Glanbia Plc · EURONEXT:GL9
Glanbia — FY2015 Earnings Presentation
29 slides from Glanbia's earnings presentation, Feb 24, 2016
Slide 1: 2015 Full Year Results
© glanbia 2015 FULL YEAR RESULTS 24 FEBRUARY 2016 DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT otanbie” 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 econ
Slide 3: Redefining our purpose, vision & values in 2015
REDEFINING OUR PURPOSE, VISION & VALUES IN 2015 olen ? \). THE CUSTOMERS’ “CHAMPION OUR VALUES age UNDERPIN OUR ENC PERFORMANCE PURPOSE = 7'X° MATTERS “yr FIND A BETTER ¢ WAY svg, SHOWING ‘Nv RESPECT &5, WINNING ‘22 TOGETHER 2015 FULL YEAR RESULTS DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE'S
Slide 4: Full Year 2015 Performance Summary
FULL YEAR 2015 PERFORMANCE SUMMARY td Sixth consecutive year of double digit growth in adjusted EPS 8 +10.5% (cc) +29.9% (rc). F. Strong EBITA performance driven by GPN “1s0bps (cc) Continued EBITA margin progression €256m . Free cash 37a Strong cash conversion Note: (i) EBITAis defined as earnings
Slide 5: Segmental Summary
SEGMENTAL SUMMARY ae oex00 — TOTAL GROUP REVENUE eo" GLANBIA DAIRY x PERFORMANCE PRELAND s@ NUTRITION cote | eo AGRIBUSINESS ® LEADER IN } IN IRELAND |) CONSUMER SPORTS - ly e NUTRITION & 2, EBITA Pe] “eo; €135.6M oo e300 "Oe; 2 eo” eo” GLOBAL e 2@' /@- FX INGREDIENTS % LEADER IN \ Par JOINT e CHEES
Slide 6: Global Consumer Trends
GLOBAL CONSUMER TRENDS enable GLANBIA SITS AT THE HEART OF POWERFUL CONSUMER MEGATRENDS IN THE FOOD INDUSTRY HEALTH & WELLBEING EASY, CONVENIENT AND es 88% of consumers globally are willing to ON-THE-GO A> i pay more for healthier foods! 51% of consumers snack at least three tit e a day* rae - vo ew
Slide 7: Operational Review
© glanbia 2015 OPERATIONAL REVIEW 2015 FULL YEAR RESULTS DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
Slide 8: Glanbia Performance Nutrition
© GLANBIA PERFORMANCE NUTRITION glanbia OPERATIONAL OVERVIEW . oer é Revenue * Strong performance in 2015 €923m \ 46.7% (cc) £ * 16.9% branded revenue growth “— r¢ *23.7% (re) = +5.6% like for like branded revenue growth {= ’ Si * 28.3% increase in EBITA to €135.6 million @. 5.6% £ yO eran * 250 bas
Slide 9: Glanbia Performance Nutrition go-to-market strategy
GLANBIA PERFORMANCE NUTRITION glanbia AS MORE CONSUMERS COME INTO THE CATEGORY, GPN’S GO-TO-MARKET STRATEGY HAS BROADENED & EVOLVED * Food, Drug, Mass and Convenience 2015 FULL YEAR RESULTS DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
Slide 10: Global Ingredients
© GLOBAL INGREDIENTS glanbia OPERATIONAL REVIEW a * Resilient performance in difficult dairy “ €1.2bn markets 23% (cc) | * 5% volume growth “Oe. f(r) —_ ewe * Commissioning of value added dairy ingredients plant completed €107m -11.6% (cc) +6.2% (rc) é * Continue to grow the non-dairy platforms * Ma
Slide 11: Global Ingredients: Execution of Strategy
GLOBAL INGREDIENTS otanbie” EXECUTION OF STRATEGY EVOLVING TO SUPPORT OUR CUSTOMERS IN MEETING CONSUMER TRENDS elop nutritional and functional ingredients business ! | Ay , ~ Rg, VALUE BUILD THE GROW NON ACQUIRE TO THE CORE FUNCTIONAL DAIRY COMPLEMENTARY ORTFOLIO SYSTEMS PLATFORMS BUSINESSES we __ B
Slide 12: Operational Review: Dairy Ireland and Joint Ventures
© OPERATIONAL REVIEW glanbia DAIRY IRELAND JOINT VENTURES & ASSOCIATES Revenue EBITA EBITA margin Revenue EBITA EBITA margin €29m 4.5 €633m % 2 a, Ceneas en * Good performance driven by Consumer Products ¢ Recovery in margins as a result of cost improvements and increased value added milk and cream
Slide 13: Finance Review
© glanbia 2015 FINANCE REVIEW 2015 FULL YEAR RESULTS DELIVERING BETTER NUTRITION : FOR EVERY STEP OF LIFE’S JOURNEY 4
Slide 14: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS otanbie” STRONG FINANCIAL METRICS FOR 2015 WHOLLY OWNED REVENUE €2.8bn 9.3% a WHOLLY OWNED EBITA €271.0m +29.9% +10.5% WHOLLY OWNED EBITA % 9.8% +160bps +130bps ADJUSTED EPS 79.14c +29. A% +10.6% OPERATING CASHFLOW = € 981m #36.5% +16.6% ROCE 13.9% +50bps DIVIDEND 12.1¢ +10.
