MiFOOD2017 Grand Rapids April 18 th 2017 Daragh Maccabee SVP Procurement & Dairy Economics Glanbia Nutritionals
OUR BUSINESSES TODAY MARKET CAP 5BN EMPLOYEES 6,200 GLANBIA PERFORMANCE NUTRITION GLANBIA NUTRITIONALS DAIRY IRELAND JOINT VENTURES & ASSOCIATES COUNTRIES 32 PORTFOLIO OF PERFORMANCE NUTRITION BRANDS NUTRITIONAL & FUNCTIONAL INGREDIENTS SOLUTIONS CONSUMER PRODUCTS & AGRIBUSINESS GII (Ireland), GLANBIA CHEESE (UK), SOUTHWEST CHEESE DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE S JOURNEY 2
GLANBIA STRATEGY IN ACTION 2010 earnings: 163m 43m 62m 29m 30m 2016 earnings: 350m 162.6m 111.8m 44.7m 30.7m International Focus Two Global Growth Platforms (GPN & GN) Organic growth supported by capex and acquisitions Glanbia Performance Nutrition Glanbia Nutritionals JV s & Associates Dairy Ireland DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE S JOURNEY 5
GLOBAL CONSUMER TRENDS 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 $1tn Global health and wellness sales to hit a record high of $1tn by 2017 55M People are members of fitness centers in the US 94% of Americans of snack at least once per day More than 50% US consumers select foods based on the ingredient list and nutritional facts panel DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE S JOURNEY 6
GLOBAL GROWTH STRATEGY ACQUISITIONS Strong track record of identifying acquisitions, organic projects and strategic alliances to drive growth. Q3 2006 Q2 2006 Q3 2008 Q1 2011 Q3 2012 Q1 2014 Q4 2014 Q4 2015 Q1 2017 Q1 2017 ASEPTIC SOLUTIONS USA DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE S JOURNEY 7
GLOBAL GROWTH STRATEGY ORGANIC GROWTH PROJECTS & STRATEGIC ALLIANCES CHEESE & WHEY EXPANSION, NEW MEXICO GII STRATEGIC ALLIANCE, IRELAND SPECIALTY GRAIN INGREDIENTS, SOUTH DAKOTA DAIRY INGREDIENTS FACILITY, IRELAND PHASE II GPN MANUFACTURING PLANT, ILLINOIS Q2 2008 Q3 2011 Q4 2012 Q2 2013 Q2 2013 Q2 2014 Q2 2015 Q4 2015 Q4 2015 Q1 2017 PREMIX FACILITY, SUZHOU CHEESE INNOVATION CENTER, IDAHO PHASE I GPN MANUFACTURING PLANT, ILLINOIS HIGH END WHEY EXPANSION, IDAHO STRATEGIC JV MICHIGAN DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE S JOURNEY 8
Exciting Strategic Initiatives Announced Glanbia Nutritionals Proposed JV in Michigan GPN acquisitions Amazing Grass and Body & Fit 2016 Full Year Results Slide 9
#1 PORTFOLIO OF PERFORMANCE NUTRITION BRANDS GLANBIA PERFORMANCE NUTRITION
GLANBIA PERFORMANCE NUTRITION #1 Global sports nutrition brand family 1BN Global business 24 Countries State-of-the-art in-house production facilities setting industry standards for QUALITY Consumption spanning performance athletes to on-the-go lifestyle consumers Leading brands across a variety of formats & channels Protein Pre-workout Muscle builders General health Healthy snacking DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE S JOURNEY 11
GLANBIA NUTRITIONALS Glanbia 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. NUTRITIONAL & FUNCTIONAL INGREDIENTS SOLUTIONS CHEESE DAIRY & PLANT BASED PROTEINS MICRONUTRIENT PREMIXES & BIOACTIVES GRAINS & SEEDS FUNCTIONAL BEVERAGES
GLANBIA NUTRITIONALS #1 Producer of American style cheddar cheese #1 Global whey protein nutritional solutions #2 Provider of Customized Nutrient Premix Solutions Globally 1.2BN B2B nutritional and functional ingredients business in 21 countries 21 Countries Cheese Dairy solutions Micronutrient premixes & bioactives Plant nutrition Functional beverages DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE S JOURNEY 13
GLANBIA NUTRITIONALS GLOBAL SCALE 2000 PEOPLE #1 PRODUCER AMERICAN STYLE CHEDDAR CHEESE 915 M LBS of cheese #1 GLOBAL PROVIDER OF WHEY-BASED NUTRITIONAL SOLUTIONS 88 M LBS LACTOSE 50 M LBS HIGH END WHEY 8.5 2 INNOVATION CENTERS 11 PRODUCTION LOCATIONS BILLION LBS PROCESSED PER ANNUM
SOUTHWEST CHEESE
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 Slide 16
SWC TIMELINE Site Selection First milk processed WPI expansion Expansion to 14m lbs/day 2003 2005 2008 2010 2011 2018 Plant at capacity 7m lbs/day Expansion complete 10.5m lbs/day
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 DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE S JOURNEY 18
MICHIGAN PLANT BY THE NUMBERS 245 PEOPLE 297 M LBS of cheese 150 M LBS PERMEATE SOLIDS 8 MILLION LBS OF MILK PER DAY 20 M LBS 2.9 BILLION LBS PROCESSED PER ANNUM HIGH END WHEY
NEXT STEPS Site selection Pre-engineering / Design Commercial discussions with customers Commissioning expected in late 2019
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