2014 FULL YEAR RESULTS 25 FEBRUARY 2015 ir@glanbia.com www.glanbia.com www.glanbia.com
CAUTIONARY STATEMENT 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 their approval 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. 2014 FULL YEAR RESULTS www.glanbia.com 2
FULL YEAR 2014 PERFORMANCE SUMMARY Total Group Total Group Total Group Adjusted Dividend Revenue EBITA EBITA margin EPS 11.00c € 3.5bn € 245m 7.0% 61.16c +10.0% +6.9% +7.9% +10bps +10.1% • 10.1% growth in adjusted EPS; fifth consecutive year of double digit growth • Global Performance Nutrition strong, driven by international growth, acquisitions and innovation • Global Ingredients satisfactory, in the context of challenging dairy market conditions • Dairy Ireland improved performance, benefits of cost improvement being realised • € 222m strategic investment focused on global growth platforms • 74% year-over-year growth in free cash flow to € 153 million • Positive outlook with guidance of 9% - 11% growth in adjusted EPS for 2015 Note: (i) EBITA is defined as earnings before interest, tax and amortisation and is stated before exceptional items (ii) Total Group includes both the wholly owned businesses and the Group’s share of Joint Ventures & Associates. (iii) All growth figures (except dividend) in this presentation are on a constant currency basis. The average exchange rate for 2014 was € 1 = $1.327 2014 FULL YEAR RESULTS www.glanbia.com 3
SEGMENTAL SUMMARY TOTAL GROUP REVENUE EBITA € 89.2m Global Growth Platform EBITA Leader in Consumer € 19.0m Sports Nutrition € 3.5bn Leading Consumer & +6.9% Agri business in Ireland 55%* TOTAL GROUP EBITA EBITA € 36.4m EBITA Glanbia Share of € 245m Strategic Joint € 100.4m Ventures +7.9% Global Growth Platform Leading B2B Nutritional I ngredients 77%* Specialist * Combined total of Global Performance Nutrition and Global Ingredients 2014 FULL YEAR RESULTS www.glanbia.com 4
OPERATIONAL REVIEW 2014 FULL YEAR RESULTS
GLOBAL PERFORMANCE NUTRITION OPERATIONAL OVERVIEW REVENUE • Strong performance in 2014 € 746.2m • Double digit branded revenue growth +13.5% • Margin expansion of 120bps EBITA • International development on track € 89.2m +26.0% EBITA margin 12.0% +120bps Results include actual impact of acquisitions completed during the year 2014 FULL YEAR RESULTS www.glanbia.com 6
GLOBAL PERFORMANCE NUTRITION EXECUTION OF STRATEGY ACQUISITIONS • € 149 million in acquisitions executed in 2014 • Isopure is a provider of premium sports nutrition products • Nutramino is the market leader in Scandinavia • Integration on track • 23 countries with direct market presence EXPANSION • Phase I of $75 million state-of-the-art manufacturing facility in Aurora, IL commissioned in 2Q14 • Phase II on track to be commissioned in 2015, supporting growth over next 3 – 4 years INNOVATION • Robust innovation pipeline • Extended ON Gold Standard brand to pre-workout • Created a new protein occasion with ON Protein Energy • Global launch of next generation BSN N.O. -Xplode 2014 FULL YEAR RESULTS www.glanbia.com 7
GLOBAL INGREDIENTS OPERATIONAL REVIEW REVENUE • Satisfactory performance overall € 1,175.4 • Strong operational performance across all plants +9.3% • Improved milk volume performance in H2 vs H1 EBITA • Challenging whey market dynamics impacted performance in Ingredient Technologies € 100.4m -1.4% • Customised Solutions performed well; increasing revenues and cost management resulted in margin expansion EBITA margin 8.5% -100bps 2014 FULL YEAR RESULTS www.glanbia.com 8
GLOBAL INGREDIENTS EXECUTION OF STRATEGY EXPANSION • $85m investment underway increasing our value added whey and lactoferrin processing capacity • Fully commissioned by the end of 2015 • Maximising the value derived from our whey pool INNOVATION • Strong pipeline of functional systems and blends in development • Further developed organic cheese platform • Leveraging expertise in dairy proteins into beverage formats WE ARE CUSTOMER • Enhanced customer collaboration through network of innovation MARKET-LED AND centres TECHNOLOGY • 21 countries with direct market presence BACKED 2014 FULL YEAR RESULTS www.glanbia.com 9
