Glanbia plc (GL9) Earnings Call Transcript & Summary

Thank you, Liam. Good morning. You're all very welcome to our Capital Markets Day, and I'm delighted to have been able to join us today, both in person and online. Our last Capital Markets Day was just down the road from here in 2018, and boy, how much has changed in this world since then. I think none of us could have predicted what had happened -- what has happened over the past few years. And of course, none of us can predict the future. Ultimately, what matters is resilience and agility. And I am very impressed by what Siobhan and the team have done in terms of how they've dealt with the various challenges that they have faced, be it COVID, inflation, war in Europe or whatever. Not only do they stay focused on running the business through all those events, they delivered excellent results and evolved the strategic agenda of the group in that time. Since the last Capital Markets Day, we have acquired 6 businesses. We've sold our stake in Glanbia Ireland joint venture, and we have transformed the GPN segment. We've become very focused on the attractive consumer categories within better nutrition, where we have some distinct competitive advantages and leadership positions. This year, we will make record earnings from those categories. In my role as Chairman, I'm proud to travel this journey with the team. A key focus of mine has been Board renewal. And following the reduction in representation by our largest shareholder, we have increased the diversity of experience we now have on our Board. As Employee Relations Director, I, of course, get great opportunity to directly engage with our people. And potentially biased though I am, I can only state that the culture of Glanbia is truly unique. We are a passionate, ambitious, focused team proud of the role we can play for all our stakeholders in a world never more ready for better nutrition. We have made great strides in our ESG agenda, and this is something that has come up frequently in my engagement with shareholders. And we have ambitious metrics now in place to deliver our ESG agenda, which are linked back to management compensation. I'm not going to steal anyone's thunder today, but the Board and I are very excited about the opportunities that lie ahead for the group. We are focused on growth and talent. Our purpose is clear, delivering better nutrition for every step of life's journey. And our purpose will drive our growth. We have an incredible group of talented, experienced people, passionate and energized by our opportunity and focused on driving attractive returns for our shareholders, which you have seen through our progressive dividend policy and the share buybacks that we have executed. So with that, I would like to welcome Siobhan Talbot, our Group Managing Director, to give you some more color on the growth opportunities that lie ahead of us. And I thank you. Have a great day.

Good morning. Delighted to be here with you this morning, as the Chairman has said, and a huge welcome to all of you who have joined us either in person or virtually. In truth, it's just too long since we've been able to have an occasion like this. We're really delighted to have it today. The world, as the Chairman has said, has been phenomenally volatile since we were last together. But actually, maybe this is the best time to showcase what Glanbia now is. We have a phenomenal organization. We have a community of over 5,700 people. And the folks you're going to see up here today and the folks you're going to engage with through today, we're doing that on behalf of that incredible community, really passionate, really ambitious, incredibly resilient through the times we have seen in recent years globally, and we will drive this organization forward. So really excite us to talk to you about our growth agenda. And so the Glanbia of today is a Glanbia that really changes as part of our DNA. We have evolved enormously. The group now is very clear on where we're going to play and how we're going to win in the categories in which we operate. Our markets have evolved enormously in recent times, and we have evolved with that. So we've stayed very close to our customers, very close to our consumers. And that has really focused our strategy on where we might take the group. And if you think about Glanbia over many years, we started with that really strong knowledge of dairy, particularly dairy protein and then we became much more. And that more has evolved the portfolio into incredibly attractive categories, and you're going to hear enough lot about that today. We've invested behind that. I've been very proud to be part of this team for a number of years. And the capabilities that we now have in Glanbia are light years different to when I started indeed many years ago, and that's been a continued evolution. We have an incredible mix of really experienced talent, blended with really exciting new talent. You're going to see a lot of that today, hear a lot about it, and it really enables our future growth journey. So that evolution of strategy has been immense in recent times. In Glanbia, we also have a phrase that we don't let structure get in the way of strategy. So you're going to hear my colleagues today speak words like transformation, one face to the customer, innovative, highly efficient, focused, and that is really part of what we have been doing over those recent years. So now as we sit here in '22, we are really ambitious for where we can drive this organization forward. We know resilience, we know agility. We have reshaped the portfolio. I really think now we have a really unique portfolio in that better nutrition space that we will drive on. So if you think a little bit about that journey, as I said, it has been one of incredible evolution. And just a reference point of 10 years ago, we started on the nutrition journey. And actually, if you'll see Brian and his colleagues speak to later, Nutritional Solutions really was the genesis of test. And our core is that was to move further up the value chain, move into those areas where you are closer and deeper with your customers, closer to the consumers, better margins, stickier, more sustainable for that long-term growth. So 10 years ago, that element of our portfolio was about 50%. Now it's 90% of what we do. And that has been because we've moved away from those largely commodity spaces into those higher value-add spaces. That has been all about portfolio evolution, redeploying the capital from areas we've divested and putting it into those areas of Performance Nutrition and Nutritional Solutions. And that really will be the essence of our future growth, really doubling down on those areas that we can be very strong. And that will be the estimates of our growth story. The environment in which we play is always really important. And the one thing I think we can all collectively say in recent times is that the unfortunate effect of COVID is that never was nutrition more important. There is a real global health crisis across so many dimensions. We all know the statistics that are noncommunicable diseases, and the issue of that is for so many consumers. We all know the issues of obesity, and we know the issues of health. And individuals and governments now recognize that actually prevention is so much better than medication. And consumers are reacting to that and taking personal accountability for their own health and well-being, and