Slide 15: Segmental Overview
SEGMENTAL OVERVIEW glanbia STRONG PERFORMANCE LED BY GLANBIA PERFORMANCE NUTRITION 2015 Constant currency change €m Revenue EBITA Margin Revenue EBITA Margin Glanbia Performance Nutrition 923.1 135.6 14.7% +6.7% 428.3% +250 bps Global Ingredients 1,218.0 106.6 8.8% -12.8% -11.6% +20 bps Dairy Irelan
Slide 16: Revenue Growth by Segment
REVENUE GROWTH BY SEGMENT otanbie” WHOLLY OWNED REVENUE GROWTH 9.3% (-3.6% CC*) €m 3,000 - 2,800 | (6.2)% €2,774m nt 2,700 - 2,600 €2,538m 2,500 | 2,400 2,300 + FY14 FX Glanbia Global Ingredients Dairy Ireland FY15 Performance Nutrition * Constant Currency (CC) excluding the impact of FX 2015 FULL Y
Slide 17: Global Growth Platforms Revenue Drivers: GPN
GLOBAL GROWTH PLATFORMS REVENUE DRIVERS otanbie” GLANBIA PERFORMANCE NUTRITION +23.7% (+6.7% CC*) 7.8% €923m 17.0% €746m FY14 FX Volume Price Acquisitions FY15 * Constant Currency (CC) excluding the impact of FX 2015 FULL YEAR RESULTS DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE'S JOURNEY 17
Slide 18: Global Growth Platforms Revenue Drivers: Global Ingredients
GLOBAL GROWTH PLATFORMS REVENUE DRIVERS glanbia GLOBAL INGREDIENTS +3.6% (-12.8% CC*) 5.0% (17.8)% €1,218m €1,175m FY14 FX Volume Price FY15 * Constant Currency (CC) excluding the impact of FX 2015 FULL YEAR RESULTS DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE'S JOURNEY 18
Slide 19: EBITA Progression
EBITA PROGRESSION otanbie” WHOLLY OWNED EBITA GROWTH +29.9% (+10.5% CC*) €m 290 5 12.2 a (6.7% 4.0% €271m 250 + 19.4% 230 - €209m 210 - 190 5 170 | 150 - FY14 FX Glanbia Performance Global Ingredients Dairy Ireland FY1S Nutrition * Constant Currency (CC) excluding the impact of FX 2015 FULL YEAR RES
Slide 20: Summary Income Statement
SUMMARY INCOME STATEMENT glanbia 2015 results summary pre exceptional Reported currency Constant currency €m 2015 2014 Change Change Revenue (Wholly-owned) 2,774.3 2,538.3 +9.3% -3.6% EBITA (Wholly-owned) 271.0 208.6 +29.9% +10.5% EBITA margin 9.8% 8.2% +160 bps +130 bps - Amortisation of intangible
Slide 21: Exceptional Items Summary
EXCEPTIONAL ITEMS SUMMARY glanbia €m 2015 2014 1. Organisational redesign costs (7.0) - 2. Acquisition integration costs (2.9) = 3. Rationalisation costs (7.8) (6.4) 4. Group pension scheme costs (5.0) = 5. Disposal of interest in Joint Venture (3.6) - 6. Transaction related costs = (9.6) Exceptiona
Slide 22: Cash Flow Progression
CASH FLOW PROGRESSION otanbie” FREE CASH FLOW +68%; CONVERTING 94% OF EBITATO CASH €m | €43m €5m €(37m) — 300 | €281m €271m |_| LJ €(34m) €15m €(7m) €256m Lt 250 | | 200 | 150 | loo | 50 | 0 | 2015 EBITA Depreciation* Working Business 2015 Net Interest & Dividends Other 2015 FCF 2014 FCF 2013 FCF Ca
Slide 23: Investment and Returns
INVESTMENT AND RETURNS olen eornrrn— Total capex and acquisitions investment os of €320m in 2015 positioning the s@ 2015 ROCE business for future growth €197m in acquisitions; €86m strategic capex in 2015 Strong track record of delivery of return on investment €350m Announced $140m cheese & whey pla
Slide 24: Balance Sheet
BALANCE SHEET glanbia FINANCING KPIs 2015 2014 Net debt €584 million €510 million Net debt / Adjusted EBITDA! 1.75 times 1.97 times Adjusted EBIT! / Net Finance Cost 10.8 times 8.9 times 1 The definition of adjusted EBITDA and adjusted EBIT are as per our financing agreements and include dividends f
Slide 25: Summary & Outlook
© glanbia SUMMARY & OUTLOOK 2015 FULL YEAR RESULTS DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
Slide 26: Our Strategy
OUR STRATEGY glanbia OUR GROWTH PLATFORMS OVERALL GROUP = | GLANBIA | PERFORMANCE NUTRITION * 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 _ GLOBAL / INGREDIENTS “Ore
Slide 27: 2015 Strategy Progression
2015 STRATEGY PROGRESSION glanbia © v v v Grew GPN branded revenue ahead of market Successful integration of Isopure business e° Progressed FDM strategy: acquiring thinkThin and launching trusource v Progressed organi ¥ Commissioned new s@ al redesign of Global Ingredients . y ingredient facility in
Slide 28: 2016 Outlook
2016 OUTLOOK olen * Positive Group outlook for 2016 * Targeting branded revenue growth -ox00 ahead of the market for Glanbia ee" Performance Nutrition sf 2016 guidance: * Global Ingredients to benefit from Ky) 8% TO 10%: continued development of value added ry . i ingredient systems a EPS growths °
Slide 29: Liam Hennigan, Head of Investor Relations
Liam Hennigan Head of Investor Relations Glanbia ple Glanbia House Kilkenny Ireland Email: ir@glanbia.ie Tel: +353 56 777 2200 DELIVERING BETTER NUTRITION