Glanbia plc CAGE 2017 22 March 2017 Siobhan Talbot Group Managing - - PowerPoint PPT Presentation

Siobhan Talbot Group Managing Director

22 March 2017

Glanbia plc

CAGE 2017

Cautionary Statement

Glanbia Overview

CAGE 2017 | Slide 4

Glanbia Group Overview

MARKET CAP*

€5.4BN

EMPLOYEES

6,200

COUNTRIES

32

€1,007m €1,224m €616m €849m

2016 Total Group Revenue 2016 Total Group EBITA

60%*

*Contribution of Glanbia Performance Nutrition and Glanbia Nutritionals

GLANBIA PERFORMANCE NUTRITION GLANBIA NUTRITIONALS

DAIRY IRELAND

JOINT VENTURES & ASSOCIATES

*at close 15 March 2017

€163m €112m €31m €45m

78%*

Glanbia growth model

CAGE 2017 | Slide 5

€163m €112m €31m €45m

2016 EBITA:

€350m

€43m €62m €30m €29m

Glanbia Performance Nutrtition Glanbia Nutritionals Dairy Ireland Joint Ventures & Associates 2010 EBITA:

€163m

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

EBITA is shown at the Total Group level which includes Glanbia’s share of Joint Ventures & Associates 2010 segmental EBITA results are pro-forma, creating a like- for like comparison taking account for various disposals

+13.6% CAGR

Global Consumer Trends

GLANBIA SITS AT THE HEART OF POWERFUL CONSUMER MEGATRENDS IN NUTRITION

CAGE 2017 | Slide 7

Global Health & Wellness sales to hit a record high of $1 trillion by 2017

$1tn

• f US consumers

select foods based on the ingredient list and nutritional facts panel

50% 50%

people are members of fitness centers in the US

55m 55m 94% 94%

• f Americans

snack at least

• nce a day

Health and Wellbeing Active Lifestyles Easy Convenient and on-the-go Clean Labelling

Sources: Euromonitor International, Statista, Mintel

Glanbia Performance Nutrition

CAGE 2017 | Slide 9

Glanbia Performance Nutrition

12.0% 14.7% 16.1% 2014 2015 2016

EBITA margin

Revenue expansion driven by branded growth, innovation & strategic acquisitions

Plant-based nutrition, Greens & Super Foods Direct to consumer “DTC” online brand

Recent acquisitions

Millions

Revenue & EBITA

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

2014 2015 2016 Revenue EBITA Millions

Revenue EBITA

GPN Brand portfolio

CAGE 2017 | Slide 10

PER PERFOR FORMAN MANCE LIFES LIFESTYL TYLE

Consumer

Innovation at GPN – Focus on ready to eat

CAGE 2017 | Slide 11

Glanbia Nutritionals Overview

CAGE 2017 | Slide 13

Nutritional Solutions €488m US Cheese €736m

2016 Revenue

GN Capability Overview

MICRO NUTRIENT PREMIX AND BIOACTIVE INGREDIENTS FUNCTIONAL BEVERAGES DAIRY & PLANT BASED PROTEINS GRAINS AND SEEDS

CAGE 2017 | Slide 14

GN Plays into Growing End Markets

Sports Nutrition Lifestyle Nutrition & Supplements Beverages Dairy Functional Snacks Early Life Clinical Nutrition Pet, animal, cosmetics, nutricosmetics Cheese Ingredients Consumer and Foodservice Bakery

Protein Enrichment Convenience Nutritional Functionality

Nutrition enhanced mainsteam food & beverage Life stage nutrition Other Cheese Functional Nutrition

GN End Markets Nutritional Solutions serves customers

in a variety of growing end markets aligned to consumer trends

Joint Ventures & Associates

CAGE 2017 | Slide 16

Joint Ventures & Associates

3 scale partners in dairy processing

In 2016 Glanbia share of revenue from JV’s and Associates was €849m

Glanbia Ingredients Ireland (40% partner) Largest dairy processor in Ireland Southwest Cheese (50% partner) Large-scale American style cheddar cheese and whey producer located in New Mexico Glanbia Cheese (51% partner) Leader in mozzarella cheese in the EU