we can be with them on that journey. The essence of Glanbia is helping people fulfill their nutrition goals, and that would be really underpinning to our growth. So as consumers have adopted and taken more accountability for their growth for their nutrition, it has created these mega trends. And these trends, you know them indeed as well as I, healthier lifestyles, the role that activity and exercise can play both with our mental and physical health. Consumers and as consumers, we all want convenience, but we're not going to have to taste functionality, nutritional profile for that convenience. We want better nutrition. And all of those trends have, in truth, only become magnified by COVID as people really have thought about their health and well-being as they look forward. So better nutrition is at the heart of what Glanbia does. It is the essence of our portfolio evolution, and it is where we will continue to drive our growth. And if you think of the core pillars, which really underpin our later strategic pillars, what is the essence of the foundation of our ecosystem? And that's fairly, obviously, in the first instance is that we are playing into growth categories. You're going to hear my colleagues speak during the day and during the morning a lot about the addressable market, the growth opportunities in truth. And Germany, we are only starting. And we're really excited about the pace of growth that we can get in those markets because consumers are embracing that better nutrition trends. We have incredible talent. You're going to see a lot of it, hear a lot of it. A lot of new people have come into our organization that blends, I referenced earlier, of both existing experienced, knowledgeable, resilience, agile and all the new skill sets that makes us more relevant to our consumers and customers. And of course, then we have fantastic operations. Operational excellence has always been a core part of Glanbia. We really are good at what we do in those facilities. Whether it was, for example, building one of the largest cheese and whey facilities here in the U.S. in recent times, almost $0.5 billion on time, on budget. Through COVID, the entire community of people trained virtually. Our customers have lauded the commissioning of that facilities. We're here in downward growth in one of the showcase GPN facilities. We are really good, efficient scale operators. We know what it takes to have plants run well. And I'll speak later, of course, about a more holistic perspective on sustainable operations that takes that and, of course, brings it into the wider agenda. And so our strategic pillars are clear. They're focused. They're well defined for us now. It is about leaving and owning the core. And I'm going to come back to each of these a little in turn. It is about optimizing our business. We have known great growth in Glanbia. We have known times of challenge. That has made us actually be very agile. We're not afraid of change. We have a lot of freight to learn. We're not afraid to pivot and do things that we need to do to optimize our business. And disciplined financial management, probably a core part of our ethos over a long, long period of time has been that piece. And we do that now through two very complementary pillars of Glanbia Nutritionals and GPN. Those are now scaled businesses within the organization, and you're particularly going to hear us speak today about Nutritional Solutions, which is the ingredient Nutritional Solutions part of GN and GPN, which is our global branded portfolio. So a little bit on the Glanbia today. As I mentioned, we now are very focused on our core platforms. Our business is really very much North America based. Again, that's been part of our evolution. The U.S. has been a really good market for us. We know this market very well. We're close to our customers. We're close to our consumers. And from, in many ways, a base here where our nutrition journey started, we have taken that capability to other markets. This references the 90% I spoke to earlier, those 2 really strong complementary pillars in nutrition that are Nutritional Solutions and GPN. They've been our focus for growth to this stage of our journey and will be our focus for growth as we go forward. The addressable market, just to give you a sense, our addressable markets are large and they are growing. And an interesting part of our journey has been taking the capabilities we have into different markets. We don't play in all these markets in the same way as we would expect, but consumers in the better nutrition space are touching all of these categories. And the example I would give you is Performance Nutrition. We started our journey in Nutrition many years ago by developing that efficacious high quality, high protein from our dairy facilities. Sports Nutrition was a natural market for that because it is such a high-quality protein. We have built relationships with customers in that space, and then we bought one of the brands. So we moved up that value chain of Performance Nutrition. We've been there in that category really since it started. So Glanbia and that category have evolved together. And now as you see, we're playing across these sectors with that great science-led customer-focused, consumer-focused strength that we have that Brian and his colleagues are going to speak to in Glanbia Nutritional Solutions and the leading brands that Hugh and his colleagues will speak to with GPN. Talent, purpose are really important part of Glanbia. It's been a really interesting journey for me personally because I've been with Glanbia long number of years, and we've always had a great culture, and the Chairman touched on that. But as an executive team a number of years ago, we wanted to find a really meaningful banner that will galvanize the organization behind a bigger purpose. We spoke a lot with the organization, and we found this purpose that stood us really good, really in good stead to date and will carry us into the future. That purpose is delivering better nutrition for every step of life's journey. Again, in Glanbia, we've always had a great culture. We're very grounded. We're very ambitious. We're very passionate about succeeding as an organization. But again, we spoke to the organization by the values that would best represent that because we don't get everything right all of the time as any organization. And so we developed this series of values. Our customers are front and center of what we do. We are a performance-driven organization. It does matter. We know that. We are really curious. We think of innovation through its broadest lens. Yes, it is about developing great products. But it's also about process, it's about operating model, it's about that full holistic perspective of how we can find a better way. And we like to win together. We have a great team of people that are collegiate, ambitious, passionate and really do bring all of their collective strengths to winning as a total Glanbia reorganization. And respect. I sometimes think if there was one value that probably should stand out in the total society of today that would solve a lot of issues, it probably is respect. We put a lot of emphasis, as we should, in Glanbia on respecting each other, our perspectives, our views and, of course, the very environment in which we operate. And so our talent journey has been really interesting, like our performance journey. Our talent journey has been one