2016 HALF YEAR RESULTS 17 AUGUST 2016 CAUTIONARY STATEMENT This - - PowerPoint PPT Presentation

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2016 HALF YEAR RESULTS 17 AUGUST 2016 CAUTIONARY STATEMENT This - - PowerPoint PPT Presentation

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2016 HALF YEAR RESULTS 17 AUGUST 2016 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

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SLIDE 1

2016 HALF YEAR RESULTS

17 AUGUST 2016

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SLIDE 2

2016 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.

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2016 HALF YEAR RESULTS 3

HALF YEAR 2016 GROUP PERFORMANCE SUMMARY 44.87c

+10.8% (cc)

+10.5% (rc)

€157m

+13.7% (cc)

+13.6% (rc)

11.0%

+130bps (cc)

+130bps (rc)

Double digit growth in adjusted EPS Strong EBITA performance driven by GPN Strong margin growth to double digit

Note: (i) EBITA is defined as earnings before interest, tax and amortisation and is stated before exceptional items. EBITA and EBITA margin are stated on a wholly owned basis. Wholly-owned excludes the group’s share of Joint Ventures & Associates (ii) CC denotes constant currency, RC denotes reported currency (iii) Constant currency (cc) growth rates removes the FX impact of translation of results to Euro. The average EURO US Dollar exchange rate for the first half of 2016 was €1 = $1.116 (HY15: €1 = $1.115). The Group’s most significant exposure is to the US Dollar.

  • Adj. EPS

Wholly owned

EBITA

Wholly owned

EBITA margin

Reiterating FY guidance of 8% – 10% growth in adjusted EPS, constant currency

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SLIDE 4

2016 HALF YEAR RESULTS

+1.1% (rc)

  • 4.5% (cc)
  • 5.4% (rc)

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SEGMENTAL SUMMARY

TOTAL GROUP EBITA GROWTH +11.4% (CC*), +11.2% (RC*)

GLANBIA PERFORMANCE NUTRITION GLANBIA NUTRITIONALS DAIRY IRELAND JVs & ASSOCIATES

€158.7m €176.5m COMMENTARY

  • Strong overall performance in

first half

  • Strong performance from GPN

driven by branded volume growth across all regions

  • Glanbia Nutritionals**

delivered good volume growth

  • f value added nutritional

ingredients

  • Dairy Ireland and JVs &

Associates satisfactory

+35.0% (cc) +34.6% (rc)

  • 4.0% (cc)
  • 3.8% (rc)

* CC denotes constant currency; RC denotes reported currency ** Global Ingredients has been rebranded Glanbia Nutritionals, the operations of the segment are unchanged

€17.5m €17.7m €20.2m €19.1m €60.3m €58.0m €60.7m €81.7m HY2015 HY2016

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SLIDE 5

OPERATIONAL REVIEW

2016 HALF YEAR RESULTS

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SLIDE 6

2016 HALF YEAR RESULTS 6

  • 12.0% revenue growth, constant currency
  • Volume +8.0%; Price -6.7%; Acquisition +10.7%
  • 16.9% branded revenue growth, constant currency
  • 4.4% like for like branded revenue growth
  • Branded volume growth across all regions
  • Input cost deflation, positive mix and operational

leverage drove EBITA margin accretion of 280 bps

  • Continued focus on innovation; recent launches

performing well

  • thinkThin growing strongly and integration on track

GLANBIA PERFORMANCE NUTRITION

OPERATIONAL OVERVIEW

Results include impact of acquisitions completed since the prior period CC denotes constant currency; RC denotes reported currency

EBITA margin

16.2%

+280bps (cc)

+280bps (rc)

EBITA

€81.7m

+35.0% (cc)

+34.6% (rc)

lfl branded revenue growth

4.4%

Revenue

€505m

+12.0% (cc)

+11.4% (rc)

