on Growth Barclays Global Consumer Staples Sept 4 th 2018 Siobhn T - PowerPoint PPT Presentation

Focus on Growth Barclays Global Consumer Staples Sept 4 th 2018 Siobhán T albot Group MD

Important Notice 2

At a glance Market cap 2017 Total Group revenues € 4.3 bn € 3.6 bn Employees 2017 Total Group EBITA € 351m 6,600 Products sold or Countries distributed in over 32 countries 130 3

Our business in 2017 Total Group Revenues EBITA € 3.6bn* Activity Margin Performance & lifestyle GPN consumer branded € 1.1 bn portfolio WHOLLY OWNED Mid teens Value added Nutritional Solutions € 0.5 bn formulations GN US Cheese € 0.7 bn Mid single Dairy REVENUE SHARE OF digits Joint Ventures € 1.3bn *Pro forma including the full year impact of acquisitions in Joint Ventures. 4

Strong record of delivery 10 Year 10 Year Earnings wholly-owned wholly- per share margin owned revenues 2007- 2017 2007 - 2017 +630 bps 11.9% CAGR Wholly-owned margin Adjusted Earnings per share 15% 100.00c 80.00c 10% 60.00c 40.00c 5% 20.00c 0% 0.00c 2007 2009 2011 2013 2015 2017 2007 2009 2011 2013 2015 2017 Wholly-owned margin Adjusted Earnings per share 5

Trends driving our business Aligning our business to consumer and customer needs Health and On-the-go food Digitally Clean wellness and beverages connected labelling 93% $1tr 94% $ 4.5 tr of US households have Global health and of American consumers online retail sales purchased a clean label wellness sales hit reach for a snack at least expected to have a product. a record high in once-a-day. CAGR of 18% from 2017 – 2021. 2017. Source: Euromointor/ NBJ/ Stastica /Nielsen 6

Glanbia Nutritionals

Glanbia Nutritionals (GN): at a glance # 1 2017 Revenue 2,000 € 1,266 m Global supplier of whey protein isolate Employees # 2 # 1 Sales presence in 19 Global micro Producer of American nutrient premix style cheddar cheese countries 8 GLANBIA NUTRITIONALS

GN financials Revenue ( €’m ) 2017 1,266 1,224 1,218 1,175 1,075 Revenue US Cheese € 734 m 2013 2014 2015 2016 2017 EBITA ( €’m ) 111 114 107 Nutritional Solutions 102 100 € 532 m 2013 2014 2015 2016 2017 US Cheese Nutritional Solutions 9 GLANBIA NUTRITIONALS

Cheese 10 GLANBIA NUTRITIONALS

Cheese overview 2017 Revenue # 1 Producer of American style cheddar cheese € 1.5 bn 20 % Share of US Cheddar Cheese Market Wholly Owned Southwest Cheese 11 GLANBIA NUTRITIONALS

US Cheese footprint 2018 2021 602k 470k Michigan Central Michigan 2021 Idaho Cheese volume (tonnes) Gooding Key attributes: Twin Falls / Blackfoot Largest player Clovis Cheese Innovation Centre Most efficient producer Incubation plants for Innovations New Mexico Customer Categories: Foodservice Brands Converters Retailers 12 GLANBIA NUTRITIONALS

Unique operating model Pioneered at SWC, building upon that in Michigan JV operating model Impact on Plc Consistent income stream Strategic Milk Outlet • Dividends • Commissions • Our share of Profit After Tax Competitive milk price Strong returns on equity invested Share in business Strategic Milk Supply Ring-fenced JV financing Operational / technical and commercial partner Strategic source of Robust business model whey 13 GLANBIA NUTRITIONALS

Nutritional Solutions 14 GLANBIA NUTRITIONALS

NS Overview 2017 # 1 # 2 Revenue Whey protein Global Isolate Premix 61 % 39 % € 532m € 325m € 207m NS 6% Volume Average Growth (5 yr average) Non-dairy Dairy 15 GLANBIA NUTRITIONALS

What makes us unique 16 GLANBIA NUTRITIONAL

Nutritional Solutions: Our portfolio & differentiators Protein Custom Bioactives Plant Aseptic beverage Flavours Micronutrient solutions nutrient premixes nutrition manufacturing straights Deep Accelerated Trusted Quality formulation Innovation Supply Chain Assurance expertise Capability Integrated innovation platform 17 GLANBIA NUTRITIONALS

Where we play Sports & Clinical Infant Supplements Mainstream Lifestyle nutrition nutrition food nutrition & beverage End – market growth rate in the mid-single digit range Source: Euromonitor 18 GLANBIA NUTRITIONALS

