Presentation to the: 2014 UCD EGA Autumn Panel Discussion · Presentation to UCD Autumn Panel...

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Presentation to the: 2014 UCD EGA Autumn Panel Discussion

November 2014

Glanbia overview

Glanbia Ingredients

Ireland GII’s

operating environment

Dynamic at Farm Level GII’s

Investment Response

Policy Response

Presentation to UCD Autumn Panel – November 2014

Presentation to IFA Dairy Conference – October 2014

Presentation to UCD Autumn Panel Discussion– November 2014

Glanbia Group

29 COUNTRIESof operation

130+ EXPORT markets

Leading global performance nutrition and ingredients group

€3.3 BILLION 2013 revenue

€3.3 BILLION+ Market capitalisation

5,200 Employees

6 BILLION Litres of milk

Which is of significant scale…

Glanbia Ingredients

Ireland

GII is a private company run on co-op principles

GII’s vision and mission

To be the dairy based solutions partner-of-choice for leading organisations globally.

To process our suppliers’ growing milk volumes and maximise sustainable value in global markets for all our stakeholders.

GII overview

An International Dairy Ingredient Solutions Company

€883 MILLION 2013 sales revenue

€33.3 MILLION 2013 profit after tax

€40 MILLION EBIT

•  No.1 Irish dairy processor

•  No.1 European producer of enriched milk powders

•  No.3 Indigenous Irish exporter

•  23% Shareholder in Irish Dairy Board

c.€300m gross investment since 2007 In projects that target high value markets, increase capacity, enhance efficiency and diversify our product and geographic base

Farm Suppliers

Litres of milk

processed 1.6 bn

Tonnes of ingredients

245,000

Ireland’s milk pool

Ireland’s whey pool

35% Employees

GII collects milk across 16 counties

•  4,550 farmer supplies across 16 counties.

GII’s milk processing infrastructure

•  Supplying 5 processing sites

GII produces and sells 245,000 tonnes of dairy products

GII – our global reach

GII market focus

Sports Nutrition Clinical Nutrition Infant Nutrition

Affordable Nutrition Retail Ingredient Cheese

GII – producing for some of the world’s favourite food brands

GII’s operating

environment

Dynamic within the marketplace for GII

Short term: Challenging

Medium/ long term:

Opportunities

Long-term growth in demand for dairy product continues

•  Urbanisation •  Growing population •  Westernisation of diet •  Growing middle class

Dairy consumption

growth 2.3% / year

Demand growth dominated by the emerging markets

Source (1) IMF World Economic Outlook Database, October 2013

Emergence of new market trends, re-establishment of some old ones

Forensic attention to quality and supply chain integrity

Advancements in low-cost analytical technology… …& prevalence of social media

Brand owners are focused on supply chain visibility

But volatility remains a feature of the market

Key dynamics driving the global dairy markets

Integration without

ownership

‘Emerged’ economies dominate

Volatility Global pricing

Partnerships ‘Hardcore’ sustainability

Regulation Supply security

Pursuit of efficiency

Key dynamics driving the global dairy markets

Integration without

ownership

‘Emerged’ economies dominate

Volatility Global pricing

Partnerships ‘Hardcore’ sustainability

Regulation Supply security

Pursuit of efficiency

Dynamic at Farm Level

Dairy Industry 2025 – A presentation to Dairy Ireland Conference

What is happening today at farm level?

Age 51

Successor identified 75%

No. of cows 71

Milk production (litres) 355,000

Land farmed 183 acres

Land owned 150 acres

Stocking rate low

Expansion plans +53% by 2020

Balance sheet strong

Farm Structure Family farm

The typical Glanbia farmer today…

5 GII’s

Investment Response

GII is focussed on tackling critical global issues for customers

Major investment programme… World class facilities

Partnering with the best…

Focus on innovation…

For GII, innovation runs from pre-cow to post-customer

Focus on facilitating expansion… removing obstacles

•  No capital contribution required

•  No Share up required •  Open to new entrants

Internationally leading programmes…

GII Open Source Sustainability Programme GII Fixed Milk Price Scheme

Policy Response

Presentation to UCD Autumn Discussion Panel – November 2014

What should be the focus of Policy Makers

Thank you

Presentation to UCD Autumn Panel Discussion – November 2014

Presentation to the: 2014 UCD EGA Autumn Panel Discussion · Presentation to UCD Autumn Panel...

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