Glanbia PLC · EURONEXT:GL9
Glanbia — H1 2006 Earnings Presentation
22 slides from Glanbia's earnings presentation, Sep 6, 2006
Slide 1: 2006 Interim Results
2006 Interim Results, Wednesday September 6 Page 1
Slide 2: Overview
2006 Interim Results, Wednesday September 6 Overview • Similar results overall to first half 2005; as indicated in AGM statement • Results mainly reflect very difficult period for Food Ingredients Ireland • Satisfactory performance from other operations, including new property business unit • Intern
Slide 3: Financial Performance
2006 Interim Results, Wednesday September 6 Financial Performance H1 2006 H1 2005 Pre exceptional Change Pre exceptional Revenue €922.8 m €926.1 m Similar Operating profit €36.4 m €38.3 m Down 5% Operating margin 3.9% 4.1% Down 20 bps Net financing costs €6.5 m €7.7 m Improved 15% Share of results o
Slide 4: Group Structure
2006 Interim Results, Wednesday September 6 Group Structure IRELAND INTERNATIONAL Divisions Agribusiness & Property Food Ingredients USA Consumer Foods Food Ingredients Ireland International JVs Glanbia Cheese UK Southwest Cheese USA Nutricima Nigeria New Businesses Nutritionals (Global) Group Innov
Slide 5: Agribusiness & Property
2006 Interim Results, Wednesday September 6 Agribusiness & Property H1 2006 H1 2005 Agribusiness Revenue up €23.3 m €165.6m €142.3m • Solid performance; 61 locations nationally Operating Profit up €7.9 m €15.9m €8.0m • Benefits of ongoing investment programme Operating Margin (excluding property) 5.
Slide 6: Consumer Foods
2006 Interim Results, Wednesday September 6 Consumer Foods H1 2006 H1 2005 Liquid milk and chilled foods Revenue up €9.8 m €252.3m €242.5m • Reasonable performance overall Operating Profit up €0.3 m €8.5m €8.2m • Competitive trading environment Operating Margin similar 3.4% 3.4% Liquid milk and chil
Slide 7: Food Ingredients & Nutritionals
2006 Interim Results, Wednesday September 6 Food Ingredients & Nutritionals H1 2006 H1 2005 Food Ingredients Ireland • Very tough first half; margin pressure Revenue down €36.4 m €504.9m €541.3m – Year 3 MTR, reduced industry supports Operating Profit down €10 m €12.1m €22.1m – Lower world dairy mar
Slide 8: International Joint Ventures: UK
2006 Interim Results, Wednesday September 6 International Joint Ventures: UK Name: Glanbia Cheese Where: Wales & NI Partner: Leprino Foods • No. 1 Europe mozzarella Cheese • Technology driven business • Steady improvement in profits and margins • H2 outlook is satisfactory Page 8
Slide 9: International Joint Ventures: USA
2006 Interim Results, Wednesday September 6 International Joint Ventures: USA Name: Southwest Cheese Where: Clovis New Mexico Partner: Great South West Milk Agency • US$190 million investment • Cheese and whey facility • 1.1 billion litres of milk • Full production by mid-2007 delivering annualised
Slide 10: International Joint Ventures: Nigeria
2006 Interim Results, Wednesday September 6 International Joint Ventures: Nigeria Name: Nutricima Where: Lagos Partner: PZ Cussons plc • US$25 million investment • 50:50 Joint Venture • Powdered and evaporated milk • Population of 140 million • Strong sales growth • Annualised sales US$100 million •
Slide 11: Nutritionals Strategy
2006 Interim Results, Wednesday September 6 Nutritionals Strategy to be a key global provider of nutritional ingredients and nutritional solutions… …significant step change with Seltzer acquisition Page 11
Slide 12: Seltzer Companies, Inc.: The Deal
2006 Interim Results, Wednesday September 6 Seltzer Companies, Inc. The Deal • Identified by US business development team • Subject to HSR approval in the USA; completion expected October 2006 • US$105 million (€81.8 million) consideration – US$80 million (€62.3 million) cash on completion – US$25 m
Slide 13: Seltzer Companies, Inc.: The Business
2006 Interim Results, Wednesday September 6 Seltzer Companies, Inc. The Business • Long established, family run, owner entrepreneur business • Headquartered in San Diego County, California; excellent facilities • 94 employees • Leading nutritionals solutions company – Supplier of nutritional premixe
Slide 14: Seltzer Companies, Inc.: The Rationale
2006 Interim Results, Wednesday September 6 Seltzer Companies, Inc. The Rationale • Profitable, growing company with strong management, systems and processes • Expanded product range and process capability • Strong key account relationships and reputation • Strong and complementary R&D skill set • S
Slide 15: 2006 Outlook
2006 Interim Results, Wednesday September 6 2006 Outlook Ireland International USA • No material change in trading environment • Further volume growth • Strong capacity utilisation • Aspects are still challenging • Improving cheese markets • Positive H2 performance expected • Key focus is managing h
Slide 16: Thank you.
Thank you. A world of dairy foods and nutritional ingredients
Slide 17: About Us
2006 Interim Results, Wednesday September 6 About Us • International dairy based food and nutritional ingredients Group • Operations in Ireland, Europe, USA • International Joint Ventures UK, USA and Nigeria • Listed Irish and London Stock Exchanges (Symbol: GLB) • C. €700 million market capitalisat
Slide 18: Consolidated Income Statement
2006 Interim Results, Wednesday September 6 Consolidated Income Statement H1 2006 € million Pre H1 2005 exceptional Pre exceptional Revenue 922.8 926.1 Operating profit 36.4 38.3 Finance income and costs (6.5) (7.7) Share of results of associates and joint ventures 0.3 - Profit before tax 30.2 30.6
Slide 19: Group Balance Sheet
2006 Interim Results, Wednesday September 6 Group Balance Sheet H1 H1 € million Change 2006 2005 Property, plant and equipment 337.6 322.1 15.5 Investments 98.6 94.5 4.1 Intangible assets 58.3 44.8 13.5 Non-current receivables 58.2 55.9 2.3 Working capital 95.6 62.7 32.9 Non-current liabilities (55.
Slide 20: Group Cash Flow
2006 Interim Results, Wednesday September 6 Group Cash Flow € million H1 H1 2006 2005 Operating profit (post exceptional costs) 36.4 32.0 Depreciation and amortisation 14.4 13.7 Gain on disposal of assets (7.1) (0.9) Interest and taxation (8.1) (15.1) Other (1.4) (0.7) Cash from operations pre movem
Slide 21: Contact us
2006 Interim Results, Wednesday September 6 Contact us Geoff Meagher, Deputy Group Managing Director / Group Finance Director Siobhán Talbot, Deputy Group Finance Director Glanbia plc Glanbia House Kilkenny Ireland + 353 56 777 2200 + 353 56 777 2222 Website www.glanbia.com Page 21
Slide 22: 2006 Interim Results, Wednesday September 6 Page 22
2006 Interim Results, Wednesday September 6 Page 22