glanbia plc barclays consumer staples conference/media/files/g/glanbia...barclays consumer staples...
TRANSCRIPT
Siobhan Talbot
Group Managing Director
Boston
05 September 2017
Glanbia plc
Barclays Consumer
Staples Conference
Cautionary Statement
Barclays Consumer Staples
Conference 2017
Glanbia
Overview
Barclays Consumer Staples Conference 2017 | Slide 4
Glanbia Group Overview – Global Business
MARKET CAP*
€5BN
EMPLOYEES
6,200 COUNTRIES
32
20
16
To
tal
Gro
up
Reve
nu
e
20
16
To
tal
Gro
up
EB
ITA
*Contribution of Glanbia Performance Nutrition and Glanbia Nutritionals
GLANBIA
PERFORMANCE
NUTRITION
GLANBIA
NUTRITIONALS
JOINT
VENTURES &
ASSOCIATES
*at close 14 August 2017
€162m
€111m
€57m
83%*
€1,007m
€1,224m
€1,079m
67%*
Note: Numbers above are Pro-Forma and assume that the
Dairy Ireland divestment occurred at the beginning of FY 2016
Glanbia growth model – Consistent
returns
Barclays Consumer Staples Conference 2017 | Slide 5
Growth underpinned by
GPN & GN
Disciplined investment in
growth capex and
acquisitions
JVs: efficient use of capital
EBITA is shown at the Total Group level which includes Glanbia’s share of Joint Ventures & Associates 2016 segmental EBITA figures are pro-forma and assume that the Dairy Ireland divestment occurred at the beginning of FY 2016 The divestment of Dairy Ireland completed on 02 July 2017
+12.5% CAGR
€162m
€111m
€57m
2016 EBITA:
€331m €43m
€62m
€30m
€29m
Glanbia Performance Nutrtition Glanbia Nutritionals
Dairy Ireland Joint Ventures & Associates
2010 EBITA:
€163m
Barclays Consumer Staples Conference 2017 | Slide 6
Track Record of earnings & margin growth
Adjusted earnings per share*
11.4% CAGR from 2001 to 2016
EBITA margin*
+870bps from 2001 to 2016
*2016 adjusted earnings per share and EBITA margin calculations are pro-forma numbers which reflect the impact of the exclusion of amortisation and the divestment of the Dairy
Ireland segment on the performance
The divestment of Dairy Ireland completed on 02 July 2017
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
0c
10c
20c
30c
40c
50c
60c
70c
80c
90c
Barclays Consumer Staples Conference 2017 | Slide 7
Track record of strong strategic execution
2014
2017
2013
2012 2015 2011 2013
2012 2015
Capacity
expansion
HIGH END WHEY
EXPANSION,
IDAHO
NEW GPN
PRODUCTION
PLANT, ILLINOIS
CHEESE
INNOVATION
CENTER, IDAHO
PREMIX
FACILITY,
GERMANY
CHEESE &
WHEY
EXPANSION,
NEW MEXICO
SPIN OUT OF
DAIRY IRELAND
DAIRY
INGREDIENTS
FACILITY,
IRELAND
CHEESE &
WHEY
EXPANSION,
NEW MEXICO
SPECIALTY
GRAIN
INGREDIENTS,
SOUTH DAKOTA
SPIN OUT OF
IRISH DAIRY
PROCESSING
ASSETS
NEW CHEESE
JV, MICHIGAN
1 Organic growth projects & strategic alliances
2020
2018
Barclays Consumer Staples Conference 2017 | Slide 8
Track record of strong strategic execution
2016 2014 2011 2008 2012 2017
2 Disciplined M&A
ASEPTIC
SOLUTIONS
USA
Barclays Consumer Staples Conference 2017 | Slide 9
Strong Financial Metrics
1.2x Net debt : Adj. EBITDA1
FY 2016
87.6% Conversion of EBITDA to FCF in
FY 2016
11.2% Growth in Adj. EPS in FY 2016 (constant
currency), the 7th year of double digit growth
12.9% FY 2016 Return on Capital Employed
1. Definition of net debt, adjusted EBITDA and adjusted EBIT are as per financing agreements which include dividends from Joint Ventures & Associates and the pro-forma effect of acquisitions
