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SIOBHÁN TALBOT GROUP MANAGING DIRECTOR
MARK GARVEY GROUP FINANCE DIRECTOR
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
10 SEPTEMBER 2015
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
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.
Glanbia plc – Delivering better nutrition for every step of life’s journey 2
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
GLANBIA AT A GLANCE
“Delivering better nutrition for every step of life’s journey”
€245m1
€3.5bn1
TOTA
L G
RO
UP
REV
ENU
E TO
TAL
GR
OU
P E
BIT
A
77%*
55%*
Market Capitalisation
€5bn +
Employees
5,800
Countries
34
*Contribution of Global Performance Nutrition and Global Ingredients
Glanbia plc – Delivering better nutrition for every step of life’s journey 3
1. FY 2014 results
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
OUR BUSINESS MODEL
GLOBAL PERFORMANCE
NUTRITION
GLOBAL INGREDIENTS
… CAPTURED BY TWO GLOBAL GROWTH PLATFORMS
OUR END MARKETS PLAY INTO A NUMBER OF MEGATRENDS…
MORE ACTIVE
LIFESTYLES
FOOD TRACEABILITY
& TRUST
CONVENIENT & FUNCTIONAL
FOOD
HIGHER PROTEIN DIETS
#1 B2C GLOBAL SPORTS NUTRITION BRAND FAMILY
B2B INGREDIENTS BUSINESS FOCUSED ON PROTEIN & NUTRITION
Glanbia plc – Delivering better nutrition for every step of life’s journey 4
CONNECTED CONSUMERS
GLOBAL INGREDIENTS
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
OUR GLOBAL SCALE AND BUSINESS MODEL
B2B INGREDIENTS BUSINESS1 FOCUSED
ON NUTRITION & PROTEIN IN $1.3BN 21 COUNTRIES ON
5 CONTINENTS
#1 IN AMERICAN STYLE CHEDDAR CHEESE
LEADING INNOVATION PARTNER
CHEESE DAIRY
INGREDIENTS
MICRONUTRIENTS & INGREDIENT
SYSTEMS & SOLUTIONS
#1 PROVIDER OF WHEY BASED NUTRITIONAL INGREDIENTS
GLOBALLY
BESPOKE DAIRY & NON-DAIRY NUTRITIONAL INGREDIENT
SYSTEMS & SOLUTIONS PROVIDER
Glanbia plc – Delivering better nutrition for every step of life’s journey 6
1. Pro-forma 2014 revenue at average exchange rate for €1 = $1.115
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
WHERE WE PLAY & OUR VALUE PROPOSITION
GLANBIA GLOBAL INGREDIENTS:
FORTIFY PRODUCTS WITH VITAMINS, MINERALS AND PROTEIN
DEVELOPMENT BASED ON CONSUMER INSIGHTS
IMPROVE NUTRITONAL PROFILE
CREATE A PROTEIN BASED BAR OR BEVERAGE RECIPE
PRODUCE NATURAL AMERICAN STYLE CHEDDAR CHEESE
Glanbia plc – Delivering better nutrition for every step of life’s journey 7
END MARKETS
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
HOW WE WIN
4 Investing behind our business: - Strategic capex and acquisition investment
of $250 million, 2012 – 2015
2 Customer centric: - Robust customer partnerships globally
- Track record of quality, flexibility, service
- Collaboration with customers in their NPD process sets us apart
5 Continue journey up the value chain: - Moving GI managed ingredient portfolio up
value chain to higher margin systems & solutions
3 Industry-shaping innovator: - Using our proprietary technologies to lead
the ingredients innovation agenda
1 Leading market positions:
#1 AMERICAN STYLE CHEDDAR CHEESE
#1 WHEY PROTEIN SYSTEMS & SOLUTIONS
#2 MICRONUTRIENT SYSTEMS & SOLUTIONS
Glanbia plc – Delivering better nutrition for every step of life’s journey 8
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
POSITIONING FOR FUTURE GROWTH
Recently announced an organisational redesign program to position Global Ingredients for the next stage of growth
ENHANCING
OUR ROUTE
TO MARKET
STRATEGY
SIMPLIFYING
THE
CUSTOMER
EXPERIENCE
EFFICIENT,
AGILE &
SCALABLE
LEVERAGING
TECHNOLOGY,
CAPABILITY &
TALENT