of matching our talent with our markets, matching our talent with our customer needs, matching our talent with those consumer areas that we want to address. And so unsurprisingly, our largest pool of talent is here in the U.S. and then growing our talent across other regions. Part of our journey of building that strong capability in Nutritional Solutions and GPN has been a very focused approach on talent. So that we're really building capability of building our brands, really knowing consumers. You're going to hear a lot about that today from the teams about how we have built a very strong capability across consumer, across channel, across all those marketing areas that have evolved. Channel development, customer engagement, innovation has been part of the DNA of Glanbia, particularly Nutritional Solutions for a long time. It remains a core part of what we do there and in our GPN business and will continue. And of course, whole new areas that have become relevant areas of digitization, e-commerce and all the goals with that agenda. I refenced earlier the significant part of our group capability that has been around operations. And of course, validly and correctly, we now think of sustainable operations in that more holistic sense. Michael, my executive colleague will talk shortly about and put framework on the totality of our ESG agenda. Again, not new to us, as you would expect in an organization that has been in nutrition in some form for over 100 years. The environmental aspect of what we do is hugely important. We have signed up to the SBTi target, and we're very clear on our road map now across particularly Scope 1 and 2 emissions. Social agenda has been huge for us, again, of an area we dialed off, particularly speaking to the organization about that journey, speaking to the organization about our pace, speaking to the organization about what they wanted us to do more of on this. And the organization has absolutely embraced it. There's been a particular emphasis of ours through that '21, '22 period. It's a journey. We are by no means anywhere near the end of our journey, but we have made some great strides. And the Chairman indeed has touched on the governance, very significant evolution in the governance structure of Glanbia that has absolutely enabled our progress and will enable our progress as we look forward. So coming then to the strategic pillar. So those foundations fundamentally enable the strategic pillars of owning -- ruthlessly owning -- knowing and owning our core, optimizing our business and continuing to have great financial discipline. Again, our core, you're going to hear a lot of that about that today. We started our journey really knowing protein, particularly in dairy. We are now a protein powerhouse within Nutritional Solutions. We are #2 global player in the blending of micronutrients. We know how nutrition plays across the different -- whole different suites of ingredients and how we can bring that to meet customer needs. We solve problems for our customers in those 2 key areas. You're going to hear Brian and Loren. And later in the day, you can actually interact with some of the science between -- in terms of some of our Nutritional Solutions portfolio. And of course, from a small start indeed in 2008, we now have the $1 billion brand that is Optimum Nutrition. You're going to hear Hugh and the team speak to the evolution of that brand, how we have built the capability to get the brand to that scale and where we can take Optimum Nutrition forward. It is really exciting opportunity for us in the global branded nutrition space. We speak also to the healthy lifestyle portfolio, again, broadening the addressable markets that we can engage with. So the essence of our engagement with you today is really going to be deep diving on that core pillar of owning our core. These themes will be woven through the day. I've referenced science-based innovation as being a core strength of ours. Again, starting in our Nutritional Solutions business, Loren will speak to the capabilities that we've evolved in solving those issues for our customers, being insight-led knowing what's happening in the market, knowing where those trends are and knowing how our capabilities as our protein powerhouse and as a really knowledgeable player in micronutrients can help solve those problems. From a consumer perspective, staying on trend in terms of what consumers are needing on their better nutrition journey. We will always refine our operating model. Again, Mark and Hugh and all of the teams will be speaking to the journey of transformation we've had within GPN. We continually learn, and we will continually learn about how we can optimize our business that will drive margins. It will drive efficiencies. We will use technology to enable that, and we will drive Glanbia forward. And Mark really will speak to disciplined financial management. As I referenced earlier, it has been the core of what we've done for a long number of years. We are disciplined in the deployment of our shareholders' capital. We will always be cautious, but we will be ambitious as well. And I think that has stood us in good stead through the volatile times of recent times. And then finally, the numbers. The numbers, of course, do matter. So bringing the numbers together, we are really ambitious for where we can take Glanbia. The Chairman referenced that in 2022, we expect to deliver the highest earnings that Glanbia has ever delivered in terms of adjusted earnings per share. We believe that we have now built the capability and platforms that we can really take forward to drive sustainable growth. We have incredible teams of people passionate about the delivery of the total better nutrition agenda and doing that within the capabilities of Nutritional Solutions, Cheese and Glanbia Performance Nutrition. We will grow our top line. Hugh will speak particularly to the GPN metrics are growing between 5% and 7%, an annual average over that period with our margins bedrock in the 12% that we will achieve in Q4 in GPN and driving forward from that over a period of years. Brian will speak to the volume ambition. Pricing, as you know, can move around in dairy. So we have a volume ambition within Nutritional Solutions. And again, a bedrock of margin that we will drive forward within the business. At a group level, we will overlay those organic metrics with M&A and further activity corporately, and that will drive an annual average adjusted earnings per share growth over that period of between 5% and 10%, again, sustaining that growth journey that we've been on in the last 2 years. Cash conversion, Matt will speak a lot to later, was one of the hallmarks of the journey we've been on in recent times is really focusing our teams on cash conversion. Cash matters. We know it matters. It probably matters -- never matter as much as it does in recent times. We have been overachieving this significant metric, and we will drive forward that 80% conversion. And with that then, we focus on returns. Again, personally, I think returns on capital always matter. And we will be driving to progress our return on capital over this period and average in that range of 10% to 13%. So very excited to speak with you this morning. I hope you really have a good day. We look forward to answering all of your questions. And with that now, I'm going to pass to my colleague, Hugh, to talk you through the GPN story. Thank you very much.

