Slide 1: 2017 Full Year Results Presentation
2017 Full Year Results Presentation 21 February 2018
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT 2017 Full Year Results | Slide 2
Slide 3: Full Year Highlights
Full Year Highlights 2017 Full Year Results Presentation
Slide 4: 8th Year of Double-Digit Growth
8TH YEAR OF DOUBLE-DIGIT GROWTH 2017 FINANCIAL Highlights 2017 STRATEGIC Highlights Pro-forma¹ adjusted Total Group Pro- Acquisition of Disposal of 60% EPS forma¹ EBITA Amazing Grass of Dairy Ireland +10.2% +8.6% and Body & Fit constant currency² constant currency² Wholly-owned Dividend payout Refre
Slide 5: 2017 Total Group Pro-Forma EBITA Progression
2017 TOTAL GROUP PRO-FORMA EBITA¹ PROGRESSION Total Group GPN EBITA Drivers pro-forma EBITA GN EBITA JV pro-forma EBITA Glanbia Performance Nutrition €400m €351m Constant currency Like-for-like branded revenue €350m €330m growth growth and acquisitions €300m GPN €250m GPN €170m + 7.0% Glanbia Nutrit
Slide 6: Strong Year of Strategic Execution
STRONG YEAR OF STRATEGIC EXECUTION Initiatives Update Amazing Grass and Investing in plant-based nutrition and DTC¹ capability Body & Fit acquired On-going investment planned to drive growth for €168m Disposal of 60% of Dairy Ireland for Glanbia Ireland joint venture created with ambitious growth pl
Slide 7: Impact of Dairy Ireland Transaction
IMPACT OF DAIRY IRELAND TRANSACTION The majority of the Improved margin Creation of Group’s primary dairy Two wholly-owned profile in wholly- Glanbia Ireland JV processing now growth platforms owned Group in JVs +120 bps 14% 12% 11.9 10% 10.7 % plc % Glanbia 40% GPN 8% GN 2017 Ireland Revenues 47% 6
Slide 8: Operational Review
Operational Review 2017 Full Year Results Presentation
Slide 9: Glanbia Performance Nutrition
GLANBIA PERFORMANCE NUTRITION Performance REVENUE EBITA Good performance with total €1,121.1m €169.7m branded revenue growth of 15% +7.0% (cc²) +13.7% (cc²) Growth Growth driven by LAPAC, LFL BRANDED EMEA and acquisitions REVENUE EBITA margin +6.3% 15.1% Innovation Vol. +8.0% -100 bps (cc²) Strong p
Slide 10: GPN Market Overview
GPN MARKET OVERVIEW • A global market leader GPN Global Revenue 2017 GPN Global Revenue 2017 by Region by Channel • GPN brands are available across a broad mix of FDMC¹ 16% Online geographies and Rest of 26% channels World 38% Total Total • GPN positioned to €1,121m North Specialty €1,121m America 2
Slide 11: Glanbia Nutritionals
GLANBIA NUTRITIONALS Performance REVENUE EBITA Good performance driven by €1,266.0m €113.5m Nutritional Solutions +4.1% (cc¹) +5.4% (cc¹) Growth NUTRITIONAL Driven by dairy & non-dairy EBITA margin SOLUTIONS systems VOLUME 9.0% GROWTH -10 bps (cc¹) Innovation +7.2% A range of successful ingredient l
Slide 12: Nutritional Solutions Overview
NUTRITIONAL SOLUTIONS OVERVIEW Glanbia Nutritionals Nutritional Solutions Total Revenue 2017 €1,266m Dairy/Non-dairy Revenue • Nutritional Solutions is a key growth engine Nutritional Dairy Non- 39% • Growth is being US Cheese Solutions 42% dairy Total €532m 58% 61% driven by consumers seeking ‘Bett
Slide 13: US Cheese – Innovative Partner Model
US CHEESE – INNOVATIVE PARTNER MODEL Glanbia Nutritionals SwC JV 2017 Total • #1 position in the American-style cheese production cheddar cheese category • Commercial, technical and operational partner for US JVs on route-to-market and innovation 48% 420,000 • Partnership approach with customers ton
Slide 14: Strong Performance from Joint Ventures
STRONG PERFORMANCE FROM JOINT VENTURES REVENUE EBITA EBITA margin Performance Strong performance in Revenue, €1,093.4m €63.4m 5.8% EBITA & margin +35.7% (cc¹) +50.2% (cc¹) +60 bps (cc¹) Growth Driven by mainly by volume growth and relatively strong dairy Joint Ventures Revenue markets Glanbia Glanbi
