Glanbia PLC · EURONEXT:GL9
Glanbia — Investor Day (November 2022)
22 slides from Glanbia's investor day presentation, Nov 9, 2022
Slide 1: Financial Overview
Financial Overview Mark Garvey Group Finance Director 9 November 2022
Slide 2: Important notice
Important notice 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 busi
Slide 3: An evolved and simplified strategy
An evolved and simplified strategy Lead & grow Optimise our Disciplined our core Business financial management Enablers Growing end markets Culture and talent Sustainable operations
Slide 4: An evolved and simplified strategy
An evolved and simplified strategy Lead & grow our core Optimise our Disciplined Capture full Global potential Business financial of $1bn Optimum Nutrition Brand management Build NA lifestyle nutrition platform Build on core strength in GN NS custom premix solutions Scale NS extensive capability in
Slide 5: An evolved and simplified strategy
An evolved and simplified strategy Lead & grow Optimise our our core Business Disciplined Capture full Global potential Science-led innovation financial of $1bn Optimum Nutrition Brand management Refine business Build GPN lifestyle nutrition platform and operating model Build on core strength in GN
Slide 6: An evolved and simplified strategy
An evolved and simplified strategy Lead & grow Optimise our Disciplined our core Business financial management Capture full Global potential Science-led innovation Focus on cash generation of $1bn Optimum Nutrition Brand Refine business Disciplined cash management Build GPN lifestyle nutrition platf
Slide 7: Earnings and dividends
Earnings and dividends Track record Adjusted earnings per share (“EPS”) Dividend per share (reported currency) (€ cent) 10 year CAGR +6.5% 10 year CAGR +13.5% 98-100c 40.00c 40.0% 36.1% 33.6% 35.00c 35.0% 30.2% 29.28c 30.00c 26.6% 30.0% 25.3% 25.00c 25.0% 46.32c 18.0% 20.00c 17.9% 17.2% 18.0% 20.0%
Slide 8: Operating cash flow ("OCF")
Operating cash flow (“OCF”) Cash conversion is a measure of the Group’s ability to convert EBITDA into cash and is an important metric in the Group’s working capital management programme 5 year avg: 91.4% 122% 100% 92% 86% 56% 2017 2018 2019 2020 2021 2022* OCF % conversion Target OCF % conversion W
Slide 9: Return on capital employed ("ROCE")
Return on capital employed (“ROCE”) ROCE measures the efficiency of the Group’s organic and acquisition investment programme as well as the utilisation of its assets. 5 year avg: 11.3% 13.4% 13.2% 10.9% 10.0% 10.5%+ 9.0% 2017 2018 2019 2020 2021 2022* Significant impact of the COVID pandemic on oper
Slide 10: Balance sheet strength
Balance sheet strength Our ability to generate cash and available facilities ensures the Group has considerable capacity to finance future investments Net Debt (€’m) Net debt: adjusted EBITDA 6.00 5.00 (€614m) (€603m) (€577m) 4.00 Bank (€494m) covenants 3.00 <3.5 times (€368m) 2.00 1.55 1.71 1.70 1.
Slide 11: Review of group metrics outlined for 2018-2022 at 2018 CMD
Review of group metrics outlined for 2018-2022* at 2018 CMD Avg. OCF OCF generation Avg. ROCE Avg. Adj EPS Dividend Payout Conversion % +€1.5bn 80%+ 10%-13% 5%-10% 25%-35% On Track On Track On Track Expected range On Track Expected to be Average expected to be Expected to be 4% - 5%** Expected to av
Slide 12: An evolved and simplified strategy
An evolved and simplified strategy Lead & grow Optimise our Disciplined our core Business financial management Enablers Growing end markets Culture and talent Sustainable operations
Slide 13: Joint venture model
Joint venture model Strong cash returns… …with a beneficial operating model Joint ventures US JV operating model Southwest Cheese (New Mexico, US) MWC (Michigan, US) 2021 JV Investment Avg. JV* ROCE & Loans* 2018 – 2022** Operational and commercial Glanbia Cheese UK (United Kingdom) €200m 15.0% part
Slide 14: Optimise our business
Optimise our business Fuel growth by continuing to optimise and invest in organisational enablers Optimise Refine business and Digitise our opportunities for operating model ecosystem margin expansion Simplified group structure Disciplined cost management and Single global instance of SAP and portfo
Slide 15: Capital allocation framework
Capital allocation framework Focused on Free Cash Flow (“FCF”) generation. Disciplined approach to capital allocation, with prudent financial policies designed to strike the right balance between growth and returns Strategic capex Dividends Investment in Progressive dividend strategic projects €0.3b
Slide 16: Investing for growth and returns
Investing for growth and returns Strategic capex Focus on ̶ Manufacturing capabilities ̶ New and complementary and footprint capabilities and markets ̶ Digitisation ̶ Valuation multiples ̶ R&D and innovation ̶ Returns on investment ̶ Opportunity to unlock synergies via current scalable operating mod
Slide 17: Macro-environment
Macro-environment Economy Interest & Currency Taxation & Inflation Financing GLANBIA CAPITAL MARKETS DAY 2022 17
Slide 18: Management remuneration and KPIs
Management remuneration and KPIs Short-term Group Adjusted Operating Business Earnings Per Share* ESG Cash Flow Unit specific Long-term Group Adjusted Group ROCE ESG Earnings Per Share* Focused on sustainable value creation GLANBIA CAPITAL MARKETS DAY 2022 * Growth calculated on a constant currency
Slide 19: Adjusted EPS growth drivers
Adjusted EPS growth drivers Lead & grow Optimise our Disciplined our core Business financial management Organic revenue growth Earnings growth Capital Allocation GPN avg. annual revenue growth** GPN EBITA margins 12%+ Refine business +5-7% and operating model NS EBITA margins 12%+ Digitise our ecosy
Slide 20: Mid term ambition: drive sustainable value creation
Mid term ambition: drive sustainable value creation Adj. EPS OCF ROCE growth* conversion % 5-10% +80% 10-13% Sustainable value creation All metrics above are average annual metrics and include M&A GLANBIA CAPITAL MARKETS DAY 2022 20 * Average annual adjusted EPS on a constant currency basis
Slide 21: A Better Nutrition portfolio driving growth
A Better Nutrition portfolio driving growth We have a highly attractive portfolio in growing nutrition categories We have simplified and continue to evolve our strategy We have invested in key capabilities across talent, digitalisation, innovation and supply chain We have reshaped our operating mode
Slide 22: Questions?
A Questions? Me we (@ Glanbia Ber x.