2015 HALF YEAR RESULTS 19 AUGUST 2015 “Delivering better nutrition for every step of life’s journey”
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. 2015 HALF YEAR RESULTS Glanbia plc – Delivering better nutrition for every step of life’s journey 2
AGENDA: 2015 HALF YEAR RESULTS PRESENTATION 1. PERFORMANCE & TRENDS 2. OPERATIONAL REVIEW 3. FINANCE REVIEW 4. OUTLOOK 5. Q&A 2015 HALF YEAR RESULTS Glanbia plc – Delivering better nutrition for every step of life’s journey 3
PERFORMANCE & TRENDS 2015 HALF YEAR RESULTS
HALF YEAR 2015 PERFORMANCE SUMMARY HY15 HY15 growth Constant Reported Wholly owned results € m HY 2015 currency currency Total Group Revenue 1,432 -3.9% +10.6% Revenue € 1.9bn EBITA 139 +7.5% +29.1% EBITA margin 9.7% +110bps +140bps Total Group EBITA € 159m Adjusted EPS 40.60c +4.2% +25.1% Interim Dividend 4.88c +10.0% +10.0% • Good half year performance • Global Performance Nutrition strong, driven by branded growth • Global Ingredients satisfactory, in context of challenging global dairy markets • Dairy Ireland growth supported by branded milk sales growth and cost improvement • Reiterating full year guidance of 9% - 11% growth in adjusted EPS, constant currency (c. 25% reported at current exchange rates) Note: (i) EBITA is defined as earnings before interest, tax and amortisation and is stated before exceptional items (ii) Total Group Revenue includes the Group’s share of Joint Ventures & Associates (iii) Wholly Owned does not include the Group’s share of Joint Ventures & Associates (iv) The average exchange rate for HY15 was € 1 = $1.115 (HY 2015: € 1 = $1.371) 2015 HALF YEAR RESULTS Glanbia plc – Delivering better nutrition for every step of life’s journey 5
CONSUMER TRENDS AFFECTING OUR BUSINESS Our P urpose: Delivering better nutrition for every step of life’s journey TRENDS WE ARE SEEING HOW WE ARE MEETING THEM MARKET LEADING PORTFOLIO OF PERFORMANCE NUTRITION BRANDS DEVELOPING INNOVATIVE INGREDIENT SOLUTIONS WITH HIGHER PROTEIN CONTENT SUPPLYING AN ARRAY OF EVERYDAY NUTRITION END MARKETS WITH HEALTHY INGREDIENTS WORLD CLASS QUALITY ASSURANCE AND TRACEABILITY ACROSS OUR SUPPLY CHAINS 2015 HALF YEAR RESULTS Glanbia plc – Delivering better nutrition for every step of life’s journey 6
OPERATIONAL REVIEW
GLOBAL PERFORMANCE NUTRITION OPERATIONAL REVIEW REVENUE * • Strong performance in H1 € 453.5m • 16.4% branded revenue growth +1.9% +21.1% +3.7% like for like branded revenue growth CONSTANT CURRENCY REPORTED CURRENCY • Operational efficiencies, mix improvement & input EBITA * prices supported margin expansion of 180bps € 60.7m • Good momentum in US +17.4% +41.5% • Demand in certain international markets challenged CONSTANT CURRENCY REPORTED CURRENCY by strong US Dollar and geopolitical events EBITA margin * • Isopure integration largely completed 13.4% • Innovation through insight remains at the heart of +180bps +190bps GPN CONSTANT CURRENCY REPORTED CURRENCY * Results include impact of Isopure acquisition completed during 2014 Commentary on a constant currency basis 2015 HALF YEAR RESULTS Glanbia plc – Delivering better nutrition for every step of life’s journey 8
GLOBAL INGREDIENTS OPERATIONAL REVIEW REVENUE • Satisfactory performance overall € 609.3m -11.7% +7.7% • Challenging global dairy markets created headwinds CONSTANT CURRENCY REPORTED CURRENCY • Strong operational performance across all plants EBITA delivering volume growth of +6.8% € 60.3m • Continuing journey of moving up value chain to -9.5% +11.9% higher margin ingredient systems & solutions CONSTANT CURRENCY REPORTED CURRENCY • Non-dairy ingredient portfolio performed well EBITA margin • $85 million capital investment programme on 9.9% track to be commissioned in Q4 +20bps +40bps • Positioning for future growth CONSTANT CURRENCY REPORTED CURRENCY Commentary on a constant currency basis 2015 HALF YEAR RESULTS Glanbia plc – Delivering better nutrition for every step of life’s journey 9