Slide 15: Financial Review
Financial Review 2017 Full Year Results Presentation
Slide 16: Income Statement
INCOME STATEMENT 2017 results summary Pre-exceptional Constant €’m Reported currency currency² 2017 2016 Change 2017 Revenue (Wholly-owned) 2,387.1 2,231.7 +7.0% +9.2% EBITA (Wholly-owned) 283.2 273.3 +3.6% +5.8% EBITA margin 11.9% 12.2% -30 bps -30 bps Amortisation (43.1) (37.4) Net Finance Costs (
Slide 17: Segmental Summary
SEGMENTAL SUMMARY FY 2017 Constant currency¹ change €’m Revenue EBITA Margin Revenue EBITA Margin Glanbia Performance Nutrition 1,121.1 169.7 15.1% +13.7% +7.0% -100 bps Glanbia Nutritionals 1,266.0 113.5 9.0% +5.4% +4.1% -10 bps Total wholly-owned 2,387.1 283.2 11.9% +9.2% +5.8% -30 bps 1. To arriv
Slide 18: Wholly-Owned Revenue Growth +9.2% (CC)
WHOLLY-OWNED REVENUE GROWTH +9.2% (CC*)¹ Volume +5.3%, Price +0.2%, Acquisitions +3.7% CONTINUING BUSINESS €2,400m 3.0% €2,387.1m €2,300m 6.2% €2,200m €2,231.7m (2.0%) €2,100m €2,000m FY16 FX GPN GN FY17 1. To arrive at the Constant Currency Change, the average FX rate for the current period is appl
Slide 19: GPN Revenue Growth +13.7% (CC)
GPN REVENUE GROWTH +13.7% (CC*)¹ CONTINUING BUSINESS €1,200m €1,100m 8.1% €1,121.1m 7.1% (1.5% ) €1,000m €1,007.5m (2.1%) €900m €800m FY16 FX Volume Price Acquisitions FY17 1. To arrive at the Constant Currency Change, the average FX rate for the current period is applied to the relevant reported re
Slide 20: GN Revenue Growth +5.4% (CC)
GN REVENUE GROWTH +5.4% (CC*)¹ CONTINUING BUSINESS Nutritional Solutions (+10.9%) €550m €530m 3.7% €531.9m €510m 7.2% €490m €470m €488.3m (1.8%) €450m FY16 FX Volume Price FY17 US Cheese (+1.8%) €750m €740m 0.1% €730m €735.9m (2.0%) 1.7% €734.1m €720m €710m FY16 FX Volume Price FY17 1. To arrive at
Slide 21: Exceptional Items
EXCEPTIONAL ITEMS Continued Discontinued operations operations Total €’m €’m €’m €’m Intangible asset amortisation (19.4) - (19.4) Rationalisation costs (5.4) - (5.4) Debt restructuring (14.1) - (14.1) Profit on disposal of 60% of Dairy Ireland - 83.3 83.3 Share of results of Equity accounted invest
Slide 22: Cash Flow from Continuing Operations
CASH FLOW FROM CONTINUING OPERATIONS €400m €300m €328m €123m €200m €20m €185m €16m €58m €6m €137m €100m €0m 2017 EBITDA Working Capital Business 2017 Operating Net Interest & Dividends from Other FCF 2017 Sustaining Cash Flow Tax JV&A's Capex • The pro-forma movement in working capital was (€123m),
Slide 23: Investment & Returns
INVESTMENT & RETURNS Sustaining Capex Strategic Capex Acquisitions Total Investment • Major projects were the new GPN R&D Innovation Centre, €313m plant improvements and IT systems upgrades €241m • Amazing Grass and Body & €190m Fit acquired in 2017 and thinkThin in 2015 €168m • 2018 Capital Expendi
Slide 24: Balance Sheet
BALANCE SHEET Balance Sheet 2017 2016 Net Debt €367.7m €437.5m Net Debt / Adj. EBITDA 1.1 1.2 Adj. EBIT / Net Financing Costs 7.0¹ 11.5 • Net Debt reduced by €70 million to €368 million giving a Net Debt to Adjusted EBITDA ratio of 1.1 times • Available Banking Facilities: - €713 million revolving c
Slide 25: Taxation
TAXATION • On 22 December 2017, the Tax Cuts and Jobs Act was signed into US law • The Act includes a reduction in the US federal corporate tax rate from 35% to 21% • This change resulted in an exceptional deferred tax credit to the 2017 Income Statement of €38.7m • The Glanbia effective tax rate is
Slide 26: Dividend Update
DIVIDEND UPDATE Completed review of dividend policy Progressive dividend policy with target payout ratio 25% to 35% 2017 dividend payout will be 22c / share, an increase of 65% on 2016, representing a payout of 25% 2017 Full Year Results | Slide 26
Slide 27: Strategy & Outlook
Strategy & Outlook 2017 Full Year Results Presentation
