2017 Full Year Results Presentation 21 February 2018
CAUTIONARY STATEMENT 2017 Full Year Results | Slide 2
Full Year Highlights 2017 Full Year Results Presentation
8TH YEAR OF DOUBLE-DIGIT GROWTH 2017 FINANCIAL Highlights 2017 STRATEGIC Highlights Pro-forma¹ adjusted Total Group Pro- Acquisition of Disposal of 60% EPS forma¹ EBITA Amazing Grass of Dairy Ireland +8.6% and Body & Fit +10.2% constant currency ² constant currency² Wholly-owned Dividend payout Refreshed Group Group structure volume growth raised to 25% strategy focused on two growth platforms +5.3% and strategic JVs 1. Pro-forma Adjusted Earnings Per Share for the continuing Group calculation assumes the Dairy Ireland segment and related assets were disposed of at the beginning of the 2016 financial year. A reconciliation of the pro-forma and reported adjusted earnings per share can be found in the appendix of this presentation 2. 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 2017 was € 1 = $1.130 (FY 2016: € 1 = $1.107) 2017 Full Year Results | Slide 4
2017 TOTAL GROUP PRO-FORMA EBITA¹ PROGRESSION Total Group GPN EBITA pro-forma EBITA Drivers GN EBITA JV pro-forma EBITA Glanbia Performance Nutrition € 400m € 351m Constant currency Like-for-like branded revenue € 330m growth € 350m growth and acquisitions € 300m GPN + 7.0% GPN € 170m € 250m Glanbia Nutritionals € 162m € 200m Continued growth in Nutritional Solutions + 4.1% € 150m GN GN € 114m € 100m € 111m Joint Ventures € 50m JVs + + 21.9% JVs € 68m Strong dairy markets and volume € 56m growth € 0m 2016 2017 1. Pro-forma Adjusted Earnings Per Share for the continuing Group calculation assumes the Dairy Ireland segment and related assets were disposed of at the beginning of the 2016 financial year. A reconciliation of the pro-forma and reported adjusted earnings per share can be found in the appendix of this presentation 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 2017 was € 1 = $1.130 (FY 2. 2016: € 1 = $1.107) 2017 Full Year Results | Slide 5
STRONG YEAR OF STRATEGIC EXECUTION Initiatives Update Amazing Grass and Investing in plant-based nutrition and DTC ¹ capability Body & Fit acquired On-going investment planned to drive growth for € 168m Disposal of 60% of Dairy Ireland for Glanbia Ireland joint venture created with ambitious growth plans € 209m SwC – 25% expansion in production capacity Commissioning to be completed by Q3 2018 $140m 1. Direct-to-consumer 2017 Full Year Results | Slide 6
IMPACT OF DAIRY IRELAND TRANSACTION The majority of the Improved margin Group’s primary dairy Creation of Two wholly-owned profile in wholly- Glanbia Ireland JV processing now growth platforms owned Group in JVs +120 bps 14% 12% 11.9 10.7 10% % plc % GPN 8% Glanbia 40% 2017 GN Ireland 47% Revenues 6% CO-OP 53% Ownership 60% 4% 2% 0% 2016¹ 2017² 1. 2016 margin is the Glanbia wholly-owned reported margin, which includes the Dairy Ireland segment 2. 2017 margin is the Glanbia wholly-owned margin, excluding the Dairy Ireland segment. The Dairy Ireland segment was disposed of on 02 July 2017 2017 Full Year Results | Slide 7
Operational Review 2017 Full Year Results Presentation
GLANBIA PERFORMANCE NUTRITION EBITA REVENUE Performance € 169 169.7m .7m € 1,12 1,121.1m 1.1m Good performance with total branded revenue growth of 15% +7.0% (cc ² ) +13.7% (cc ² ) Growth LFL BRANDED Growth driven by LAPAC, EBITA margin REVENUE EMEA and acquisitions 15.1% +6.3% Innovation -100 bps (cc ² ) Vol. +8.0% Strong performance in ready-to-eat format INNOVATION ACQUISITIONS 1. Percentage movements are on a constant currency basis 2. 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 2017 was € 1 = $1.130 (FY 2016: € 1 = $1.107) 3. Reported & constant currency reconciliations can be found in the Appendix of this presentation 2017 Full Year Results | Slide 9
