Glanbia Plc · EURONEXT:GL9
Glanbia — H1 2017 Earnings Presentation
35 slides from Glanbia's earnings presentation, Aug 10, 2017
Slide 1: Glanbia plc 2017 Half Year Results Presentation
Glanbia plc 2017 Half Year Results Presentation 10 August 2017 Siobhan Talbot Mark Garvey Group Managing Director Group Finance Director
Slide 2: Cautionary Statement
glanbia 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 econo
Slide 3: Half Year 2017 Performance Summary
Half Year 2017 Performance Summary 48.04c Adjusted EPS +6.5% (cc3) +9.3% (rc) Dairy Ireland Glanbia Transaction completed on 2 July 2017 and transaction Ireland Glanbia Ireland is now operational Pro-forma adjusted EPS Pro-forma 2 46.09c guidance of 7-10% reiterated Adjusted EPS +10.1% (cc3 ) +13.2%
Slide 4: Pro-forma Continuing Group progression
Pro-forma Continuing Group progression Revenue EBITA €37.3m €618.9m +48.0% (cc) +17.0% (cc) +48.6% (rc) +17.0% (rc) €1,805m €186m €1,185.7m €148.3m +7.3% (cc) +10.0% (rc) +3.5% (cc) +6.6% (rc) JV&A’s Wholly owned • CC denotes constant currency; RC denotes reported currency • The figures displayed ar
Slide 5: Pro-forma Continuing Group EBITA margin profile
Pro-forma Continuing Group EBITA margin profile Pro-forma continuing Group EBITA margin HY17 HY16 Growth Wholly owned 12.5% 12.9% -40 bps Joint Ventures & Associates 6.0% 4.7% +130 bps Pro-forma Total Group 10.3% 10.2% +10 bps • Pro-forma above assumes 40% of Dairy Ireland results are captured in JV
Slide 6: Strategic Highlights – Acquisitions H1 2017
Strategic Highlights – Acquisitions H1 2017 • Leading plant-based nutrition brand • Increases GPN’s position with lifestyle consumers • Leading European online brand • Opportunity to build DTC* platform in Europe *Direct-to-consumer 2017 Half Year Results | Slide 6
Slide 7: Strategic Highlights – Joint Ventures & Associates
Strategic Highlights – Joint Ventures & Associates Glanbia Ireland • Creation of Glanbia Ireland on 02 July 2017 encompassing the businesses of Glanbia Ingredients Ireland and Dairy Ireland Southwest Cheese • 25% increase in capacity expected to be commissioned in H1 2018 Michigan JV – New US cheese
Slide 8: Operational Review
DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
Slide 9: Glanbia Performance Nutrition
Glanbia Performance Nutrition Performance Solid performance - Improved REVENUE Lfl* branded momentum in Q2 growth €543.5m Good revenue growth in +5.4% (cc) +0.7% Growth LAPAC & EMEA +7.6% (rc) Robust margins given Earnings increased input costs EBITA EBITA margin Strong performance in Innovation rea
Slide 10: Glanbia Nutritionals
Glanbia Nutritionals REVENUE Good revenue and EBITA Performance progression €642.2m +9.0% (cc) +12.2% (rc) Growth 8.1% EBITA growth driven by Nutritional Solutions EBITA €64.4m Good business development across Added-Value dairy and non-dairy systems +8.1% (cc) +11.6% (rc) EBITA Broad-based growth ac
Slide 11: JVA’s & Dairy Ireland
JVA’s & Dairy Ireland JOINT VENTURES & ASSOCIATES DAIRY IRELAND – (Glanbia share) (Discontinued Operations*) EBITA EBITA REVENUE EBITA margin REVENUE EBITA margin Strong performance driven by improved Sale of 60% of Dairy Ireland completed on dairy markets 2 July 2017 EBITA growth across all three s
Slide 12: Finance Review
| cc J DELIVERING BETTER NUTRITION ~ FOR EVERY STEP OF LIFE’S JOURNEY
Slide 13: Pro-forma adjusted EPS progression
