1. Barry Brennan Glanbia Business Development Director
Africa – Private Seminar
Barry Brennan
Glanbia
Business Development Director

2. What I intend covering:
Glanbia – Africa – Market opportunity and insight
Specific focus
Investment and way of working
Key learning
Conclusion and Questions

3. Glanbia plc
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+ UK
Canada
Ireland
Germany
Belgium
USA
China
Mexico
Dubai
Indonesia
Nigeria
Uruguay
Australia
Sales/technical support locations
Manufacturing/processing and customer service locations
Export/product distribution locations

4. 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
Low cost of production
Provenance
Nov 2011 Global pop reached 7 b – Africa will feature strongly in the next 1b
Well perceived from a quality perspective

5. Geographical distribution of world production in 2010 (million tons)
World dairy production (all categories included)
Geographical distribution of world production in 2010 (million tons)
World Total: 711 million tons
Europe 217
31%
North America 95
13%
Asia 257
36%
Central America 16 2%
Africa 37 5%
South America 61 9%
Oceania 26 4%
CNIEL / IDF, FAO Food Outlook, December 2010

6. Real GDP Africa top 20 ( based on 2010)
Real GDP Growth Rates,
2008
2009
2010
2011 (e)
2012 (p)
2013 (p)
Chad
3.4
4.1
14.3
2.8
7.0
3.2
Ethiopia*
10.8
8.8
11.4
10.7
7.6
Zimbabwe
-17.7
6.0
9.0
6.8
4.4
5.1
Congo
5.6
7.5
5.3
5.7
4.7
Niger
9.3
-0.7
8.0
4.2
11.2
Burkina Faso
5.2
7.9
5.5
Nigeria
7.8
6.7
6.9
6.6
Ghana
8.4
4.0
7.7
13.7
8.3
Zambia
6.4
7.3
Botswana
2.9
-4.9
7.2
3.9
Rwanda
11.5
8.6
Congo Dem. Rep.
6.2
6.5
Tanzania
7.4
7.1
Mozambique
6.3
Seychelles
-1.0
0.5
5.0
Malawi
5.8
Gabon
1.9
3.3
Namibia
-0.4
3.8
Gambia
Uganda
10.4
6.1
4.5
4.9

7. Real GDP Africa Remainder ( based on 2010)
Real GDP Growth Rates,
2008
2009
2010
2011 (e)
2012 (p)
2013 (p)
Mali
5.0
4.5
5.8
2.7
3.5
5.1
Kenya
1.5
2.6
5.6
5.2
5.5
Lesotho
5.4
2.9
3.1
4.0
Liberia
7.1
4.6
6.9
8.8
7.2
Mauritania
-1.2
4.3
4.7
4.9
Egypt *
1.8
0.8
2.8
Sierra Leone
3.2
5.7
6.2
Sudan
6.8
2.0
Mauritius
4.2
4.1
Senegal
3.7
2.1
Burundi
3.9
4.8
5.3
Morocco
Togo
2.4
3.4
4.4
Djibouti
6.7
Guinea-Bissau
3.0
Angola
13.8
8.2
Algeria
3.3
Central Afr. Rep.
1.7
Cameroon
Tunisia
-1.1
2.5
Libya
0.5
-41.8
20.1
9.5
South Africa
3.6
-1.5
Benin
Côte d'Ivoire
2.3
3.8
-5.9
8.6
Eritrea
-9.8
2.2
6.3
Guinea
-0.3
1.9
Equatorial Guinea
10.7
-0.8
7.0
6.6
Africa

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. Dairy products consumption levels in 2010(kg per capita)
Geographical variations of dairy products consumption
Dairy products consumption levels in 2010(kg per capita)
Canada
246
Russia 249 EU
290
United States
275
Japan 71
China 36
Iran
115
Algeria 83
India 96
Mexico
121
As can be seen from this map – information on consumption of dairy not readily available
We can assume that there is massive scope for growth
Africa likes milk and it is a tummy filler \ hunger satisfier
Dairy is among the most flexible and varied complete foods available
Philippines 13
Brazil
157
Indonesia 11
World average
103 kg / capita
Less than 50 kg
100 to 200 kg
Argentina 215
CNIEL / IDF, FAO Food Outlook, PRB
50 to 100 kg
Over 200 kg

10. 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
Access to a good port and a good distribution network
Capital Projects can take a long time and need to be project managed to a micro level.
Innovation is all about affordability , shelf life , local taste notes and functionality
Don’t assume less knowledgeable consumers – hard earned money demands quality product.

11. 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
An exclusive two way relationship – legally constructed
Massive investment undertaken – new factory park in 2005 – Government assistance
Ongoing investment in increased capacity and distribution

12. 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

13. 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.
I have developed a love of African music and art and sport – which fits very snugly with our own tastes

14. 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
I have developed a love of African music and art and sport – which fits very snugly with our own tastes