011 Full Year Results
13 March 2013
2012 Full year results
Slide 22012 Full Year Results
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 business risk factors
underlying such forward-looking information, actual results may differ materially from those expressed or
implied by these forward-looking statements. The Directors undertake no obligation to update any
forward-looking statements contained in this presentation, whether as a result of new information, future
events, or otherwise.
011 Full Year Results
2012 results highlights
Leading global nutritionals solutions and cheese group
Slide 42012 Full Year Results
2012 adjusted earnings per share
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 growth
Reported currency
adjusted EPS
56.56c
+22.1%
Constant currency
adjusted EPS
52.90c
+14.2%
Slide 52012 Full Year Results
2012 performance summary
Pro forma Total
Group EBITA
margin*
€214m
+17.5%
Pro forma Total
Group EBITA
margin*
7.0%
+40bps
Strong growth in revenue, EBITA and margins
20% like for like revenue growth in Global Nutritionals and good operational performances across the business
Consistent macro health and wellness trends driving demand for protein, natural products and clean labelling; all key Glanbia strengths
Historic year for corporate development
10% dividend increase bringing total dividend for the year to 9.09 cents
Wholly owned
EBITA margin*
8.0%
+70bps
Pro forma JV &
Associates EBITA
margin*
4.6%
-30bps
Pro forma Total
Group revenue*
€3.0bn
+10.4%
* Metrics for the Total Group include both the wholly owned businesses and the Group’s share of joint venture’s and associates. To better reflect the structure of the Group going forward, a pro forma adjustment has been made to include GIIL as a 40% associate for each of 2012 and 2011.
All figures are in reported currency
Slide 62012 Full Year Results
Historic year for corporate development
• Disposal to Glanbia Co-operative Society (the “Society”) of 60% of our interest in Irish dairy processing business, Dairy Ingredients Ireland.
• Clarifies strategy with regard to expansion of Irish dairy processing capacity and capital allocation.
• Reduces the Group’s exposure to volatility in global dairy markets.
• New entity is called Glanbia Ingredients Ireland Limited (“GIIL”).
• GIIL is run by existing management, has a separate board and is financed on a standalone basis.
100% owned
subsidiary40% owned
associateGlanbia plc
US Cheese
& Global
NutritionalsDairy Ireland
Dairy
Ingredients
Ireland
Consumer
Products
Agribusiness
US Cheese
Ingredient
Technologies
Performance
Nutrition
Customised
Premix
Solutions
Joint Ventures
& Associates
Nutricima
Glanbia
Ingredients
Ireland
Southwest
Cheese
(USA)
Glanbia
Cheese
(UK)
Slide 72012 Full Year Results
Group profile going forward
• Transforms Group profile with US
Cheese and Global Nutritionals now
representing 73% of Total Group
EBITA.
• Total Group EBITA margin increases
60 basis points.
2011 Total Group2012 pro forma
Total Group
Revenue
EBITA
EBITA margin
6.4% 7.0%
60%
12%
28%
42%
17%
41%
73%
18%
9%
21%
27%
52%
US CHEESE AND GLOBAL NUTRITIONALS
DAIRY IRELAND
JOINT VENTURES AND ASSOCIATES
All figures are in reported currency. 2012 pro forma figures include GIIL as a 40% associate from January 1, 2012.
011 Full Year Results
2012 finance and operations review
Largest sports nutrition brand family globally
Slide 92012 Full Year Results
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 - 3.3% €826.3m + 0.8%
EBITA €36.2m - 10.6% €37.7m - 6.9%
EBITA margin 4.6% - 30bps 4.6% - 30bps
Pro forma Total Group
Revenue €2,884.9m +4.8% €3,038.1m + 10.4%
EBITA €198.8m + 9.4% €213.6m +17.5%
EBITA margin 6.9% +30bps 7.0% +40bps
1. Figures are pre exceptional items which in 2012 amounted to a charge of €4.7 million (2011: €7.6 million).
2. Includes pro forma adjustments reflecting GIIL as a 40% associate from January 2011.
Slide 102012 Full Year Results
2,752
59
7412
14 12 2,885
-30
2,600
2,650
2,700
2,750
2,800
2,850
2,900
2,950
2011 Price Volume Acquisitions Price Volume Price Volume 2012
Dairy Ireland JV&AUSCGN€m
2012 Total Group revenue and EBITA analysis
All figures shown are on a constant currency basis
US CHEESE AND GLOBAL NUTRITIONALS
DAIRY IRELAND
JOINT VENTURES AND ASSOCIATES
0
50
100
150
200
250
2011 US Cheese & Global Nutritionals Dairy Ireland Joint Ventures & Associates 2012
18225 199-4-4
€m
Total Group EBITA +9.4%
Total Group revenue +4.8%
Slide 112012 Full Year Results
• Strong performance overall and continued momentum across Global Nutritionals business units
• Aseptic Solutions, acquired July 2012, performed in line with expectations
• Largest segment of the Group:
• 52% pro forma Total Group revenue
• 73% pro forma Total Group EBITA
US Cheese & Global Nutritionals
Constant currency Reported
2012 2011 Change 2012 Change
Revenue €1,461.4m €1,316.9m + 11.0% €1,580.8m + 20.0%
EBITA €142.2m €117.5m + 21.0% €155.5m + 32.3%
EBITA margin 9.7% 8.9% + 80 bps 9.8% + 90bps
Revenue
EBITA
EBITA margin
Slide 122012 Full Year Results
US Cheese & Global Nutritionals (continued)
US Cheese Ingredient Technologies Performance Nutrition
2012 overview:
• Revenue decline price
related. Low single digit
volume growth.
