on Growth Barclays Global Consumer Staples Sept 4 th 2018 Siobhn T - - PowerPoint PPT Presentation

Barclays Global Consumer Staples Sept 4th 2018 Siobhán T albot Group MD

Focus

• n Growth

2

Important Notice

Market cap

€4.3bn

Employees

6,600

Countries

32

3

At a glance

Products sold or distributed in over

130

countries 2017 Total Group revenues

€3.6bn

2017 Total Group EBITA

€351m

Our business in 2017

4

Total Group Revenues €3.6bn* EBITA Margin

Mid teens Mid single digits

*Pro forma including the full year impact of acquisitions in Joint Ventures.

WHOLLY OWNED

GPN €1.1bn

SHARE OF REVENUE

Nutritional Solutions

€0.5bn

Activity Performance & lifestyle consumer branded portfolio Value added formulations

GN

Joint Ventures €1.3bn

US Cheese €0.7bn Dairy

2007- 2017 +630 bps

Strong record of delivery

5

10 Year wholly-

• wned

revenues 10 Year wholly-owned margin Earnings per share

2007 - 2017 11.9% CAGR

0.00c 20.00c 40.00c 60.00c 80.00c 100.00c

2007 2009 2011 2013 2015 2017

Adjusted Earnings per share

Adjusted Earnings per share 0% 5% 10% 15%

2007 2009 2011 2013 2015 2017

Wholly-owned margin

Wholly-owned margin

Trends driving our business

6

$4.5 tr

• nline retail sales

expected to have a CAGR of 18% from 2017 – 2021.

93%

• f US households have

purchased a clean label product.

94%

• f American consumers

reach for a snack at least

• nce-a-day.

$1tr

Global health and wellness sales hit a record high in 2017.

Health and wellness On-the-go food and beverages Digitally connected Clean labelling

Aligning our business to consumer and customer needs

Source: Euromointor/ NBJ/ Stastica /Nielsen

Glanbia Nutritionals

GLANBIA NUTRITIONALS 8

Glanbia Nutritionals (GN):

at a glance

#1

Global supplier of whey protein isolate

2,000

Employees

Sales presence in

19

countries

#2

Global micro nutrient premix

2017

Revenue

€1,266m

#1

Producer of American style cheddar cheese

GN financials

GLANBIA NUTRITIONALS 9

2017

Revenue

US Cheese

€734m

Nutritional Solutions

€532m

Nutritional Solutions US Cheese

1,075 1,175 1,218 1,224 1,266 2013 2014 2015 2016 2017

Revenue (€’m)

102 100 107 111 114 2013 2014 2015 2016 2017

EBITA (€’m)

Cheese

GLANBIA NUTRITIONALS 10

Cheese overview

GLANBIA NUTRITIONALS 11

#1

Producer of American style cheddar cheese

20%

Share of US Cheddar Cheese Market

€1.5bn

2017

Revenue

Wholly Owned Southwest Cheese

US Cheese footprint

GLANBIA NUTRITIONALS 12

Idaho New Mexico Michigan

Gooding Twin Falls / Blackfoot Cheese Innovation Centre Central Michigan 2021 Clovis

Customer Categories:

Brands Converters

Key attributes:

Largest player Most efficient producer Incubation plants for Innovations

Cheese volume (tonnes)

470k 602k

2018 2021

Foodservice Retailers

Unique operating model

13

Pioneered at SWC, building upon that in Michigan

GLANBIA NUTRITIONALS

Strategic Milk Outlet Competitive milk price Share in business Strategic Milk Supply Operational / technical and commercial partner Strategic source of whey

JV operating model

Ring-fenced JV financing Consistent income stream

• Dividends
• Commissions
• Our share of Profit After Tax

Strong returns on equity invested Robust business model

Impact on Plc

Nutritional Solutions

GLANBIA NUTRITIONALS 14

NS Overview

GLANBIA NUTRITIONALS 15

#1

Whey protein Isolate

#2

Global Premix

2017

Revenue

39%

€207m

Non-dairy Dairy

61%

€325m

€532m

NS Volume Growth

(5 yr average)

Average

6%

16 GLANBIA NUTRITIONAL

What makes us unique

Nutritional Solutions:

Our portfolio & differentiators

17 GLANBIA NUTRITIONALS

Protein solutions Micronutrient straights Aseptic beverage manufacturing Bioactives Custom nutrient premixes Flavours Plant nutrition

Deep formulation expertise Accelerated Innovation Capability Trusted Supply Chain Quality Assurance

Integrated innovation platform

Where we play

GLANBIA NUTRITIONALS 18

Sports & Lifestyle nutrition Supplements Clinical nutrition Mainstream food & beverage Infant nutrition End–market growth rate in the mid-single digit range

Source: Euromonitor

GLANBIA NUTRITIONALS

Growth Drivers

19

Scale flavours Scale plant nutrition Leverage extensive protein capability into healthy snacking

Nutritional Solutions

Build on core strength in premix & bioactives

Glanbia Performance Nutrition

Who we are

GPN 21

2,350

people worldwide

#1

€1.1Bn 7.3%

average volume growth 2013-2017

8 Brands

25

end market teams

GPN financials

GPN 22

Constant Currency

Average Volume Growth

7.3%

Constant Currency

Average Margin

13.7%

655 746 923 1008 1121

2013 2014 2015 2016 2017

Note: Revenue on a reported basis.

