Barry BrennanGlanbia Business Development Director

Africa – Private Seminar

What I intend covering:

• Glanbia – Africa – Market opportunity and insight

• Specific focus

• Investment and way of working

• Key learning

• Conclusion and Questions

Sales/technical support locationsManufacturing/processing and customer service locations

Export/product distribution locations

Canada

USA

Mexico

Uruguay Australia

China

Nigeria

GermanyUK

Ireland

DubaiIndonesia

Belgium

• Strong global presence in key food markets and sectors around the world

• Manufacturing and processing in 7 countries, sales / technical support in 14 countries

• Exports/distribution to 130 countries+

Glanbia plc

Why is Africa important to us?

• Ireland is an excellent source of dairy but requires significant exports

• Milk deficit region

• Africa fits the bill and while logistically a challenge - only 28 days to market

• Population growth – easing of access – currency union

• GDP growth and CAGR milk consumption (4-5%) – supported by policy & urbanisation

• Positive perception of milk from a health and wellness perspective

• Multi – channel and Value Add emergence

5

World dairy production (all categories included)Geographical distribution of world production in 2010 (million tons)

World Total: 711 million tons

Europe 21731%

Asia 257 36%

Africa 37 5%

Central America 16 2%

North America 9513%

South America 61 9%

Oceania 26 4%

CNIEL / IDF, FAO Food Outlook, December 2010

Real GDP Africa top 20 ( based on 2010)

Real GDP Growth Rates, 2003-2013

  2008 2009 2010 2011 (e) 2012 (p) 2013 (p)

Chad 3.4 4.1 14.3 2.8 7.0 3.2Ethiopia* 10.8 8.8 11.4 10.7 7.0 7.6Zimbabwe -17.7 6.0 9.0 6.8 4.4 5.1Congo 5.6 7.5 8.8 5.3 5.7 4.7Niger 9.3 -0.7 8.0 4.2 11.2 6.0Burkina Faso 5.2 3.2 7.9 5.1 5.3 5.5Nigeria 6.0 7.0 7.8 6.7 6.9 6.6Ghana 8.4 4.0 7.7 13.7 8.3 7.7Zambia 5.7 6.4 7.6 6.6 6.9 7.3Botswana 2.9 -4.9 7.2 6.6 4.4 3.9Rwanda 11.5 6.0 7.2 8.6 7.6 6.9Congo Dem. Rep. 6.2 2.8 7.2 6.5 5.1 6.0Tanzania 7.4 6.0 7.0 6.4 6.8 7.1Mozambique 6.8 6.3 6.8 7.2 7.5 7.9Seychelles -1.0 0.5 6.7 5.0 4.0 5.0Malawi 8.6 7.6 6.7 5.8 5.0 5.2Gabon 5.3 1.9 6.6 5.8 4.4 3.3Namibia 3.4 -0.4 6.6 3.8 4.4 4.0Gambia 6.3 5.6 6.3 5.5 5.6 5.6Uganda 10.4 4.2 6.1 4.1 4.5 4.9

Real GDP Africa Remainder ( based on 2010) Real GDP Growth Rates, 2003-2013

  2008 2009 2010 2011 (e) 2012 (p) 2013 (p)

Mali 5.0 4.5 5.8 2.7 3.5 5.1Kenya 1.5 2.6 5.6 4.5 5.2 5.5Lesotho 5.4 2.9 5.6 3.1 4.0 4.5Liberia 7.1 4.6 5.5 6.9 8.8 7.2Mauritania 3.5 -1.2 5.2 4.3 4.7 4.9Egypt * 7.2 4.7 5.1 1.8 0.8 2.8Sierra Leone 5.5 3.2 5.0 5.7 6.2 6.2Sudan 6.8 4.5 5.0 2.8 2.0 2.8Mauritius 5.5 3.1 4.2 4.1 4.0 4.2Senegal 3.7 2.1 4.1 4.0 4.2 4.7Burundi 4.5 3.5 3.9 4.0 4.8 5.3Morocco 5.6 4.8 3.7 4.6 4.5 4.8Togo 2.4 3.4 3.7 3.9 4.2 4.4Djibouti 5.8 5.0 3.5 3.5 4.8 6.7Guinea-Bissau 3.2 3.0 3.5 5.1 4.6 4.9Angola 13.8 2.4 3.4 3.5 8.2 7.1Algeria 2.4 2.4 3.3 2.8 3.1 4.2Central Afr. Rep. 2.0 1.7 3.3 3.0 4.2 4.6Cameroon 2.9 2.0 3.2 4.1 4.4 4.6Tunisia 4.6 3.0 3.1 -1.1 2.5 3.7Libya 5.6 0.5 2.9 -41.8 20.1 9.5South Africa 3.6 -1.5 2.9 3.1 2.8 3.6Benin 5.0 2.7 2.6 3.0 4.2 4.1Côte d'Ivoire 2.3 3.8 2.4 -5.9 8.6 5.5Eritrea -9.8 3.9 2.2 8.2 6.3 3.5Guinea 4.9 -0.3 1.9 4.0 5.1 5.5Equatorial Guinea 10.7 5.7 -0.8 7.0 4.0 6.6Africa 5.5 3.1 5.0 3.4 4.5 4.8

