Glanbia acquisition
1
Analyst call 11 October 2018
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Cautionary Statement
Acquisition Highlights
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Enterprise value $350 million
Well-established brand in a strategic
adjacency to the GPN portfolio
Strong brand position in an attractive
& growing global category
Earnings accretive from 2019
Acquisition of SlimFast
Attractive portfolio
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Lifestyle consumers
98% brand awareness
North America and UK
Primary channel FDMC
Strategic rationale
Meets the #1 motivation for our lifestyle consumers
Incremental growth category to performance nutrition
Provides scale in RTD and FDMC channel
Further opportunities for growth via innovation and distribution expansion
Acquisition of SlimFast
Nutritional
Supplements
Ready-to-drink
(“RTD”)
Ready-to-mix
(“RTM”)
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Core need of lifestyle consumers
Managing weight is #1 motivation
Nutrition with regular exercise
aligns with GPN lifestyle consumer
RTD and snacks most popular
formats to achieve this
Favoured channel FDMC
SlimFast has one of the highest
levels of brand awareness in the
category Source: Glanbia Capital markets day 23 May 2018
Acquisition of SlimFast
$8bn in value
(RSV) 2018
US 33%
RoW 67%
Weight management nutrition products
Large and growing Category
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Constant Currency
Global market growth rate
MSD%
Source: Euromonitor and Glanbia estimates
Acquisition of SlimFast
Financials
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Purchase consideration $350m
Closing before the end of 2018
Transaction will be financed by
available banking facilities
A growing business at c.11%
EBITA margin
Earnings accretive from 2019
Acquisition of SlimFast
Adjusted EBITDA is before non recurring costs
SlimFast Financials
2017 $’m
Net Sales 212
Adj. EBITDA 24
Adj. EBITA 23
Conclusion
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Strategic adjacency addressing a core consumer need
Attractive growing market incremental to Performance Nutrition
Great capability and scale in FDMC
Earnings accretive from 2019
Acquisition of SlimFast