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2016 HALF YEAR RESULTS 7

GLANBIA NUTRITIONALS*

OPERATIONAL REVIEW

  • Performance in-line with expectations in context of

challenging dairy markets

  • New organisational design in place, delivering an

insight led commercial platform and transforming the customer experience

  • Good volume growth of value added nutritional

ingredients, led by strong growth in bar systems and benefit of investment in high end whey, drove improved mix & margin

EBITA margin

10.1%

+20bps (cc)

+20bps (rc)

EBITA

€58.0m

  • 4.0% (cc)
  • 3.8% (rc)

Revenue

€573m

  • 5.9% (cc)
  • 6.0% (rc)

* Global Ingredients has been rebranded Glanbia Nutritionals, the operations of the segment are unchanged CC denotes constant currency; RC denotes reported currency

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2016 HALF YEAR RESULTS 8

OPERATIONAL REVIEW

DAIRY IRELAND

  • Consumer Products: improved

performance driven by increased sales of value added products & input cost reduction

  • Agribusiness: somewhat reduced

performance due to reductions in price and margin of feed & fertiliser

JOINT VENTURES & ASSOCIATES

  • Reduced performance as a result of

challenging dairy market environment

  • Strong operational performance with

volume growth across all JVs and Associate

€357m

  • 3.3%

€17.7m

+1.1%

5.0%

+30bps

€402m

  • 8.8% (cc)
  • 9.7% (rc)

€19.1m

  • 4.5% (cc)
  • 5.4% (rc)

4.7%

+20bps (cc)

+20bps (rc)

Results include impact of acquisitions & disposals completed since the prior period CC denotes constant currency; RC denotes reported currency; Dairy Ireland is a euro denominated business

Revenue EBITA EBITA margin Revenue EBITA EBITA margin

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SLIDE 9

FINANCE REVIEW

2016 HALF YEAR RESULTS

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2016 HALF YEAR RESULTS 10

KEY FINANCIAL HIGHLIGHTS

WHOLLY OWNED REVENUE WHOLLY OWNED EBITA WHOLLY OWNED EBITA % ADJUSTED EPS OPERATING CASH FLOW

€1.4bn €157.4m 11.0% 44.87c €49.9m

CONSTANT CURRENCY CHANGE

+0.4% +13.7% +130bps +10.8% +0.2% +13.6% +130bps +10.5% +202%

REPORTED CHANGE

GOOD FINANCIAL METRICS FOR HY16

INTERIM DIVIDEND

5.37c +10.0%

HY16 RESULTS

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2016 HALF YEAR RESULTS 11

SEGMENTAL OVERVIEW

HY16 Constant currency change €m Revenue EBITA Margin Revenue EBITA Margin Glanbia Performance Nutrition 505.3 81.7 16.2% +12.0% +35.0% +280 bps Glanbia Nutritionals 572.6 58.0 10.1%

  • 5.9%
  • 4.0%

+20 bps Dairy Ireland 356.9 17.7 5.0%

  • 3.3%

+1.1% +30 bps Total wholly-owned businesses 1,434.8 157.4 11.0% +0.4% +13.7% +130 bps Joint Ventures & Associates 402.3 19.1 4.7%

  • 8.8%
  • 4.5%

+20 bps Total Group 1,837.1 176.5 9.6%

  • 1.7%

11.4% +110 bps

STRONG PERFORMANCE LED BY GLANBIA PERFORMANCE NUTRITION

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SLIDE 12

2016 HALF YEAR RESULTS 12

GLOBAL GROWTH PLATFORMS REVENUE DRIVERS

GLANBIA PERFORMANCE NUTRITION +11.4% (+12.0% CC*)

* Constant Currency (CC) excluding the impact of FX

€454m €505m (0.6)% 8.0% (6.7)% 10.7%

HY15 FX Volume Price Acquisitions HY16

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2016 HALF YEAR RESULTS 13

GLOBAL GROWTH PLATFORMS REVENUE DRIVERS

GLANBIA NUTRITIONALS* -6.0% (-5.9% CC**)

