Glanbia PLC · EURONEXT:GL9
Glanbia — FY2012 Earnings Presentation
30 slides from Glanbia's earnings presentation, Mar 13, 2013
Slide 1: 2012 Full year results
2012 Full year results 13 March 2013 011 Full Year Results
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: 2012 results highlights
2012 results highlights Leading global nutritionals solutions and cheese group 011 Full Year Results
Slide 4: 2012 adjusted earnings per share
2012 adjusted earnings per share Reported currency Constant currency adjusted EPS adjusted EPS 56.56c 52.90c +22.1% +14.2% Record results with strong growth in adjusted earnings per share Results ahead of market expectations driven by Global Nutritionals Third consecutive year of double digit
Slide 5: Performance summary
2012 performance summary Pro forma Total Pro forma Total Pro forma Total Wholly owned Pro forma JV & Group revenue* Group EBITA Group EBITA EBITA margin* Associates EBITA margin* margin* margin* €3.0bn €214m 7.0% 8.0% 4.6% +10.4% +17.5% +40bps +70bps -30bps Strong growth in revenue, EBITA and marg
Slide 6: Historic year for corporate development
Historic year for corporate development 100% owned • Disposal to Glanbia Co-operative Society (the subsidiary Glanbia plc 40% owned associate “Society”) of 60% of our interest in Irish dairy processing business, Dairy Ingredients Ireland. US Cheese & Global Joint Ventures • Clarifies strategy with r
Slide 7: Group profile going forward
Group profile going forward 2012 pro forma 2011 Total Group Total Group • Transforms Group profile with US 41% 52% Cheese and Global Nutritionals now representing 73% of Total Group 17% Revenue 27% EBITA. 42% 21% • Total Group EBITA margin increases 60 basis points. 60% 73% 12% EBITA 18% 28% 9% EBIT
Slide 8: Finance and operations review
2012 finance and operations review Largest sports nutrition brand family globally 011 Full Year Results
Slide 9: Results summary
2012 results summary Pre exceptional1 Constant currency Reported currency 2012 Change 2012 Change Wholly owned businesses Revenue €2,092.4m + 8.3% €2,211.8m + 14.4% EBITA €162.6m + 15.1% €175.9m + 24.5% EBITA margin 7.8% + 50bps 8.0% + 70bps Pro forma Joint Ventures & Associates2 Revenue €792.5m - 3
Slide 10: Total Group revenue and EBITA analysis
2012 Total Group revenue and EBITA analysis €m USCGN Dairy Ireland JV&A 2,950 14 1 -30 2,900 12 2 2,885 74 2,850 59 2,800 2,752 2,750 Total Group revenue +4.8% 2,700 2,650 2,600 2011 Price Volume Acquisitions Price Volume Price Volume 2012 €m 250 25 -4 -4 199 200 182 150 100 Total Group EBITA +9.4%
Slide 11: US Cheese & Global Nutritionals
US Cheese & Global Nutritionals Constant currency Reported Revenue 2012 2011 Change 2012 Change Revenue €1,461.4m €1,316.9m + 11.0% €1,580.8m + 20.0% EBITA EBITA €142.2m €117.5m + 21.0% €155.5m + 32.3% EBITA margin EBITA margin 9.7% 8.9% + 80 bps 9.8% + 90bps • Strong performance overall and continu
Slide 12: US Cheese & Global Nutritionals (continued)
US Cheese & Global Nutritionals (continued) Customised Premix US Cheese Ingredient Technologies Performance Nutrition Solutions 2012 overview: 2012 overview: 2012 overview: 2012 overview: • Revenue decline price • Strong performance due • Strong growth with • Strong volume growth, related. Low singl
Slide 13: Dairy Ireland
Dairy Ireland Continuing business 2012 2011 Change Revenue Revenue €631.0m €616.0m 2.4% EBITA EBITA €20.4m €23.8m - 14.3% EBITA margin EBITA margin 3.2% 3.9% - 70bps Consumer Products Agribusiness • 2012: Satisfactory performance in • 2012: Revenue growth but lower tough market conditions. EBITA and
Slide 14: Joint Ventures and Associates
Joint Ventures and Associates Constant currency Reported Pro forma 2012 2011 Change 2012 Change Revenue Revenue €792.5m €819.5m - 3.3% €826.3m + 0.8% EBITA EBITA €36.2m €40.5m - 10.6% €37.7m - 6.9% EBITA margin EBITA margin 4.6% 4.9% - 30bps 4.6% - 30bps Glanbia Ingredients Southwest Cheese Glanbia
Slide 15: Group financing
Group financing Financing KPIs 2012 2011 Net debt1 / Adjusted EBITDA2 1.7 times 2.1 times Adjusted EBIT2 : net finance cost 8.1 times 6.3 times Return on capital employed 14.1% 12.8% 1. Includes cumulative redeemable preference shares. 2. The definitions of adjusted EBITDA and adjusted EBIT are per
Slide 16: Adjusted earnings per share