OPERATIONAL REVIEW DAIRY IRELAND JOINT VENTURES & ASSOCIATES REVENUE EBITA EBITA margin REVENUE EBITA EBITA margin € 616.7m € 19.0m 3.1% € 984.0m € 36.4m 3.7% -5.4% +25.8% +80bps +8.3% -7.6% -60bps • Improved performance in 2014 • Decline in dairy markets in second driven by operational efficiency half of the year led to a decline in performance • Internationalisation strategy with • New Glanbia Ingredients Ireland branded milk and oats showing good potential at an early stage of (GII) facility in Ireland completed development on time and on budget prior to removal of EU milk quotas 2014 FULL YEAR RESULTS www.glanbia.com 10
FINANCE REVIEW 2014 FULL YEAR RESULTS
KEY FINANCIAL HIGHLIGHTS STRONG FINANCIAL METRICS FOR 2014 REPORTED CONSTANT CURRENCY CHANGE CHANGE TOTAL GROUP REVENUE € 3.5bn +7.3% +6.9% TOTAL GROUP EBITA +7.9% € 245.0m +8.1% TOTAL GROUP EBITA % 7.0% +10bps +10bps ADJUSTED EPS 61.16c +10.3% +10.1% FREE CASH FLOW € 153m +74% ROCE 13.4% -80bps 2014 FULL YEAR RESULTS www.glanbia.com 12
SEGMENTAL OVERVIEW STRONG PERFORMANCE LED BY GLOBAL PERFORMANCE NUTRITION 2014 Constant currency change € m Revenue EBITA Margin Revenue EBITA Margin Global Performance Nutrition 746.2 89.2 12.0% +13.5% +26.0% +120 bps Global Ingredients 1,175.4 100.4 8.5% +9.3% -1.4% -100 bps Dairy Ireland 616.7 19.0 3.1% -5.4% +25.8% +80 bps Total wholly-owned businesses 2,538.3 208.6 8.2% +6.4% +11.1% +30 bps Joint Ventures & Associates 984.0 36.4 3.7% +8.3% -7.6% -60 bps Total Group 3,522.3 245.0 7.0% +6.9% +7.9% +10bps 2014 FULL YEAR RESULTS www.glanbia.com 13
REVENUE GROWTH BY SEGMENT TOTAL GROUP REVENUE GROWTH 7.3% (+6.9% CC*) € m 3,550 3,522 0.4% 2.3% 3,500 (1.1)% 3.0% 3,450 3,400 2.7% 3,350 3,283 3,300 3,250 3,200 FY13 Global Global Ingredients Dairy Ireland Joint Ventures & FX FY14 Performance Associates Nutrition * Constant Currency (CC) excluding the impact of FX 2014 FULL YEAR RESULTS www.glanbia.com 14
GLOBAL GROWTH PLATFORMS REVENUE DRIVERS Global Performance Nutrition +13.9% (+13.5 cc*) Global Ingredients +9.4% (+9.3% cc*) € 746m 0.4% 5.0% 10.9% (1.6)% 0.0% € 1,175m 0.1% 7.4% 1.1% € 655m € 1,075m FY13 Price Volume M&A FX FY14 FY13 Price Volume M&A FX FY14 * Constant Currency (CC) excluding the impact of FX 2014 FULL YEAR RESULTS www.glanbia.com 15
EBITA PROGRESSION TOTAL GROUP EBITA GROWTH +8.1% (7.9% CC*) € m 250 1.7% (1.3)% 0.2% (0.6)% 8.1% 245 245 240 235 230 227 225 220 215 210 FY13 Global Global Ingredients Dairy Ireland Joint Ventures & FX FY14 Performance Associates Nutrition * Constant Currency (CC) excluding the impact of FX 2014 FULL YEAR RESULTS www.glanbia.com 16
SUMMARY INCOME STATEMENT 2014 results summary pre exceptional Reported currency Constant currency € m 2014 2013 Change Change Revenue (Wholly owned) 2,538.3 2,382.1 +6.6% +6.4% EBITA (Wholly owned) 208.6 187.7 +11.1% +11.1% EBITA margin 8.2% 7.9% +30 bps +30 bps - Amortisation of intangibles (22.5) (21.0) - Net finance costs (20.3) (23.0) - Share of results of JV&As 23.7 26.5 - Income tax (28.3) (24.7) Profit for the year 161.2 145.5 Adjusted Earnings per Share 61.16c 55.46c +10.3% +10.1% 2014 FULL YEAR RESULTS www.glanbia.com 17
EXCEPTIONAL ITEMS SUMMARY € m 2014 2013 Rationalisation costs (6.4) (8.0) Transaction related costs (9.6) - Revision to Group pension schemes - 13.8 Pre-tax exceptional (charge) / credit (16.0) 5.8 Taxation credit / (charge) 1.9 (0.3) Total exceptional (charge) / credit (14.1) 5.5 • Anticipated rationalisation costs of € 12m in 2015 2014 FULL YEAR RESULTS www.glanbia.com 18
CASH FLOW PROGRESSION IMPROVED FREE CASH FLOW +74% € m 300 (57) 8 13 250 32 209 (43) 200 (9) 153 150 100 88 65 50 0 2014 EBITA Depreciation Dividends Working Net Interest Business Other 2014 FCF 2013 FCF 2012 FCF from JV&As Capital & Tax Sustaining CapEx Note: (i) 2014 EBITA reflects the wholly owned business 2014 FULL YEAR RESULTS www.glanbia.com 19
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