2017 Full Year. Results Presentation. 21 February 2018

Transcription

1 2017 Full Year Results Presentation 21 February 2018

2 CAUTIONARY STATEMENT 2017 Full Year Results Slide 2

3 Full Year Highlights 2017 Full Year Results Presentation

4 8TH YEAR OF DOUBLE-DIGIT GROWTH 2017 FINANCIAL Highlights 2017 STRATEGIC Highlights Pro-forma¹ adjusted EPS +10.2% constant currency² Total Group Proforma¹ EBITA +8.6% constant currency² Acquisition of Amazing Grass and Body & Fit Disposal of 60% of Dairy Ireland Wholly-owned volume growth +5.3% Dividend payout raised to 25% Refreshed Group strategy Group structure focused on two growth platforms 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

5 2017 TOTAL GROUP PRO-FORMA EBITA¹ PROGRESSION Glanbia Performance Nutrition Like-for-like branded revenue growth and acquisitions Glanbia Nutritionals Continued growth in Nutritional Solutions Joint Ventures Drivers Strong dairy markets and volume growth 400m 350m 300m 250m 200m 150m 100m 50m 0m Total Group pro-forma EBITA GN EBITA 330m GPN 162m GN 111m 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 5 JVs 56m GPN EBITA JV pro-forma EBITA 351m GPN 170m GN 114m JVs 68m Constant currency growth + 7.0% + 4.1% %

6 STRONG YEAR OF STRATEGIC EXECUTION Initiatives Update Amazing Grass and Body & Fit acquired for 168m Investing in plant-based nutrition and DTC¹ capability On-going investment planned to drive growth Disposal of 60% of Dairy Ireland for 209m Glanbia Ireland joint venture created with ambitious growth plans SwC 25% expansion in production capacity $140m Commissioning to be completed by Q Direct-to-consumer 2017 Full Year Results Slide 6

7 IMPACT OF DAIRY IRELAND TRANSACTION Creation of Glanbia Ireland JV The majority of the Group s primary dairy processing now in JVs Two wholly-owned growth platforms Improved margin profile in whollyowned Group +120 bps 14% CO-OP 60% Glanbia Ireland Ownership plc 40% GN 53% 2017 Revenues GPN 47% 12% 10% 8% 6% 4% 10.7 % 11.9 % 2% margin is the Glanbia wholly-owned reported margin, which includes the Dairy Ireland segment margin is the Glanbia wholly-owned margin, excluding the Dairy Ireland segment. The Dairy Ireland segment was disposed of on 02 July Full Year Results Slide 7 0% 2016¹ 2017²

8 Operational Review 2017 Full Year Results Presentation

9 GLANBIA PERFORMANCE NUTRITION 2017 Full Year Results Slide 9 Performance Good performance with total branded revenue growth of 15% Growth Growth driven by LAPAC, EMEA and acquisitions Innovation Strong performance in ready-to-eat format 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 REVENUE 1,121.1m +13.7% (cc²) LFL BRANDED REVENUE +6.3% Vol. +8.0% INNOVATION EBITA 169.7m +7.0% (cc²) EBITA margin 15.1% -100 bps (cc²) ACQUISITIONS

10 GPN MARKET OVERVIEW A global market leader GPN brands are available across a broad mix of geographies and channels GPN positioned to deliver mid-to-high single-digit volume growth in 2018 GPN Global Revenue 2017 by Region Rest of World 38% Total 1,121m North America 62% GPN Global Revenue 2017 by Channel Specialty 28% FDMC¹ 16% Total 1,121m Online 26% Distributors 30% 1. Food, Drug, Mass and Club 2017 Full Year Results Slide 10

11 GLANBIA NUTRITIONALS Performance Good performance driven by Nutritional Solutions REVENUE 1,266.0m +5.4% (cc¹) EBITA 113.5m +4.1% (cc¹) 2017 Full Year Results Slide 11 Growth Driven by dairy & non-dairy systems Innovation A range of successful ingredient launches in healthy beverage and snacking 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 NUTRITIONAL SOLUTIONS VOLUME GROWTH +7.2% EBITA margin 9.0% -10 bps (cc¹) STRONG GROWTH WITH KEY REGIONAL AND INTERNATIONAL CUSTOMERS

