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TRANSCRIPT
MiFOOD2017Grand Rapids
April 18th 2017
Daragh MaccabeeSVP Procurement & Dairy Economics
Glanbia Nutritionals
DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
OUR BUSINESSES TODAY
2
PORTFOLIO OF PERFORMANCE
NUTRITION BRANDS
GLANBIAPERFORMANCE
NUTRITION
GLANBIANUTRITIONALS
DAIRY IRELAND
JOINT VENTURES
& ASSOCIATES
NUTRITIONAL& FUNCTIONAL INGREDIENTS SOLUTIONS
CONSUMERPRODUCTS &
AGRIBUSINESS
GII (Ireland), GLANBIA CHEESE
(UK), SOUTHWEST
CHEESE
MARKET CAP
€5BNEMPLOYEES
6,200COUNTRIES
32
DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
GLANBIA STRATEGY IN ACTION
5
International Focus
Two Global Growth Platforms (GPN & GN)
Organic growth supported by capex and acquisitions
€30m€29m
€62m
€43m
€162.6m
€111.8m
€44.7m€30.7m
2010 earnings:
€163m
2016 earnings:
€350m
Dairy Ireland
JV’s & Associates
Glanbia Nutritionals
Glanbia Performance Nutrition
DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
GLOBAL CONSUMER TRENDS
6
Global health and wellness sales to hit a record high of $1tn by 2017
$1tnof Americans snack at least once per day
94%of US consumers
select foods based on the ingredient
list and nutritional facts panel
50%More than
People are members of
fitness centers in the US
55M
GLANBIA SITS AT THE HEART OF POWERFUL CONSUMER MEGATRENDS IN THE FOOD INDUSTRY
Health and Wellbeing
Active Lifestyles
Easy Convenient and on-the-go
Clean Labelling
DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
GLOBAL GROWTH STRATEGY
7
Strong track record of identifying acquisitions, organic projects and strategic alliances to drive growth.
ASEPTIC SOLUTIONS USA
Q32008
Q12011
Q32012
Q42014
Q12014
Q42015
ACQUISITIONS
Q12017
Q12017
Q22006
Q32006
DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
GLOBAL GROWTH STRATEGY
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PHASE II GPN MANUFACTURING PLANT, ILLINOIS
HIGH END WHEY EXPANSION,
IDAHO
DAIRY INGREDIENTS
FACILITY, IRELAND
CHEESE & WHEY EXPANSION, NEW MEXICO
PHASE I GPN MANUFACTURING PLANT, ILLINOIS
SPECIALTY GRAIN INGREDIENTS,
SOUTH DAKOTA
GII STRATEGIC ALLIANCE,IRELAND
CHEESE INNOVATION
CENTER, IDAHO
ORGANIC GROWTH PROJECTS & STRATEGIC ALLIANCES
PREMIX FACILITY, SUZHOU
Q32011
Q22008
Q42012
Q22013
Q22014
Q42015
Q22013
Q22015
Q42015
Q12017
STRATEGIC JV MICHIGAN
Exciting Strategic Initiatives Announced
Proposed JV in Michigan
2016 Full Year Results | Slide 9
GPN acquisitions
Amazing Grass andBody & Fit
Glanbia Nutritionals
GLANBIAPERFORMANCENUTRITION
PORTFOLIO OF PERFORMANCE
NUTRITION BRANDS
#1
DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY 11
GLANBIA PERFORMANCE NUTRITION
11
Protein Pre-workout Muscle builders General health
Leading brands across a variety of formats & channels
€1BNGlobal business
State-of-the-art in-house production facilities setting industry standards for
#1 Global sportsnutrition brand family
24Countries
Consumption spanning performance athletes to on-the-golifestyleconsumersQUALITY
Healthy snacking
GLANBIANUTRITIONALSGlanbia Nutritionals has a portfolio focused on both dairy and non-dairy nutritional ingredients. We deliver nutritional and functional ingredient solutions, and precision premixes for use in the nutrition-enhanced mainstream food and beverage markets, infant and clinical nutrition and functional nutrition markets.
DAIRY & PLANT BASED PROTEINS
CHEESE MICRONUTRIENT PREMIXES & BIOACTIVES
GRAINS & SEEDS
FUNCTIONALBEVERAGES
NUTRITIONAL& FUNCTIONAL INGREDIENTS SOLUTIONS
DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY
GLANBIA NUTRITIONALS
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Cheese
B2B nutritional and functional ingredients
business in 21 countries
€1.2BN21
Countries
Dairy solutions Micronutrientpremixes & bioactives
Plant nutrition Functional beverages
#1 Global whey
protein nutritional solutions
#1 Producer of
American style cheddar cheese
Provider of Customized
Nutrient Premix Solutions Globally
#2
GLANBIA NUTRITIONALS GLOBAL SCALE
8.5
915 M LBS of cheese
#1GLOBAL PROVIDER
OF WHEY-BASED NUTRITIONAL
SOLUTIONS
BILLION LBS PROCESSED PER ANNUM
88 MLBS LACTOSE
50 MLBS HIGH END WHEY
2INNOVATION
CENTERS
11PRODUCTION
LOCATIONS
#1 PRODUCER AMERICAN
STYLE CHEDDAR CHEESE
2000PEOPLE
SOUTHWEST CHEESE
Slide 16
CASE STUDY: SOUTHWEST CHEESE
• $200 million plant in 2005/2006
• $90 million expansion in 2009/2010
• $150m expansion 2018 – 14m lbs per day processing facility in January 2018
• JV partner, Greater Southwest Agency, comprises a number of cooperatives including DFA and Select Milk
SWC TIMELINE
Plant at capacity 7m lbs/day
Expansion complete
10.5m lbs/day
Site Selection First milk processed
WPI expansion Expansion to 14m lbs/day
2003 2005 2008 2010 2011 2018
DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE’S JOURNEY 18
MICHIGAN PROJECT
A SCALE CHEESE AND WHEY JOINT VENTURE IN MICHIGAN
• Efficient local processing for growing milk supplies
• Opportunity to replicate the successful Southwest Cheese model
• Convert milk to categories which continue to grow–cheese and higher protein whey products
MICHIGAN PLANT BY THE NUMBERS
2.9
297 M LBS of cheese
20 MLBS
HIGH END WHEY
BILLION LBS PROCESSED PER ANNUM
150 MLBS PERMEATE SOLIDS
8MILLION LBS
OF MILK PER DAY245PEOPLE
NEXT STEPS
• Site selection
• Pre-engineering / Design
• Commercial discussions with customers
• Commissioning expected in late 2019
THANK YOU