2015 HALF YEAR RESULTS 19 AUGUST 2015 Delivering better nutrition - - PowerPoint PPT Presentation

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2015 half year results
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2015 HALF YEAR RESULTS 19 AUGUST 2015 Delivering better nutrition - - PowerPoint PPT Presentation

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2015 HALF YEAR RESULTS 19 AUGUST 2015 Delivering better nutrition for every step of lifes journey CAUTIONARY STATEMENT This presentation contains forward-looking statements. These statements have been made by the Directors in good faith

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2015 HALF YEAR RESULTS

19 AUGUST 2015

“Delivering better nutrition for every step of life’s journey”

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2015 HALF YEAR RESULTS

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.

Glanbia plc – Delivering better nutrition for every step of life’s journey 2

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2015 HALF YEAR RESULTS

AGENDA: 2015 HALF YEAR RESULTS PRESENTATION

  • 1. PERFORMANCE & TRENDS
  • 2. OPERATIONAL REVIEW
  • 3. FINANCE REVIEW
  • 4. OUTLOOK
  • 5. Q&A

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2015 HALF YEAR RESULTS

PERFORMANCE & TRENDS

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2015 HALF YEAR RESULTS

HALF YEAR 2015 PERFORMANCE SUMMARY

  • Good half year performance
  • Global Performance Nutrition strong, driven by branded growth
  • Global Ingredients satisfactory, in context of challenging global dairy markets
  • Dairy Ireland growth supported by branded milk sales growth and cost improvement
  • Reiterating full year guidance of 9% - 11% growth in adjusted EPS, constant currency

(c. 25% reported at current exchange rates)

Note: (i) EBITA is defined as earnings before interest, tax and amortisation and is stated before exceptional items (ii) Total Group Revenue includes the Group’s share of Joint Ventures & Associates (iii) Wholly Owned does not include the Group’s share of Joint Ventures & Associates (iv) The average exchange rate for HY15 was €1 = $1.115 (HY 2015: €1 = $1.371)

HY15 HY15 growth Wholly owned results €m

Constant currency Reported currency

Revenue 1,432

  • 3.9%

+10.6% EBITA 139 +7.5% +29.1% EBITA margin 9.7% +110bps +140bps Adjusted EPS 40.60c +4.2% +25.1% Interim Dividend 4.88c +10.0% +10.0%

HY 2015 Total Group Revenue

€1.9bn

Total Group EBITA

€159m

Glanbia plc – Delivering better nutrition for every step of life’s journey 5

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2015 HALF YEAR RESULTS

CONSUMER TRENDS AFFECTING OUR BUSINESS Our Purpose: Delivering better nutrition for every step of life’s journey

HOW WE ARE MEETING THEM

Glanbia plc – Delivering better nutrition for every step of life’s journey 6

TRENDS WE ARE SEEING

MARKET LEADING PORTFOLIO OF PERFORMANCE NUTRITION BRANDS DEVELOPING INNOVATIVE INGREDIENT SOLUTIONS WITH HIGHER PROTEIN CONTENT SUPPLYING AN ARRAY OF EVERYDAY NUTRITION END MARKETS WITH HEALTHY INGREDIENTS WORLD CLASS QUALITY ASSURANCE AND TRACEABILITY ACROSS OUR SUPPLY CHAINS

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OPERATIONAL REVIEW

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2015 HALF YEAR RESULTS

  • Strong performance in H1
  • 16.4% branded revenue growth
  • +3.7% like for like branded revenue growth
  • Operational efficiencies, mix improvement & input

prices supported margin expansion of 180bps

  • Good momentum in US
  • Demand in certain international markets challenged

by strong US Dollar and geopolitical events

  • Isopure integration largely completed
  • Innovation through insight remains at the heart of

GPN GLOBAL PERFORMANCE NUTRITION

OPERATIONAL REVIEW

* Results include impact of Isopure acquisition completed during 2014 Commentary on a constant currency basis

REVENUE*

€453.5m

+1.9% +21.1%

EBITA*

€60.7m

+17.4% +41.5%

EBITA margin*

13.4%

+180bps +190bps

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CONSTANT CURRENCY CONSTANT CURRENCY CONSTANT CURRENCY REPORTED CURRENCY REPORTED CURRENCY REPORTED CURRENCY

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2015 HALF YEAR RESULTS

GLOBAL INGREDIENTS

OPERATIONAL REVIEW

  • Satisfactory performance overall
  • Challenging global dairy markets created

headwinds

  • Strong operational performance across all plants

delivering volume growth of +6.8%

  • Continuing journey of moving up value chain to

higher margin ingredient systems & solutions

  • Non-dairy ingredient portfolio performed well
  • $85 million capital investment programme on

track to be commissioned in Q4

  • Positioning for future growth

REVENUE

€609.3m

  • 11.7% +7.7%

EBITA

€60.3m

  • 9.5% +11.9%

EBITA margin

9.9%

+20bps +40bps

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CONSTANT CURRENCY CONSTANT CURRENCY CONSTANT CURRENCY REPORTED CURRENCY REPORTED CURRENCY REPORTED CURRENCY

Commentary on a constant currency basis

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2015 HALF YEAR RESULTS

OPERATIONAL REVIEW

DAIRY IRELAND

  • Improved performance in H1

driven by operational efficiency, new product development, and some input cost reduction