12 NUTRITIONAL SOLUTIONS OVERVIEW Nutritional Solutions is a key growth engine Growth is being driven by consumers seeking Better-For- You and convenient products Glanbia Nutritionals Total Revenue ,266m US Cheese 58% Nutritional Solutions 42% Nutritional Solutions Dairy/Non-dairy Revenue Nondairy 61% Total 532m Nutritional Solutions consumer categories Dairy 39% Nutritional Solutions supplies a range of customers in a variety of consumer categories BARS, CEREALS & SNACKS SPORTS & PERFORMANCE NUTRITION LIFESTYLE NUTRITION & SUPPLEMENTS EARLY LIFE FUNCTIONAL BEVERAGE CLINICAL & MEDICAL NUTRITION DRESSINGS, SAUCES & SPREADS BAKERY COSMETICS & PERSONAL CARE ANIMAL NUTRITION 2017 Full Year Results Slide 12

13 US CHEESE INNOVATIVE PARTNER MODEL Glanbia Nutritionals SwC JV 2017 Total cheese production #1 position in the American-style cheddar cheese category Commercial, technical and operational partner for US JVs on route-to-market and innovation 48% 420,000 tonnes 52% Partnership approach with customers on innovation On track for commissioning of new plant in Michigan in Full Year Results Slide 13

14 STRONG PERFORMANCE FROM JOINT VENTURES Performance Strong performance in Revenue, EBITA & margin REVENUE 1,093.4m +35.7% (cc¹) EBITA 63.4m +50.2% (cc¹) EBITA margin 5.8% +60 bps (cc¹) Growth Driven by mainly by volume growth and relatively strong dairy markets JV Joint Ventures Revenue Glanbia Ireland SwC Glanbia Cheese Total Strategic Partnerships Innovative & robust business model 100% Revenue ( m) 1, ,462 Glanbia share ( m) , 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) Full Year Results Slide 14

15 Financial Review 2017 Full Year Results Presentation

16 INCOME STATEMENT 2017 results summary Pre-exceptional m Reported currency Change Constant currency² 2017 Revenue (Wholly-owned) 2, , % EBITA (Wholly-owned) % EBITA margin 11.9% 12.2% -30 bps Amortisation (43.1) (37.4) Net Finance Costs (23.0) (22.8) Share of Joint Ventures Income Tax (38.3) (39.3) Profit from continuing operations Profit from discontinued operations Profit for the period Adjusted EPS - Continuing operations on a pro-forma¹ basis 87.11c 80.40c +8.3% Adjusted EPS Reported (continuing & discontinued operations) 89.17c 86.02c +3.7% +9.2% +5.8% -30 bps +10.2% +5.3% 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

17 SEGMENTAL SUMMARY FY 2017 m Revenue EBITA Margin Glanbia Performance Nutrition 1, % Glanbia Nutritionals 1, % Total wholly-owned 2, % Constant currency¹ change Revenue EBITA Margin +13.7% +7.0% -100 bps +5.4% +4.1% -10 bps +9.2% +5.8% -30 bps 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) 2. Reported & constant currency reconciliations can be found in the Appendix of this presentation 2017 Full Year Results Slide 17

18 WHOLLY-OWNED REVENUE GROWTH +9.2% (CC*)¹ Volume +5.3%, Price +0.2%, Acquisitions +3.7% CONTINUING BUSINESS 2,400m 3.0% 2,387.1m 2,300m 6.2% 2,200m 2,231.7m (2.0%) 2,100m 2,000m 2017 Full Year Results Slide 18 FY16 FX GPN GN FY17 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)

19 GPN REVENUE GROWTH +13.7% (CC*)¹ CONTINUING BUSINESS 1,200m 1,100m 8.1% 1,121.1m 1,000m 1,007.5m (2.1%) 7.1% (1.5% ) 900m 800m FY16 FX Volume Price Acquisitions FY17 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) 2. Reported & constant currency reconciliations can be found in the Appendix of this presentation 2017 Full Year Results Slide 19

20 GN REVENUE GROWTH +5.4% (CC*)¹ CONTINUING BUSINESS 550m Nutritional Solutions (+10.9%) 530m 510m 490m 470m 488.3m (1.8%) 7.2% 3.7% 531.9m 450m 750m FY16 FX Volume Price FY17 US Cheese (+1.8%) 740m 730m 735.9m (2.0%) 1.7% 0.1% 734.1m 720m 710m 2017 Full Year Results Slide 20 FY16 FX Volume Price FY17 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) 2. Reported & constant currency reconciliations can be found in the Appendix of this presentation

