Glanbia Plc · EURONEXT:GL9
Glanbia — Investor Day (May 2023)
76 slides from Glanbia's investor day presentation, May 18, 2023
Slide 1: Glanbia plc Analyst Event
Glanbia plc Analyst Event Siobhan Talbot Group Managing Director 18th May 2023
Slide 2: Forward looking statement
Forward looking statement Important notice 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, includ
Slide 3: Agenda
Agenda Welcome Siobhan Talbot GPN Overview Hugh McGuire GPN Marketing Colin Westcott-Pitt Q&A All GLANBIA ANALYST EVENT – MAY 2023
Slide 4: A Better Nutrition portfolio driving growth
A Better Nutrition portfolio driving growth We have highly attractive, complementary growth platforms in growing nutrition categories We have simplified and continue to evolve our strategy We have invested in key capabilities across talent, digitisation, innovation and supply chain We have reshaped
Slide 5: Glanbia: At the heart of Better Nutrition
Glanbia: At the heart of Better Nutrition Glanbia is serving growing trends and societal needs Structural consumer Trends amplified and mega-trends accelerated by Covid Healthy lifestyles Health, immunity and indulgence Convenience and snacking Focus on physical and mental health Sustainability and
Slide 6: Better Nutrition growth platforms driving earnings momentum
Better Nutrition growth platforms driving earnings momentum $5.9bn $366m GPN 29% 52% Consumer brands GN NS 20% Ingredient GN US 51% 37% solutions Cheese 11% 2022 2022 Revenue EBITA GLANBIA ANALYST EVENT - MAY 2023 6 GPN: Glanbia Performance Nutrition, GN NS: Glanbia Nutritional’s - Nutritional Solut
Slide 7: Better Nutrition growth platforms
Better Nutrition growth platforms Optimum Nutrition 5 Yr CAGR* $960m #1 global sports nutrition company GPN $1.7bn 7.9% 2022 Revenue $2.9bn Portfolio brands $750m Growing position in lifestyle nutrition Premix Solutions GN NS $1.2bn 5 Yr CAGR $510m #2 global leader of premix micronutrients 14.6% Pro
Slide 8: An evolved and simplified strategy
An evolved and simplified strategy Delivering Better Nutrition through focused, scalable growth Lead and grow Optimise our Disciplined the core business financial management Optimum Nutrition Science-led innovation Cash generation GPN NA lifestyle nutrition Portfolio optimisation Cash management GN
Slide 9: Our 'Go-to Market' strategy is clear…
Our ‘Go-to Market’ strategy is clear… An integrated Group vision, culture, strategy One face to Fuelled by the customer top talent across business platforms Insights & Scalable innovation led Centres of Efficient, excellence agile GLANBIA ANALYST EVENT - MAY 2023 9
Slide 10: Our Culture is Performance Driven and Values Led…
Our Culture is Performance Driven and Values Led… Employees by geography Region % of total employees US 69% 26% ASPAC 4% LATAM 1% …with an extensive range of capabilities and expertise Brand Operational Channel Customer Science-led E-commerce building excellence development engagement Innovation GLA
Slide 11: We deliver better nutrition responsibly
We deliver better nutrition responsibly E S G Upgraded Scope 1 and 2 emission Diversity, Equity & Inclusion ("DE&I") Female Board representation 46% reduction targets to meet a 1.5 degree agenda progressed, including: Celsius pathway Female management participation 38% • Employee engagement, trainin
Slide 12: A global Better Nutrition business
A global Better Nutrition business Growing quality of earnings via the Better Nutrition portfolio Adjusted EPS Evolution (€cent) 10 year CAGR: +6.3% 104.02c 2012 2022 ~60% of 56.56c ~90% of earnings earnings from GPN from GPN & GN NS & GN NS 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Und
Slide 13: Strategic evolution has enabled Performance Delivery
Strategic evolution has enabled Performance Delivery 2018 – 2022 Financial delivery OCF Avg. OCF Avg. Dividend Avg. ROCE generation conversion % Adj. EPS Payout Target: +€1.5bn 80%+ 10%-13% 5%-10% 25%-35% Result: +€1.6bn 97.3% 10.8% +5.6% 31.5% Strategic delivery GPN transformation Portfolio optimis
Slide 14: Capital allocation framework
Capital allocation framework Focused on Free Cash Flow (“FCF”) generation. Disciplined approach to capital allocation, with prudent financial policies designed to strike the right balance between growth and returns Strategic capex Dividends Investment in Progressive dividend €0.3bn strategic project
