global performance nutrition/media/files/g/glanbia...focus and stamina. 6 protein pre-work muscle...

Global Performance NutritionHugh McGuire CEO

Largest global sports

nutrition brand portfolio

3

WELCOME TO GLOBAL PERFORMANCE NUTRITION

GLOBAL PERFORMANCE NUTRITION

Revenue

Annual revenue growth

4

BRAND ESSENCE TRUE STRENGTH FINISH FIRST THE ESSENTIAL EDGE

BRAND PROMISE Trusted partner in

goal achievement

Innovation

never duplication

Superior formulas with

performance edge

KEY STRENGTHS • Trust

• Innovation

• Taste

• Quality

• Industry leader

• Assertive

• Innovation

• Education

• Quality

• Sector leader

• Innovation

• Convenience

• Longevity

• Value

• Gym heritage

REASONS TO BELIEVE • Brand heritage

• Superior nutritional

science

• Industry leading

quality

• Cutting edge

innovation

• Leaders in education

• Elite athlete usage

• RTD expertise

• RTDs for every usage

occasion

• Strong in-gym

presence

THREE BRAND FAMILIES


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THREE OF THE MOST RECOGNIZED PRODUCTS IN THE MARKET


WHAT IT IS World‟s #1 Whey

protein supplement

Great tasting blended

protein supplement

The original workout

booster

WHY TAKE IT? Provides vital

amino acids to help

repair and rebuild

muscle tissue

Delicious multifunctional

protein shake for use in

muscle recovery and as

a healthy meal

replacement

Maximizes benefits of

each training session by

increasing energy levels,

focus and stamina

6

PROTEIN

PRE-WORK

MUSCLE

GAINERS &

BUILDERS

GENERAL

HEALTH

PORTFOLIO COVERING ALL KEY SPORTS CATEGORIES


IGNITER SHOTN.O.-XPLODE PLATINUM PRE- AMIN.O. ENERGY SPEED STACK PUMPED N.O.

SERIOUS MASS TRUE-MASS CELLMASS PRO COMPLEX GAINER HYDRO BUILDER

OPTI-MEN OPTI-WOMEN MULTIS FISH OIL GLUCOSAMINE

GS 100% WHEY SYNTHA-6 POWDER GS 100% CASEIN PLATINUM

HYDROWHEY

PURE PRO RTD WHEY CRISP BAR

Top 3 brand in 20

countries in a large and

growing global market

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2012 SPORT NUTRITION MARKET


US market

In 2012

Global market In 2012 in

Performance

Nutrition global

branded revenue

Source: NBJ March 2013 (detailed chart in supplementary information); internal data

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ESTABLISHING A GLOBAL FOOTPRINT


NORTH AMERICA

EMEA

LAPAC

LAPAC

Employees

Manufacturing facilities

70%

c. sales

20%

c. sales

10%

c. sales

10

Critical beach-heads established

17 country managers (2013)

Customised and compliant portfolio

Repeatable business model

INTERNATIONAL GROWTH A KEY COMPONENT


Mark Visser – Australian big wave

surfer and adventure athlete

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CASE STUDY: GROWING IN THE UK


2008

ON acquisition

Small UK sales out of USA Locally based distributor

2008

Commenced 18 month project

to reformulate products to

comply with local regulations

2009

Transferred

manufacturing to UK

facility

2010

Launched

localised website/

ecommerce

2011

Established

commercial

team

2013 (Sept)

BSN

manufacturing

transfer to UK

2013 (Jan)

BSN portfolio

integrated

12

CASE STUDY: GROWING IN AUSTRALIA


2012

Began reformulation of key

products to ensure full local

compliance

2011

Appointed a country

managers

2013

BSN portfolio

integrated

2012

Increased our

commercial presence

on the ground

2008

ON acquisition

Sales driven out of USAAustralian distributor

Deeply connected to

our customers

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TAILOR MADE MARKETING MODEL


• Lead through engagement

• Enable consumers to achieve

• Ladder up the emotion, not just functional benefit

• Connect on consumer‟s terms and their turf

Trade shows - Influencer programmes - Athlete demos - Sampling - Advertising - Brand advocacy - Transformation challenges

Authentic

Competitive

Confident

Dedicated

No compromise

Uncompromising

Bold & intense

Powerful

Assertive

Flashy

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NET PROMOTER SCORE


How likely is it that you would recommend [your company] to family, friend or colleague?