Well, good morning. Hopefully, that gave you a flavor for our broader brand portfolio. I hope you were all in the gym this morning. Delighted to be here today to share the GPN update story. Our Chairman spoke about the last capital markets we had 4 years ago in 2018. Actually, for any that have a longer-term memory, it's nearly 8 years today, November 2014, that we had the Capital Markets Day here in this facility in this room. And for any who are here who will tour the manufacturing facility last -- later on, you'll be particularly impressed by the scale that we built since you saw that 1 single line, packing line, blender line running in 2014 when we just opened this facility. So a lot to cover today who are we? #1 sports nutrition portfolio company with a growing position in U.S. lifestyle nutrition. Our mission, what we get up every day to do is to inspire people everywhere to deliver on their performance and healthy lifestyle goals. We do this through educating our consumers and our customers and the benefits of nutrition, healthy nutrition, the benefits of working out, both physical and mental. We do this through creating advocacy through our partners, which I'll talk about later on, our influencers, our ambassadors who help us reach our consumers with a correct messaging on why to take our product with credibility. We invest in quality and manufacturing. You're going to see that later on. So that what we put in our products are the best tasting, best quality products out there. And lastly, we're authentic. We ensure that what we say about our brands, what we put on our tubs are authentic, which creates trust. And we've been consistently the most trusted brand in sports nutrition for 35 years. 2021 numbers, we did $1.54 billion in 2021, 6% branded CAGR of $172 million EBITDA. We're on pace for $1.7 million this year, which will be a 7% CAGR since 2018, 68% of our business is here in Americas, 32% international. We have 9 brands that you saw at the start with the opening video. We sell across 100 markets worldwide with just over 2,200 people in the team. And we've consolidated our manufacturing footprint from those that have seen us or met with us in the past. We now have 3 manufacturing facilities. Our larger-scale facility here, which we consolidated as part of our transformation project, capacity of about EUR 100 million. Our manufacturing facility in Middlesbrough for Europe, about 25 million pounds of capacity and then a small tablet capsule facility also here in the U.S. We have 2 innovation centers, our scale innovation center, about 25 minutes down the road and Downers Grove that I'm sure some of you have visited and 1 in Middlesbrough. And we have our DTC fulfillment center in Holland, which services our international D2C business. Siobhan spoke about this, our addressable market. Sometimes it's difficult to get consolidated information for our global markets where we play in 2 big markets that are growing. This global Performance Nutrition, $25 billion, growing at between 5% to 7%. And U.S. and lifestyle weight management, again, a big market of $17 billion, growing at about 4%. And we have a deep understanding of consumer brands. We've invested an awful lot in the last number of years in analytics and insight -- insight and analytics. We now are on brand equity tracking across 9 markets, 5 brands, at least annually up to 5x -- 4x per year in some markets. And that allows us to track awareness, trial, usage. We have extensive custom research. 2022 alone, we've done over 20 research studies. We've engaged with more than 10,000 consumers. We do annual brand spend ROI, which we put in place in 2019. That allows us ensure that our marketing spend is the most effective. We can shape, reshape our marketing mix, and we've seen a return on marketing investment go up every year since we introduced that in 2019. And we have first-party insight. We have access now to 3 million consumers that it engage, opted in to a D2C and brand.com platforms. And what does this all mean for the category? We see a continuing mainstreaming of the category and a particular importance to protein. Research actually just from the last couple of weeks with category users, they confirmed with us that over the next 12 months, they are either going to increase or maintain their protein usage. Data, we got recently as well on category penetration here in North America. We've seen a 1% increase in household penetration of protein, the protein category, which is quite significant in the space of a year as consumers continue to increase their consumption of protein. We're seeing an increase in interest in the role of nutrition and healthy lifestyle. And the ongoing reframing of weight loss and management. And this is a little bit of an enabler. We've seen the decline in consumers on a diet in North America about 2.2%. And yet 50% of consumers in North America telling us, they have to lose weight. They want to do it in a painless way. There's no painless way of losing weight. The only way to do it is stop consuming calories. So this is a cycle that we continue to watch carefully as those consumers reframe that weight loss journey. We compete in 3 large consumer segments. This is global, but are now illustrated with American numbers. So about 2 years ago, we did a large piece of global work around our consumers' motivations for consumption of these brands. And we can see, based on the different motivations, we clustered it into 3 main consumer segments, our performance consumer, lifestyle consumer and weight management consumer. And from this, we have their different motivations, the relative size, the demographics, their usage profile, and it allows us to better target these consumers with our full range of brands, particularly on their primary motivation. And to give an example of that, in the U.S., there's 110 -- the screening for this is to consumers to work out twice a week. So in the U.S., it's about 110 million consumers. And we can see that 22% of those are primarily motivated by performance, whether it's build muscle mass, build lean muscle or maximize athletic performance. So that allows us to target that consumer better with the range of brands we have. Our brands are strong, and they're performing well at shelf. With scale brands, we're the leader in sports nutrition, growing in lifestyle. We're preferred and recommended by consumers category leading Net Promoter Scores. We're most awarded most reviewed, most nominated across 7 e-commerce platforms that we track. And