BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015/media/Files... · 2015-09-10 · BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015 GLANBIA AT A GLANCE “Delivering better nutrition

SIOBHÁN TALBOT GROUP MANAGING DIRECTOR

MARK GARVEY GROUP FINANCE DIRECTOR

BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015

10 SEPTEMBER 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


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


1. FY 2014 results


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


CONNECTED CONSUMERS

GLOBAL INGREDIENTS


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


1. Pro-forma 2014 revenue at average exchange rate for €1 = $1.115


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


END MARKETS


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



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


GLOBAL PERFORMANCE NUTRITION


OUR BRAND PORTFOLIO

PROTEIN PRE- WORKOUT MUSCLE GAINERS & BUILDERS GENERAL HEALTH

GLOBAL SPORTS

NUTRITION BRAND FAMILY #1 GLOBAL

BUSINESS1 IN 24 COUNTRIES $1BN


1. Pro-forma 2014 revenue


WE ARE A GROWTH BUSINESS


$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


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)


N. America, 63%

Other, 19%

US MARKET GLOBAL MARKET


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)



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


STRATEGY OVERVIEW


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


FINANCE OVERVIEW


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



• €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



A DEVELOPMENT AGENDA THAT HAS FUNDED GROWTH


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


A DEVELOPMENT AGENDA THAT HAS FUNDED GROWTH

Q4 2015

Q4 2015

PHASE II GPN MANUFACTURING

PLANT, ILLINOIS

HIGH END WHEY EXPANSION, IDAHO


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


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


€341m Drawn

RCF


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%


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)


2015 OUTLOOK

Reiterating full year guidance of 9% - 11% growth in adjusted EPS, constant currency

(c. 25% reported at current exchange rates)


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

Documents

BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015/media/Files... · 2015-09-10 · BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015 GLANBIA AT A GLANCE “Delivering better nutrition