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

CAGE 2017 | Slide 17

Strategic Initiatives

Disposal of 60% interest in Dairy Ireland to be integrated with GII 25% Capacity increase in Southwest Cheese in 2018 Proposal to create a new JV in Michigan to build a large scale cheese and whey plant

Joint Ventures & Associates

Summary & Outlook

CAGE 2017 | Slide 19

Strong cash conversion Seventh consecutive year of double digit growth in adjusted EPS Strong EBITA growth across the Group Continued EBITA margin progression across the Group

• *CC denotes constant currency; RC denotes reported currency
• 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 Euro US Dollar FX rate for 2016 was €1 = $1.107 (FY 2015: €1 = $1.109).

• This presentation contains certain alternative performance measures. A detailed glossary of the key performance indicators and non-IFRS

performance measures can be found in the appendix of this presentation.

Full Year 2016 Performance Summary

• Adj. EPS

EBITA EBITA margin Free cash flow

87.66c €305.1m 10.7% €311.0m

+11.2% (cc*) +10.8% (rc*) +12.5% (cc*) +12.6% (rc*) +90 bps (cc*) +90 bps (rc*) +21.5%

Summary & Outlook

CAGE 2017 | Slide 20

*Pro-forma adjusted EPS of the continuing Group has been calculated assuming the Dairy Ireland transaction was completed at the start of FY 2016. **Continuing Group as used above includes “Glanbia Ireland” as a 40% associate ***The Dairy Ireland transaction is contingent upon agreement of legal transaction contracts and shareholder approvals

Questions & Answers

Appendix

CAGE 2017 | Slide 23

Non IFRS Performance Measures

1. To arrive at the constant currency year–on–year change, the results for the prior year are retranslated using the average exchange rates for the current year and compared to the current year reported numbers. 2. Revenue comprises sales of goods and services of the wholly owned businesses to external customers net of value added tax, rebates and discounts. 3. EBITA is defined as earnings before interest, tax and amortisation excluding exceptional items. 4. EBITA margin is defined as EBITA before exceptional items as a percentage of the revenue of the wholly owned businesses. 5. Total Group is used to describe certain financial metrics such as Revenue and EBITA when they include both the wholly owned businesses and the Group's share of Joint Ventures & Associates. 6. Adjusted EPS is defined as the net profit attributable to the equity holders of Glanbia plc, before exceptional items and intangible asset amortisation, net of related tax, divided by the weighted average number of ordinary shares in issue during the year. 7. Free cash flow is calculated as the net cash flow in the year before the following items: strategic capital expenditure, acquisition spend, proceeds received on disposals, equity dividends paid, exceptional costs paid, loans to Joint Ventures & Associates and currency translation movements. 8. Net debt : adjusted EBITDA is calculated as net debt at the end of the year divided by adjusted EBITDA. Net debt is calculated as total financial liabilities (excluding debt issue costs) less cash and cash equivalents. Adjusted EBITDA is calculated as EBITDA for the wholly

• wned businesses (as defined under operating cash flow) plus dividends received from Joint Ventures & Associates, and in the event of an

acquisition in the year, includes pro–forma EBITDA as though the acquisition date had been at the beginning of the year. 9. ROCE is defined as the Group's earnings before interest, tax and amortisation (net of related tax) plus the Group's share of the results of Joint Ventures & Associates after interest and tax divided by capital employed. Capital employed comprises the sum of the Group's total assets plus cumulative intangible asset amortisation less current liabilities but excluding all financial liabilities, retirement benefit assets, cash and deferred tax balances. It is calculated by taking the average of the relevant opening and closing balance sheet amounts. In years where the Group makes significant acquisitions or disposals, the ROCE calculation is adjusted appropriately, to ensure the acquisition or disposal are equally time apportioned in the numerator and the denominator.

Email: ir@glanbia.ie Tel: +353 56 777 2200

Delivering better nutrition for every step of life’s journey

Liam Hennigan Head of Investor Relations Glanbia plc Glanbia House Kilkenny, Ireland