Pro-forma adjusted EPS progression Half Year Full Year +7-10%(cc) CC denotes constant currency; RC denotes reported currency *Pro-forma adjusted EPS for continuing operations assumes that the Dairy Ireland transaction occurred at the beginning of FY 2016 2017 Half Year Results | Slide 13
Slide 14: Summary Income Statement
Summary Income Statement HY 2017 results summary pre-exceptional items Reported currency Constant currency €'m HY 2017 HY 2016 Change Change Wholly owned Continuing* Revenue 1,185.7 1,077.9 +10.0% +7.3% EBITA 148.3 139.1 +6.6% +3.5% EBITA margin 12.5% 12.9% -40 bps -50 bps Amortisation of intangible
Slide 15: Segmental Summary – wholly owned continuing operations
Segmental Summary – wholly owned continuing operations Good performance driven by Glanbia Nutritionals HY 2017 Constant currency change €'m Revenue EBITA Margin Revenue EBITA Margin Glanbia Performance Nutrition 543.5 83.9 15.4% +5.4% +0.2% -80 bps Glanbia Nutritionals 642.2 64.4 10.0% +9.0% +8.1% -
Slide 16: Revenue Growth by Segment - GPN
Revenue Growth by Segment - GPN Glanbia Performance Nutrition Revenue growth +7.6% (+5.4% CC*) Million €560 6.2% €544m €540 (0.8)% €520 2.1% 0.0% €505m €500 €480 €460 €440 €420 €400 HY16 FX Volume Price Acquisitions HY17 *Constant currency (CC) excluding the impact of FX 2017 Half Year Results | Sli
Slide 17: Revenue Growth by Segment - GN
Revenue Growth by Segment - GN Glanbia Nutritionals Revenue growth +12.2% (+9.0% CC*) Million 5.9% €642m 2.9% 3.1% €600 €573m Nutritional Nutritional Solutions Solutions €286m €400 €235m US Cheese US Cheese €200 €338m €357m €0 HY16 HY16 FX Volume Price HY17 HY17 *Constant currency (CC) excluding the
Slide 18: Dairy Ireland transaction update
Dairy Ireland transaction update • Transaction closed on 02 July 2017 • Total proceeds expected to be c.€200m: – €112m received prior to half year – Working capital proceeds of €90m - €100m to be received by end October 2017* • Glanbia Ireland comprises Glanbia Ingredients Ireland and Dairy Ireland:
Slide 19: Exceptional Items Summary
Exceptional Items Summary €’m Continuing Operations HY 2017 HY 2016 FY 2016 Organisation redesign costs - (6.2) (11.3) Acquisition integration costs - (1.9) (3.1) Exceptional (charge) pre-tax - (8.1) (14.4) Taxation credit - 1.5 2.3 Net exceptional (charge) - (6.6) (12.1) €’m Discontinued Operations
Slide 20: Balance Sheet
Balance Sheet Financing KPI's HY 2017 HY 2016 FY 2016 Net Debt €608.4m €644.3m €437.5m Net Debt / Adjusted EBITDA¹ 1.63 times 1.83 times 1.19 times Adjusted EBIT¹ / Net Finance Cost 11.4 times 11.4 times 11.5 times 1. The definition of adjusted EBITDA and adjusted EBIT are as per our financing agree
Slide 21: Summary & Outlook
& Outl DELIVERING BETTER NUTRITION FOR'EVERY, STEP-OF LIFES JOURNEY:
Slide 22: Summary & Outlook
Summary & Outlook Pro-forma adjusted EPS Half Year Full Year +7-10%(cc) CC denotes constant currency; RC denotes reported currency *Pro-forma adjusted EPS for continuing operations assumes that the Dairy Ireland 2017 Half Year Results | Slide 22 transaction occurred at the beginning of FY 2016
Slide 23: Questions & Answers
DELIVERING BETTER NUTRI 1 FOR EVERY STEP OF LIFE’S EY
Slide 24: Appendix
glanbia Appendix = rs aa = DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY —
Slide 25: Appendix – Contents
Appendix – Contents 1.Non-IFRS Performance Measures definitions 2.Pro-forma impact of Dairy Ireland divestment 3.Results of discontinued operations 4.Reconciliation of reported revenue to constant currency 5.Reconciliation of reported EBITA to constant currency 6.Total Group EBITA margin 7.Net Debt