Growth Drivers Nutritional Solutions Build on core Leverage Scale Scale plant strength in extensive flavours nutrition premix protein & bioactives capability into healthy snacking 19 GLANBIA NUTRITIONALS

Glanbia Performance Nutrition

Who we are 7.3% #1 € 1.1 Bn average volume growth 2013-2017 2,350 25 8 Brands people end market worldwide teams 21 GPN

GPN financials Revenue growth ( €’m ) 1121 1008 923 746 655 Constant Average Volume Currency Growth 7.3% 2013 2014 2015 2016 2017 Note: Revenue on a reported basis. 170 EBITA growth ( €’m ) 162 136 89 Constant 71 Currency Average Margin 13.7% 2013 2014 2015 2016 2017 Note: EBITA on a reported basis 22 GPN

Business builders $1.3 bn Total $135m * $185m * $93m * $84m * Organic $116m * acquisition growth Revenue revenue Revenue Revenue Revenue Revenue Revenue $687m $614m 2008 2011 2014 2015 2017 *Annual revenue at the point of acquisition 23 GPN

Our market 2017 Performance Nutrition addressable market Constant ROW GPN market Currency 34% share 13% $13 bn North in value (RSP) America 66% Constant Global market Currency growth rate MSD% Source: Euromonitor/Glanbia estimates 24 GPN

2017 Revenue By Region, by Channel and Format Regional Mix Channel Mix Format Mix 100% 100% 100% 100% 100% 100% CAPS/TABS 4% 5% FDMC 16 10% RTD 5% 4% % 5% RTE 22 16% 15% Online Energy % 26 62% North % 65% 15% America RTM 32 Distributor % 30 % 71% Protein 60% 36 38% 28 35% Rest of the Specialty % % World 2015 2017 2015 2017 2015 2017 25 GPN

Growth drivers 2022 2017 Innovation Win in omni- Invest in Accelerate Selective channel digital International M&A 26 GPN

Joint Ventures 27

Joint Venture Growth Ambition 2017 Revenue** € 1.2bn 2022 Revenue** € 1.9bn JV Structure Glanbia Cheese SouthWest Cheese SouthWest UK & Glanbia Cheese Cheese EU* Glanbia Cheese UK Glanbia Michigan* Ireland Glanbia Ireland Growth Drivers New Capacity 1. Mid-to-high single 1. Glanbia Cheese EU digit volume growth 2. Mid-single digit 2. Michigan* margins *Michigan & Glanbia Cheese EU are New Joint Ventures which will be commissioned by 2021 28 **Glanbia total share of Joint Ventures Revenue based upon share of equity ownership of JVs

Group Strategy 29

Refreshed Group Strategy Our Purpose Our Vision To deliver better To be one of world’s top nutrition for every step performing nutrition companies of life’s journey trusted to enrich lives every day Global Macro Trends Health and On-the-go food Digitally Clean wellness and beverages connected labelling Strategic Pillars Protect and Selectively build and Embed enablers grow the core scale beyond the core across the business Concentrate our focus in growing markets where Focus on: Invest to drive organic growth across key we have market leading capability and right to win Leveraging the operating model adjacencies to current platforms Driving customer and consumer engagement Build scale internationally Invest in capability to capture market Developing and retaining top talent opportunities Deliver complementary M&A Rigorous cost management *The Group’s refreshed strategy to 2022 was published at its capital markets day on 23 May 2018 30

Our growth ambition by 2022 to be a € 5bn Group Average EBITA Margin 2022 revenue 2018 to 2022 GPN € 1.6 bn 13% - 15% WHOLLY OWNED Nutritional Solutions € 0.8 bn 14% - 16% US Cheese € 0.7 bn Mid REVENUE single SHARE OF digits Joint Ventures € 1.9 bn 31

2018 to 2022: Growth, Cash conversion & Returns Constant EPS 1 Currency 5% - 10% Constant Constant Cash ROCE conversion Currency Currency 10% - 13% > 80% Constant Dividend Currency pay-out 25% - 35% 1 Average adjusted EPS on a constant currency basis over the 2018 – 2022 period 32

Performance & Ambition – KPI’s Track Long-term 2018 record ambition guidance 2014-2017 2018-2022 2018  Cash Conversion 82.9% > 80% > 80%  13.9% 10% - 13% 10% - 13% ROCE  Adjusted EPS 10.5% 5% - 10% 5% - 8%  Dividend Pay-out Ratio 18.4% 25% - 35% 25% - 35% 33

Focus on growth Powerful consumer trends driving business Group focused and aligned to drive growth Strong track record of delivery Ambition for future growth Significant financial resources to invest 34

Questions 35