we have been quite resilient in the face of the last 15 months with multiple price increases across all of our brand portfolio. In terms of actual performance, what does that mean? Global revenue have seen this from our recent quarter 3 update. We've had branded like-for-like revenue growth of 14.4%. Optimum Nutrition like-for-like globally of 23%, which is volume growth, plus 5%; pricing plus, 18%. Particularly pleased to see that. Within the category, we're now the #1 sports nutrition protein powder in food, drug, mass and e-commerce. And we believe we're #1 in the specialty and club channels, but it's -- we don't have a specific market data for that. So that's our own internal estimates. #2 in the U.S. diet category for SlimFast and #1 in the U.K. So strong category performance. And U.S. consumption numbers you got at the end of quarter 3, Optimum up 33% here in the U.S. last 12 weeks and lifestyle brands up 16%, and I'll talk about SlimFast later. So we're the #1 sports nutrition company in the world. We're #1 in 18 countries, top 3 in 30 out of 40 countries as tracked by Euromonitor. And we have a consistent strategy that we're executing on in terms of 4 growth pillars. We're going to -- I'm going to talk to you about all 4 where first pillar is Optimum Nutrition, capturing the global potential; second is building a lifestyle nutrition platform in North America; third is growing in priority international markets and accelerating that growth; and fourth is mastering digital commerce at scale. That's all enabled by our transformation project, which I'll speak about in a moment, talent, great talent and teams, our innovation agenda and continued M&A. In terms of our transformation project, you've heard a lot about this over the last couple of years. We kicked this off in late 2019. We accelerated it in 2020 as COVID significantly impacted the business, particularly in quarter 2 2020. And it had a deliberate focus around driving demand and driving efficiency initiatives. And the financial outcome of that we were looking for was a margin improvement of 200 basis points. But in fact, internally, we had doubled that ambition because we needed to invest more behind our brands. So it was to give us headroom to allow us to do that, and I'll speak to it later. So in terms of demand, we fix our international route to markets. We became a truly omnichannel business where we're selling across all channels, and we accelerated that. Brand focused, particularly international, prioritize Optimum Nutrition. and we brought in additional capabilities such as revenue growth management. We built a new structure and capability in Americas and in international. In terms of efficiency, you're going to see it today, the consolidated versus consolidation of our supply chain into this facility here today. We took out just under 50% of our SKUs since 2019, which has allowed better focus on the business. We exited private label manufacturing. So a scale project that is coming to a close now, but has built very strong foundations for the future as we navigated quite a volatile period through COVID, and then inflation in 2022. M&A has always been an important enabler of growth. The journey of GPN started in 2018 with the acquisition of Optimum Nutrition. We've acquired and integrated 8 businesses since then. And that allows us, through the scale of acquisition within our greater scale, our organic growth through investment in people, investment in brands and investment in innovation. And that will continue to be a key driver of our growth as we look forward. And we are -- we do continue to look at potential acquisitions. Maybe we'll see valuations come down to a more realistic level over the next couple of years, but remain ambitious for M&A. So I'm going to drive a little bit deeper into Optimum Nutrition. Very proud to say that officially as per Euromonitor, we are now the #1 sports nutrition brand in the world. From humble beginnings here in Aurora a long time ago, and that really has been a great credit to the teams in terms of how we've gone around consistently building the brands and how we are the only truly global sports nutritional player that's out there today. I'm going to share a little bit of video to give you a sense for the power and passion behind Optimum Nutrition. [Presentation]

Very good. So we're the world's #1 sports nutrition brand. Our brand essence, most trusted brand in sports nutrition. Our role is to help people experience the power of fitness and nutrition. We have consistently strong Net Promoter Scores in all markets we track. And a reminder, the reason we track Net Promoter Score is I speak to advocacy to start and how many of our consumers are actual promoters of our brand. Anything that's over 30 is strong, anything that's over 50 is excellent. So we continue to track on an ongoing base in all these markets, how well we're doing and how engaged we are with our consumer. We've proven performance over the last 35 years. And we've always been a global pioneer whether it be a new category creation expansion into new markets or just a consistent approach to how we build brands. And very pleasing to say our iconic black tub, which is recyclable, we post more effort in a number of changes to ensure they could be picked up by recycled companies. And we're the first company in our industry for our black tub that now is certified by how to recycle one of the leading sustainability companies here in the U.S. as widely recyclable, which we'll start to roll out on all our tubs early next year. The pool for Optimum Nutrition is large, and it's growing globally. We talk about our consumer target as the motivator. That's people who are open to are already using sports nutrition products. And from a global piece of work we did last year, there's 147 million consumers in the U.S. that would identify as this, 23 million in the U.K., 10 million in Australia and 195 million in India. So there's lots of opportunity there. When we look at our household penetration in the in the U.S., it's doubled since 2017, particularly as we started to expand broadly into omnichannel. But when you look at the motivated Optimum Nutrition consistently across all these markets, it's only bought by 10% of the motivated consumer. So there's significant opportunity as we continue to deliver our brand in terms of the scale of consumer pool. Optimum Nutrition consumer is affluent and very engaged in the category. When we look at our consumer versus the category, we have 19% higher