Glanbia plc – Delivering better nutrition for every step of life’s journey 9
GLOBAL PERFORMANCE NUTRITION
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
OUR BRAND PORTFOLIO
PROTEIN PRE- WORKOUT MUSCLE GAINERS & BUILDERS GENERAL HEALTH
GLOBAL SPORTS
NUTRITION BRAND FAMILY #1 GLOBAL
BUSINESS1 IN 24 COUNTRIES $1BN
Glanbia plc – Delivering better nutrition for every step of life’s journey 11
1. Pro-forma 2014 revenue
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
WE ARE A GROWTH BUSINESS
Glanbia plc – Delivering better nutrition for every step of life’s journey 12
$1BN REVENUE2
$425M REVENUE1
9.5%
10.8%
12.0%
13.4%
2012 2013 2014 HY 2015
STRONG ORGANIC GROWTH SINCE ACQUISITION EXPANDING EBITA MARGINS
1. Combined total of revenues of the brands at the point of acquisition 2. Pro-forma 2014 revenue
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
WHERE WE PLAY
EMEA, 19%
Mass, 15%
GLOBAL MARKET 1
$10.1BN
LAPAC, 18%
BY REGION2
BY CHANNEL3
Specialty, 50%
Internet, 18%
1. Euromonitor 2014 (RSP) 2. Euromonitor 2013 (RSP) 3. Nutrition Business Journal 2013 (RSP)
Glanbia plc – Delivering better nutrition for every step of life’s journey 13
N. America, 63%
Other, 19%
US MARKET GLOBAL MARKET
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
SIGNIFICANT FUTURE OPPORTUNITY
$20.8
$17.0 $17.0
$14.6
$8.1 $7.2
$5.5 $4.9
$2.4 $2.3 $2.1 $2.0 $1.6 $1.4 $1.3 $1.1 $1.1 $0.4 $0.3 $0.1 $0.0
$ PER CAPITA SPEND PER ANNUM BY COUNTRY
Source: Euromonitor (2013)
Glanbia plc – Delivering better nutrition for every step of life’s journey 14
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
HOW WE WIN
2 Drive continued US channel growth: - Large SPECIALTY channel - Fast growing INTERNET channel
3 Continue international roll-out: - Business builders in 24 countries - Tier 1 markets a priority
6 Innovation through insight - New categories, occasions and product
opportunities
5 Education & Advocacy: - Sports nutrition is an assisted sell
45m views
2.6m fans
200k+ followers
160+ sponsored
athletes
NPS*: 85
1 Leading brands:
4 Quality & Authenticity : - State-of-the-art in-house production - Rigorous quality assurance of product
NPS: 74 NPS: 81
sports nutrition
school
* Net Promoter Score (NPS) is a measure of consumer loyalty to brands ranging from -100 to 100
Glanbia plc – Delivering better nutrition for every step of life’s journey 15
STRATEGY OVERVIEW
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
OUR STRATEGY
B2B
B2C GLOBAL PERFORMANCE NUTRITION
• Leverage protein ingredient expertise to develop functional and nutritional solutions for customers
• Extend market position in customised solutions
• Look to scale dairy and non‐dairy ingredients platforms
• Grow branded revenue globally ahead of market growth rates
• Drive growth in existing markets across current and new channels and consumer segments
• Acquire complementary brands
OUR GROWTH PLATFORMS OVERALL GROUP
1. Drive further market
leadership positions within
both global growth
platforms
2. Deliver strategic capital
investment programme
3. Acquire or partner with
complementary businesses
to scale our current
portfolio
4. Develop talent, culture and
values, in line with our
growing global scale
GLOBAL INGREDIENTS
Glanbia plc – Delivering better nutrition for every step of life’s journey 17
FINANCE OVERVIEW
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
FINANCIAL TRACK RECORD
Adjusted earnings per share 12.6% CAGR from 2000 to 2014
EBITA margin +480bps from 2000 to 2014
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
