Glanbia Plc · EURONEXT:GL9
Glanbia — Barclays Global Consumer Conference, Boston 2015
27 slides from Glanbia's conference presentation, Sep 10, 2015
Slide 1: Barclays Global Consumer Conference, Boston 2015
BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015 SIOBHÁN TALBOT MARK GARVEY GROUP MANAGING DIRECTOR 10 SEPTEMBER 2015 GROUP FINANCE DIRECTOR
Slide 2: Cautionary Statement
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
Slide 3: Glanbia at a Glance
GLANBIA AT A GLANCE “Delivering better nutrition for every step of life’s journey” TOTAL GROUP REVENUE Market Capitalisation €3.5bn 1 €5bn + 55%* Countries 34 TOTAL GROUP EBITA Employees €245m 1 5,800 77%* 1. FY 2014 results *Contribution of Global Performance Nutrition and Global Ingredients BARCLA
Slide 4: Our Business Model
OUR BUSINESS MODEL OUR END MARKETS PLAY … CAPTURED BY TWO INTO A NUMBER OF MEGATRENDS… GLOBAL GROWTH PLATFORMS MORE FOOD #1 B2C GLOBAL GLOBAL SPORTS ACTIVE TRACEABILITY PERFORMANCE LIFESTYLES & TRUST NUTRITION NUTRITION BRAND FAMILY CONNECTED CONSUMERS B2B INGREDIENTS CONVENIENT GLOBAL BUSINESS FOCU
Slide 5: Global Ingredients
“GLOBAL INGREDIENTS / i j Ss . . St. / | —. ———————— Ee i 4 ——s" Zh a Eee
Slide 6: Our Global Scale and Business Model
OUR GLOBAL SCALE AND BUSINESS MODEL $1.3BN B2B INGREDIENTS BUSINESS1 FOCUSED ON NUTRITION & PROTEIN IN 21 COUNTRIES ON 5 CONTINENTS DAIRY MICRONUTRIENTS CHEESE & INGREDIENT INGREDIENTS SYSTEMS & SOLUTIONS #1 IN AMERICAN STYLE BESPOKE DAIRY & NON-DAIRY #1 PROVIDER OF WHEY BASED CHEDDAR CHEESE NUTRITI
Slide 7: Where We Play & Our Value Proposition
WHERE WE PLAY & OUR VALUE PROPOSITION GLANBIA GLOBAL INGREDIENTS: FORTIFY PRODUCTS WITH VITAMINS, MINERALS AND PROTEIN DEVELOPMENT BASED ON CONSUMER INSIGHTS IMPROVE NUTRITONAL PROFILE END MARKETS CREATE A PROTEIN BASED BAR OR BEVERAGE RECIPE PRODUCE NATURAL AMERICAN STYLE CHEDDAR CHEESE B
Slide 8: How We Win
HOW WE WIN Leading market positions: Industry-shaping innovator: 1 #1 AMERICAN STYLE CHEDDAR CHEESE 3 - Using our proprietary technologies to lead the ingredients innovation agenda #1 WHEY PROTEIN SYSTEMS & SOLUTIONS #2 MICRONUTRIENT SYSTEMS & SOLUTIONS Investing behind our business: 4 - Strategic c
Slide 9: Positioning for Future Growth
POSITIONING FOR FUTURE GROWTH Recently announced an organisational redesign program to position Global Ingredients for the next stage of growth ENHANCING SIMPLIFYING LEVERAGING EFFICIENT, OUR ROUTE THE TECHNOLOGY, AGILE & TO MARKET CUSTOMER CAPABILITY & SCALABLE STRATEGY EXPERIENCE TALENT BARCLAYS G
Slide 10: Global Performance Nutrition
GLOBAL PERFORMANCE NUTRITION
Slide 11: Our Brand Portfolio
OUR BRAND PORTFOLIO #1 GLOBAL SPORTS NUTRITION BRAND FAMILY $1BN GLOBAL BUSINESS1 IN 24 COUNTRIES PROTEIN PRE- WORKOUT MUSCLE GAINERS & BUILDERS GENERAL HEALTH 1. Pro-forma 2014 revenue BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015 Glanbia plc – Delivering better nutrition for every step of life’
Slide 12: We Are a Growth Business
WE ARE A GROWTH BUSINESS STRONG ORGANIC GROWTH SINCE ACQUISITION EXPANDING EBITA MARGINS 1 $ BN 13.4% REVENUE2 12.0% 10.8% 9.5% $ 425M REVENUE1 1. Combined total of revenues of the brands at the point of acquisition 2012 2013 2014 HY 2015 2. Pro-forma 2014 revenue BARCLAYS GLOBAL CONSUMER CONFERENCE
Slide 13: Where We Play
WHERE WE PLAY GLOBAL MARKET $10.1BN GLOBAL MARKET 1 US MARKET LAPAC, 18% Other, 19% Specialty, 50% BY Mass, 15% BY REGION2 CHANNEL3 EMEA, 19% Internet, 18% N. America, 63% 1. Euromonitor 2014 (RSP) 2. Euromonitor 2013 (RSP) 3. Nutrition Business Journal 2013 (RSP) BARCLAYS GLOBAL CONSUMER CONFERENCE
Slide 14: Significant Future Opportunity
SIGNIFICANT FUTURE OPPORTUNITY $ PER CAPITA SPEND PER ANNUM BY COUNTRY $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 Source: Euromonitor (2013) BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015 Glanbia plc – Delivering better nutrition fo
Slide 15: How We Win
HOW WE WIN Leading brands: Education & Advocacy: 1 5 - Sports nutrition is an assisted sell 45m 2.6m 200k+ views fans followers NPS*: 85 NPS: 74 NPS: 81 sports 160+ Drive continued US channel growth: 2 - - Large SPECIALTY channel Fast growing INTERNET channel nutrition school sponsored athletes Cont
Slide 16: Strategy Overview
idl Nike, PiAliedl 2 AA “STRATEGY OVERVIEW.
