Glanbia plc Barclays Consumer Staples Conference Boston 05 - - PowerPoint PPT Presentation

Siobhan Talbot Group Managing Director

Boston 05 September 2017

Glanbia plc Barclays Consumer Staples Conference

Cautionary Statement

Barclays Consumer Staples Conference 2017

Glanbia Overview

Barclays Consumer Staples Conference 2017 | Slide 4

Glanbia Group Overview – Global Business

MARKET CAP*

€5BN

EMPLOYEES

6,200

COUNTRIES

32

2016 Total Group Revenue 2016 Total Group EBITA

GLANBIA PERFORMANCE NUTRITION GLANBIA NUTRITIONALS

JOINT VENTURES & ASSOCIATES

*at close 14 August 2017

€162m €111m €57m

83%*

€1,007m €1,224m €1,079m

67%*

Glanbia growth model – Consistent returns

Barclays Consumer Staples Conference 2017 | Slide 5

 Growth underpinned by GPN & GN  Disciplined investment in growth capex and acquisitions  JVs: efficient use of capital

+12.5% CAGR

€162m €111m €57m

2016 EBITA:

€331m

€43m €62m €30m €29m

Glanbia Performance Nutrtition Glanbia Nutritionals Dairy Ireland Joint Ventures & Associates

2010 EBITA:

€163m

Barclays Consumer Staples Conference 2017 | Slide 6

Track Record of earnings & margin growth

Adjusted earnings per share* 11.4% CAGR from 2001 to 2016 EBITA margin* +870bps from 2001 to 2016

3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 0c 10c 20c 30c 40c 50c 60c 70c 80c 90c

Barclays Consumer Staples Conference 2017 | Slide 7

Track record of strong strategic execution

2014 2017 2013 2012 2015 2011 2013 2012 2015

Capacity expansion

HIGH END WHEY EXPANSION, IDAHO NEW GPN PRODUCTION PLANT, ILLINOIS CHEESE INNOVATION CENTER, IDAHO PREMIX FACILITY, GERMANY CHEESE & WHEY EXPANSION, NEW MEXICO SPIN OUT OF DAIRY IRELAND DAIRY INGREDIENTS FACILITY, IRELAND CHEESE & WHEY EXPANSION, NEW MEXICO SPECIALTY GRAIN INGREDIENTS, SOUTH DAKOTA SPIN OUT OF IRISH DAIRY PROCESSING ASSETS NEW CHEESE JV, MICHIGAN

1

Organic growth projects & strategic alliances

2020 2018

Barclays Consumer Staples Conference 2017 | Slide 8

Track record of strong strategic execution

2016 2014 2011 2008 2012 2017

2

Disciplined M&A

ASEPTIC SOLUTIONS USA

Barclays Consumer Staples Conference 2017 | Slide 9

Strong Financial Metrics

1.2x

Net debt : Adj. EBITDA1 FY 2016

87.6%

Conversion of EBITDA to FCF in FY 2016

11.2%

Growth in Adj. EPS in FY 2016 (constant currency), the 7th year of double digit growth

12.9%

FY 2016 Return on Capital Employed

• 1. Definition of net debt, adjusted EBITDA and adjusted EBIT are as per financing agreements which include dividends from Joint Ventures & Associates and the pro-forma effect of acquisitions

Consumer branded products

Glanbia Performance Nutrition

Glanbia Performance Nutrition

Barclays Consumer Staples Conference 2017 | Slide 11

2014 2015 2016

EBITA Margin

€50 €100 €150 €200 €500 €700 €900 €1,100

2014 2015 2016 EBITA Revenue

Revenue & EBITA

Revenue EBITA

Millions Millions

12.0% 14.7% 16.1%

Performance nutrition $12bn category* Glanbia - market leader Growth driven by brand development and strategic acquisitions

*Source: Glanbia estimates and Euromonitor data

GPN Brand portfolio

Barclays Consumer Staples Conference 2017 | Slide 12

PER PERFOR FORMAN MANCE LIFES LIFESTYL TYLE

Consumer

Barclays Consumer Staples Conference 2017 | Slide 13

DTC strong trend in category Acquisition of Body & Fit provides a platform in Europe

*DTC refers to direct-to-consumer

Consumer shift towards snacking Innovative brand extensions such as ON Cake Bites and thinkThin Super Fruit bars Plant-based nutrition experiencing strong growth Amazing Grass well positioned in this category

Plant Nutrition Direct-to-consumer Convenience

Trends driving growth

Business-to-business food ingredients

Glanbia Nutritionals

Glanbia Nutritionals

Barclays Consumer Staples Conference 2017 | Slide 15

€90 €100 €110 €120 €130 €1,100 €1,150 €1,200 €1,250 2014 2015 2016

EBITA Revenue

Revenue & EBITA

Revenue EBITA

Millions Millions

2014 2015 2016

EBITA Margin

8.5% 8.8% 9.1%

Margin expansion mainly driven by value- added Nutritional Solutions US Cheese is a leading producer of American- style cheddar cheese Nutritional Solutions is a leading provider of dairy & non-dairy proteins, ingredient solutions, and vitamin & minerals pre-mix

Nutritional Solutions €488m US Cheese €736m

2016 Revenues

Barclays Consumer Staples Conference 2017 | Slide 16

GN Plays into Growing End Markets

GN End Markets

Nutritional Solutions serves customers

in a variety of growing end markets aligned to consumer trends Protein Enrichment Convenience Nutritional Functionality

Functional nutrition Nutrition enhanced mainstream food & beverage Life stage nutrition Cheese

Business-to-business dairy food ingredients

Joint Ventures & Associates

Barclays Consumer Staples Conference 2017 | Slide 18

Joint Ventures & Associates

Glanbia total Group processed over 6 billion litres of milk in 2016

3 scale dairy processing businesses (% ownership)

Southwest Cheese (50%)

Large-scale US cheese & whey producer

Glanbia Cheese (51%)

Leader in mozzarella cheese in the EU

Glanbia Ireland* (40%)

Largest dairy processor in Ireland 2016 Pro-forma Revenue from the JVA’s (Glanbia share)

€370m €118m €591m

Southwest Cheese Glanbia Cheese Glanbia Ireland

Total €1,079m

Barclays Consumer Staples Conference 2017

Summary & Outlook

Summary & Outlook

Barclays Consumer Staples Conference 2017 | Slide 20

CC denotes constant currency *Pro-forma adjusted EPS for continuing operations assumes that the Dairy Ireland divestment occurred at the beginning of FY 2016

+7-10%(cc)

Half Year 2017 Results Full Year 2017 Outlook

Pro-forma adjusted EPS

Barclays Consumer Staples Conference 2017

Questions & Answers

+

Delivering better nutrition for every step of life’s journey

Glanbia plc Glanbia House Kilkenny, Ireland