0c
10c
20c
30c
40c
50c
60c
70c
Glanbia plc – Delivering better nutrition for every step of life’s journey 19
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
• €654m investment over last 4 years
― €310m on acquisitions
― €344m on capital expenditure
• €120m - €130m capex for 2015
• Disciplined approach to both M&A and capex decisions
• Demonstrated history of strong returns from investment decisions
• 2014 ROCE: 13.4%
GROWTH THROUGH INVESTMENT
-
50
100
150
200
250
300
2011 2012 2013 2014
Bus. Sustaining
Strategic
Acquisitions
... coupled with consistent delivery of good ROCE
Significant strategic investment programme... €m
12.8%
14.1% 14.2% 13.4%
11.5%
12.0%
12.5%
13.0%
13.5%
14.0%
14.5%
2011 2012 2013 2014
*12.0% ROCE hurdle
Glanbia plc – Delivering better nutrition for every step of life’s journey 20
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
A DEVELOPMENT AGENDA THAT HAS FUNDED GROWTH
Glanbia plc – Delivering better nutrition for every step of life’s journey 21
1 ACQUISITIONS
Q4 2014 Q1 2014 Q1 2011 Q3 2008 Q3 2012
ASEPTIC SOLUTIONS USA
• Strong track record of identifying acquisitions, organic projects and strategic alliances to fund future growth
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
A DEVELOPMENT AGENDA THAT HAS FUNDED GROWTH
Q4 2015
Q4 2015
PHASE II GPN MANUFACTURING
PLANT, ILLINOIS
HIGH END WHEY EXPANSION, IDAHO
Glanbia plc – Delivering better nutrition for every step of life’s journey 22
2 ORGANIC GROWTH PROJECTS & STRATEGIC ALLIANCES
Q2 2014
Q4 2012
Q2 2013
Q2 2015
DAIRY INGREDIENTS
FACILITY, IRELAND
Q3 2011
CHEESE & WHEY EXPANSION,
NEW MEXICO
PHASE I GPN MANUFACTURING
PLANT, ILLINOIS
SPECIALTY GRAIN INGREDIENTS,
SOUTH DAKOTA
Q2 2013
GII STRATEGIC ALLIANCE, IRELAND
CHEESE INNOVATION
CENTER, IDAHO
Q2 2012
PREMIX FACILITY, GERMANY
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
0
100
200
300
400
500
600
700
800
2015 2016 2017 2018 2019 2020 2021 2022
FINANCIAL FLEXIBILITY
• Healthy balance sheet
• Net debt €577 million at HY 2015
• Net debt / adj. EBITDA < 2x
• Current committed debt facilities of €1 billion
• Favourable debt maturity profile
• Strong support for equity financing
Favourable debt maturity profile
€m
PDP €293m
€437m Undrawn
RCF + cash
Glanbia plc – Delivering better nutrition for every step of life’s journey 23
€341m Drawn
RCF
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
HALF YEAR 2015 PERFORMANCE SUMMARY
Wholly owned results
HY15 HY15 growth
€m Constant currency
Reported currency
Revenue 1,432 -3.9% +10.6%
EBITA 139 +7.5% +29.1%
EBITA margin 9.7% +110bps +140bps
Adjusted EPS 40.60c +4.2% +25.1%
• Good half year performance
• Global Performance Nutrition strong, driven by branded growth of 16.4%
• Global Ingredients satisfactory, in context of challenging global dairy markets
- Strong operational performance across all plants delivering volume growth of +6.8%
Glanbia plc – Delivering better nutrition for every step of life’s journey 24
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 exchange rate for HY15 was €1 = $1.115 (HY14: €1 = $1.371)
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015
2015 OUTLOOK
Reiterating full year guidance of 9% - 11% growth in adjusted EPS, constant currency
(c. 25% reported at current exchange rates)
Glanbia plc – Delivering better nutrition for every step of life’s journey 25
QUESTIONS & ANSWERS
Liam Hennigan Head of Investor Relations Glanbia plc Glanbia House Kilkenny Ireland
Email: [email protected] Tel: +353 56 777 2308 Tel: +353 56 777 2200