Primary focus markets to this point

Greatest demand for milk imports

•West Africa

•Milk powder + variants

• North Africa

•Cheese & Milk Powder

•Central Africa

•Milk Powder + variants

9

Geographical variations of dairy products consumptionDairy products consumption levels in 2010(kg

per capita)

CNIEL / IDF, FAO Food Outlook, PRB

Less than 50 kg

50 to 100 kg

100 to 200 kg

Over 200 kg

China 36

India 96

Indonesia 11

Japan 71

Philippines 13

Iran 115Algeria

83Mexico 121

Argentina 215

Brazil 157

United States 275

Canada246

EU290

Russia 249

World average103 kg / capita

Specific focus and strategy

• Develop a hub and spoke type marketing structure – around core countries via local in country partner JV or Strategic Relationship

– Example Senegal – adjacency – Guinea + Guinea Bissau + Mauritania + Gambia– Assisted by common currency + trade zones

• Investment in bricks and mortar possible but difficult - Innovation and Technical support is more important to us

– Bricks and Mortar investment in Nigeria , – Senegal solely Innovation and Technical Support with equity stake.– Would always consider direct investment with the right business case.

• Innovation crucial to success– Cost focus , value add focus , displacement of value add imports– Enhanced functionality

• Quality and Branding– The African consumer is among the most discerning globally and can be

unforgiving

Senegal

• Strategic Partner since 1994 ~ grown to €80m plus turnover + equity stake available

• Largest repacking facility in West Africa with c 800 employees

• Advanced chill chain distribution + national and adjacent distribution

• Leading brands in Senegal – with 50% market share of re-packed milk

• First mover diversification along value chain – Yoghurt \ Sterilised Milk further €1.5m investment in Q4 2012– Health & Wellness focus with fortified and enhanced products

• Strong Innovation and Technical support – seamless collaboration

• An embedded Glanbia person on the ground

Senegal – key learning

• Political and Economic stability – very comforting

• OHADA – Business law harmonisation robust

• Economic and Monetary Union ECOWAS & UEMOA – huge advantage € link

• Infrastructure improvements ongoing

• Patience is a virtue - need to adapt to local pace

• Banking system – supportive but challenging

• Bureaucracy is ubiquitous – don’t point the finger!

• Understanding the culture will help you understand the market

Conclusion

• Senegal in just one example of where we have had success – Mali , Togo , Nigeria are among the others – its a very similar template.

• We have no fears doing business in Africa and want \ need to extend our footprint – along similar lines to meet our 2015 growth agenda.

• There is a massive opportunity in Africa – it fits well with Irish culture – but we need to encourage more people to speak French\ Portuguese and be prepared to travel extensively across the continent.

• Need to learn that to satisfy both growth agendas , we must find balance and leave something on the table for everybody

• In the case of milk as an staple food West Africa will never feed itself but we have shown that with the correct model both parties can benefit and grow their businesses.

• It has challenges that need to be overcome but that is not unique to the African continent – they may be different but are solvable.

Finally

• Pick your partners as you would do in any situation - carefully – nothing new in that I suggest!

• Any Investment \ Initiative demands focussed planning and must be project managed tightly –

• Familiarise yourself with the \ Banking \ Statutory \ Legal protocols around doing business locally

• People make it happen and relationships are paramount