Slide 15: Group Ambition 2023 – 2025 Delivery in 2023
Group Ambition 2023 – 2025 Delivery in 2023 Capital Markets Day – 9 Nov 2022 FY 2023 Guidance – 4 May 2023 Adj. EPS OCF % ROCE Adj. EPS OCF % ROCE Adj. EPS OCF Adj. EPS OCF ROCE ROCE Growth % conversion % Growth % conversion % 5-10% +80% 10-13% 7-11% +80% 10-13% Delivering Deliveringsustainable valu
Slide 16: Glanbia Investment Case
Glanbia Investment Case Key strengths and unique competitive advantage will drive sustainable growth Strong brands and Powerful consumer Focused operating market positions trends model Consumer brands #1 player in sports nutrition Simplified operating model Attractive nutrition end focused on brand
Slide 17: Delivering Better Nutrition for every step of life's journey
Delivering Better Nutrition for every step of life’s journey
Slide 18: Glanbia Performance Nutrition
Glanbia Performance Nutrition Hugh McGuire CEO Glanbia Performance Nutrition GLANBIA ANALYST EVENT – MAY 2023
Slide 19: Video GPN Portfolio
Video GPN Portfolio GLANBIA ANALYST EVENT – MAY 2023 1 9
Slide 20: Global sports nutrition portfolio with growing position in US lifestyle nutrition
#1 Global sports …with a growing position in nutrition portfolio US lifestyle nutrition GLANBIA ANALYST EVENT – MAY 2023 2 0
Slide 21: Mission
Mission: Inspiring people everywhere to achieve their performance & healthy lifestyle goals Through: Education Advocacy Quality Authenticity GLANBIA GLANBIA CAPITAL ANALYST MARKETS EVENTDAY – MAY 20222023 2 1
Slide 22: Who we are
Who we are $1.7B 2022 net revenue 68% 32% 7.9% Americas International 5-year CAGR to 20221 $192M 9 brands 2022 EBITA 100+ 2,250 sold in over 100 countries people worldwide 3 manufacturing sites 2i nnovation centers 1 D2C fulfillment center GLANBIA ANALYST EVENT – MAY 2023 1. Branded revenue, reporte
Slide 23: Diversified by brand
Diversified by brand 12% LFL 29% growth: 23% Online +10% FDMC +18% Distributor +15% 36% Specialty +8% 5% 12% LFL growth: Powders +18% 13% Portfolio RTE +5% Brands 70% RTD +2% Other +2% GLANBIA ANALYST EVENT – MAY 2023 *2022 data 1. Constant currency, FY 2022 LFL growth 2 3
Slide 24: Our addressable market is large and growing
Our addressable market is large and growing Global sports US lifestyle & weight nutrition management $25B $17B Growth rate Growth rate CAGR 2022 - 2025 5% to 7% CAGR 2022 - 2025 4% GLANBIA ANALYST EVENT – MAY 2023 Sources: Euromonitor, NBJ, team analysis 2 4
Slide 25: GPN has a deep understanding of consumers and brands
GPN has a deep understanding of consumers and brands Brand equity tracking Mainstreaming of 01 9 markets, 6 brands, up to 4X per year performance continues, importance of protein Extensive custom research 02 20+ studies, 10,000+ consumers Increasing interest in role of nutrition in Brand spend ROI h
Slide 26: GPN is targeting 3 broad groups of consumers
GPN is targeting 3 broad groups of consumers Weight Performance Lifestyle management consumers consumers consumers 24 million 56 million 30 million Build Build Maximize Pursue active Improve Pursue overall Manage weight Lose weight muscle mass lean muscle athletic lifestyle health outlook wellness p
Slide 27: PROTEIN – The bedrock of sports nutrition
PROTEIN – The bedrock of sports nutrition 42% of U.S. adults are trying to consume more protein in their diet (Circana / NPD) 10% CAGR in the number of food & beverage new product launches making protein claims 2017-22 (Innova Market Insights) Protein drink consumption remains high, with ~50% of U.S
Slide 28: ENERGY & PRE-WORK OUT – Megatrends fueling growth
ENERGY & PRE-WORK OUT – Megatrends fueling growth ‘More energy’ a top wellness priority for consumers, with 64% of U.S. adults stating ‘feel / look better & more energy’ as a health goal (Circana / NPD) Energy category is expected to see strong growth through to 2027, growing at an estimated CAGR of
Slide 29: Our brands are strong and performing well at shelf
Our brands are strong and performing well at shelf Strong brands Strong performance Global revenue1 Scale brands Branded LFL revenue growth of 14.6% ON LFL growth +24% (vol +5%, price +19%) Preferred & recommended by consumers 2 US consumption L12W ON total brand consumption up 31.1% Most awarded, m