* Global Ingredients has been rebranded Glanbia Nutritionals, the operations of the segment are unchanged ** Constant Currency (CC) excluding the impact of FX

€609m €573m (0.1)% 2.2% (8.1)%

HY15 FX Volume Price HY16

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2016 HALF YEAR RESULTS 14

EBITA PROGRESSION

WHOLLY OWNED EBITA GROWTH +13.6% (+13.7% CC*)

* Constant Currency (CC) excluding the impact of FX

€139m €157m (0.1)% 15.3% (1.7)% 0.1%

130 135 140 145 150 155 160 HY15 FX Glanbia Performance Nutrition Glanbia Nutritionals Dairy Ireland HY16

€m

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2016 HALF YEAR RESULTS 15

SUMMARY INCOME STATEMENT

HY 2016 results summary pre exceptional Reported currency Constant currency €m HY16 HY15 Change Change Revenue (Wholly-owned) 1,434.8 1,431.7 +0.2% +0.4% EBITA (Wholly-owned) 157.4 138.5 +13.6% +13.7% EBITA margin 11.0% 9.7% +130 bps +130 bps

  • Amortisation of intangibles

(19.4) (15.6)

  • Net finance costs

(11.6) (10.7)

  • Share of results of JV&As

12.3 13.3

  • Income tax

(21.7) (19.1) Profit for the period 117.0 106.4 Adjusted Earnings per Share 44.87c 40.60c +10.5% +10.8%

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2016 HALF YEAR RESULTS 16

EXCEPTIONAL ITEMS SUMMARY

€m HY16 HY15

  • 1. Organisational redesign costs

(6.2) (3.1)

  • 2. Acquisition integration costs

(1.9)

  • 3. Rationalisation costs

(0.8) (1.1)

  • 4. Disposal of interest in Joint Venture
  • (3.6)

Exceptional charge pre-tax (8.9) (7.8) Taxation credit 1.6 0.5 Total exceptional charge (7.3) (7.3)

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SLIDE 17

2016 HALF YEAR RESULTS

  • Current committed debt facilities of approximately €1,011 million
  • Operating cash flow €49.9 million
  • Working capital position improved €11.2 million
  • Total capital investment of €41.7 million in first half, €27.8m strategic investment
  • Pension deficit increased €44.8m to €132.1m driven primarily by a lower discount rate as a

result of a reduced corporate bond yields in the period

  • 1. The definition of adjusted EBITDA and adjusted EBIT are as per our financing agreements and include dividends from Joint Ventures & Associates.

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BALANCE SHEET & CASHFLOW

Financing KPIs HY16 HY15 Net debt €644 million €577 million Net debt / Adjusted EBITDA1 1.83 times 1.97 times Adjusted EBIT1 / Net Finance Cost 11.4 times 9.8 times

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SUMMARY & OUTLOOK

2016 HALF YEAR RESULTS

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2016 HALF YEAR RESULTS

 GPN delivering strong growth  Integrating and growing the thinkThin business  Glanbia Nutritionals rebranded with new commercial organisation in place  Continued growth of value added Nutritional Ingredients business  Expanded margins across the Group  Well managed cash position with further working capital gains  On course to meet 2016 full year EPS guidance

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STRATEGY PROGRESSION

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2016 HALF YEAR RESULTS 20

2016 OUTLOOK

  • Good performance in the first half and

positive outlook for 2016

  • GPN expected to deliver full year like

for like branded revenue growth in line with the first half

  • GN expected to deliver modest EBITA

progression for full year

  • Reiterating 2016 guidance of 8% - 10%

growth in adjusted EPS on a constant currency basis

2016 guidance:

8% TO 10%

Adjusted EPS growth

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SLIDE 21

Liam Hennigan Head of Investor Relations Glanbia plc Glanbia House Kilkenny Ireland Email: ir@glanbia.ie Tel: +353 86 046 8375