Barclays 2016 (CL) - Glanbia

BARCLAYS 2016 GLOBAL CONSUMER

STAPLES CONFERENCE

6 SEPTEMBER 2016 BOSTON

BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON

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.

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AGENDA

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1 GLANBIA OVERVIEW & EVOLUTION

OUR BUSINESS SEGMENTS

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3 A SPOTLIGHT ON INNOVATION

FINANCIAL STRENGTH

5 SUMMARY & GUIDANCE


GLANBIA OVERVIEW

*Contribution of Glanbia Performance Nutrition and Glanbia Nutritionals

GLANBIA PERFORMANCE

NUTRITION

GLANBIA NUTRITIONALS

DAIRY IRELAND

JOINT VENTURES & ASSOCIATES €311m

+26.8%

€3.7bn +4.1%

58%*

78%*

MARKET CAP

€5BN EMPLOYEES

6,000 COUNTRIES

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EVOLUTION OF THE GLANBIA MODEL

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€43m

€62m

€30m

€29m

Glanbia Performance Nutrition Global IngredientsDairy Ireland JVs & Associates

(GPN)

€136m

€107m

€29m

€40m

2015 EBITA:

€311m 2010 EBITA: €163m

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

Growth underpinned by GPN & GN

Organic growth supported by significant capex and acquisitions

JVs: efficient use of capital

+13.8% CAGR

Glanbia Nutritionals (GN)

2 OUR BUSINESS TODAY

BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON 7

• Leading brands across a variety of formats and channels

• Consumption spanning performance athletes to on-the-go lifestyle consumers

• Innovation through insight

• State-of-the-art in-house production facilities setting industry standards for quality

GLANBIA PERFORMANCE NUTRITION

GLOBAL SPORTS NUTRITION BRAND FAMILY #1 GLOBAL

BUSINESS IN 23 COUNTRIES €1BN* STRONG TRACK RECORD OF REVENUE GROWTH

9.5% 10.8%

12.0%

14.7%

2012 2013 2014 2015

EXPANDING EBITA MARGINS

€586m €655m

€746m

€923m

2012 2013 2014 2015

* FY 2015 Reported revenue plus full year pro forma revenues of acquisitions made during 2015


GLANBIA PERFORMANCE NUTRITION

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Source: Euromonitor

LAPAC 16%

EMEA 18%

North America 66%

$10.6bn in value (RSP)

13% GPN Branded Market Share

ADDRESSABLE MARKET


GLANBIA PERFORMANCE NUTRITION BRAND PORTFOLIO

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EACH BRAND HAS SPECIFIC ATTRIBUTES THAT APPEAL ACROSS THE RANGE OF PERFORMANCE NUTRITION CONSUMERS



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B2B NUTRITIONAL INGREDIENTS BUSINESS €1.2BN* 21 COUNTRIES

* FY 2015 Reported revenue

CHEESE DAIRY & PLANT BASED PROTEINS

MICRONUTRIENT PREMIXES & BIOACTIVES

GRAINS & SEEDS FUNCTIONAL BEVERAGES


GLANBIA NUTRITIONALS: TRANSFORMATIONAL REDESIGN

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• One integrated organisation from June 2016

• Bringing customers the full suite of Glanbia’s capability

• Consumer insight driven commercial team

• Supported by dedicated centres of excellence: - Innovation

- Product supply

- Strategy


JOINT VENTURES & ASSOCIATES AND DAIRY IRELAND

DAIRY IRELAND

• Consumer food products & Agricultural feed & fertiliser supplies

• Avonmore: leading Irish grocery brand

• Food grade oats, including gluten-free

Glanbia is a scale player in global dairy, processing 6 billion litres of milk annually

JOINT VENTURES & ASSOCIATES

• Glanbia Ingredients Ireland

• Southwest Cheese, New Mexico

• Glanbia Cheese UK

3 scale strategic partners in dairy processing:

FEEDS

A SPOTLIGHT ON INNOVATION

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GPN: NEW PRODUCT DEVELOPMENT

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GN: CONSUMER INSIGHT DRIVEN INNOVATION

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New Vegan Bar Blends: barGainⓇ

Protein enriched functional beverage

Delivering for Coeliac: OatPure™ gluten-free range

TWO DEDICATED RESEARCH CENTERS FOCUSED ON CHEESE & NUTRITIONAL INGREDIENTS

RECENT EXAMPLES

CUSTOMER COLLABORATION & RAPID PROTOTYPE DEVELOPMENT

FINANCIAL STRENGTH

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0c

10c

20c

30c

40c

50c

60c

70c

80c

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

TRACK RECORD OF EARNINGS & MARGIN GROWTH

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Adjusted earnings per share 13.7% CAGR from 2000 to 2015

EBITA margin +640bps from 2000 to 2015


STRONG FINANCIAL METRICS

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1.75x Net debt : EBITDA1 at FY15

94.5% Conversion of EBITA to FCF in FY15

10.6% Growth in Adj EPS in FY2015 (constant

currency), the 6th Year of double digit growth

13.9% FY15 Return on Capital Employed

1. Definition of net debt, adjusted EBITDA and adjusted EBIT are as per financing agreements which include dividends from Joint Ventures & Associates and the pro forma effect of acquisitions


HY16 RESULTS UPDATE

44.87c +10.8% (CC)

€157m +13.7% (CC)

11.0% +130bps (CC)

Adj. EPS

Wholly owned EBITA

Wholly owned EBITA

margin

TOTAL GROUP EBITA GROWTH +11.4% Constant Currency (CC*)

€60.7m

€81.7m

€60.3m

€58.0m €17.5m

€17.7m €20.2m

€19.1m

HY2015 HY2016

€158.7m €176.5m

GLANBIA PERFORMANCE

NUTRITION


JVs & ASSOCIATES

DAIRY IRELAND

• Glanbia generates a significant proportion of earnings in US dollars and reports in Euro. To eliminate the effect of FX on translation of results for reporting purposes Constant Currency is used. • The average Euro US Dollar FX rate in HY 2016 was €1 = $1.116 (HY 2015 €1 = $1.115) • The reported movement in EBITA, adjusted EPS and margin for HY 2016 can be found in Glanbia plc’s 2016 Half Year Results Release published on 17 August 2016 and available on www.glanbia.com

5 STRATEGY & SUMMARY


OUR STRATEGY

GPN

OUR GROWTH PLATFORMS OVERALL GROUP

GN

1. Drive further market leadership positions

2. Deliver strategic capital investment programme

3. Acquire or partner with complementary businesses to scale our current portfolio

4. Develop talent, culture and values


SUMMARY & GUIDANCE

2016 guidance:

8% TO 10% Adjusted EPS growth,

constant currency*

• If the full year average 2016 Euro US Dollar FX rate remains at similar levels to the first half of 2016 Glanbia expects the constant currency result for EPS growth to be broadly in line with the reported result. • The average Euro US Dollar FX rate in HY 2016 was €1 = $1.116 (HY 2015 €1 = $1.115).

QUESTIONS & ANSWERS

DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY

Liam Hennigan Head of Investor Relations Glanbia plc Glanbia House Kilkenny Ireland

Email: [email protected] Tel: +353 86 046 8375

Documents

Barclays 2016 (CL) - Glanbia