presentation to the: 2014 ucd ega autumn panel discussion · presentation to ucd autumn panel...

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

4,550

Litres of milk

processed 1.6 bn

Tonnes of ingredients

245,000

Ireland’s milk pool

30%

Ireland’s whey pool

35% Employees

500+


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


Dynamic at Farm Level


4

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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