BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE 6 SEPTEMBER 2016 BOSTON
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. 2 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
AGENDA 1 GLANBIA OVERVIEW & EVOLUTION 2 OUR BUSINESS SEGMENTS 3 A SPOTLIGHT ON INNOVATION 4 FINANCIAL STRENGTH 5 SUMMARY & GUIDANCE 3 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
GLANBIA OVERVIEW MARKET CAP €5 BN GLANBIA €3.7bn PERFORMANCE DAIRY +4.1% NUTRITION IRELAND 58%* EMPLOYEES 6,000 JOINT GLANBIA VENTURES & €311m ASSOCIATES COUNTRIES NUTRITIONALS +26.8% 32 78%* *Contribution of Glanbia Performance Nutrition and Glanbia Nutritionals 4 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
EVOLUTION OF THE GLANBIA MODEL €40m +13.8% CAGR €29m Growth underpinned by GPN & GN €43m €29m 2015 EBITA: Organic growth supported by €136m 2010 EBITA: €311m significant capex and acquisitions €163m €30m JVs: efficient use of capital €62m €107m Glanbia Performance Nutrition Global Ingredients (GPN) Glanbia Nutritionals (GN) Dairy Ireland JVs & Associates 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 5 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
2 OUR BUSINESS TODAY
GLANBIA PERFORMANCE NUTRITION #1 €1 BN* BUSINESS IN 23 GLOBAL SPORTS GLOBAL COUNTRIES NUTRITION BRAND FAMILY STRONG TRACK RECORD OF REVENUE GROWTH • Leading brands across a variety of formats and €923m channels €746m • Consumption spanning performance athletes €655m €586m to on-the-go lifestyle consumers 2012 2013 2014 2015 • Innovation through insight EXPANDING EBITA MARGINS 14.7% 12.0% • State-of-the-art in-house production facilities 10.8% 9.5% setting industry standards for quality 2012 2013 2014 2015 * FY 2015 Reported revenue plus full year pro forma revenues of acquisitions made during 2015 7 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
GLANBIA PERFORMANCE NUTRITION ADDRESSABLE MARKET LAPAC 16% 13% $10.6bn GPN Branded Market Share EMEA 18% in value (RSP) North America 66% Source: Euromonitor 8 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
GLANBIA PERFORMANCE NUTRITION BRAND PORTFOLIO EACH BRAND HAS SPECIFIC ATTRIBUTES THAT APPEAL ACROSS THE RANGE OF PERFORMANCE NUTRITION CONSUMERS 9 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
GLANBIA NUTRITIONALS €1.2 BN* 21 COUNTRIES B2B NUTRITIONAL INGREDIENTS BUSINESS CHEESE DAIRY & PLANT MICRONUTRIENT GRAINS & SEEDS FUNCTIONAL BASED PROTEINS PREMIXES & BEVERAGES BIOACTIVES * FY 2015 Reported revenue 10 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
GLANBIA NUTRITIONALS: TRANSFORMATIONAL REDESIGN • One integrated organisation from June 2016 • Bringing customers the full suite of Glanbia’s capability • Consumer insight driven commercial team • Supported by dedicated centres of excellence: Innovation - Product supply - Strategy - 11 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
JOINT VENTURES & ASSOCIATES AND DAIRY IRELAND JOINT VENTURES & ASSOCIATES DAIRY IRELAND 3 scale strategic partners in dairy FEEDS processing: • Consumer food products & Agricultural • Glanbia Ingredients Ireland feed & fertiliser supplies • Southwest Cheese, New Mexico • Avonmore: leading Irish grocery brand • Glanbia Cheese UK • Food grade oats, including gluten-free Glanbia is a scale player in global dairy, processing 6 billion litres of milk annually 12 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
3 A SPOTLIGHT ON INNOVATION
GPN: NEW PRODUCT DEVELOPMENT 14 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
GN: CONSUMER INSIGHT DRIVEN INNOVATION TWO DEDICATED RESEARCH CENTERS FOCUSED ON CHEESE & NUTRITIONAL INGREDIENTS CUSTOMER COLLABORATION & RAPID PROTOTYPE DEVELOPMENT RECENT EXAMPLES New Vegan Bar Blends: Delivering for Coeliac: Protein enriched functional barGain Ⓡ OatPure™ gluten-free range beverage 15 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
4 FINANCIAL STRENGTH
TRACK RECORD OF EARNINGS & MARGIN GROWTH Adjusted earnings per share EBITA margin 13.7% CAGR from 2000 to 2015 +640bps from 2000 to 2015 80c 10.0% 70c 9.0% 60c 8.0% 50c 7.0% 40c 6.0% 30c 5.0% 20c 4.0% 10c 0c 3.0% 17 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
STRONG FINANCIAL METRICS 13.9% 10.6% Growth in Adj EPS in FY2015 (constant FY15 Return on Capital Employed currency), the 6 th Year of double digit growth 1.75x 94.5% Net debt : EBITDA 1 at FY15 Conversion of EBITA to FCF in FY15 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 18 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
HY16 RESULTS UPDATE TOTAL GROUP EBITA GROWTH +11.4% Constant Currency (CC*) €176.5m 44.87c Adj. EPS €158.7m +10.8% (CC) €19.1m JVs & €20.2m €17.7m ASSOCIATES €58.0m €17.5m DAIRY IRELAND €60.3m €157m GLANBIA Wholly owned NUTRITIONALS +13.7% (CC) EBITA €81.7m €60.7m GLANBIA PERFORMANCE NUTRITION 11.0% Wholly owned EBITA +130bps (CC) margin HY2015 HY2016 Glanbia generates a significant proportion of earnings in US dollars and reports in Euro. To eliminate the effect of FX on translation of results for reporting purposes Constant Currency is used. • The average Euro US Dollar FX rate in HY 2016 was €1 = $1.116 (HY 2015 €1 = $1.115) • The reported movement in EBITA, adjusted EPS and margin for HY 2016 can be found in Glanbia plc’s 2016 Half Year Results Release published on 17 August 2016 and available on www.glanbia.com • 19 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
5 STRATEGY & SUMMARY
OUR STRATEGY OUR GROWTH PLATFORMS OVERALL GROUP GPN 1. Drive further market leadership positions 2. Deliver strategic capital investment programme 3. Acquire or partner with complementary businesses to scale our current portfolio GN 4. Develop talent, culture and values 21 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
SUMMARY & GUIDANCE 2016 guidance: 8% TO 10% Adjusted EPS growth, constant currency* If the full year average 2016 Euro US Dollar FX rate remains at similar levels to the first half of 2016 Glanbia expects the constant currency result for EPS growth to be broadly in line with the reported result. • The average Euro US Dollar FX rate in HY 2016 was €1 = $1.116 (HY 2015 €1 = $1.115). • 22 BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON
QUESTIONS & ANSWERS DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
Liam Hennigan Head of Investor Relations Glanbia plc Glanbia House Kilkenny Ireland Email: ir@glanbia.ie Tel: +353 86 046 8375
Recommend
More recommend