Slide 28: Glanbia Strategy Drivers
GLANBIA STRATEGY DRIVERS Our Purpose: To deliver better nutrition for every step of life’s journey Our Vision: To be one of world’s top performing nutrition companies trusted to enrich lives everyday Trends driving our business Health and On-the-go food Digitally Clean wellness & beverage connected
Slide 29: Glanbia Strategy Execution
GLANBIA STRATEGY EXECUTION Strategic Pillars Protect and grow Selectively build and Embed enablers the core scale beyond the core across the business Concentrate our focus in growing markets Invest further in insights, technology, and where we have market leading capability Build scale international
Slide 30: 2018 Outlook
2018 OUTLOOK • Positive outlook for FY 2018 • Growth will be driven by wholly-owned business offsetting declines in JVs • Mid-to-high single-digit like-for-like volume growth expected across both the branded portfolio of GPN & Nutritional Solutions • GPN & GN margins expected to be in-line with 2017
Slide 31: Glanbia Capital Markets Day 2018
GLANBIA CAPITAL MARKETS DAY 2018 Date: 23 May 2018 Location: Chicago, USA Focus: Glanbia Group with Site Tour To register your interest please email: investorday@glanbia.com 2017 Full Year Results | Slide 31
Slide 32: 2017 Full Year Results | Slide 32
2017 Full Year Results | Slide 32
Slide 33: Appendix
Appendix 2017 Full Year Results Presentation
Slide 34: Non IFRS Performance Measures Definitions
NON IFRS PERFORMANCE MEASURES DEFINITIONS The Group reports certain performance measures that are not defined under IFRS but which represent additional measures used by the Board of Directors and the Glanbia Operating Executive in assessing performance and for reporting both internally and to shareh
Slide 35: Non IFRS Performance Measures Definitions
NON IFRS PERFORMANCE MEASURES DEFINITIONS 10. Adjusted EBIT: net finance cost is calculated as earnings before interest and tax plus dividends received from Equity accounted investees divided by net finance cost. Net finance cost comprises finance costs less finance income per the Group income state
Slide 36: Adjusted EPS - Reported
ADJUSTED EPS - REPORTED Constant Year currency Year 2017 2016 2016 Adjusted Earnings Per Share €’m €’m €’m Profit attributable to the equity holders of the company 329.4 208.6 211.8 Amortisation 31.7 26.7 27.3 Exceptional items (net of tax) (98.0) 14.5 14.8 Adjusted net income 263.1 249.8 253.9 Weig
Slide 37: Pro-Forma Adjusted EPS
PRO-FORMA ADJUSTED EPS Constant currency Pro-forma Pro-forma Pro-forma 2017 2016 2016 Pro-forma Adjusted Earnings Per Share €’m €’m €’m Adjusted net income 263.1 249.8 253.9 Discontinued operations adjusted net income (100%) (10.1) (27.6) (27.6) 40% of Discontinued operations adjusted net income 4.0
Slide 38: Segmental Analysis
SEGMENTAL ANALYSIS FY 2017 FY 2016 (RC) (CC) Glanbia Performance Nutrition €’m €’m Change Change Revenue 1,121.1 1,007.5 +11.3% +13.7% EBITA 169.7 162.0 +4.8% +7.0% EBITA margin 15.1% 16.1% -100 bps -100 bps FY 2017 FY 2016 (RC) (CC) Glanbia Nutritionals €’m €’m Change Change Nutritional Solutions R
Slide 39: Segmental Analysis
SEGMENTAL ANALYSIS FY 2017 FY 2016 (RC) (CC) Joint Ventures €’m €’m Change Change Revenue 1,093.4 820.8 +33.2% +35.7% EBITA 63.4 42.9 +47.8% +50.2% EBITA margin 5.8% 5.2% +60 bps +60 bps Share of JVs PAT pre-exceptional items 42.8 26.0 64.6% 67.0% RC = Reported currency CC = Constant currency 2017 F
Slide 40: Total Group Pro-Forma EBITA
TOTAL GROUP PRO-FORMA EBITA 2016 2016 2017 Constant Reported Retranslated Actual currency Total Group Pro-forma EBITA €’m €’m €’m growth Glanbia Performance Nutrition 162.0 158.6 169.7 +7.0% Glanbia Nutritionals 111.3 109.0 113.5 +4.1% Wholly-owned EBITA 273.3 267.6 283.2 +5.8% Joint Ventures 56.3 5