Consumer branded products
Glanbia Performance
Nutrition
Glanbia Performance Nutrition
Barclays Consumer Staples Conference 2017 | Slide 11
2014 2015 2016
EBITA Margin
€50
€100
€150
€200
€500
€700
€900
€1,100
2014 2015 2016
EB
ITA
Reve
nu
e
Revenue & EBITA
Revenue EBITA
Millions Millions
12.0%
14.7% 16.1%
Performance nutrition $12bn category*
Glanbia - market leader
Growth driven by brand development
and strategic acquisitions
*Source: Glanbia estimates and Euromonitor data
GPN Brand portfolio
Barclays Consumer Staples Conference 2017 | Slide 12
PERFORMANCE LIFESTYLE
Consumer
Barclays Consumer Staples Conference 2017 | Slide 13
DTC strong trend in category
Acquisition of Body & Fit
provides a platform in Europe
*DTC refers to direct-to-consumer
Consumer shift towards
snacking
Innovative brand extensions
such as ON Cake Bites and
thinkThin Super Fruit bars
Plant-based nutrition
experiencing strong growth
Amazing Grass well
positioned in this category
Plant Nutrition Direct-to-consumer Convenience
Trends driving growth
Business-to-business food
ingredients
Glanbia
Nutritionals
Glanbia Nutritionals
Barclays Consumer Staples Conference 2017 | Slide 15
€90
€100
€110
€120
€130
€1,100
€1,150
€1,200
€1,250
2014 2015 2016
EB
ITA
Reve
nu
e
Revenue & EBITA
Revenue EBITA
Millions Millions
2014 2015 2016
EBITA Margin
8.5% 8.8%
9.1%
Margin expansion mainly driven by value-
added Nutritional Solutions
US Cheese is a leading producer of American-
style cheddar cheese
Nutritional Solutions is a leading provider of
dairy & non-dairy proteins, ingredient
solutions, and vitamin & minerals pre-mix
Nutritional Solutions €488m
US Cheese €736m
2016 Revenues
Barclays Consumer Staples Conference 2017 | Slide 16
GN Plays into Growing End Markets
GN End Markets Nutritional Solutions serves customers
in a variety of growing end markets aligned to consumer trends
Protein
Enrichment
Convenience Nutritional
Functionality
Functional nutrition
Nutrition enhanced
mainstream food &
beverage
Life stage nutrition
Cheese
Business-to-business dairy
food ingredients
Joint Ventures
& Associates
Barclays Consumer Staples Conference 2017 | Slide 18
Joint Ventures & Associates
Glanbia total Group processed over 6 billion litres of milk in 2016 *Glanbia Ireland encompasses Glanbia Ingredients Ireland and the former wholly-owned division Dairy Ireland
3 scale dairy processing
businesses (% ownership)
Southwest Cheese (50%) Large-scale US cheese & whey producer
Glanbia Cheese (51%) Leader in mozzarella cheese in the EU
Glanbia Ireland* (40%) Largest dairy processor in Ireland
2016 Pro-forma Revenue from
the JVA’s (Glanbia share)
€370m
€118m
€591m
Southwest Cheese
Glanbia Cheese
Glanbia Ireland
Total €1,079m
Barclays Consumer Staples
Conference 2017
Summary
& Outlook
Summary & Outlook
Barclays Consumer Staples Conference 2017 | Slide 20
CC denotes constant currency
*Pro-forma adjusted EPS for continuing operations assumes that the Dairy Ireland
divestment occurred at the beginning of FY 2016
+7-10%(cc)
Half Year 2017 Results
Full Year 2017 Outlook
Pro-forma adjusted EPS
Barclays Consumer Staples
Conference 2017
Questions
& Answers
+
Delivering better
nutrition for every
step of life’s
journey
Glanbia plc
Glanbia House
Kilkenny, Ireland