GLANBIA CAGE CONFERENCE 2014 17 March 2014 www.glanbia.com CAGE 2014 www.glanbia.com 1
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. CAGE 2014 www.glanbia.com 2
GLANBIA OVERVIEW LEADING GLOBAL PERFORMANCE NUTRITION AND INGREDIENTS GROUP Market Capitalisation € 3.3 billion 2013 Revenue € 3.3 billion Employees Countries of Operation Export Markets 5,202 29 130+ CAGE 2014 www.glanbia.com 3
SEGMENTAL OVERVIEW TOTAL GROUP REVENUE Branded sports • nutrition: US Cheese GLOBAL • • ON Ingredient GLOBAL PERFORMANCE • Technologies BSN INGREDIENTS € 3.3bn NUTRITION • • Customised ABB Solutions • € 1,075m * € 655m * Nutramino 53% TOTAL GROUP EBITA • Glanbia Ingredients JOINT • Consumer Ireland DAIRY Products VENTURES & • Southwest Cheese IRELAND • ASSOCIATES Agribusiness • Glanbia Cheese € 227m • Nutricima € 652m * € 901m * 76% * Revenue CAGE 2014 www.glanbia.com 4
OUR MARKET OPPORTUNITY MARKET BACKDROP MACRO TRENDS EVOLVING CONSUMER MARKETS GROWTH OF MULTIPLE NUTRITION SEGMENTS GROWING GLOBAL DEMAND FOR FOOD MIDDLE CLASS ADOPTING QUALITY & INCREASING DEMAND FOR HIGHER NUTRIENT WESTERN DIETS TRACEABILITY DENSITY IN MAINSTREAM DIETS INCREASING UNDERSTANDING OF SYNERGISTIC ADVANCEMENTS RISING IN NUTRITION HEALTHCARE BENEFITS OF EXERCISE AND DIETS SCIENCE & FOOD COSTS MACRO TRENDS TECHNOLOGIES INCREASING DEMAND FOR SUPPLEMENTS AND NATURAL PREVENTION GLOBAL INCREASED POPULATION FREQUENCY & GROWING PREVALENCE OF SNACK - BASED MEAL GROWTH & FOOD INTENSITY OF EXERCISE REPLACEMENT SUPPLY CONCERNS IN MODERN LIFESTYLES DEMAND FOR INGREDIENT AUTHENTICITY AND TRACEABILITY CAGE 2014 www.glanbia.com 5
OUR MARKET OPPORTUNITY OUR TWO GROWTH PLATFORMS GLOBAL B2C B2B GLOBAL PERFORMANCE INGREDIENTS NUTRITION • We will harness increased penetration of sports • We are ideally positioned to address demand nutrition category through brand strength, for higher nutrient density and cleaner labels. breadth of product range and global presence. • Our portfolio of nutritional ingredients and • We are trusted leaders in the specialty retail and technologies enables customers to incorporate online channels where new consumers are our solutions into multiple nutrition categories, engaging with the category. channels and formats. CAGE 2014 www.glanbia.com 6
GLOBAL PERFORMANCE NUTRITION CAGE 2014 www.glanbia.com 7
OUR BRANDS CAGE 2014 www.glanbia.com 8
MARKET PROFILE GLOBAL MARKET BY REGION US MARKET BY CHANNEL US MARKET BY FORMAT Caps & Tabs, 6% LAPAC, 10% Other, 18% Specialty, RTD, 9% US, 65% 50% EMEA, Mass, 25% 16% $5.1bn $3.3bn $3.3bn Powder, 85% Internet, 16% GLANBIA FOCUS Primary focus on US largest market but Primary focus on Powder across protein, strong and fast growing Specialty and Internet pre-workout, muscle presence in EMEA/LAPAC gainers and builders 1.Market sizes are on an MSP basis 2.Source: by region – internal; channel & format - New Business Journal CAGE 2014 www.glanbia.com 9
INTERNATIONAL EXPANSION IN-MARKET PRESENCE • 30% + of revenues ex-US 19 # OF COUNTRIES • Proven and repeatable roll-out 12 8 model • In-market presence in 19 countries currently (from 0 in 2009) 2011 2012 2013 • Strong affinity for US brands CASE STUDY: AUSTRALIA • Global marketing strategy tailored 2011: country manager appointed for each market 2010-2013: 54% revenue CAGR • Significant investment in 2014: #2/#3 market position compliance with local regulations 2014: 13-strong sales presence CAGE 2014 www.glanbia.com 10
DEEP CONNECTION WITH OUR CONSUMER • Tailor made marketing model NET PROMOTER SCORE • Lead through engagement 85 • Connect on consumer’s terms 74 • Major online and social presence ONLINE PRESENCE Fans Views Followers Unique visitors 1.4m+ 18.4m+ 123k+ 4.1m per annum CAGE 2014 www.glanbia.com 11
UNIQUE COMPETITIVE ADVANTAGE AS A BUSINESS AS A BRAND PORTFOLIO First and fast mover Wide-user base Key categories Entrepreneurial culture Quality and compliance Vertically integrated scale Market leading partnerships Innovative Repeatable business model Trusted, high NPS score Strong emotional connection Corporate parent CAGE 2014 www.glanbia.com 12
