Slide 1: 2013 Full Year Results
12 March 2014 www.glanbia.com
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: Full Year 2013 Performance Summary
FULL YEAR 2013 PERFORMANCE SUMMARY Total Group Total Group Total Group Adjusted Dividend Revenue EBITA EBITA margin EPS €3.3bn €227m 6.9% 55.46c 10.00c +10.5% +9.2% -10bps +11.9% +10.0% • Good performance with 11.9% growth in adjusted EPS • Global Performance Nutrition strong, driven by branded reve
Slide 4: Segmental Overview
SEGMENTAL OVERVIEW TOTAL GROUP REVENUE GLOBAL PERFORMANCE GLOBAL NUTRITION INGREDIENTS €3.3bn 53% Branded sports nutrition: • US Cheese • ON • Ingredient Technologies +10.5% • BSN • Customised Solutions • ABB • Nutramino TOTAL GROUP EBITA JOINT DAIRY VENTURES & IRELAND ASSOCIATES €227m • Consumer Pr
Slide 5: Operational Overview: Global Performance Nutrition
OPERATIONAL OVERVIEW GLOBAL PERFORMANCE NUTRITION • Strong revenue performance driven by REVENUE volumes €655.3m • Branded revenue growth +20% +15.7% • Margin increase driven by favourable sales mix and moderation in input costs EBITA €70.6m • US business performed well and gained market share +27.9
Slide 6: Operational Overview: Global Performance Nutrition
OPERATIONAL OVERVIEW GLOBAL PERFORMANCE NUTRITION • Acquisition of • Continued focus on • Innovation pipeline Nutramino, a leading investment in 2013 remains strong Scandinavian sports • Phase 1 of new • PRO series launched nutrition business, in manufacturing in February 2014 January 2014 facility
Slide 7: Operational Overview: Global Ingredients
OPERATIONAL OVERVIEW GLOBAL INGREDIENTS • Good performance overall REVENUE €1,074.6m • Market demand trends positive across each business unit +11.5% • EBITA growth in US Cheese and Customised Solutions partially offset by EBITA anticipated decline in Ingredient €102.0m Technologies +8.1% • Continue
Slide 8: Operational Overview: Global Ingredients
OPERATIONAL OVERVIEW GLOBAL INGREDIENTS • Cheese Innovation Centre enhances capabilities and customer collaboration • Ongoing progress in development of Customised Solutions value-added systems and solutions US • New specialty grain facility enhances Cheese grain solutions capabilities • Ongoing int
Slide 9: Operational Overview: Dairy Ireland
OPERATIONAL OVERVIEW DAIRY IRELAND REVENUE • Challenging performance in 2013 €652.2m • Consumer Products impacted by milk input costs and difficult Irish retail +3.4% environment EBITA • Agribusiness performed solidly with good €15.1m demand for feed and fertiliser • Efficiency measures underway in
Slide 10: Operational Overview: Joint Ventures & Associates
OPERATIONAL OVERVIEW JOINT VENTURES & ASSOCIATES REVENUE • Strong global dairy markets resulted in €900.5m both higher revenue and input costs across the key joint ventures & associates +11.2% • Results of Glanbia Ingredients Ireland, Southwest Cheese and Nutricima broadly EBITA in line with 2012 €3
Slide 11: Finance Review
2013 FULL YEAR RESULTS FINANCE REVIEW www.glanbia.com 11
Slide 12: Financial Highlights