income. They spend 28% more on sports nutrition, and they work out 80% more often. So the Optimum Nutrition consumer sees our products as essential spend. We have a brand growth playbook that has driven Optimum Nutrition to $1 billion. Very proud and the growth from humble beginnings here in Aurora in 2008. And it's just the consistency in how we've broadened the consumer base from the traditional body building consumer, who's still a core engaged participant with Optimum Nutrition to an everyday performance consumer. A focus on our hero product SKUs continued evolution and optimization of design of our hero products and our brands to make sure they retain relevancy with consumers, inspiring creative, some of which we share with you today. Driving reach where our best-in-class digital media approach, which has been a significant investment for us over the years, continued product and format innovation into new products and new categories. Broadening our distribution footprint, whether it be into Walmart here in the U.S., Chemist Warehouse in Australia, the Catalan across Europe. And lastly, it's increasing our brand investment. And this goes back to the progress made in our transformation project. Since 2017, we've increased our marketing spend on Optimum Nutrition by nearly 2.5x. And the nonnegotiable across all of that is we're the most trusted brand in sports nutrition. So reasons to believe $1 billion brand, the only 1 truly global about what -- we see lots more potential, and we're very ambitious for this brand. It's the #1 brand globally, and it's growing fast. We're in categories that are also growing fast, which are compelling to consumers. The consumers are highly engaged in these categories. You saw we have large consumer pools to target in all the markets that we compete in. We have a proven brand growth model showing that over the last 12 years. We now have strong route to market, distribution capability and are truly omnichannel. And we have an ongoing commitment to invest behind the brands. So I'm going to dive a little bit deeper into our lifestyle -- North America lifestyle strategy and what our approach here is. And if you look at what we've done, if you go back about 4 years ago, 2020 -- even to 2020, we were selling our brands through multiple sales force. In fact, with 4 different sales forces calling on the same customer. And what was increasingly obvious in terms of our credibility or scale was that it made sense to consolidate that approach. And in fact, that has already happened with the likes of Amazon and Costco. So we implemented a major project, which was looking at building a best-in-class CPG business for North America led by Wendy Davidson. And we had clear objectives to move from a commercial-led to a brand-led organization. Consumer first, by that, I mean strong consumer analytics and insight that I spoke about earlier. It allowed us to drive our innovation agenda and drive growth opportunities for our customers. Taking a category leadership position, particularly in performance subscription, but also in weight management within the retailers that we partnered with. Accelerating our digital and e-com strategy. And lastly, attracting, developing and retaining talent. So the outcome of that is a 1 faced customer, a 1 GPN faced customer here in the U.S. We are organized across 3 category teams, lifestyle nutrition, sports nutrition and weight management. And we have 5 channel teams targeting food, drug, mass, club, e-commerce, Walmart and specialty and field sales. And that's all supported by 4 centers of excellence. I've spoken a little bit about insights and analytics. We also have category management, integrated marketing and trade development. So we now are a scaled CPG business in North America that, firstly, can drive the growth -- continued growth of Optimum Nutrition, but also can drive a broader portfolio of lifestyle brands. Biggest brand in our portfolio, SlimFast. Obviously, there's been some challenges on SlimFast, and we've been very busy over the last 18 months in extensive research. And we've identified category challenges, but we've also identified brand opportunities. The diet category is without a doubt one of the categories most impacted by COVID. It's declined 8% since 2020. But we also see life that we've seen a blurring of the lifestyle brands, particularly what we call out on Nutrition brands encroached into that diet space. But the biggest impact for us has been decline in Keto as a diet trend. And if you look at the graph on the far right, we tried to illustrate this when we bought the business in 2018. We just -- right around the time, we bought the business we launched, SlimFast Keto. And it was the hottest trend in the market over time, and it was about 8% of our business. Keto is a very effective diet, but it's hard to stay on. You have to be ruthlessly disciplined because to lose weight, you have to put your body into ketosis, which you mean -- you need very disciplined nutrition. And for people to remember, when COVID hit, a lot of our disciplines went out the window. We certainly stopped working out. I consumed a lot more red wine. It was banana bread being made at home. And the discipline around the keto diet went out the window. You can see there, 2020, we had substantial growth over '19 and '20 as our Keto range took off. In fact, it was close to 40% of our business in 2020. And you can see there the decline in 2022. But our core focus with our brand restage is on our core lines of high protein, low carb origin. And you can see that they have actually outperformed the category line of 8%. In fact, '20 to '22, our high protein, low carb is flat within a market that's been negative 8%. We see significant brand opportunities, still fundamentally believe in the diet category in SlimFast as a brand. Weight-loss for pains as important as ever for consumers. We need to modernize the brand perception. We believe there's an opportunity to expand beyond diet to include weight management. But we also need -- we are a diet brand, and we also need to continue to support new trends as they come through the marketplace and they cycle in and out. SlimFast has some really strong inherent strength. It's high brand awareness. It's well liked, well regarded. It's got a reputation for effectiveness. The SlimFast plan works. You reduce calorie intake with great products, you lose weight. It's nutritionally done as good taste, and it's in convenient formats. So for us, we've always felt, even when we bought