16

MAJOR ONLINE AND SOCIAL MEDIA PRESENCE


Unique visitors per month

Y-on-Y

Unique visitors per month

Y-on-Y

Mobile traffic

FollowersFans

Views

international

websites

17

DRIVING EMOTIONAL CONNECTIVITY TO THE BRAND


http://www.youtube.com/watch?v=cnk_YX5dpMg

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KEY ROUTE-TO-MARKET IN US IS DIRECT SALES


NATIONAL SPECIALTY HEALTH CHAINS

GYMS/SMALL RETAILERS/DISTRIBUTORS

7,800 Global

6,000 USAOutlets 545 North America

Outlets

OTHER GYMS CHAINS

AND SINGLE GYMS

MOM AND POP

HEALTH STORES

400+ 10k+ 15k Largest distributor

of sports nutrition

products in the US

INTERNET

25m unique/month300k orders/month

122m unique/month 250k orders/monthUnique visitors/ orders

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TOP SELLER ON BODYBUILDING.COM


1 Top sellers www.bodybuilding.com as at May 2013

Top selling

product

of top 10

sellers

of top 20

sellers

Unique visitors

per month

„Body Space‟

members

Consumer

influencer

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INNOVATION A KEY DRIVER OF GROWTH


Next generation

of consumers

22GLOBAL PERFORMANCE NUTRITION

“I should be

healthy

and fit”

They seek simple

ways to improve

their lives without a

major effort

They workout when they

can find the time (1-3

times/week) to keep looking

fit and feeling healthy

“I need to be

healthy and

look fit”

“I must

have my

ideal

physique”

With each goal

achieved, they set

higher expectations

for themselves

“I train for

best

performance”

END-USER BASE EXPANDING BEYOND HARDCORE

VANITY / BEACH BODIESBODYBUILDING POWER AND ENDURANCE WEEKEND WARRIORS

PERFORMANCE OVERACHIEVER

HARDCORE

EXERCISE ENTHUSIAST

LIFESTYLE

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Frequency

Usage

Reason

Channel

CONSUMER NEEDS ARE EVOLVING


Source: Bain Consumer Research based on survey of the general population (N = 1,902)

OtherLifestyle Strength

Speciality Club Mass Outlet Other

Free Weights

Multiple per day

Aerobics Non

Sport Other

Oth

er

A few times

a week Once a day

InternetSpeciality largest but

internet highest growth

Lifestyle represents the

key growth area

Significant opportunity

outside core strength/

weights usage

Opportunity to

increase frequency

amongst lifestyle

Ongoing investment in

building Global

Performance Nutrition

25

Manufacturing

• Addition of 250,000 sq ft warehouse in Aurora

• $45 million / 600,000 sq ft state-of-the-art

manufacturing/warehouse facility in Aurora

• Triple capacity in the UK from July 2013

Quality and systems

• Big investment in quality resources adding

talent and bringing analytical testing in-house

Quality headcount up 4x from 2008 levels

Annual quality of €10 million

• Introduction of SAP in 2013 at a cost

of $12 million

MAJOR INVESTMENTS IN OPERATIONAL CAPABILITIES


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MANAGING RAW MATERIAL SUPPLY AND PRICE


Indexed

cost per lb

• Significant volatility in whey prices

• 3 prices increases, c. 30%, effected in response

• Strength of brands demonstrated with continued strong

growth momentum

0

50

100

150

200

250

300

350

WPC 80 WPI

Building a billion dollar

brand portfolio

28

CLEAR GROWTH STRATEGY


LEVERAGE BRAND & PORTFOLIO

Outpace market growth opportunities

NEW MARKETS & CHANNELS

New segments & acquisitions

INTERNATIONAL EXPANSION

High growth, emerging markets

INVESTMENT IN CAPABILITY

Own commercial structures

TALENT MANAGEMENT

Fast paced, exciting environment

INNOVATION

Supported by science

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UNIQUE COMPETITIVE ADVANTAGE


AS A BUSINESS AS A BRAND PORTFOLIO

First and fast mover

Entrepreneurial culture

Vertically integrated scale

Market leading partnerships

Repeatable business model

Corporate parent

Wide-user base

Key categories

Quality and compliance

Innovative

Trusted, high NPS score

Strong emotional connection

global performance nutrition/media/files/g/glanbia...focus and stamina. 6 protein pre-work muscle...

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