JOINT VENTURES & ASSOCIATES

  • Challenging global dairy markets

impacted performance

  • 15% increase expected in milk

intake in GII for FY15 post EU quota abolition

REVENUE

€368.9m

+4.3%

EBITA

€17.5m

+66.7%

EBITA margin

4.7%

+170bps

REVENUE

€445.3m

  • 20.4%

CONSTANT CURRENCY

  • 11.5%

REPORTED CURRENCY

EBITA

€20.2m

  • 17.6%

CONSTANT CURRENCY

  • 9.0%

REPORTED CURRENCY

EBITA margin

4.5%

+10bps

CONSTANT CURRENCY

+10bps

REPORTED CURRENCY

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2015 HALF YEAR RESULTS

FINANCE REVIEW

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2015 HALF YEAR RESULTS

KEY FINANCIAL HIGHLIGHTS

WHOLLY OWNED REVENUE WHOLLY OWNED EBITA WHOLLY OWNED EBITA MARGIN ADJUSTED EPS

€1.4bn €138.5m 9.7% 40.60c

CONSTANT CURRENCY CHANGE

  • 3.9%

+7.5% +110bps +4.2% +10.6% +29.1% +140bps +25.1%

REPORTED CHANGE

GOOD FINANCIAL METRICS FOR HY15

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2015 HALF YEAR RESULTS

SEGMENTAL OVERVIEW

HY15 Constant currency change €m Revenue EBITA Margin Revenue EBITA Margin Global Performance Nutrition 453.5 60.7 13.4% +1.9% +17.4% +180 bps Global Ingredients 609.3 60.3 9.9%

  • 11.7%
  • 9.5%

+20 bps Dairy Ireland 368.9 17.5 4.7% +4.3% +66.7% +170 bps Total wholly-owned businesses 1,431.7 138.5 9.7%

  • 3.9%

+7.5% +110 bps Joint Ventures & Associates* 445.3 20.2 4.5%

  • 20.4%
  • 17.6%

+10 bps Total Group 1,877.0 158.7 8.5%

  • 8.4%

+3.5% +100bps

PERFORMANCE LED BY WHOLLY-OWNED BUSINESSES

Glanbia plc – Delivering better nutrition for every step of life’s journey 13 * Glanbia share of Joint Ventures & Associates

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2015 HALF YEAR RESULTS

HY14 FX Volume Price M&A HY15

GLOBAL GROWTH PLATFORMS’ REVENUE DRIVERS

Global Performance Nutrition +21.1% (+1.9% cc*)

(7.1)% 8.4% 0.6% 19.2% €375m €454m

constant currency movement

Glanbia plc – Delivering better nutrition for every step of life’s journey 14 To arrive at the Constant Currency change, the average FX rate for the current period is applied to the relevant reported result from the same period in the prior year The average exchange rate for HY15 was €1 = $1.115 (HY 2015: €1 = $1.371)

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2015 HALF YEAR RESULTS

HY14 FX Volume Price HY15

GLOBAL GROWTH PLATFORMS’ REVENUE DRIVERS

Global Ingredients +7.7% (-11.7% cc*)

constant currency movement

6.8% 19.4% €566m €609m (18.5)%

Glanbia plc – Delivering better nutrition for every step of life’s journey 15 To arrive at the Constant Currency change, the average FX rate for the current period is applied to the relevant reported result from the same period in the prior year The average exchange rate for HY15 was €1 = $1.115 (HY 2015: €1 = $1.371)

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2015 HALF YEAR RESULTS

SUMMARY INCOME STATEMENT

HY15 results summary pre exceptional Reported currency Constant currency €m HY15 HY14 Change Change Revenue 1,431.7 1,294.2 +10.6%

  • 3.9%

EBITA 138.5 107.3 +29.1% +7.5% EBITA margin 9.7% 8.3% +140bps +110bps

  • Amortisation of intangibles

(15.6) (10.6)

  • Net finance costs

(10.7) (10.5)

  • Share of results of JV&As

13.3 15.3

  • Income tax

(19.1) (14.7) Profit for the half year 106.4 86.8 Adjusted Earnings per Share 40.60c 32.45c +25.1% +4.2%

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2015 HALF YEAR RESULTS

EXCEPTIONAL ITEMS SUMMARY

€m HY15 HY14 Rationalisation costs (1.1) (0.6) Organisational redesign costs (3.1)

  • Disposal of interest in Joint Venture

(3.6)

  • Transaction related costs
  • (3.0)

Pre-tax exceptional charge (7.8) (3.6) Taxation credit 0.5 0.9 Total exceptional charge (7.3) (2.7)

  • Organisational redesign costs will involve an investment of approximately €15m
  • ver 12-18 months

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2015 HALF YEAR RESULTS

  • €577 million net debt at 4 July 2015 (5 July 2014: €472 million)
  • Current committed debt facilities of approximately €1 billion:

― €718 million revolving credit facilities maturing January 2020 ― $325 million private debt placement of senior loan notes, due June 2021

  • YTD capex €59 million. Guiding €120m - €130m for FY15
  • Disposed of Nutricima for cash consideration of €28.5 million
  • 1. The definition of adjusted EBITDA, net debt and adjusted EBIT are as per our financing agreements and include dividends from Joint Ventures & Associates.

FINANCING & CASHFLOW

Financing KPIs HY15 HY14 Net debt / Adjusted EBITDA1 1.97 times 2.00 times Adjusted EBIT1 / Net Finance Cost 10.0 times 8.1 times

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2015 HALF YEAR RESULTS

OUTLOOK

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Reiterating full year guidance of 9% - 11% growth in adjusted EPS, constant currency (c. 25% reported at current exchange rates)

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2015 HALF YEAR RESULTS

QUESTIONS & ANSWERS

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Liam Hennigan Head of Investor Relations Glanbia plc Glanbia House Kilkenny Ireland Email: ir@glanbia.ie Tel: +353 56 777 2308