Slide 30: GPN – #1 sports nutrition company in the world
GPN – # 1 sports nutrition company in the world Top #1 #1 3 In the world In 18 countries In 30 out of 48 countries1 GLANBIA ANALYST EVENT – MAY 2023 Source: Euromonitor 1. Countries for which Euromonitor GPN rank data available 30
Slide 31: GPN strategy centered on four growth pillars
GPN strategy centered on four growth pillars MISSION Inspiring people everywhere to achieve their performance & healthy lifestyle goals CAPTURE BUILD ACCELERATE MASTER THE GLOBAL POTENTIAL OF A LIFESTYLE NUTRITION GROWTH IN PRIORITY DIGITAL COMMERCE OPTIMUM NUTRITION PLATFORM IN NORTH AMERICA INTERN
Slide 32: GPN growth transformation program ongoing since 2020
GPN growth transformation program ongoing since 2020 Key outcomes International Omni-channel routes-to-market focus Demand • International routes-to-market reshaped • New structure & capabilities in Americas & International Revenue growth management Brand focus • 48%+ of SKU’s eliminated1 Supply Glo
Slide 33: Making good progress on environmental and sustainability agenda
Making good progress on environmental and sustainability agenda 100% As of January 2023, all of All GPN facilities have Exceeded our 2020 goal to GPN has partnered with How2Recycle Labeling in our electricity use in our achieved Zero Waste to reduce water use across all the U.S. and CAN as well as O
Slide 34: Always recyclable
Always recyclable Gold Standard 100% Whey Black NIR Tubs Are Certified as Widely Recyclable! GLANBIA ANALYST EVENT – MAY 2023 34
Slide 35: GLANBIA ANALYST EVENT – MAY 2023
GLANBIA ANALYST EVENT – MAY 2023 Source: Euromonitor 35
Slide 36: 16% revenue CAGR since 2008 acquisition
16% revenue CAGR since 2008 acquisition1 $1,000M CAGR 16% $120M 2008 12 months to April 2023 GLANBIA ANALYST EVENT – MAY 2023 1. Optimum Nutrition acquired Aug 2008. CAGR calculated from FY2008 to year ending April 2023 36
Slide 37: Video Optimum Nutrition
Video Optimum Nutrition GLANBIA ANALYST EVENT – MAY 2023 37
Slide 38: World's #1 sports nutrition brand
World's #1 sports nutrition brand Brand Essence: Most trusted brand in sports nutrition Brand DNA: Uncompromising quality, most trusted, world's #1, global pioneer Brand Role: To help people experience the power of fitness & nutrition Consistently strong NPS 3-year revenue scores1: growth to 2022 +4
Slide 39: Consumer pool for Optimum Nutrition is large and growing globally
Consumer pool for Optimum Nutrition is large and growing globally CONSUMER TARGET The Motivated 147M in US1 195M in India2 23M in UK1 10M in Australia1 Optimum Nutrition HHP in US doubled from 2017 to 2022 to 4.2%3 People who are open-to or already using sports nutrition category Optimum Nutrition s
Slide 40: Optimum Nutrition consumer is affluent & fully engaged in the category
Optimum Nutrition consumer is affluent & fully engaged in the category – they see sports nutrition as an “essential” spend Optimum Nutrition consumer vs. sports nutrition category user Has 19% higher income Spends 28% more on sports nutrition category Works out 80% more often GLANBIA ANALYST EVENT –
Slide 41: Optimum Nutrition meets all sports nutrition consumer needs
Optimum Nutrition meets all sports nutrition consumer needs SN Consumers Protein Energy Weight Gainers On-The-Go Elite Series Strength Vitamins Wellness Endurance GLANBIA ANALYST EVENT – MAY 2023 41
Slide 42: Continue to innovate with new formats and occasions
Continue to innovate with new formats and occasions • Expansion into new formats beyond Powders – Energy RTD forecast to grow at 8% (Mintel, US market, Energy drinks) • Expansion into added benefits – 49% of consumers interested in energy drinks that contain electrolytes (Mintel) • Offers existing G
Slide 43: Brand growth playbook has driven Optimum Nutrition to $1B
Brand growth playbook has driven Optimum Nutrition to $1B 1 2 Broader Hero product consumer focus target 3 4 Optimized Inspiring design & creative brand assets Non-negotiable: Most trusted brand in sports nutrition GLANBIA ANALYST EVENT – MAY 2023 43
Slide 44: Brand growth playbook has driven Optimum Nutrition to $1B