OPERATIONAL REVIEW DAIRY IRELAND JOINT VENTURES & ASSOCIATES REVENUE EBITA EBITA margin REVENUE EBITA EBITA margin € 445.3m € 20.2m 4.5% € 368.9m € 17.5m 4.7% -20.4% -17.6% +10bps +4.3% +66.7% +170bps CONSTANT CURRENCY CONSTANT CURRENCY CONSTANT CURRENCY -11.5% -9.0% +10bps REPORTED CURRENCY REPORTED CURRENCY REPORTED CURRENCY • Improved performance in H1 • Challenging global dairy markets driven by operational efficiency, impacted performance new product development, and • 15% increase expected in milk some input cost reduction intake in GII for FY15 post EU quota abolition 2015 HALF YEAR RESULTS Glanbia plc – Delivering better nutrition for every step of life’s journey 10
FINANCE REVIEW 2015 HALF YEAR RESULTS
KEY FINANCIAL HIGHLIGHTS GOOD FINANCIAL METRICS FOR HY15 REPORTED CONSTANT CURRENCY CHANGE CHANGE WHOLLY OWNED REVENUE € 1.4bn +10.6% -3.9% WHOLLY OWNED EBITA € 138.5m +29.1% +7.5% WHOLLY OWNED EBITA 9.7% +140bps +110bps MARGIN ADJUSTED EPS 40.60c +25.1% +4.2% 2015 HALF YEAR RESULTS Glanbia plc – Delivering better nutrition for every step of life’s journey 12
SEGMENTAL OVERVIEW PERFORMANCE LED BY WHOLLY-OWNED BUSINESSES HY15 Constant currency change € m Revenue EBITA Margin Revenue EBITA Margin Global Performance Nutrition 453.5 60.7 13.4% +1.9% +17.4% +180 bps Global Ingredients 609.3 60.3 9.9% -11.7% -9.5% +20 bps Dairy Ireland 368.9 17.5 4.7% +4.3% +66.7% +170 bps Total wholly-owned businesses 1,431.7 138.5 9.7% -3.9% +7.5% +110 bps Joint Ventures & Associates * 445.3 20.2 4.5% -20.4% -17.6% +10 bps Total Group 1,877.0 158.7 8.5% -8.4% +3.5% +100bps * Glanbia share of Joint Ventures & Associates 2015 HALF YEAR RESULTS Glanbia plc – Delivering better nutrition for every step of life’s journey 13
GLOBAL GROWTH PLATFORMS’ REVENUE DRIVERS Global Performance Nutrition +21.1% (+1.9% cc * ) € 454m 8.4% (7.1)% 19.2% 0.6% € 375m HY14 FX Volume Price M&A HY15 constant currency movement 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 exchange rate for HY15 was € 1 = $1.115 (HY 2015: € 1 = $1.371) 2015 HALF YEAR RESULTS Glanbia plc – Delivering better nutrition for every step of life’s journey 14
GLOBAL GROWTH PLATFORMS’ REVENUE DRIVERS Global Ingredients +7.7% (-11.7% cc * ) 6.8% (18.5)% 19.4% € 609m € 566m HY14 FX Volume Price HY15 constant currency movement 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 exchange rate for HY15 was € 1 = $1.115 (HY 2015: € 1 = $1.371) 2015 HALF YEAR RESULTS Glanbia plc – Delivering better nutrition for every step of life’s journey 15
SUMMARY INCOME STATEMENT HY15 results summary pre exceptional Reported currency Constant currency € m HY15 HY14 Change Change -3.9% Revenue 1,431.7 1,294.2 +10.6% EBITA 138.5 107.3 +29.1% +7.5% EBITA margin 9.7% 8.3% +140bps +110bps - Amortisation of intangibles (15.6) (10.6) - Net finance costs (10.7) (10.5) - Share of results of JV&As 13.3 15.3 - Income tax (19.1) (14.7) Profit for the half year 106.4 86.8 +4.2% Adjusted Earnings per Share 40.60c 32.45c +25.1% 2015 HALF YEAR RESULTS Glanbia plc – Delivering better nutrition for every step of life’s journey 16
EXCEPTIONAL ITEMS SUMMARY € m HY15 HY14 Rationalisation costs (1.1) (0.6) Organisational redesign costs (3.1) - Disposal of interest in Joint Venture (3.6) - Transaction related costs - (3.0) Pre-tax exceptional charge (7.8) (3.6) Taxation credit 0.5 0.9 Total exceptional charge (7.3) (2.7) • Organisational redesign costs will involve an investment of approximately € 15m over 12-18 months 2015 HALF YEAR RESULTS Glanbia plc – Delivering better nutrition for every step of life’s journey 17
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