculture

Establishment

Masstock’s Business Profile

Market leader in Agronomy services through the distribution of

strategic inputs

Most extensive distributor research and development capability

in the UK

– 32,000 trial plots to find new solutions for profitable crop production

Work with over 10,000 farm businesses

– representing c.25% of the arable crop output

Employs c.600 staff in the UK

– circa 200 in agronomy/field sales roles

Evolution of Sustainable

Agriculture

Improving Crop Potential

(Nutrition, Yields, Weed Control,

Fungicides)

Maximising Financial Performance

(Gross Margin, Cost Per Tonne, Grain

Quality, Marketing)

Managing Farm Risk

(Rotations, Varieties, Cultivations,

Crop Establishment, Drought)

Supporting Farm Management Objectives

(Spreading Workload, Acreage Efficiency,

Fixed Costs,Environmental Income)

Impact On Overall

Farm Profitability

How SMART Farming

Influences The Farm

Business

Access To The New Opportunities

(Food versus Fuel, energy conservation/

generation, water resources, climate change)

Precision Agronomy

(Smarter decisions, better targeting

of inputs, sustainable management )

UK Agchem Market by Crop Segment

68%10%

3%

8%

5%2% 3%

0.41%

Cereals

OSR

Legumes

Potato

Sugar Beet

Fruit

Veg

Others

Source: CSL, Agri-Insight, Farmstat

Arable R&D

Agronomy

Farm Management Consultancy

Arable InputsFood

Industry

FarmDistribution

CropMarketing

StewardshipIndustrial

Outlets

Providing Solutions Throughout The Whole Farm Profit Equation

An introduction to arable technology in Masstock

Clare Bend, Technical Director

– Why Masstock Research and

Development is different

– Technology transfer – how do we do it?

– Importance of a partnership approach

Sustainable Food Production

New Horizons:

– By 2050, world population could reach 9 billion

– Food production will need to increase by 70%

New Challenges:

– Changing consumption patterns

– Growing scarcity of water and land

– Uncertainties around climate change effects

– Legislation protecting the environment

– A reducing Crop Protection armoury

– Innovation in agronomy is essential.

Average Wheat Yield of countries producing more than 300,000 tons

Source: AIC conference 2009

An Introduction to Research and

Development in Masstock

– Who are we and why are we different?

– Why Research and Development matters

– Using Science to Sell

Research and Development Goals

“To identify and confidently market the optimum combination

of crop and agronomy that will maximise our customers‟

gross margin (yield and quality).”

Research and Development Functions

UK Sites

SMART Farms

– Technology demos

– Discussion groups

– Integrated approach

Replicated Trials Sites

– 32,000 plots/yr

– Innovative trials

– Technical data

– Guides product selection

Demo sites

– Simpler variety plots

Extensive Plant Growth

Regulator (PGR) testing at

Throws..

Investigations into other

crops at Throws …

Goring – a high

disease site, ideal for

“COGS” studies

Agrifocus site maintained to

support south & west..And at Tiptree

..And SMARTfarms now extended

Research and Development why it matters

Fundamental to business

philosophy

• Technically driven

Enables early evaluation of

potential chemistry

• Best chance of securing

exclusivities

Huge competitive advantage

• Delivers innovation our

customers seek

Allows older (more profitable

chemistry) to be refreshed

• Important to our

manufacturing partners

Expanding business with a

solid reputation

• Set to grow

R & D will become even

more important against the

background of increasing

legislation (91/414, GM etc)

• Farmers will need us more

than ever

• Traceability vital

What’s different about Masstock Research and Development?

Integrated Agronomy

• Stronger links with

fertiliser manufacturers,

seed breeders and

agrochemical

manufacturers = early

assessment

Machinery Associates

• CLASS, Vaderstadt,

Opico and others to

ensure we are exploring

the latest establishment

and harvesting options

Supported by Science

• Collaboration with ADAS

to check our hands-on

practical approach to R &

D is complemented by

leading UK scientists

National Coverage

• To allow strengths and

weaknesses of varieties

and products to be

evaluated against a

range of climatic and

disease situations

Assured High Quality

• Fully ORETO qualified

which allows registration

work for Pesticides

Safety Directorate –

proven track record

Responsible Approach

• Interpretation and

application of trials

results for our customers

makes us truly

accountable

Research and Development focus is on the major UK crops

Crop Spend £ /ha Hectares (million‟s)

Winter wheat £120 - 190 1.96

Winter barley £100 – 150 0.42

Spring barley £70 – 85 0.53

W. Oilseed rape £120 - 160 0.62

Sugar beet £65 0.1

Field beans £50 - 85 0.16

UK Cropping Pattern (2009/10)

Source: Masstock estimates

We integrate the three pillars of Agronomy to produce a high

quality output

SE

ED

But..it all needs communication

Both internal

– To agronomists and field staff

And external

– To customers (farmers, manufacturers, CRD etc)

Probably the biggest challenge

A Typical SMARTfarm Open Day –

Communication in practice

Never miss an opportunity

for branding…

... Soil

management &

cultivations

In field presentations on…

...Variety choice / seed rate

Last minute

preparations!