Slide 17: Our Strategy
OUR STRATEGY OUR GROWTH PLATFORMS OVERALL GROUP 1. Drive further market B2C GLOBAL PERFORMANCE NUTRITION leadership positions within both global growth • Grow branded revenue globally ahead of market growth rates platforms • Drive growth in existing markets across current and new channels and consum
Slide 18: Finance Overview
FINANCE OVERVIEW
Slide 19: Financial Track Record
FINANCIAL TRACK RECORD Adjusted earnings per share EBITA margin 12.6% CAGR from 2000 to 2014 +480bps from 2000 to 2014 70c 9.0% 60c 8.0% 50c 7.0% 40c 6.0% 30c 5.0% 20c 10c 4.0% 0c 3.0% BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015 Glanbia plc – Delivering better nutrition for every step of life’s
Slide 20: Growth Through Investment
GROWTH THROUGH INVESTMENT €m Significant strategic investment programme... • €654m investment over last 4 years 300 Bus. Sustaining ― €310m on acquisitions 250 Strategic 200 Acquisitions ― €344m on capital expenditure 150 • €120m - €130m capex for 2015 100 50 • Disciplined approach to both M&A - 201
Slide 21: A Development Agenda That Has Funded Growth: Acquisitions
A DEVELOPMENT AGENDA THAT HAS FUNDED GROWTH • Strong track record of identifying acquisitions, organic projects and strategic alliances to fund future growth 1 ACQUISITIONS Q3 2008 Q1 2011 Q3 2012 Q1 2014 Q4 2014 ASEPTIC SOLUTIONS USA BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015 Glanbia plc – De
Slide 22: A Development Agenda That Has Funded Growth: Organic Projects
A DEVELOPMENT AGENDA THAT HAS FUNDED GROWTH 2 ORGANIC GROWTH PROJECTS & STRATEGIC ALLIANCES CHEESE & WHEY SPECIALTY GRAIN DAIRY PHASE II GPN GII STRATEGIC EXPANSION, INGREDIENTS, INGREDIENTS MANUFACTURING ALLIANCE, IRELAND NEW MEXICO SOUTH DAKOTA FACILITY, IRELAND PLANT, ILLINOIS Q3 2011 Q4 2012 Q2
Slide 23: Financial Flexibility
FINANCIAL FLEXIBILITY Favourable debt maturity profile • Healthy balance sheet €m • Net debt €577 million at HY 2015 800 700 • Net debt / adj. EBITDA < 2x 600 €437m Undrawn RCF + cash 500 • Current committed debt facilities of €1 billion 400 PDP €293m 300 • Favourable debt maturity profile 200 €341m
Slide 24: Half Year 2015 Performance Summary
HALF YEAR 2015 PERFORMANCE SUMMARY • Good half year performance Wholly owned HY15 HY15 growth • Global Performance Nutrition results €m Constant currency Reported currency strong, driven by branded Revenue 1,432 -3.9% +10.6% growth of 16.4% EBITA 139 +7.5% +29.1% • Global Ingredients satisfactory, E
Slide 25: 2015 Outlook
2015 OUTLOOK Reiterating full year guidance of 9% - 11% growth in adjusted EPS, constant currency (c. 25% reported at current exchange rates) BARCLAYS GLOBAL CONSUMER CONFERENCE, BOSTON 2015 Glanbia plc – Delivering better nutrition for every step of life’s journey 25
Slide 26: Questions & Answers
QUESTIONS & ANSWERS
Slide 27: Liam Hennigan, Head of Investor Relations
Liam Hennigan Head of Investor Relations Glanbia plc Glanbia House Kilkenny Ireland Email: ir@glanbia.ie Tel: +353 56 777 2308 Tel: +353 56 777 2200
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