21 EXCEPTIONAL ITEMS m Continued operations m Discontinued operations m Intangible asset amortisation (19.4) - (19.4) Rationalisation costs (5.4) - (5.4) Debt restructuring (14.1) - (14.1) Profit on disposal of 60% of Dairy Ireland Share of results of Equity accounted investees deferred tax credit due to US tax reform Total m Total exceptional operating (loss) / profit before tax (30.2) Deferred tax credit due to US tax reform Tax credit / (charge) on exceptional items 7.1 (0.9) 6.2 Total exceptional profit Full Year Results Slide 21

22 CASH FLOW FROM CONTINUING OPERATIONS 400m 300m 328m 123m 200m 20m 185m 58m 16m 100m 6m 137m 0m 2017 EBITDA Working Capital Business Sustaining Capex 2017 Operating Cash Flow Net Interest & Tax Dividends from JV&A's Other FCF 2017 The pro-forma movement in working capital was ( 123m), primarily due to an increase of receivables of ( 76m) due to the increased sales activity in Q4 On a pro-forma basis operating cash flow conversion of EBITDA for 2017 was 56.4% compared to 101.5% in 2016 The target for 2018 is 80% operating cash flow conversion 2017 Full Year Results Slide 22

23 INVESTMENT & RETURNS Major projects were the new GPN R&D Innovation Centre, plant improvements and IT systems upgrades Amazing Grass and Body & Fit acquired in 2017 and thinkthin in Capital Expenditure expected to be 75 to 85 million Return on Capital Employed ROCE 13.4% (2016: 13.9%*) *Restated to include deferred tax 2017 Full Year Results Slide 23 Sustaining Capex Strategic Capex Acquisitions Total Investment 313m 241m 190m 168m 104m 15m 86m 49m 57m 24m 32m 37m ROCE 2017: 13.4% ROCE 2016: 13.9% ROCE 2015: 14.8%

24 BALANCE SHEET Balance Sheet Net Debt 367.7m 437.5m Net Debt / Adj. EBITDA Adj. EBIT / Net Financing Costs 7.0¹ 11.5 Net Debt reduced by 70 million to 368 million giving a Net Debt to Adjusted EBITDA ratio of 1.1 times Available Banking Facilities: million revolving credit facilities maturing January $156 million private debt placement of senior loans, due June 2021 Net Financing Costs for FY 2018 expected to be less than 20m based on current activity Net Pension Obligations of 41.9 million at year end, down from million in 2016, 44.2 million relating to the disposal of Dairy Ireland 1. The Adj. EBIT / net finance cost includes a once-off cost of 14 million recognised as an exceptional item in Excluding this once-off cost the Adjusted EBIT / net finance cost would be 11.2 times 2017 Full Year Results Slide 24

25 TAXATION On 22 December 2017, the Tax Cuts and Jobs Act was signed into US law The Act includes a reduction in the US federal corporate tax rate from 35% to 21% This change resulted in an exceptional deferred tax credit to the 2017 Income Statement of 38.7m The Glanbia effective tax rate is expected to be 16.0% 17.5% in Full Year Results Slide 25

26 DIVIDEND UPDATE Completed review of dividend policy Progressive dividend policy with target payout ratio 25% to 35% 2017 dividend payout will be 22c / share, an increase of 65% on 2016, representing a payout of 25% 2017 Full Year Results Slide 26

27 Strategy & Outlook 2017 Full Year Results Presentation

28 GLANBIA STRATEGY DRIVERS Our Purpose: Our Vision: To deliver better nutrition for every step of life s journey To be one of world s top performing nutrition companies trusted to enrich lives everyday Trends driving our business Health and wellness On-the-go food & beverage Digitally connected Clean labelling 2017 Full Year Results Slide 28

29 GLANBIA STRATEGY EXECUTION Protect and grow the core Strategic Pillars Selectively build and scale beyond the core Embed enablers across the business Concentrate our focus in growing markets where we have market leading capability and right to win Build scale internationally Invest further in insights, technology, and innovation to create and capture growth opportunities Invest to capture market opportunities Invest in selective M&A or partnerships to drive growth Engage the consumer online Strategic Priorities Maintain and grow our global leadership in Performance Nutrition Sustain current, and drive further ingredient market leadership in Nutritional Solutions Grow through organic Investment programme and acquisition/partner with complementary businesses Develop talent, culture and values in line with our growing global scale 2017 Full Year Results Slide 29

