Glanbia Plc · EURONEXT:GL9
Glanbia — Davy Conference May 2005
18 slides from Glanbia's conference presentation, May 2005
Slide 1: Davy Conference May 2005
glanbia foods and nutritional
Slide 2: About Us
Davy Conference May 2005 About Us • International Consumer Foods, Food Ingredients and Nutritionals Group • Headquartered in Kilkenny, Ireland • Operations in Ireland, UK, Germany, USA and Nigeria; c. 4,000 employees • 2004 Group turnover €1.8 billion; operating profit €83.5 million (1) • Listed Iri
Slide 3: Our Vision
Davy Conference May 2005 Our Vision “…to be the most relevant player in international cheese, nutrition and selected consumer foods markets” ….through a focus on food technologies, international scale and growth markets Page 3
Slide 4: Market positions in Ireland, Europe, USA and global
Davy Conference May 2005 IRELAND No. 1 Dairy processor No. 1 Liquid milk and cream brand No. 1 Cheese and butter processor Market leader in yogurt and yogurt drinks No. 1 Pigmeat processor EUROPE No. 1 Pizza cheese supplier USA No. 1 Supplier of key customised nutrient premixes No. 1 Barrel cheese N
Slide 5: 2004 Results
Davy Conference May 2005 2004 Results • Turnover (1) grew 10% to €1.83 billion (2003: €1.66 billion). • Operating profit (2) reduced by 5.6% to €83.5 million (2003: €88.5 million) – Impacted by sharp downturn in the Fresh Pork business. • Operating margin grew to 4.6% (2003: 4.5%). • Adjusted EPS (3
Slide 6: 2004 Financial Ratios
Davy Conference May 2005 2004 Financial Ratios Net Debt €150.6 m Non-equity minority interest €110.4 m Capital and development expenditure €114.8 m Net Debt : EBITDA 1.3 x EBITDA finance cover 6.9 x Financing* cover 5.2 x Effective tax rate 12.3% * (Group operating profit, pre exceptional items to G
Slide 7: Agribusiness
Davy Conference May 2005 Agribusiness • Retail operation with 70 locations • Key link with milk supply base • Shifting market dynamics with MTR • Focused on cash generation and efficiency 2004 – Challenging year overall Principal activities Turnover €227.4 m Feed milling/marketing Operating profit €
Slide 8: Consumer Foods
Davy Conference May 2005 Consumer Foods • Value added, fast moving consumer foods • Both manufacturing and marketing • Strong market positions and brands • Customer relationships, new product development and distribution key 2004 – Impacted by UK restructuring and pigmeat Principal activities Turnov
Slide 9: Food Ingredients
Davy Conference May 2005 Food Ingredients • Operational scale and efficiency • State-of-the-art manufacturing facilities • Processing 3.2 billion litres of milk p.a. • Innovative international food focus • Raw material for Nutritionals business 2004 – Strong performance driven by US business Princip
Slide 10: 2004/05 Development
Davy Conference May 2005 2004/05 Development • Organic Growth – Three new plant extensions commissioned at Idaho facilities – Integration of management structures and processes at liquid milk and chilled foods – New product launches – flavoured milks, new soups, fresh sauces • Acquisitions – Kortus
Slide 11: 2005 Market Commentary
Davy Conference May 2005 2005 Market Commentary Nutritionals Agribusiness - Central to Group’s growth strategy - Challenging market in the context of MTR - Grow via capacity expansion, R&D, - Respond to changing farm structure acquisition and JV routes - Further efficiency improvements Food Ingredie
Slide 12: Going forward…
Davy Conference May 2005 Going forward…
Slide 13: Market Environment
Davy Conference May 2005 Market Environment • Trade issues - MTR, EU enlargement, Millennium WTO Round • Transition to market economy • Globalisation of the food industry – scale, efficiency, innovation, market positions • New groups of consumers, driven by demographics • Changing retail customer ba
Slide 14: Changing and diverse consumer demands
Davy Conference May 2005 Changing and diverse consumer demands • Increasing awareness of link between diet and health • Growing understanding of food and nutritional values • Requirement for benefits over and above nutritional value • Desire for convenience and indulgence • Strong trend for protein-
Slide 15: Nutritionals
Davy Conference May 2005 Nutritionals • Demand driven - by consumers and manufacturers • Requirement for products with added health benefits • Must have evidenced based nutritional properties • Built on research, science and innovation • Global customer base and positioning possible • Market with st
Slide 16: Nutritionals – the Glanbia opportunity
Davy Conference May 2005 Nutritionals* – the Glanbia opportunity • Controlled source of high quality raw material (whey) • Expertise and competence in production • Quantity to deliver scale and efficiency • Customer based product innovation programmes • Acquisition strategy to build complimentary ca
Slide 17: Strategic Initiatives and Targets
Davy Conference May 2005 Strategic Initiatives and Targets • Develop/acquire/JV “world-class” nutritional solutions capabilities • Drive scale position in cheese on an international basis • Build global food ingredients business • Consolidate market leading positions and brand portfolio • Accelerate
Slide 18: Davy Conference May 2005
glanbia foods and nutritional