GLOBAL INGREDIENTS CAGE 2014 www.glanbia.com 13
GLOBAL INGREDIENTS • B2B ingredients • € 1.1bn revenue Customised Solutions • Three distinct but related business US Cheese units • Large scale integrated cheese and whey manufacturing • Value-added dairy & non-dairy Ingredient Technologies ingredients and premix solutions CAGE 2014 www.glanbia.com 14
GLOBAL INGREDIENTS US CHEESE LARGEST MANUFACTURER OF AMERICAN STYLE CHEDDAR CHEESE BUSINESS MODEL ROLE OF JOINT VENTURES • Large scale efficient operator • US Cheese commercialises all output from Southwest Cheese JV • Focus on operational excellence • Future expansion likely through JV model • Market leader in innovation END MARKETS • Retail, foodservice, ingredients & exports • Steady market growth profile CAGE 2014 www.glanbia.com 15
GLOBAL INGREDIENTS INGREDIENT TECHNOLOGIES SCIENCE-LED NUTRITIONAL AND FUNCTIONAL INGREDIENT SOLUTIONS PROVIDER INGREDIENT FOCUS INNOVATION • Dairy-based ingredients • Customer collaboration • Specialty grain ingredients • Proprietary technologies • Aseptic beverages • Market insights HIGH GROWTH END MARKETS • Healthy ageing, sports nutrition, infant formula, nutrition bars & beverages, • Developed & developing markets CAGE 2014 www.glanbia.com 16
GLOBAL INGREDIENTS CUSTOMISED SOLUTIONS #2 GLOBAL PROVIDER OF CUSTOM-BLENDED PREMIXES BUSINESS MODEL • Blends vitamins & minerals according to exact specifications • Strong global footprint with facilities in the US, Germany & China KEY USPs END MARKETS • Range of end markets with differing • Customer service growth profiles • Reliability • Infant nutrition, beverages, sports • Track record nutrition, dairy, supplements CAGE 2014 www.glanbia.com 17
STRATEGY OVERVIEW CAGE 2014 www.glanbia.com 18
OUR VALUE CHAIN ADDING VALUE TO OUR BRANDS Optimum Nutrition B2C OUR PORTFOLIO CONSUMER BSN BY MOVING UP BRANDS ABB THE VALUE Nutramino CHAIN IS KEY TO OUR OUR PRODUCTS Dairy-based protein systems B2B STRATEGY Vitamin & mineral premixes SOLUTIONS & SYSTEMS Specialty grain systems Aseptic beverages High protein dairy ingredients SPECIALTY Specialty milk minerals/proteins INGREDIENTS Specialty grains Cheese BASE Base whey INGREDIENTS Other dairy ingredients CAGE 2014 www.glanbia.com 19
OUR STRATEGY OUR GROWTH PLATFORMS OVERALL GROUP GLOBAL PERFORMANCE NUTRITION 1. Sustain current and drive further B2C • Grow in US specialty and internet channels; market leadership positions • within both B2B and B2C global Focus on high-growth markets and continue with rapid international expansion; growth platforms • Venture into new markets, channels and consumer segments; and 2. Deliver strategic capital • Enhance capabilities in marketing, sales, supply chain and product investment programme innovation. 3. Acquire or partner with GLOBAL INGREDIENTS B2B complementary businesses to • Sustain leadership position in American-style cheddar cheese; scale our current portfolio • Leverage whey expertise and add to protein ingredients and 4. Develop talent, culture and systems; values, in line with our growing • Strengthen market position in premix solutions; and global scale • Look to scale dairy and non-dairy ingredients. CAGE 2014 www.glanbia.com 20
FINANCE OVERVIEW CAGE 2014 www.glanbia.com 21
INVESTMENT AND RETURNS € m • € 390m investment over last 3 years Significant investment programme.... 200 incl. acquisitions 150 100 • € 120m for 2014 reflecting range of 50 attractive opportunities 0 2010 2011 2012 2013 • Disciplined approach to both M&A Bus. Sustaining Strategic Acquisitions and capex spending ... with strong track record for ROCE 16.0% • Strong track record of returns 14.0% delivery 12.0% • FY2013 ROCE: 14.2% 10.0% 8.0% 2010 2011 2012 2013 CAGE 2014 www.glanbia.com 22
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