30 2018 OUTLOOK Positive outlook for FY 2018 Growth will be driven by wholly-owned business offsetting declines in JVs Mid-to-high single-digit like-for-like volume growth expected across both the branded portfolio of GPN & Nutritional Solutions GPN & GN margins expected to be in-line with 2017 Pro-forma¹ adjusted EPS is expected to grow by 5% 8% constant currency² 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) 3. If the EUR/USD FX rate remains at approximately $1.24, we expect a pro-forma adjusted EPS headwind of c.8% 2017 Full Year Results Slide 30

31 GLANBIA CAPITAL MARKETS DAY 2018 Date: 23 May 2018 Location: Focus: Chicago, USA Glanbia Group with Site Tour To register your interest please Full Year Results Slide 31

32 2017 Full Year Results Slide 32

33 Appendix 2017 Full Year Results Presentation

34 NON IFRS PERFORMANCE MEASURES DEFINITIONS The Group reports certain performance measures that are not defined under IFRS but which represent additional measures used by the Board of Directors and the Glanbia Operating Executive in assessing performance and for reporting both internally and to shareholders and other external users. The Group believes that the presentation of these non IFRS performance measures provides useful supplemental information which, when viewed in conjunction with our IFRS financial information, provides readers with a more meaningful understanding of the underlying financial and operating performance of the Group. 1. While the Group reports its results in euro, it generates a significant proportion of its earnings in currencies other than euro, in particular US dollar. Constant currency reporting is used by the Group to eliminate the translational effect of foreign exchange on the Group's results. To arrive at the constant currency year-on-year change, the results for the prior year are retranslated using the average exchange rates for the current year and compared to the current year reported numbers 2. The Group has a number of strategically important Equity accounted investees (Joint Ventures) which when combined with the Group s wholly owned businesses give an important indication of the scale and reach of the Group s operations. 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 Equity accounted investees 3. Revenue comprises sales of goods and services of the wholly owned businesses to external customers net of value added tax, rebates and discounts 4. EBITA is defined as earnings before interest, tax and amortisation 5. EBITA margin is defined as EBITA as a percentage of revenue 6. EBITDA is defined as earnings before interest, tax, depreciation (net of grant amortisation) and amortisation 7. Adjusted EPS is defined as the net profit attributable to the equity holders of Glanbia plc, before exceptional items and intangible asset amortisation (excluding amortisation of software costs), net of related tax, divided by the weighted average number of ordinary shares in issue during the year. During the current year the calculation of Adjusted Earnings Per Share was amended to exclude the cost of software amortisation within the earnings calculation. The Group believes that adjusted EPS is a better measure of underlying performance than Basic EPS as it excludes exceptional items (net of related tax) that are not related to on going operational performance and intangible asset amortisation, which allows better comparability of companies that grow by acquisition to those that grow organically 8. Pro-forma Adjusted Earnings Per Share is defined as the net profit from continuing operations attributable to the equity holders of Glanbia plc, before exceptional items and intangible asset amortisation net of related tax (excluding amortisation of software costs) plus the Group s share (40%) of the profits after tax of Dairy Ireland and related assets, before exceptional items and intangible asset amortisation net of related tax (excluding amortisation of software costs) 9. Net debt : adjusted EBITDA is calculated as net debt at the end of the period 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 plus dividends received from Equity accounted investees, 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. Adjusted EBITDA is a rolling 12 month measure 2017 Full Year Results Slide 34