Slide 26: Non IFRS Performance Measures definitions
1 - Non IFRS Performance Measures definitions The Group reports certain performance measures that are not defined under IFRS but which represent additional measures used by the Board of Directors and the Glanbia Operating Executive in assessing performance and for reporting both internally and to sh
Slide 27: Non IFRS Performance Measures definitions
1 - Non IFRS Performance Measures definitions 7. Pro-forma adjusted Earnings per share is defined as the net profit from continuing operations attributable to the equity holders of Glanbia plc before exceptional items and intangible asset amortisation (excluding amortisation of software costs) net o
Slide 28: Pro-forma impact of Dairy Ireland divestment
2 – Pro-forma impact of Dairy Ireland divestment HY 2017 HY 2016 €'m Reported *Adjustment Pro-forma Reported *Adjustment Pro-forma Wholly owned Revenue continuing 1,185.7 1,185.7 1,077.9 1,077.9 operations Revenue discontinued operations 357.9 (357.9) - 356.9 (356.9) - Total wholly owned 1,543.6 1,1
Slide 29: Results of discontinued operations
3 - Results of discontinued operations* €'m HY 2017 HY 2016 FY 2016 Revenue 358.4 357.3 616.8 EBITA 11.1 18.3 31.8 Intangible Asset amortisation (0.7) (1.2) (2.3) Operating Profit 10.4 17.1 29.5 Finance costs (0.1) - (0.0) Share of JVA’s 0.4 1.2 1.6 Exceptional items (13.0) (0.8) (3.0) Profit Before
Slide 30: Reconciliation of reported revenue to constant currency
4 - Reconciliation of reported revenue to constant currency HY 2016 – Total Group Revenue Re-translated to % growth -v- constant HY 2016 – % growth -v- Prior year HY 2017 vs HY 2016 HY 2017 currency Reported Prior year (*constant Continuing Operations €’m €’m €’m (reported) currency) Glanbia Perform
Slide 31: Reconciliation of reported EBITA to constant currency
5 - Reconciliation of reported EBITA to constant currency HY 2016 – Total Group EBITA Re-translated to % growth -v- constant HY 2016 – % growth -v- Prior year HY 2017 vs HY 2016 HY 2017 currency Reported Prior year (constant Continuing Operations €’m €’m €’m (reported) currency) Glanbia Performance
Slide 32: Total Group EBITA margin
6 – Total Group EBITA margin Continuing EBITA margin Continuing operations – Joint operations – wholly Ventures & Discontinued Total HY 2017 Actual GPN GN owned Associates operations Group €’m €’m €’m €’m €’m €’m HY 2017 EBITA 83.9 64.4 148.3 32.9 11.6 192.8 HY 2017 Revenue 543.5 642.2 1,185.7 475.7
Slide 33: Net Debt ratio & finance costs reconciliation
7 – Net Debt ratio & finance costs reconciliation Net debt : Adjusted EBITDA HY 2017 HY 2016 €’m €’m Financial liabilities 906.3 739.2 Cash and cash equivalents (297.9) (94.9) Net debt 608.4 644.3 Adjusted EBITDA (last 12 months) 374.2 352.0 Net debt : Adjusted EBITDA 1.63 1.83 Adjusted EBIT : Net f
Slide 34: Adjusted EPS HY 2017 -V- HY 2016
8 - Adjusted EPS HY 2017 -V- HY 2016 Adjusted EPS HY 2016 HY 2017 HY 2016 Reported Total Continuing and Discontinued Reported (Re-presented) (*cc) (Re-presented) Operations €’m €’m €’m Profit attributable to equity holders of the 114.9 112.1 109.4 company Amortisation and impairment of intangible as
Slide 35: Delivering better nutrition for every step of life’s journey
Delivering better nutrition for every step of life’s journey Glanbia plc Glanbia House Kilkenny, Ireland +