Brexit & Trade. John Dardis Ph.D. Senior Vice President US Corporate Affairs

Transcription

1 Brexit & Trade John Dardis Ph.D. Senior Vice President US Corporate Affairs Apple Assocn 08/25/2016

2 Overview Glanbia at a glance Choppy Waters -Tremor 1 -Tremor 2 -Tremor 3 Trade

3 TOTAL GROUP EBITA TOTAL GROUP REVENUE GLANBIA AT A GLANCE Delivering better nutrition for every step of life s journey Market Capitalisation 5bn + Countries n 1 58%* *Contribution of Global Performance Nutrition and Glanbia Nutritionals Employees 5, m 1 78%* 1. FY 2015 results

4 GLANBIA GROUP 6BN LITRES OF MILK PROCESSED #1 SPORTS NUTRITION BRAND FAMILY #1 PROVIDER OF WHEY-BASED NUTRITIONAL SOLUTIONS 527K TONNES OF CHEESE PRODUCED #1 AMERICAN-STYLE CHEDDAR CHEESE PRODUCER #2 PROVIDER OF MICRO-NUTRIENT PREMIXES 120K TONNES OF PROTEIN INGREDIENTS MANUFACTURED

5 GLANBIA CORPORATE AFFAIRS 5

6 LONG RANGE OUTLOOK REMAINS POSITIVE WORLD POPULATION 8.1 BN BY 2025 POPULATION OF AFRICA TO DOUBLE BY % OF POPULATION OVER 60 YEARS URBANISATION IMPORT REGIONS DEFICIT: 120M TONNES BY 2024 EXPORT REGIONS SURPLUS: 110M TONNES BY % IN MILK PRICES EUROPE PREDICTED CPL UP TO 2023 VOLATILITY A CONSTANT FACTOR 3 BN MORE MIDDLE CLASS BY 2030 (OECD FAO)

7 Live From the Channel Tunnel 7

8 Overview Glanbia at a glance Choppy Waters -Tremor 1 -Tremor 2 -Tremor 3 Trade

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10 Overview Glanbia at a glance Choppy Waters -Tremor 1 -Tremor 2 -Tremor 3 Trade

11 Influencers of Price Volatility in the dairy industry 1 1

12 Overview Glanbia at a glance Choppy Waters -Tremor 1 -Tremor 2 -Tremor 3 Trade

13 The Political World UK Leadership EU movement Scotland Northern Ireland Customs Single Market The 4 Freedoms The tea leaves

14 ECONOMIC ANALYSIS UK TREASURY ¾ of Foreign Investors cite access to the EU as a reason for their investment No 1 for Inward FDI 80% of GDP is Services, with complex supply chains UK 2 nd least restrictive regulatory regime (1 = Netherlands) UK important market for EU (8%) BUT EU 44% of all UK exports 14

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16 Overview Glanbia at a glance Choppy Waters -Tremor 1 -Tremor 2 -Tremor 3 Trade

17 Trade US Dairy exports have been on a steady rise for 15 years. 14% of milk production. Important part of commercial strategy 2 major trade discussions in the balance: TPP Signed last year, ITC review complete, next stop the Hill. Lame duck session vote? No Presidential candidate supports. TTIP Very difficult to see a pathway for dairy.

18 Transpacific Partnership (TPP) Who? 12 Countries Why? New markets How? Reduce tariffs Improve the flow What does it mean for dairy?

19 The TPP Trade Offs PROs + $2bn in Market Access Canada $1.2bn Japan $0.534bn Tariff phase out Rapid reaction on issues (SPS) Vietnam Expansion Positive Impact on Milk Prices CONs bn in Imports NZ $253m Canada $119m Delivering on commitments The unexpected? NZ & Aus competition in Mexico On balance it s a positive result but still has to be voted on

20 National Political Scene We can t advance anything as it s an election year. Presidential Election? Current Legislature Makeup: Senate R 54 (48) D 44 (47) 5? House R 246 D Vote for dairy! Uncertainty abounds: House will likely remain R, Senate result is unpredictable.

21 DISRUPTORS Regulato ry NGO/ Activist Geopoliti cal Outbreak Volatility Sustainab ility Consumer Environme ntal Labeling Food Safety Formula NTBs Animal Welfare Anti formula Fat Protein Russia Algeria ME Africa SE Asia China Food Safety F&M Johnnes SCC Spores Ebola Zika Supply Oil Currency Supply/ Demand Stocks Weather Env footprint Emissions Water Chemicals Consumption Natural Organic GMO rbst Science Cloning DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE S JOURNEY 21

22 2015 Full Year Results THANK YOU

23 Source DEFRA National Statistics 2015

24 GLOBAL CONSUMER TRENDS GLANBIA SITS AT THE HEART OF POWERFUL CONSUMER MEGATRENDS IN THE FOOD INDUSTRY HEALTH & WELLBEING 88% of consumers globally are willing to pay more for healthier foods ACTIVE LIFESTYLES In the U.S 98 million people age 6 and older are active to a healthy level EASY, CONVENIENT AND ON-THE-GO 51% of consumers snack at least three times a day CLEAN LABELLING More than 50% of US consumers select foods based on the ingredient list and nutritional facts panel 2015 Full Year Results DELIVERING BETTER NUTRITION FOR EVERY STEP OF LIFE S JOURNEY 24