this business, that the opportunity for us is how do we broaden -- just like I showed you the brand playbook, how do we broaden the consumer from diet into weight management, and we believe we can do that over a period of time. So we now have a new expanded consumer target, targeting the dieters and our maintainers. And to pose it to use the consumer pool concept we presented earlier, expanding beyond our current diet target, triples the potential consumer pool for SlimFast. I believe we're executing really well on the brand restage, but it takes time. With new pack design, it's now -- it's going into market now as we speak, but it will be half won before it's all fully on shelf until we transition across the broad portfolio. But it's now modern, cleaner, has great on-shelf presence. With new product architecture. This is a big shift because our core ranges Advanced Nutrition, and the consumer didn't really know what Advanced Nutrition meant. So now we've cleaned that up, and it's now high protein, low carb consumer. The consumer readily recognized as benefits that they're looking for in their products. So that -- so we've evolved our product architecture. We've new creative campaign, which I'm going to share with you in a moment to update the brand image. As we broaden into that, what broaden from diet into a broader weight management consumer. And we're increasing our media spend next year by 28%. We're somewhat dependent on quarter 1 performance. And whether the diet category comes back, we're also conscious that we're a key driver of that diet category as well. So actually, for quarter 1 next year, our media spend will be 120% increase in quarter 1 2022. And yes, we're still driving with new trend innovation with intermittent fasting just going into market now as we speak. So a bit like with think!, we have to -- we transition the brand thinkThin into think!. It took us a couple of years. And what we're saying is that for next year, I think we're executing really well. We will see sequential quarter improvement from quarter 1 on, but it will be in half 2 before we start to see consumption growth in the brand as the velocity in our new products, such as high protein, low carb and original, start to pick up. And I'm going to share a couple of new videos that are starting on air now, but will be heavily on air in quarter 1. [Presentation]

Very good. So along with SlimFast, we have a portfolio of strong unique brands that operate in a growing health and wellness space. We have think! targeting active wellness for our consumers, our 20-gram protein bar, with the brand business think! strong growing nicely at 12% versus 2021. With Isopure, with the consumer target aspiring purist protein powder users. Add less do more, growing very strongly, plus 77% versus 2021. And Amazing Grass, our natural -- our plant-based natural nutrition targeting and natural nutrition enthusiasts growing 6% versus 2021 and the #1 in the green category. And we have a similar playbook that we spoke to you about in ON broaden the consumer target. If you go back 4 years ago, we've broaden from predominantly female consumer to male and female consumer; hero product focus, whether it be our 20-gram think! bar, whether it be a rise through zero carb or whether it be our green super food under; Amazing Grass; optimum design and architecture; distinct creative; reach-driven digital media; product format innovation, whether it be are layered bars in think! or whether it be Isopure infusions; broader distribution footprint, so Isopure TDPs up 134% in Walmart, Amazing Grass 42% in Target, and think! up 23% in Walmart; and lastly, again, the same increasing brand investments. So these brands all have over 10% net revenue invested buying the brands on a consistent basis. Our third growth pillar is our international business accelerating, growing priority international markets. And this is really one of the things that makes us quite distinctive. There's no other global company in our space that continues to invest behind our international business. The scale business of 32% of GPN, 38% of our business is e-commerce. But if you look at some of our smaller markets where we have partner distributors, when you look at who they're selling through, our e-commerce business international is actually over 50% of our business. We have 10 -- a scale presence in 10 markets within market presence in 13 more. 75% of our business globally is Optimum Nutrition. We have over 900 employees, which about half of that will be centralized in the U.K. and Holland because of our product supply footprint. And our product supply, we supply out of Middlesbrough for Europe. We now locally command for India and for China, both to avoid tariffs. U.S. fulfills for the rest of the world, and we have our DTC fulfillment center in Holland. In terms of international markets, strong growth potential. It's got higher growth rates than the U.S. So in terms of the opportunity, the markets are all at different levels of growth, but consistently growth rates are higher than in the U.S. But what we would say is while the top line growth rates are higher in international, the margins are lower given the level of investment given the majority of some of those markets, the investment around brand and people. So we get a nice balance between the 2 businesses. We have a large pool of consumers, I spoke about it earlier on. These are scale businesses. We've been building in international. We bought Optimum Nutrition in 2008, and had an export business. They shift from here that never went to market. We had nobody outside of the U.S. We now control our price in our brand, and we know people on the ground to accept builds. So we have spent the last 12 years building a scaled international business. And we have strong well-perceived brands both in terms of Optimum Nutrition, but we also have nice local and regional brands as well that do quite well for us. In terms of our prioritization and excellence for the international business, it was to focus down on Optimum Nutrition to truly drive the distribution and increase the awareness of our Optimum Nutrition brand in these international markets. We streamlined our route to market, some of the challenges we had in 2018 where, frankly, we just had outgrown a lot of our local partners and we had to build our own route to market. We've enhanced and upskilled our business and brand building talent, particularly on our brand building talent in international. We have local manufacturing capabilities