Brand growth playbook has driven Optimum Nutrition to $1B 5 6 Drive reach with Product & digital media format innovation 7 8 2.4X Broader Increasing $ Spend distribution brand footprint investment1 Non-negotiable: Most trusted brand in sports nutrition GLANBIA ANALYST EVENT – MAY 2023 44 1. ON Marke
Slide 45: Americas & International
Americas & International GLANBIA ANALYST EVENT – MAY 2023 45
Slide 46: Scale Americas business
Scale Americas business 68% Enhanced capabilities of GPN business - Revenue growth management - Integrated business planning 8.6% - Insights & analytics - Execution discipline (Momentum) 5-year CAGR to 20221 - New operating model 6 Product supply - Largest powder blending facility in US brands acros
Slide 47: US VIDEO
US VIDEO GLANBIA ANALYST EVENT – MAY 2023 47
Slide 48: One GPN face to customer in US allows us to build scale
One GPN face to customer in US allows us to build scale and drive a broader portfolio of brands Objectives Outcomes Brand-led 3 Category 4 Centers of Consumer first excellence teams Category leadership Accelerated digital and e-com 5 Channel Attract, develop, retain talent teams GLANBIA ANALYST EVEN
Slide 49: We are seeing good consumption growth across all channels
We are seeing good consumption growth across all channels Double digit growth in all channels Mass Food +31% 1 Club eCommerce GLANBIA ANALYST EVENT – MAY 2023 1. Total ON brand, US YOY growth L12W to 3/26/2023, tracked and untracked channels 49
Slide 50: In tracked channels our share in Protein & Meal Replacement Powder has increased
In tracked channels - representing 23% of ON’s US sales - our share in the Protein & Meal Replacement Powder category has increased significantly Strong market share growth1 Strong brand performance1 Optimum Nutrition Dollar Share (%) Protein & Meal Replacement Powder 10.0% • ON share position moved
Slide 51: Growing international business
Growing international business 32% 36% of GPN business ecommerce Insert image to show international vibe! 66% 2 6.4% 5-year CAGR to 20221 10 Responsive to conditions on the ground Scale presence in 10 - Currency and tariff volatility markets with in-market - Geopolitical concerns presence in 13 mo
Slide 52: ON represents 66% of International branded sales
ON represents 66% of International branded sales and continues to demonstrate strong growth 2022 branded International net sales ON sales growth by region [$M] CAGR 354 16.2% 164 18.8% 226 PORTFOLIO BRANDS 34% $540M 66% EUROPE 98 190 14.1% ROW 128 2019 [CC] 2022 GLANBIA ANALYST EVENT – MAY 2023 52
Slide 53: Video International
Video International GLANBIA ANALYST EVENT – MAY 2023 53
Slide 54: International markets – strong growth potential
International markets – strong growth potential Attractiveness Actions Higher growth rates than US Optimum Nutrition prioritization Streamlined route to market Large pool of consumers Enhanced business & brand building talent Scale business & teams Local manufacturing capability Strong well perceive
Slide 55: Growth ambition enabled by skilled, committed & diverse talent
Growth ambition enabled by skilled, committed & diverse talent Brand & Strong Inclusive business values approach builders Strong focus on developing and hiring Our employees are passionate about our Leadership commitment to support the the best people: brands: attraction and development of diverse t
Slide 56: Platform for growth
Platform for growth Financial ambition 2023 to 2025 Optimum Nutrition - Unique portfolio of $1BN with potential for lifestyle brands in NA growth Constant Avg revenue On trend growing Global business with growth Currency categories with large established infrastructure consumer pools and capabilitie
Slide 57: Glanbia Performance Nutrition
Glanbia Performance Nutrition Colin Westcott-Pitt Global Chief Brand Officer Glanbia Performance Nutrition GLANBIA ANALYST EVENT – MAY 2023 57
Slide 58: Video ON 8 STEPS
Video ON 8 STEPS GLANBIA ANALYST EVENT – MAY 2023 58
Slide 59: GLANBIA ANALYST EVENT – MAY 2023
GLANBIA ANALYST EVENT – MAY 2023 15 Source: Euromonitor
Slide 60: GPN Brand Growth Model – "Always On" recruitment focus
GPN Brand Growth Model – "Always On" recruitment focus brought to life through integrated marketing & sales activation Drivers of recruitment Emotional Mental Physical connection availability availability Primarily Communication Distribution Innovation Visibility activated through GLANBIA ANALYST EV