FINANCIAL HIGHLIGHTS GOOD TOP AND BOTTOM LINE GROWTH CONSTANT CURRENCY CHANGE CHANGE TOTAL GROUP REVENUE €3.3bn +8.0% +10.5% TOTAL GROUP EBITA €226.7m +5.6% +9.2% TOTAL GROUP EBITA % 6.9% -20bps -10bps ADJUSTED EPS 55.46c +8.0% +11.9% FREE CASH FLOW €87.6m +35.2% ROCE 14.2% +10bps 2013 FULL YEAR RES
Slide 13: Segmental Overview
SEGMENTAL OVERVIEW STRONG PERFORMANCE IN GLOBAL GROWTH PLATFORMS 2013 Constant currency change €m Revenue EBITA Margin Revenue EBITA Margin Global Performance Nutrition 655.3 70.6 10.8% +15.7% +27.9% +100 bps Global Ingredients 1,074.6 102.0 9.5% +11.5% +8.1% -30 bps Dairy Ireland 652.2 15.1 2.3% +3
Slide 14: Revenue Analysis
REVENUE ANALYSIS TOTAL GROUP REVENUE GROWTH +10.5%* €m 3,400 3.0% -2.5% 3,350 3,283 3,300 0.7% 3.8% 3,250 3,200 3,150 3.0% 3,100 3,050 3,038 3,000 FY12 Global Global Dairy Ireland JV&As FX FY13 Performance Ingredients Nutrition * Constant currency 2013 FULL YEAR RESULTS www.glanbia.com 14
Slide 15: Segmental Revenue Analysis
SEGMENTAL REVENUE ANALYSIS Global Performance Nutrition +15.7%* Global Ingredients +11.5%* 0.2% -3.9% 4.0% -3.5% 15.5% 1.3% 6.2% Volume Price Acq/Disp FX Volume Price FX Dairy Ireland +3.4%* Joint Ventures & Associates +11.2%* 9.1% -2.2% 2.6% -1.7% 0% 2.5% 2.1% Volume Price Acq/Disp FX Volume Price
Slide 16: EBITA Analysis
EBITA ANALYSIS TOTAL GROUP EBITA GROWTH +9.2%* €m 245 240 3.7% -2.9% 235 0.9% -3.6% 7.5% 230 227 225 220 215 215 210 205 200 FY12 Global Global Dairy Ireland JV&As FX FY13 Performance Ingredients Nutrition * Constant currency 2013 FULL YEAR RESULTS www.glanbia.com 16
Slide 17: Summary Income Statement
SUMMARY INCOME STATEMENT 2013 results summary pre exceptional Reported currency Constant currency €m 2013 2012 Change Change Revenue 2,382.1 2,211.8 +7.7% +10.3% EBITA 187.7 176.7 +6.2% +10.0% EBITA margin 7.9% 8.0% -10bps No change - Amortisation of intangibles (21.0) (19.9) - Net finance costs (23
Slide 18: Other Financials
OTHER FINANCIALS Finance costs €23.0m (2012: €20.4m). Average interest rate 5.1% (2012: 4.6%). Increase due primarily to renegotiation of debt facilities in November 2012 (previously renegotiated May 2008). Tax €24.7m (2012: €25.5m). Effective tax rate of 17.2% (2012: 18.8%). Decrease due to change
Slide 19: Free Cash Flow Analysis
FREE CASH FLOW ANALYSIS FREE CASH FLOW INCREASED +35.2% €m 250 11 -40 215 200 -56 150 -36 100 -6 88 65 50 0 2013 EBITDA Dividends Working Net interest Business Other 2013 Free 2012 Free from JV&As capital & tax sustaining cash flow cash flow capex 2013 FULL YEAR RESULTS www.glanbia.com 19
Slide 20: Capital Investment and Returns
CAPITAL INVESTMENT AND RETURNS €m Significant investment programme.... • Significant capital investment 180 160 programme over recent years 140 120 • Range of attractive investment 100 80 opportunities 60 40 20 • €112m capex for 2013 (€77m 0 strategic) 2010 2011 2012 2013 Bus. Sustaining Strategic A
Slide 21: Financing
FINANCING Financing KPIs 2013 2012 Net debt1 / Adjusted EBITDA2 1.7 times 1.7 times Adjusted EBIT2 / Net Finance Cost 7.8 times 8.1 times 1. Includes cumulative redeemable preference shares 2. The definition of adjusted EBITDA and adjusted EBIT are as per our financing agreements and include dividen