• Average cheese prices
lower but business
increasingly insulated
from price movements.
• Modest decline in EBITA
and margins flat.
2013 outlook:
• Expected to be in line
with 2012.
• Renewed innovation
focus
2012 overview:
• Strong performance due
to significant whey price
increases and strong
demand for functional
and nutritional solutions.
• Revenue, EBITA and
margins all higher.
• Ongoing innovation and
award-winning NPD.
2013 outlook:
• Forecast lower whey
pricing is expected to
impact revenue and
margins.
• Continued development
of Functional &
Nutritional Solutions
Customised Premix
Solutions
2012 overview:
• Strong growth with
global branded revenue
up 20%. Positive EBITA
growth also.
• Higher whey input costs
and ongoing investment
in building the business
globally resulted in a
modest decline in
margins.
2013 outlook:
• Favourable outlook with
further volume growth
and market penetration.
• Input cost pressures
expected to moderate in
2013.
2012 overview:
• Strong volume growth,
increased revenue and
EBITA.
• Modest decline in
margins due to change
in business mix and
investment in the
business.
2013 outlook:
• Continued growth
forecast in key market
segments such as infant
formula, supplements
and nutritional bars.
• Positive outlook for the
full year performance.
Positive market trends Ongoing investment in businesses
Slide 132012 Full Year Results
Dairy Ireland
Continuing business 2012 2011 Change
Revenue €631.0m €616.0m 2.4%
EBITA €20.4m €23.8m - 14.3%
EBITA margin 3.2% 3.9% - 70bps
Consumer Products Agribusiness
• 2012: Satisfactory performance in
tough market conditions.
• 2013 outlook: Irish food retail market
expected to remain challenging.
• 2012: Revenue growth but lower
EBITA and margins.
• 2013 outlook: Expected to perform
broadly in line with 2012.
Revenue
EBITA
EBITA margin
Slide 142012 Full Year Results
Joint Ventures and Associates
Constant currency Reported
Pro forma 2012 2011 Change 2012 Change
Revenue €792.5m €819.5m - 3.3% €826.3m + 0.8%
EBITA €36.2m €40.5m - 10.6% €37.7m - 6.9%
EBITA margin 4.6% 4.9% - 30bps 4.6% - 30bps
Glanbia Ingredients
Ireland Limited
Southwest Cheese
(USA)
Glanbia Cheese
(UK)
• 2012: Somewhat lower
revenue and EBITA
reflecting global dairy
market conditions.
• 2013 outlook: Expected
to be in line with 2012.
• 2012: Revenue up
marginally and some
improvement in EBITA
and margins.
• 2013 outlook: Expected
to be in line with 2012.
• 2012: Decline in
performance relative to a
very strong prior year.
• 2013 outlook: Improved
performance expected.
Nutricima
(Nigeria)
• 2012: Social unrest
created a difficult market
environment. Revenue
was lower but EBITA
and margins stable.
• 2013 outlook: Expected
to remain challenging.
Revenue
EBITA
EBITA margin
Slide 152012 Full Year Results
Group financing
Preference shares
(€39.1m)
Bank facilities
(€467.9m)
Private debt placement
($325.0m)
• €60.4 million free cash flow from continuing operations
• €376.6 million net debt at the end of the year
• Current committed debt facilities of €753.5 million:
o €39.1 million of preference shares redemption due 2014
o €467.9 million facilities renewed in 2012 maturing in 2018
o €246.5 million ($325 million) private placement maturing 2021
1. Includes cumulative redeemable preference shares.
2. The definitions of adjusted EBITDA and adjusted EBIT are per our financing agreements and include dividends from Joint Ventures & Associates.
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%
Slide 162012 Full Year Results
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 continuing operations in 2012
• GIIL transaction has a short-term dilutive effect in earnings
• Adjusted earnings per share growth is expected to be 8% to 10% for 2013 from a base of 51.02
cents per share
011 Full Year Results
Strategy
Leading producer of American-style cheddar cheese
Slide 182012 Full Year Results
Vision and strategy
Align with
key growth
customers and
markets
To be the leading
global nutritional
solutions and
cheese group
Strategic priorities
Align with key growth
customers and markets
Develop customer-focused,
market-based and science-
backed innovation
Deliver organic and
acquisition investments that
maximise return on capital
Achieve operational
excellence and disciplined
cost management
Foster a strong
multi-disciplined team
focused on success
Business focus
areas
Long term3 years12 months
Derived from our
strategic priorities.