35 NON IFRS PERFORMANCE MEASURES DEFINITIONS 10. Adjusted EBIT: net finance cost is calculated as earnings before interest and tax plus dividends received from Equity accounted investees divided by net finance cost. Net finance cost comprises finance costs less finance income per the Group income statement plus capitalised borrowing costs 11. The Group has adopted an income statement format that seeks to highlight significant items within the Group results for the year. Such items may include restructuring, impairment of assets, adjustments to contingent consideration, material acquisition integration costs, restructuring costs, profit or loss on disposal or termination of operations, material acquisition costs, litigation settlements, legislative changes, gains or losses on defined benefit pension plan restructuring and profit or loss on disposal of investments. Judgement is used by the Group in assessing the particular items which by virtue of their scale and nature should be disclosed in the income statement and notes as exceptional items 12. Volume increase/(decrease) represents the impact of sales volumes within the revenue movement year on year, excluding volume from acquisitions, on a constant currency basis. Pricing increase/(decrease) represents the impact of sales pricing within the revenue movement year on year, excluding acquisitions, on a constant currency basis 13. Like-for-like branded revenue growth represents the sales growth / (decline) year on year on branded sales, excluding acquisitions, on a constant currency basis 14. The effective tax rate is defined as the pre-exceptional income tax charge divided by the profit before tax less share of results of Equity accounted investees 15. The Group defines business sustaining capital expenditure as the expenditure required to maintain/replace existing assets with a high proportion of expired useful life. This expenditure does not attract new customers or create the capacity for a bigger business. It enables the Group to keep running at current throughput rates but also keep pace with regulatory and environmental changes as well as complying with new requirements from existing customers 16. The Group defines strategic capital expenditure as the expenditure required to facilitate growth and generate additional returns for the Group. This is generally expansionary expenditure beyond what is necessary to maintain the Group s current competitive position 17. Operating cash flow is defined as pre exceptional EBITDA of the wholly owned businesses net of business sustaining capital expenditure and working capital movements, excluding exceptional cash flows. ROCE is defined as the Group's earnings before interest, and amortisation (net of related tax) plus the Group's share of the results of Equity accounted investees 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 less deferred tax liabilities excluding all financial liabilities, retirement benefit assets and cash. 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 18. Dividend pay-out ratio is defined as the annual dividend per ordinary share divided by the pro-forma Adjusted Earnings Per Share. The dividend pay out ratio provides an indication of the value returned to shareholders relative to the Group's total earnings 2017 Full Year Results Slide 35

36 ADJUSTED EPS - REPORTED Adjusted Earnings Per Share Year 2017 m Constant currency 2016 m Year 2016 m Profit attributable to the equity holders of the company Amortisation Exceptional items (net of tax) (98.0) Adjusted net income Weighted average number of ordinary shares in issue 295, , ,130.8 Adjusted Earnings Per Share (cent) Constant currency growth +5.3% 2017 Full Year Results Slide 36

37 PRO-FORMA ADJUSTED EPS Pro-forma Adjusted Earnings Per Share Pro-forma 2017 m Constant currency Pro-forma 2016 m Pro-forma 2016 m Adjusted net income Discontinued operations adjusted net income (100%) (10.1) (27.6) (27.6) 40% of Discontinued operations adjusted net income Adjusted net income (pro-forma) Weighted average number of ordinary shares in issue 295, , ,130.8 Adjusted Earnings Per Share (cent) pro-forma Constant currency growth +10.2% 2017 Full Year Results Slide 37

38 SEGMENTAL ANALYSIS Glanbia Performance Nutrition FY 2017 m FY 2016 m (RC) Change (CC) Change Revenue 1, , % +13.7% EBITA % +7.0% EBITA margin 15.1% 16.1% -100 bps -100 bps Glanbia Nutritionals FY 2017 m FY 2016 m (RC) Change (CC) Change Nutritional Solutions Revenue % +10.9% US Cheese Revenue % +1.8% Glanbia Nutritionals Revenue 1, , % +5.4% Glanbia Nutritionals EBITA % +4.1% Glanbia Nutritionals EBITA margin 9.0% 9.1% -10 bps -10 bps RC = Reported currency CC = Constant currency 2017 Full Year Results Slide 38

39 SEGMENTAL ANALYSIS Joint Ventures FY 2017 m FY 2016 m (RC) Change (CC) Change Revenue 1, % +35.7% EBITA % +50.2% EBITA margin 5.8% 5.2% +60 bps +60 bps Share of JVs PAT pre-exceptional items % 67.0% RC = Reported currency CC = Constant currency 2017 Full Year Results Slide 39

40 TOTAL GROUP PRO-FORMA EBITA Total Group Pro-forma EBITA 2016 Reported m 2016 Retranslated m 2017 Actual m Constant currency growth Glanbia Performance Nutrition % Glanbia Nutritionals % Wholly-owned EBITA % Joint Ventures % Total Group Pro-forma EBITA % 2017 Full Year Results Slide 40