Glanbia Plc · EURONEXT:GL9
Glanbia — Barclays 2016 Global Consumer Staples Conference
24 slides from Glanbia's conference presentation, Sep 6, 2016
Slide 1: Barclays 2016 Global Consumer Staples Conference
BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE 6 SEPTEMBER 2016 BOSTON
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: Agenda
AGENDA 1 GLANBIA OVERVIEW & EVOLUTION 2 OUR BUSINESS SEGMENTS 3 A SPOTLIGHT ON INNOVATION 4 FINANCIAL STRENGTH 5 SUMMARY & GUIDANCE BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON 3
Slide 4: Glanbia Overview
GLANBIA OVERVIEW MARKET CAP €5BN GLANBIA PERFORMANCE NUTRITION DAIRY IRELAND €3.7bn +4.1% 58%* EMPLOYEES 6,000 JOINT VENTURES & GLANBIA COUNTRIES ASSOCIATES NUTRITIONALS €311m +26.8% 32 78%* *Contribution of Glanbia Performance Nutrition and Glanbia Nutritionals BARCLAYS 2016 GLOBAL CONSUMER STAPLES
Slide 5: Evolution of the Glanbia Model
EVOLUTION OF THE GLANBIA MODEL +13.8% CAGR €40m €29m €43m Growth underpinned by GPN & GN €29m 2010 EBITA: Organic growth supported by 2015 EBITA: €136m €30m €163m significant capex and acquisitions JVs: efficient use of capital €311m €62m €107m Glanbia Performance Nutrition(GPN) Global Glanbia
Slide 6: Our Business Today
glanbia @ OUR BUSINESS TODAY DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
Slide 7: Glanbia Performance Nutrition
GLANBIA PERFORMANCE NUTRITION #1 GLOBAL SPORTS NUTRITION BRAND FAMILY €1BN* GLOBAL BUSINESS IN 23 COUNTRIES STRONG TRACK RECORD OF REVENUE GROWTH • Leading brands across a variety of formats and €923m channels €746m • Consumption spanning performance athletes €655m €586m to on-the-go lifestyle consu
Slide 8: Glanbia Performance Nutrition: Addressable Market
GLANBIA PERFORMANCE NUTRITION ADDRESSABLE MARKET LAPAC 16% 13% $10.6bn EMEA 18% GPN Branded Market Share in value (RSP) North America 66% Source: Euromonitor BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON 8
Slide 9: Glanbia Performance Nutrition Brand Portfolio
GLANBIA PERFORMANCE NUTRITION BRAND PORTFOLIO EACH BRAND HAS SPECIFIC ATTRIBUTES THAT APPEAL ACROSS THE RANGE OF PERFORMANCE NUTRITION CONSUMERS BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON 9
Slide 10: Glanbia Nutritionals
GLANBIA NUTRITIONALS €1.2BN* B2B NUTRITIONAL INGREDIENTS BUSINESS 21 COUNTRIES CHEESE DAIRY & PLANT MICRONUTRIENT GRAINS & SEEDS FUNCTIONAL BASED PROTEINS PREMIXES & BEVERAGES BIOACTIVES * FY 2015 Reported revenue BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON 10
Slide 11: Glanbia Nutritionals: Transformational Redesign
GLANBIA NUTRITIONALS: TRANSFORMATIONAL REDESIGN • One integrated organisation from June 2016 • Bringing customers the full suite of Glanbia’s capability • Consumer insight driven commercial team • Supported by dedicated centres of excellence: - Innovation - Product supply - Strategy BARCLAYS 2016 GL
Slide 12: Joint Ventures & Associates and Dairy Ireland
JOINT VENTURES & ASSOCIATES AND DAIRY IRELAND JOINT VENTURES & ASSOCIATES DAIRY IRELAND 3 scale strategic partners in dairy FEEDS processing: • Consumer food products & Agricultural • Glanbia Ingredients Ireland feed & fertiliser supplies • Southwest Cheese, New Mexico • Avonmore: leading Irish groc
Slide 13: A Spotlight on Innovation
glanbia @ DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
Slide 14: GPN: New Product Development
GPN: NEW PRODUCT DEVELOPMENT BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON 14
Slide 15: GN: Consumer Insight Driven Innovation
GN: CONSUMER INSIGHT DRIVEN INNOVATION TWO DEDICATED RESEARCH CENTERS FOCUSED ON CHEESE & NUTRITIONAL INGREDIENTS CUSTOMER COLLABORATION & RAPID PROTOTYPE DEVELOPMENT RECENT EXAMPLES New Vegan Bar Blends: Delivering for Coeliac: Protein enriched functional barGainⓇ OatPure™ gluten-free range beverag
Slide 16: Financial Strength
glanbia ® FINANCIAL STRENGTH FOR EVERY STEP OF LIFE’S JOURNEY
Slide 17: Track Record of Earnings & Margin Growth
TRACK RECORD OF EARNINGS & MARGIN GROWTH Adjusted earnings per share EBITA margin 13.7% CAGR from 2000 to 2015 +640bps from 2000 to 2015 80c 10.0% 70c 9.0% 60c 8.0% 50c 7.0% 40c 6.0% 30c 5.0% 20c 10c 4.0% 0c 3.0% BARCLAYS 2016 GLOBAL CONSUMER STAPLES CONFERENCE, BOSTON 17
Slide 18: Strong Financial Metrics
STRONG FINANCIAL METRICS 10.6% Growth in Adj EPS in FY2015 (constant 13.9% FY15 Return on Capital Employed currency), the 6th Year of double digit growth 1.75x Net debt : EBITDA1 at FY15 94.5% Conversion of EBITA to FCF in FY15 1. Definition of net debt, adjusted EBITDA and adjusted EBIT are as per
Slide 19: HY16 Results Update
HY16 RESULTS UPDATE TOTAL GROUP EBITA GROWTH +11.4% Constant Currency (CC*) €176.5m 44.87c €158.7m €19.1m Adj. EPS +10.8% (CC) JVs & €20.2m €17.7m ASSOCIATES DAIRY IRELAND €17.5m €58.0m €60.3m GLANBIA NUTRITIONALS Wholly owned €157m EBITA +13.7% (CC) €81.7m €60.7m GLANBIA PERFORMANCE NUTRITION Wholl
Slide 20: Strategy & Summary
DELIVERING BETTER NUTRITION” | FOR EVERY STEP OF LIFE’S JOURNEY =
Slide 21: Our Strategy
OUR STRATEGY OUR GROWTH PLATFORMS OVERALL GROUP GPN 1. Drive further market leadership positions 2. Deliver strategic capital investment programme 3. Acquire or partner with complementary businesses to GN scale our current portfolio 4. Develop talent, culture and values BARCLAYS 2016 GLOBAL CONSUMER
Slide 22: Summary & Guidance
SUMMARY & GUIDANCE 2016 guidance: 8% TO 10% Adjusted EPS growth, constant currency* • If the full year average 2016 Euro US Dollar FX rate remains at similar levels to the first half of 2016 Glanbia expects the constant currency result for EPS growth to be broadly in line with the reported result. •
Slide 23: Questions & Answers
QUESTIONS & ANSWERS DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
Slide 24: Liam Hennigan, Head of Investor Relations
Liam Hennigan Head of Investor Relations Glanbia plc Glanbia House Kilkenny Ireland Email: ir@glanbia.ie Tel: +353 86 046 8375
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