Glanbia plc Barclays Consumer Staples Conference Boston 05 September 2017 Siobhan Talbot Group Managing Director
Cautionary Statement
Glanbia Overview Barclays Consumer Staples Conference 2017
Glanbia Group Overview – Global Business 2016 Total Group Revenue MARKET CAP* € 1,079m € 5 BN € 1,007m GLANBIA PERFORMANCE JOINT NUTRITION VENTURES & ASSOCIATES 67%* EMPLOYEES € 1,224m 6,200 2016 Total Group EBITA € 57m € 162m GLANBIA COUNTRIES NUTRITIONALS 32 € 111m 83%* *Contribution of Glanbia Performance Nutrition and Glanbia Nutritionals *at close 14 August 2017 Note: Numbers above are Pro-Forma and assume that the Barclays Consumer Staples Conference 2017 | Slide 4 Dairy Ireland divestment occurred at the beginning of FY 2016
Glanbia growth model – Consistent returns € 57m +12.5% CAGR Growth underpinned by € 29m € 43m GPN & GN 2016 EBITA : € 331m € 162m Disciplined investment in 2010 EBITA : € 163m € 30m growth capex and € 111m acquisitions JVs: efficient use of capital € 62m Glanbia Performance Nutrtition Glanbia Nutritionals Dairy Ireland Joint Ventures & Associates EBITA is shown at the Total Group level which includes Glanbia’s share of Joint Ventures & Associates 2016 segmental EBITA figures are pro-forma and assume that the Dairy Ireland divestment occurred at the beginning of FY 2016 The divestment of Dairy Ireland completed on 02 July 2017 Barclays Consumer Staples Conference 2017 | Slide 5
Track Record of earnings & margin growth Adjusted earnings per share* EBITA margin* 11.4% CAGR from 2001 to 2016 +870bps from 2001 to 2016 90c 13.0% 12.0% 80c 11.0% 70c 10.0% 60c 9.0% 50c 8.0% 40c 7.0% 30c 6.0% 20c 5.0% 10c 4.0% 3.0% 0c *2016 adjusted earnings per share and EBITA margin calculations are pro-forma numbers which reflect the impact of the exclusion of amortisation and the divestment of the Dairy Ireland segment on the performance The divestment of Dairy Ireland completed on 02 July 2017 Barclays Consumer Staples Conference 2017 | Slide 6
Track record of strong strategic execution 1 Organic growth projects & strategic alliances CHEESE & SPIN OUT OF SPECIALTY DAIRY WHEY IRISH DAIRY GRAIN INGREDIENTS SPIN OUT OF NEW CHEESE EXPANSION, PROCESSING INGREDIENTS, FACILITY, DAIRY IRELAND JV, MICHIGAN NEW MEXICO ASSETS SOUTH DAKOTA IRELAND 2011 2013 2015 2017 2020 2012 Capacity expansion 2018 2012 2013 2014 2015 CHEESE & PREMIX CHEESE NEW GPN HIGH END WHEY WHEY FACILITY, INNOVATION PRODUCTION EXPANSION, EXPANSION, GERMANY CENTER, IDAHO PLANT, ILLINOIS IDAHO NEW MEXICO Barclays Consumer Staples Conference 2017 | Slide 7
Track record of strong strategic execution Disciplined M&A 2 2008 2011 2012 2014 2016 2017 ASEPTIC SOLUTIONS USA Barclays Consumer Staples Conference 2017 | Slide 8
Strong Financial Metrics 11.2% 12.9% Growth in Adj. EPS in FY 2016 (constant FY 2016 Return on Capital Employed currency), the 7 th year of double digit growth 1.2x 87.6% Net debt : Adj. EBITDA 1 Conversion of EBITDA to FCF in FY 2016 FY 2016 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 Barclays Consumer Staples Conference 2017 | Slide 9
Glanbia Performance Nutrition Consumer branded products
Glanbia Performance Nutrition Revenue & EBITA Millions Millions Performance nutrition $12bn category* € 1,100 € 200 Revenue € 900 Glanbia - market leader EBITA € 150 € 700 € 100 Growth driven by brand development and strategic acquisitions Revenue EBITA € 500 € 50 2014 2015 2016 EBITA Margin 16.1% 14.7% 12.0% 2014 2015 2016 * Source: Glanbia estimates and Euromonitor data Barclays Consumer Staples Conference 2017 | Slide 11
GPN Brand portfolio PER PERFOR FORMAN MANCE LIFES LIFESTYL TYLE Consumer Barclays Consumer Staples Conference 2017 | Slide 12
Trends driving growth Convenience Direct-to-consumer Plant Nutrition Consumer shift towards DTC strong trend in category Plant-based nutrition snacking experiencing strong growth Acquisition of Body & Fit Innovative brand extensions provides a platform in Europe Amazing Grass well such as ON Cake Bites and positioned in this category thinkThin Super Fruit bars *DTC refers to direct-to-consumer Barclays Consumer Staples Conference 2017 | Slide 13
Glanbia Nutritionals Business-to-business food ingredients
Glanbia Nutritionals 2016 Revenues Revenue & EBITA Millions Millions € 1,250 € 130 € 120 Nutritional Revenue € 1,200 EBITA Solutions € 110 € 488m US Cheese € 1,150 € 736m € 100 Revenue EBITA € 1,100 € 90 2014 2015 2016 EBITA Margin US Cheese is a leading producer of American- 9.1% style cheddar cheese 8.8% 8.5% Nutritional Solutions is a leading provider of 2014 2015 2016 dairy & non-dairy proteins, ingredient Margin expansion mainly driven by value- solutions, and vitamin & minerals pre-mix added Nutritional Solutions Barclays Consumer Staples Conference 2017 | Slide 15
GN Plays into Growing End Markets Nutritional Solutions serves customers GN End Markets in a variety of growing end markets aligned to consumer trends Nutrition Functional enhanced nutrition mainstream Protein food & Enrichment beverage Cheese Life stage Convenience Nutritional nutrition Functionality Barclays Consumer Staples Conference 2017 | Slide 16
Joint Ventures & Associates Business-to-business dairy food ingredients
Joint Ventures & Associates 2016 Pro-forma Revenue from the JVA’s (Glanbia share) 3 scale dairy processing businesses (% ownership) Southwest Cheese (50%) € 370m Large-scale US cheese & whey producer Total € 1,079m € 591m Glanbia Cheese (51%) Leader in mozzarella cheese in the EU € 118m Glanbia Ireland* (40%) Largest dairy processor in Ireland Southwest Cheese Glanbia Cheese Glanbia Ireland Glanbia total Group processed over 6 billion litres of milk in 2016 *Glanbia Ireland encompasses Glanbia Ingredients Ireland and the former wholly-owned division Dairy Ireland Barclays Consumer Staples Conference 2017 | Slide 18
Summary & Outlook Barclays Consumer Staples Conference 2017
Summary & Outlook Pro-forma adjusted EPS Half Year 2017 Results Full Year 2017 Outlook +7-10% (cc) CC denotes constant currency *Pro-forma adjusted EPS for continuing operations assumes that the Dairy Ireland Barclays Consumer Staples Conference 2017 | Slide 20 divestment occurred at the beginning of FY 2016
Questions & Answers Barclays Consumer Staples Conference 2017
Delivering better nutrition for every step of life’s journey Glanbia plc Glanbia House Kilkenny, Ireland +
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