Glanbia plc CAGE 2017 22 March 2017 Siobhan Talbot Group Managing Director
Cautionary Statement
Glanbia Overview
2016 Total Group EBITA 2016 Total Group Revenue Glanbia Group Overview MARKET CAP* 5.4BN EMPLOYEES GLANBIA PERFORMANCE NUTRITION DAIRY IRELAND 849m 616m 1,007m 1,224m 60%* 6,200 COUNTRIES JOINT VENTURES & ASSOCIATES GLANBIA NUTRITIONALS 45m 31m 163m 32 112m 78%* *at close 15 March 2017 *Contribution of Glanbia Performance Nutrition and Glanbia Nutritionals CAGE 2017 Slide 4
Glanbia growth model +13.6% CAGR 45m 30m 29m 2010 EBITA: 163m 62m 43m Growth underpinned by GPN & GN Disciplined investment in growth capex and acquisitions JVs: efficient use of capital 31m 112m 2016 EBITA: 350m 163m Glanbia Performance Nutrtition Dairy Ireland 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 Glanbia Nutritionals Joint Ventures & Associates CAGE 2017 Slide 5
Global Consumer Trends
GLANBIA SITS AT THE HEART OF POWERFUL CONSUMER MEGATRENDS IN NUTRITION Health and Wellbeing Active Lifestyles Easy Convenient and on-the-go Clean Labelling $1tn Global Health & Wellness sales to hit a record high of $1 trillion by 2017 55m 94% people are members of fitness centers in the US of Americans snack at least once a day 50% of US consumers select foods based on the ingredient list and nutritional facts panel Sources: Euromonitor International, Statista, Mintel CAGE 2017 Slide 7
Glanbia Performance Nutrition
Revenue Glanbia Performance Nutrition Millions 1,100 Revenue & EBITA Millions 200 Recent acquisitions 900 700 150 100 EBITA 500 Revenue EBITA 2014 2015 2016 EBITA margin 50 12.0% 14.7% 16.1% Plant-based nutrition, Greens & Super Foods Direct to consumer DTC online brand 2014 2015 2016 Revenue expansion driven by branded growth, innovation & strategic acquisitions CAGE 2017 Slide 9
GPN Brand portfolio PERFORMANCE LIFESTYLE 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 US Cheese 736m Nutritional Solutions 488m GRAINS AND SEEDS 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 Nutrition & Supplements Beverages Dairy Sports Nutrition Consumer and Foodservice Functional Nutrition Cheese Nutrition enhanced mainsteam food & beverage Bakery Functional Snacks Protein Enrichment Cheese Ingredients Other Life stage nutrition Early Life Nutritional Functionality Convenience Pet, animal, cosmetics, nutricosmetics Clinical Nutrition CAGE 2017 Slide 14
Joint Ventures & Associates
Joint Ventures & Associates 3 scale partners in dairy processing Glanbia Ingredients Ireland (40% partner) Southwest Cheese (50% partner) Glanbia Cheese (51% partner) In 2016 Glanbia share of revenue from JV s and Associates was 849m Largest dairy processor in Ireland Large-scale American style cheddar cheese and whey producer located in New Mexico Leader in mozzarella cheese in the EU 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 Adj. EPS 87.66c +11.2% (cc*) +10.8% (rc*) Seventh consecutive year of double digit growth in adjusted EPS EBITA 305.1m +12.5% (cc*) +12.6% (rc*) Strong EBITA growth across the Group EBITA margin 10.7% +90 bps (cc*) +90 bps (rc*) Continued EBITA margin progression across the Group Free cash flow 311.0m +21.5% Strong cash conversion *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 1. 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. 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