Slide 61: Best-in-class insights and analytics partners support brand performance
Strong set of best-in-class insights and analytics partners support brand performance and consumer understanding Brand Performance Consumer Understanding 01 01 Brand equity & communications tracking Custom category & brand studies 9 markets, 5 brands, up to 4X per year, key campaigns Sports Nutritio
Slide 62: World class partners used to drive decisions & activation
World class partners used to drive decisions & activation for best impact World Class Brand Equity Tracking Deep Consumer Understanding • Thought leaders in brand tracking, partners • Merger of IRI & NPD - 23 countries, 26 with over half world's top 50 global brands industries, 2,000 categories, 500
Slide 63: Bringing Optimum Nutrition to life in communications
Bringing Optimum Nutrition to life in communications One Insight Driven Ability To Tailor For Integrates Marketing & (Core Creative) Idea to Local Market Culture Sales Activity Ground All Communications And Nuances Seamlessly GLANBIA ANALYST EVENT – MAY 2023 63
Slide 64: Consumer pool for Optimum Nutrition is large and growing globally
Consumer pool for Optimum Nutrition is large and growing globally CONSUMER TARGET The Motivated 147M in US1 195M in India2 23M in UK1 10M in Australia1 Optimum Nutrition HHP in US doubled from 2017 to 2022 to 4.2%3 People who are open-to or already using sports nutrition category Optimum Nutrition s
Slide 65: This insight captures the truth of the journey of our motivated audience
This insight captures the truth of the journey of our motivated audience: we all want a little bit more, and we seek out tools and routines to help us find it. Put simply, we all have more to give, and performance nutrition can help unlock the potential in all of us. This universal human truth is tr
Slide 66: GLANBIA ANALYST EVENT – MAY 2023
GLANBIA ANALYST EVENT – MAY 2023
Slide 67: Video ON CREATIVE
Video ON CREATIVE GLANBIA ANALYST EVENT – MAY 2023 67
Slide 68: There's more of you
The “red thread” for all consumer communications, everywhere… There’s more of you in you. GLANBIA ANALYST EVENT – MAY 2023 68
Slide 69: Local Top Spin
Local Top Spin GLANBIA ANALYST EVENT – MAY 2023
Slide 70: More of you in you – local topspin
More of More of You you in in You you Local local topspin Topspin Australia: More miles in Nedd. UK: More in all of us. There’s more of you in you. There’s more of you in you. 1 2 3 USA: Unlocking Potential. China: Unlocking Potential. There’s more of you in you. There’s more of you in you. India: M
Slide 71: Video LOCAL TOP SPIN
Video LOCAL TOP SPIN GLANBIA ANALYST EVENT – MAY 2023 71
Slide 72: Influencers & ambassadors drive brand advocacy and reach
Influencers & ambassadors drive brand advocacy as well as strong reach & engagement across digital channels 30+ Icons 25+ Scene Leaders 1,200+ Influencers 4,000+ Personal Trainers Top-tier athletes across Pioneering leaders building Credible content producers Driving brand recommendation at multiple
Slide 73: Principles and measurement for effectiveness and investment return
Principles and measurement for effectiveness and investment return Effectiveness Measurement Recruit: Talk to a broad pool of consumers Reach – actual, quality, frequency Impact: Use emotion & distinctive assets Engagement – through interactive for maximum memorability / first to mind digita
Slide 74: Reasons to believe – accelerating beyond $1B
Reasons to believe – accelerating beyond $1B #1 brand growing Growing category, Large consumer pool fast globally compelling to consumers in all markets Proven brand Strong routes-to-market Commitment to growth model and distribution brand investment capability GLANBIA ANALYST EVENT – MAY 2023 74
Slide 75: GLANBIA ANALYST EVENT – MAY 2023
GLANBIA ANALYST EVENT – MAY 2023 75
Slide 76: Q&A
Q&A Justin to update Siobhan Steve Aisling Andy Colin Wendy Hugh Talbot Yucknut Zito Shaw Westcott-Pitt Chang-Smith McGuire Group President Chief President Chief Chief Chief Managing Americas People International Brand Financial Executive Director Officer Officer Officer Officer GPN GPN GPN GPN GPN