Strategy

Glanbia is organised around two different business models, one for the US Cheese & Global Nutritionals division and one for the Dairy Ireland division. These business models are strategically aligned to and strengthened by our key joint ventures in the USA, the UK and Nigeria.

Maximising our performance and delivering our strategic objectives requires us to allocate our resources, people and capital to business segments where the growth potential and capability to deliver is greatest. For Glanbia this means driving the Global Nutritionals business forward and this is at the core of our growth strategy. We have successfully developed our Global Nutritionals business in the last five years through organic growth and acquisition. Our objective this year is to integrate BSN into our Performance Nutrition business and drive the ON and BSN brands forward, particularly internationally. On a proforma 2010 basis, including the acquisition of BSN, Global Nutritionals now represents approximately 23% of total Group revenue, inclusive of Joint Ventures & Associates. It is a scale business, with well developed science-based innovation capability and leading market positions.

In our US Cheese business, combined with our Southwest Cheese joint venture, we have world class capability in cheese processing and are one of the largest manufacturers of American-style cheddar cheese in the USA, processing 3.6 billion litres of milk and producing 379,000 tonnes of cheese in 2010. Our cheese business gives us access to a large, high quality whey pool, which underpins our Ingredient Technologies business within Global Nutritionals.

In addition, we have substantial businesses in Ireland, which are operationally excellent and well invested. We have leading brands in our Consumer Products and Agribusiness portfolios. Through disciplined strategic cost saving programmes in recent years we have put the Dairy Ireland division on a more sustainable and competitive cost base. This is vital as our Dairy Ingredients Ireland business exports to more than 50 countries world-wide. Within Dairy Ireland there is considerable work underway to assess the potential of milk output expansion which can occur when EU milk quotas are eliminated in 2015. It is early days in this process but opportunities do exist for business growth and development.

Summary

Our strategy is clear and consistent. It is to deliver attractive and growing returns to shareholders, excellent solutions and service to our customers, value adding routes to market for our milk suppliers and to provide rewarding careers to our employees. We have growth opportunities across our portfolio, particularly in our US Cheese & Global Nutritionals division. We have great people and a range of competencies that ensure we are well positioned to continue to grow and develop the Group. We look forward to the future with confidence.