Revenue growth (€’m) 71 89 136 162 170

2013 2014 2015 2016 2017

Note: EBITA on a reported basis

EBITA growth (€’m)

Business builders

GPN 23 *Annual revenue at the point of acquisition

$1.3bn

Revenue 2008 2011 2014 2015 2017 $185m*

Revenue

$135m*

Revenue

$93m*

Revenue

$84m*

Revenue

$116m*

Revenue

Total acquisition revenue $614m Organic growth $687m

2017 Performance Nutrition addressable market

Our market

GPN 24

ROW

34%

North America

66%

$13bn

in value (RSP)

Source: Euromonitor/Glanbia estimates

Constant Currency GPN market share

13%

Constant Currency Global market growth rate

MSD%

2017 Revenue

GPN 25

Format Mix

71% 60% 15% 15% 5% 16% 5% 4%

4% 5%

2015 2017

RTE RTD

100% 100%

Protein Energy CAPS/TABS RTM

By Region, by Channel and Format

Channel Mix

36 % 28 % 32 % 30 % 22 % 26 %

10%

16 %

2015 2017

Specialty Distributor Online FDMC

100% 100%

35% 38% 65% 62%

2015 2017

Rest of the World North America

Regional Mix

100% 100%

Growth drivers

GPN 26

2017 2022

Selective M&A Accelerate International Win in omni- channel Innovation Invest in digital

27

Joint Ventures

Joint Venture Growth Ambition

28

Glanbia Cheese UK & Glanbia Cheese EU* Glanbia Ireland Michigan*

2022 Revenue** €1.9bn

SouthWest Cheese Glanbia Cheese UK

2017 Revenue** €1.2bn

SouthWest Cheese Glanbia Ireland

*Michigan & Glanbia Cheese EU are New Joint Ventures which will be commissioned by 2021 **Glanbia total share of Joint Ventures Revenue based upon share of equity ownership of JVs

JV Structure New Capacity 1. Glanbia Cheese EU 2. Michigan* 1. Mid-to-high single digit volume growth 2. Mid-single digit margins Growth Drivers

Group Strategy

29

30

Strategic Pillars

Concentrate our focus in growing markets where we have market leading capability and right to win Invest in capability to capture market

• pportunities

Protect and grow the core Embed enablers across the business

Focus on: Leveraging the operating model Driving customer and consumer engagement Developing and retaining top talent Rigorous cost management

Selectively build and scale beyond the core

Invest to drive organic growth across key adjacencies to current platforms Build scale internationally Deliver complementary M&A

Health and wellness On-the-go food and beverages Digitally connected Clean labelling

Our Purpose

To deliver better nutrition for every step

• f life’s journey

Our Vision

To be one of world’s top performing nutrition companies trusted to enrich lives every day

Global Macro Trends

*The Group’s refreshed strategy to 2022 was published at its capital markets day on 23 May 2018

Refreshed Group Strategy

Our growth ambition by 2022 to be a €5bn Group

31

WHOLLY OWNED

SHARE OF REVENUE

GPN €1.6bn

Nutritional Solutions €0.8bn

Joint Ventures €1.9bn

US Cheese €0.7bn

2022 revenue

13% - 15%

Mid single digits

14% - 16%

Average EBITA Margin 2018 to 2022

2018 to 2022: Growth, Cash conversion & Returns

32

Constant Currency Cash conversion

>80%

Constant Currency ROCE

10% - 13%

Constant Currency Dividend pay-out

25% - 35%

Constant Currency EPS1

5% - 10%

1 Average adjusted EPS on a constant currency basis over the 2018 – 2022 period

Performance & Ambition – KPI’s

33

Track record Long-term ambition 2018 guidance Cash Conversion ROCE Adjusted EPS Dividend Pay-out Ratio

2014-2017 2018-2022 2018 82.9% > 80% > 80% 13.9% 10% - 13% 10% - 13% 10.5% 5% - 10% 5% - 8% 18.4% 25% - 35% 25% - 35%

   

Focus on growth

34

Powerful consumer trends driving business Group focused and aligned to drive growth Strong track record of delivery Ambition for future growth Significant financial resources to invest

Questions

35