..and chemistry

Arable Research Priorities 2009/10

Successful Second wheats

High output Oilseed Rape Agronomy

RHIBAC - Use of bacteria to aid nutrition

Exploring the benefits of Precision Agriculture – SoilQuest

Integrated Grassweed Management

Using Science to Sell…

….products,

….increased yields and farm profit

An example

– Disease management (Fungicides)

Unchecked wheat disease can typically reduce yields by

3t/ha - Growers cannot afford to get it wrong!

0

2

4

6

8

10

12

14

Oak

ley

Cor

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e

Her

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Sahar

a

Dux

ford

Solstice

Rob

igus

Gulliv

er

Hum

ber

Einstein

Mon

ty

Timber

Veloc

ity

Roc

ky

Zebed

ee

Mas

cot

Gladi

ator

Gat

sby

Dov

er

Mar

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an

Mus

kete

er

Alche

my

Cla

ire

Lim

erick

Her

ewar

d

Yie

ld (

ton

nes/h

a)

+ Fung

- Fung

Source: Masstock Trials data

0

50

100

150

200

250

300

350

400

Mar

gin

Ove

r F

un

gici

de

Co

st (

£/h

a)

£60/t

£100/t

£130/t

An extra £40K across

a 200ha farm

over a basic programme

Increasing fungicide investment

Throws Trials Data Proved Investment in Fungicides is Key to Profit

What makes the Masstock Business successful?

1. Innovation puts the customer first

– Technically led

2. We refresh and continually renew the Serviced offer

– Agronomist role has changed significantly..

3. We are also involved in the Supply side

– Gives flexibility to meet manufacturer‟s aspirations

4. Partnership approach with manufacturers and breeders

– Sustainable product life cycle

5. Integrated approach to R&D

– Solutions, not products

6. Agronomists are well supported

Model Replication

Declan Giblin, Corporate Development Director

What is the model?

Providing value added services, technologies and strategic

inputs that support the delivery of sustainable and

profitable food production solutions for primary producers

Technical Agri Service Provision – Key Characteristics

Repeat revenue with track record of customer retention

Geographically scalable / Partnership based

IP based with strong technical barriers to entry

Margin sustainability and balanced product portfolio

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Trends in the provision of Agri Services

There are significant synergies in becoming a

sizable player in the agri services sphere with a wide

network of consultants and expertise

– Increased purchasing power for inputs

– Knowledge building (across crops, geographies etc.)

– Sales channel for other products produced by the

company

Agri inputs

Agri services

Agri services providers have seen increased

demand for their services driven by:

– Increasing average size of farms (especially in

countries such as Ukraine and Russia)

– Increased pressure on yields to meet international

demand for grains

Propensity to hire agri advisors is linked to the

prevalence of non-owner management of farms:

– Demand for agri services is higher in the UK where large

land plots are managed by, for instance, investment funds

36

Where are the opportunities?

37

Exporting the ‘model’

38

Ukraine

UK

Poland

Exporting the ‘model’

39

Ukraine

UK

Poland

Model required to optimise

arable output beyond 8

tons per Ha, getting that

extra 1 ton is essential

Exporting the ‘model’

40

Ukraine

UK

Poland

Model required to

optimise arable output

beyond 8 tons oer Ha,

getting that extra 1 ton

is essential

Model required to

lift arable output

towards and beyond

6 tons per Ha

Exporting the ‘model’

41

Ukraine

UK

Poland

Model required to

lift agricultural

output from current

low averages of 2.5

tons per Ha

Model required to optimise

arable output beyond 8 tons

per Ha, getting that extra 1

ton is essential

Model required

to lift arable

output towards

and beyond 6

tons per Ha

42

Smart Farming (Technology Transfer)

Objective

– Seek to extend Smart Farming

Technology reach beyond UK

market

Approach

– Identify suitable agronomy

business in new location

– Establish „technology transfer‟

programme (trials and training

programme)

Typically gives

access to in

excess of 1

million Has of

arable farm land

Target Agronomy/

Agri input

business

The Masstock Team

Working For You

Your Partner In Profitable Farming