GPN MARKET OVERVIEW • A global market leader GPN Global Revenue 2017 GPN Global Revenue 2017 by Region by Channel • GPN brands are available across a broad mix of FDMC¹ Online 16% geographies and Rest of 26% World channels 38% Total Total € 1,121m € 1,121m • GPN positioned to North Specialty America 28% deliver mid-to-high 62% single-digit volume Distributors 30% growth in 2018 1. Food, Drug, Mass and Club 2017 Full Year Results | Slide 10
GLANBIA NUTRITIONALS EBITA REVENUE Performance € 113 113.5m .5m € 1,26 1,266.0m 6.0m Good performance driven by Nutritional Solutions +4.1% (cc ¹ ) +5.4% (cc ¹ ) Growth NUTRITIONAL EBITA margin Driven by dairy & non-dairy SOLUTIONS 9.0% systems VOLUME GROWTH -10 bps (cc ¹ ) +7.2% Innovation A range of successful ingredient launches in healthy STRONG GROWTH WITH KEY beverage and snacking REGIONAL AND INTERNATIONAL 1. Percentage movements are on a constant currency basis CUSTOMERS 2. 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 2017 was € 1 = $1.130 (FY 2016: € 1 = $1.107) 3. Reported & constant currency reconciliations can be found in the Appendix of this presentation 2017 Full Year Results | Slide 11
NUTRITIONAL SOLUTIONS OVERVIEW Glanbia Nutritionals Nutritional Solutions Total Revenue 2017 € 1,266m Dairy/Non-dairy Revenue • Nutritional Solutions is a key growth engine Dairy Nutritional Non- 39% • Growth is being Solutions Total US Cheese dairy 42% € 532m 58% 61% driven by consumers seeking ‘Better -For- You’ and convenient Nutritional Solutions consumer categories products • Nutritional Solutions supplies a range of SPORTS & LIFESTYLE BARS, CEREALS EARLY FUNCTIONAL PERFORMANCE NUTRITION & & SNACKS LIFE BEVERAGE customers in a variety NUTRITION SUPPLEMENTS of consumer categories CLINICAL DRESSINGS, COSMETICS & ANIMAL & MEDICAL SAUCES & BAKERY PERSONAL CARE NUTRITION NUTRITION SPREADS 2017 Full Year Results | Slide 12
US CHEESE – INNOVATIVE PARTNER MODEL Glanbia Nutritionals SwC JV • #1 position in the American-style 2017 Total cheddar cheese category cheese production • Commercial, technical and operational partner for US JVs on route-to-market and innovation • Partnership approach with customers 48% 420,000 tonnes on innovation 52% • On track for commissioning of new plant in Michigan in 2020 2017 Full Year Results | Slide 13
STRONG PERFORMANCE FROM JOINT VENTURES EBITA REVENUE EBITA margin Performance € 63.4m 63.4m 5.8% € 1,093.4m 1,093.4m Strong performance in Revenue, +60 bps (cc ¹ ) +50.2% (cc ¹ ) EBITA & margin +35.7% (cc ¹ ) Growth Driven by mainly by volume Joint Ventures Revenue growth and relatively strong dairy markets Glanbia Glanbia JV Ireland SwC Cheese Total 100% Revenue ( €’m) Strategic Partnerships 1,407 738 317 2,462 Innovative & robust business Glanbia share ( €’m) 563 369 162 1,093 model 1. 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 2017 was € 1 = $1.130 (FY 2016: € 1 = $1.107). 2017 Full Year Results | Slide 14
Financial Review 2017 Full Year Results Presentation
INCOME STATEMENT 2017 results summary Pre-exceptional Constant €’m Reported currency currency² 2017 2017 2016 Change +9.2% Revenue (Wholly-owned) 2,387.1 2,231.7 +7.0% +5.8% EBITA (Wholly-owned) 283.2 273.3 +3.6% -30 bps EBITA margin 11.9% 12.2% -30 bps Amortisation (43.1) (37.4) Net Finance Costs (23.0) (22.8) Share of Joint Ventures 42.8 26.0 Income Tax (38.3) (39.3) Profit from continuing operations 221.6 199.8 Profit from discontinued operations 9.8 27.1 Profit for the period 231.4 226.9 Adjusted EPS - Continuing operations on a pro-forma ¹ basis 87.11c 80.40c +8.3% +10.2% Adjusted EPS – Reported (continuing & discontinued operations) +5.3% 89.17c 86.02c +3.7% 1. Pro-forma Adjusted Earnings Per Share for the continuing Group calculation assumes the Dairy Ireland segment and related assets were disposed of at the beginning of the 2016 financial year. A reconciliation of the pro-forma and reported adjusted earnings per share can be found in the appendix of this presentation 2. 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 2017 was € 1 = $1.130 (FY 2016: € 1 = $1.107) 2017 Full Year Results | Slide 16
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