Glanbia plc CAGE 2017 22 March 2017 Siobhan Talbot Group Managing Director
Cautionary Statement
Glanbia Overview
Glanbia Group Overview 2016 Total Group Revenue MARKET CAP* € 849m € 5.4 BN € 1,007m GLANBIA PERFORMANCE DAIRY NUTRITION IRELAND € 616m 60%* EMPLOYEES € 1,224m 6,200 2016 Total Group EBITA € 45m JOINT VENTURES & € 31m GLANBIA ASSOCIATES COUNTRIES € 163m NUTRITIONALS 32 78%* € 112m *Contribution of Glanbia Performance Nutrition and Glanbia Nutritionals *at close 15 March 2017 CAGE 2017 | Slide 4
Glanbia growth model +13.6% CAGR € 45m € 29m Growth underpinned by € 31m € 43m GPN & GN 2016 EBITA : € 350m € 163m 2010 EBITA : Disciplined investment in € 163m € 30m growth capex and acquisitions € 112m € 62m JVs: efficient use of capital Glanbia Performance Nutrtition Glanbia Nutritionals Dairy Ireland Joint Ventures & 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 CAGE 2017 | Slide 5
Global Consumer Trends
GLANBIA SITS AT THE HEART OF POWERFUL CONSUMER MEGATRENDS IN NUTRITION Clean Active Easy Convenient Health and Labelling Lifestyles and on-the-go Wellbeing $1tn 94% 94% 50% 50% 55m 55m Global Health & people are of Americans of US consumers Wellness sales to hit snack at least members of select foods based on a record high of fitness centers in once a day the ingredient list and $1 trillion by 2017 the US nutritional facts panel Sources: Euromonitor International, Statista, Mintel CAGE 2017 | Slide 7
Glanbia Performance Nutrition
Glanbia Performance Nutrition Recent acquisitions Revenue & EBITA Millions Millions € 1,100 € 200 Revenue € 900 EBITA € 150 € 700 € 100 Revenue EBITA € 500 € 50 2014 2015 2016 EBITA margin 16.1% Direct to consumer Plant-based nutrition, 14.7% “DTC” online brand Greens & Super Foods 12.0% 2014 2015 2016 Revenue expansion driven by branded growth, innovation & strategic acquisitions CAGE 2017 | Slide 9
GPN Brand portfolio PER PERFOR FORMAN MANCE LIFES LIFESTYL TYLE Consumer CAGE 2017 | Slide 10
Innovation at GPN – Focus on ready to eat CAGE 2017 | Slide 11
Glanbia Nutritionals Overview
GN Capability Overview 2016 Revenue MICRO NUTRIENT PREMIX AND BIOACTIVE INGREDIENTS DAIRY & PLANT BASED PROTEINS Nutritional Solutions € 488m US Cheese GRAINS AND SEEDS € 736m FUNCTIONAL BEVERAGES CAGE 2017 | Slide 13
GN Plays into Growing End Markets GN End Markets Nutritional Solutions serves customers in a variety of growing end markets aligned to consumer trends Lifestyle Beverages Nutrition & Supplements Dairy Sports Nutrition Protein Nutrition Functional Bakery Enrichment enhanced Nutrition mainsteam food & Consumer beverage and Functional Foodservice Cheese Snacks Life stage Convenience Nutritional nutrition Cheese Early Life Other Functionality Ingredients Pet, animal, Clinical cosmetics, Nutrition nutricosmetics CAGE 2017 | Slide 14
Joint Ventures & Associates
Joint Ventures & Associates In 2016 Glanbia share of 3 scale partners in revenue from JV’s and dairy processing Associates was € 849m Glanbia Ingredients Largest dairy processor in Ireland Ireland (40% partner) Large-scale American style cheddar Southwest Cheese cheese and whey producer located in (50% partner) New Mexico Glanbia Cheese Leader in mozzarella cheese in the EU (51% partner) Glanbia total Group processed over 6 billion litres of milk in 2016 CAGE 2017 | Slide 16
Joint Ventures & Associates 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 CAGE 2017 | Slide 17
Summary & Outlook
Full Year 2016 Performance Summary 87.66c Seventh consecutive year of double Adj. EPS digit growth in adjusted EPS +11.2% (cc*) +10.8% (rc*) € 305.1m EBITA Strong EBITA growth across the Group +12.5% (cc*) +12.6% (rc*) 10.7% Continued EBITA margin EBITA margin +90 bps (cc*) progression across the Group +90 bps (rc*) Free cash flow € 311.0m Strong cash conversion +21.5% • *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. CAGE 2017 | Slide 19
Summary & Outlook *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 CAGE 2017 | Slide 20
Questions & Answers
Appendix
Non IFRS Performance Measures To arrive at the constant currency year – on – year change, the results for the prior year are retranslated using the average exchange rates for 1. 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 owned 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. CAGE 2017 | Slide 23
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 56 777 2200
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