Adjusted earnings per share Constant currency Reported currency 2012 Change 2012 Change Adjusted earnings per share 52.90c +14.2% 56.56c +22.1% - Continuing operations 47.36c +17.4% 51.02c +26.5% - Discontinued operations 5.54c -7.4% 5.54c -7.4% • Strong adjusted earnings per share growth in continu
Slide 17: Strategy
Strategy Leading producer of American-style cheddar cheese 011 Full Year Results
Slide 18: Vision and strategy
Vision and strategy Strategic Align priorities with key growth customers and markets Align with key growth Business focus customers and markets Our vision areas Develop customer-focused, market-based and science- Derived from our backed innovation strategic priorities. They help to ensure To be the
Slide 19: Key corporate development projects
Key corporate development projects US Cheese: Irish dairy processing 2012 • $11m cheese • 40% : 60% partnership • €115m invested innovation centre, • €21m value-added whey completion H1 processing expansion • 14.1% ROCE 2013 Ingredient Technologies: • $60m nutritionals acquisition of US beverage man
Slide 20: 2013 business focus areas
2013 business focus areas US Cheese • Enhance new product development and export platforms with the new US Cheese innovation centre Global Nutritionals • Deliver organic growth targets within the 3 Global Nutritionals businesses • Continue expansion of Performance Nutrition and Customised Premix Sol
Slide 21: Unique business with clear competitive advantage
Unique business with clear competitive advantage Global Ingredients Performance Nutrition • World class, large scale • Largest sports nutrition cheese and whey brand family globally manufacturing • Proven organic and • Value-added functional acquisition ability ingredients and solutions Strong balan
Slide 22: Summary and outlook
Summary and outlook Global provider of micro-nutrient premixes Global marketer of whey and other proteins 011 Full Year Results
Slide 23: Summary and outlook
Summary and outlook • GIIL transaction transforms profile of the business • Well defined strategy with strong organic investment programme and clear business focus areas for 2013 • Global Nutritionals growth underpinned by favourable market trends, operational excellence and ongoing focus on innovat
Slide 24: Supplementary information
Supplementary information No.1 dairy processor in Ireland No.1 mozzarella producer in Europe No.3 consumer dairy products provider in Nigeria 011 Full Year Results
Slide 25: 2012 segmental overview – constant currency
2012 segmental overview – constant currency Pre exceptional 2012 2011 €m Revenue EBITA EBITA % Revenue EBITA EBITA % US Cheese & Global Nutritionals 1,461.4 142.2 9.7% 1,316.9 117.5 8.9% Dairy Ireland 631.0 20.4 3.2% 616.0 23.8 3.9% Total Wholly owned businesses 2,092.4 162.6 7.8% 1,932.9 141.3 7.3%
Slide 26: 2012 segmental overview – reported currency
2012 segmental overview – reported currency Pre exceptional 2012 2011 €m Revenue EBITA EBITA % Revenue EBITA EBITA % US Cheese & Global Nutritionals 1,580.8 155.5 9.8% 1,316.9 117.5 8.9% Dairy Ireland 631.0 20.4 3.2% 616.0 23.8 3.9% Total Wholly owned businesses 2,211.8 175.9 8.0% 1,932.9 141.3 7.3%
Slide 27: 2012 summary cash flow
2012 summary cash flow €m 2012 2011 EBITDA 200.6 163.6 Dividends from Joint Ventures & Associates 13.8 14.8 Working capital movement (59.1) (13.3) Net interest and tax paid (48.1) (31.8) Business sustaining capital expenditure (30.1) (27.3) Other outflows (16.7) (19.2) Free cash flow from continuing
Slide 28: 2012 summary balance sheet
2012 summary balance sheet €m 2012 2011 Property, plant and equipment 309.5 394.6 Investments 135.2 81.8 Intangible assets 473.0 467.3 Non-current receivables 16.8 14.6 Deferred tax/capital grants (73.7) (99.4) Working capital 201.3 232.8 Retirement benefit obligations (98.1) (48.4) Provisions (42.8
Slide 29: 2012 exceptional items
2012 exceptional items €m 2012 1. Sale of Yoplait franchise 6.1 2. Rationalisation costs (3.8) 3. Flax processing facility 4.4 4. Property write down (5.1) 5. 60% disposal of GIIL (7.8) 6. Taxation credit 1.5 Total exceptional charge (4.7) 1. May 2012 disposal of Yoplait franchise for consideration
Slide 30: 2012 Full year results
2012 Full year results Glanbia plc, Glanbia House, Kilkenny, Ireland Tel: +353 56 7772244 www.glanbia.comd 011 Full Year Results