They help to ensure
our near term goals
are consistent with
our delivery of long
term performance
Our vision
Slide 192012 Full Year Results
Key corporate development projects
Irish dairy processing
• 40% : 60% partnership
• €21m value-added whey
processing expansion
Ingredient
Technologies:
• $60m nutritionals
acquisition of US
beverage
manufacturer and
co-packer
• $29m new value-
added cereal
ingredients plant,
completion H2 2013
US Cheese:
• $11m cheese
innovation centre,
completion H1
2013
Customised Premix
Solutions:
• €20m new state-of-the-
art plant in Germany to
serve Europe, Middle
East and North Africa
Performance Nutrition:
• Exciting new product launches
• SAP rollout 2013
• $45m capacity expansion,
completion 2014
2012
• €115m invested
• 14.1% ROCE
Slide 202012 Full Year Results
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 Solutions into international markets
Joint Ventures & Associates
• Manage the transition of GIIL from wholly owned to an associate in strategic partnership with the Society
• Reach final decision on the potential development of lactose capacity in Southwest Cheese
Group-level
• Develop and evaluate acquisition pipeline; capacity to spend c.€200 million
• Successfully execute all capital investment projects
• Continue to build organisational capability – people and infrastructure for next phase of growth
Slide 212012 Full Year Results
Unique business with clear competitive advantage
• World class, large scale
cheese and whey
manufacturing
• Value-added functional
ingredients and
solutions
• Largest sports nutrition
brand family globally
• Proven organic and
acquisition ability
Global Ingredients Performance Nutrition
Ongoing investment in organisational capability
Strong balance sheet and financial capacity
Sustainable demand growth and positive structural market trends
011 Full Year Results
Summary and outlook
Global provider of micro-nutrient premixes
Global marketer of whey and other proteins
Slide 232012 Full Year Results
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 innovation
• Overall outlook positive
2013 adjusted EPS growth of 8% to 10%,
on a constant currency basis from 51.02c
011 Full Year Results
Supplementary information
No.1 dairy processor in Ireland
No.1 mozzarella producer in Europe
No.3 consumer dairy products provider in Nigeria
Slide 252012 Full Year Results
2012 segmental overview – constant currency
1. Includes pro forma adjustments presenting GIIL as a 40% associate from January 2011.
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%
Pro forma Joint Ventures & Associates1 792.5 36.2 4.6% 819.5 40.5 4.9%
Pro forma Total Group 2,884.9 198.8 6.9% 2,752.4 181.8 6.6%
Slide 262012 Full Year Results
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%
Pro forma Joint Ventures & Associates1 826.3 37.7 4.6% 819.5 40.5 4.9%
Pro forma Total Group 3,038.1 213.6 7.0% 2,752.4 181.8 6.6%
1. Includes pro forma adjustments presenting GIIL as a 40% associate from January 2011.
Slide 272012 Full Year Results
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 operations 60.4 86.8
Loans advanced to Joint Ventures & Associates (3.3) -
Strategic acquisitions/capital expenditure (84.8) (128.1)
Disposals 27.1 2.7
Restructuring costs (6.5) (10.0)
Equity dividends (25.3) (22.9)
Net cash outflow from continuing operations (32.4) (71.5)
Cash flow re discontinued operations 122.3 6.1
Cash flow pre currency exchange/fair value adjustments 89.9 (65.4)
Currency exchange/fair value adjustments 13.8 (6.8)
Cash flow/(cash outflow) for the year 103.7 (72.2)
Slide 282012 Full Year Results
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) (40.0)
921.2 1,003.3
Net debt (376.6) (480.3)
Shareholders’ equity 544.6 523.0
Slide 292012 Full Year Results
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 of €18 million gave rise to a gain of €6.1 million.
2. Ongoing cost reduction programme in Dairy Ireland resulted in further rationalisation costs of €3.8 million.
3. March 2012, a fire destroyed Ingredient Technologies’ Canadian flax facility. Gain of €4.4 million represents minimum
insurance proceeds receivable less book value of assets written down.
4. Review of carrying value of Irish property portfolio resulted in a write down of €5.1 million.
5. Loss of €7.8 million incurred on disposal of 60% of Dairy Ingredients Ireland.
6. The tax credit applicable to the exceptional items (1 to 4 above) amounted to €1.5 million.
011 Full Year Results
Glanbia plc, Glanbia House, Kilkenny, Ireland
Tel: +353 56 7772244
2012 Full year results
www.glanbia.comd