Slide 22: Strategy Review
2013 FULL YEAR RESULTS STRATEGY REVIEW www.glanbia.com 22
Slide 23: Our Market Opportunity
OUR MARKET OPPORTUNITY EVOLVING CONSUMER MARKETS OUR OPPORTUNITIES GROWTH OF MULTIPLE MACRO TRENDS NUTRITION SEGMENTS B2C INCREASING DEMAND FOR GLOBAL PERFORMANCE GROWING GLOBAL FOOD QUALITY, INGREDIENT HIGHER NUTRIENT DENSITY IN NUTRITION URBAN MIDDLE AUTHENTICITY AND MAINSTREAM DIETS CLASS ADOPTIN
Slide 24: Our Value Chain
OUR VALUE CHAIN ADDING VALUE TO OUR BRANDS OUR PORTFOLIO B2C Optimum Nutrition BY MOVING UP CONSUMER BSN THE VALUE BRANDS ABB CHAIN IS Nutramino KEY TO OUR STRATEGY OUR PRODUCTS B2B Dairy-based protein systems Vitamin & mineral premixes SOLUTIONS Specialty grain systems & SYSTEMS Aseptic beverages H
Slide 25: Strategy for Global Growth Platforms
STRATEGY FOR GLOBAL GROWTH PLATFORMS B2C GLOBAL B2B PERFORMANCE GLOBAL NUTRITION INGREDIENTS • Grow in US specialty and • Sustain leadership position in internet channels; American-style cheddar cheese; • Focus on high-growth markets • Leverage whey expertise and and continue with rapid add to prote
Slide 26: Our Strategy
OUR STRATEGY OUR VISION TO BE THE LEADING GLOBAL PERFORMANCE NUTRITION AND INGREDIENTS GROUP OUR STRATEGIC PRIORITIES OUR LONG TERM FINANCIAL AMBITIONS 1. Sustain current and drive further market ORGANIC EARNINGS1 leadership positions within both B2B and B2C global growth platforms 2. Deliver strate
Slide 27: Summary & Outlook
2013 FULL YEAR RESULTS SUMMARY & OUTLOOK www.glanbia.com 27
Slide 28: Summary
SUMMARY • Good performance for 2013 – fourth consecutive year of double digit growth • Continue to invest across the business with consistent delivery of returns • Clear strategic plan based around two global growth platforms • Positive outlook for 2014 with guidance of 8% to 10% growth in adjusted
Slide 29: Supplementary Information
2013 FULL YEAR RESULTS SUPPLEMENTARY INFORMATION www.glanbia.com 29
Slide 30: 2013 Summary Cash Flow
2013 SUMMARY CASH FLOW €m 2013 2012 EBITDA 214.6 201.5 Dividends from Joint Ventures & Associates 10.9 13.8 Working capital movement (39.9) (59.1) Net interest and tax paid (55.8) (48.1) Business sustaining capital expenditure (35.7) (30.1) Other outflows (6.5) (13.2) Free cash flow from continuing
Slide 31: 2013 Summary Balance Sheet
2013 SUMMARY BALANCE SHEET €m 2013 2012 Property, plant and equipment 374.0 309.5 Investments 152.9 135.2 Intangible assets 454.5 473.0 Non-current receivables 9.4 16.8 Deferred tax/capital grants (75.8) (73.7) Working capital 225.7 201.3 Retirement benefit obligations (78.0) (98.1) Provisions (44.8
Slide 32: Joint Ventures & Associates Reconciliation
JOINT VENTURES & ASSOCIATES RECONCILIATION Joint Ventures & Associates - Reconciliation of EBITA to share of results €m 2013 2012 EBITA of Joint Ventures & Associates 39.0 37.9 Reversal of pro-forma adjustment for GIIL1 - (14.8) Reported EBITA 39.0 23.1 Amortisation (0.3) - Finance costs (4.2) (5.3)
Slide 33: Glanbia plc contact details
Glanbia plc Glanbia House Ring Road Kilkenny Ireland Email: ir@glanbia.ie Tel: +353 56 777 2200