we spoke about, which, frankly, if we didn't have, we wouldn't have businesses in those markets given the tariffs that are in place now from imports from the U.S. or exports from the U.S. And I think our Chairman spoke about it earlier on. We do a good job in navigating and managing volatility, which always is just part of doing business in a lot of these international markets whether it be COVID restrictions, whether it be Brexit, whether it be war in Ukraine, which impacted our Russia business, whether it be currency volatility, tariffs, et cetera. So we have a battle-hardened team in international who can navigate the way through a lot of these challenges. We brought you here today to the U.S., our biggest market. U.K. is the second-largest market, and I felt a lot of people particularly dialing in will be very familiar with the U.K. market. So we wanted to share some of the passion that we have in our international teams. I can't bring you there. But these are going to profile, which are 2 of our largest international markets both growing double digit, both performing very strongly in 2021. One in Australia that we've actually been in for more than 10 years. We're the #1 sports nutrition company there. And the other one will be India, which is the first company where we move to local manufacturing because of the confidence we had in our team on the ground to navigate and to build a brand in a very strongly growing market. So first, the Australia. [Presentation]

Actually, that last bit, Ned. If you look it up, Ned is a cycle. That was phenomenal. Ned ran from Perth, Australia, 100 kilometers a day to Sydney in 43 days, and Optimum Nutrition was his nutrition of choice to support him on that journey. So it was -- and he did it -- an ordinary guy carpenter, and he did it to raise money for homeless people in Sydney. So it's a significant achievement, but it's those type of authentic stories that we as a brand owner try and capture and partner with because they're real. Now across to India. [Presentation]

Very good. So final point on international. One thing that in terms of the brand investments that I've spoken about consistently, we've doubled our brand investment in international as a percentage of revenue from 2017 to today, which is clearly, as you can see from some of the growth numbers, part of that success. So I'll talk the last pillar of growth is our digital e-commerce pillar. And really, it's -- I've spoken about e-commerce, it's a scale channel for us, 31% of our global revenue, whether we're competing on the likes of Amazon Marketplace, Rakuten, Tmall or Flipkart globally. We also produced -- sorry, then also with our bricks-and-mortar partners. And lastly, our D2C channel, whether it be brand.com or our D2C brands only, where we have scale capability now to -- and have 3 million consumers that we engage with on our platforms. And LevlUp now, as of last month, is now fully integrated onto our platform, tech platform and also within to our fulfillment capability in Amsterdam or in Holland. Our broader digital strategy, best-in-class digital marketing. This is really important from a consumer perspective. We continue to broaden our community and engage directly whether it be our 7.5 million consumers that follow GPN brands on social media. The 3.5 million that follow ON or the 3 million consumer opt-ins we have on our brand websites. Cutting-edge content, we have a 30 strong internal team that produces thousands and thousands of video content for multiple formats. And if you think about the different formats, the different technologies, different platforms, and that's all the something that our consumers want to see is firing content, but also educating content. So it's something we do. It's a core skill internally. And it's also partnering with content creators. So people external, the likes of TikTok that are now part of the GPN team that are passionate about our brands and work with us in terms of, again, creating and engaging with potential -- with our consumers and potential new consumers. And lastly, impactful activation online digitally, whether it be Double 11 Day live stream event, 100,000 video and off tmall.com in China or our integrated YouTube platform activation this summer on Amino Energy where 50 million -- over 50 million consumers engaged with the brand on YouTube. I spoke about this at the very start, our program around creating advocacy, and we do this to engage in directly with consumers reaching them and helping them understand the benefit of sports nutrition, the benefit of our brands, the benefit of working out. And we do this with a deliver pro with 32 icons, top-tier athletes across multiple sports, 24 scene leaders, 1,200 influencers and more than 4,000 personal trainers that drive brand recommendation at point of sweat. And that all connects into what I was talking about earlier in terms of Net Promoter Score as well. And our objective there is driving reach, driving engagement, enabling conversations because we know that one of the barriers to consumption of our products is I don't know why to take these products, explain to me the benefit of these products. And this is a very -- this digital activation is a key part of that. So there are 4 -- there are 4 key growth strategies that I just took you through briefly. What does that all mean? Look, myself and the team that we meet in a moment are very ambitious for the business. We have a clear, compelling growth strategy, but we also have a clear and compelling growth opportunity. Optimum Nutrition, $1 billion with lots of potential for growth, and we continue to invest behind the brand. We have a unique portfolio of lifestyle brands in North America, and we have a scaled CPG business now that can handle our portfolio of brands and continue to drive growth. We're in really on-trend categories with large consumer pool target. We're truly a global business, the only global business in our category that established infrastructure and capability. We have a track record of organic and acquisition-driven growth. We have a great values-led culture. The brands that we represent. We're all brand ambassadors. We have great passion for our brands across the team. We are a true omnichannel business. That wasn't the case. If you go back a number of years ago when specialty was such a strong business. Now we are a truly omnichannel, and we continue to invest behind that. And we have a talented team of brand and business builders. What does that mean? Siobhan shared the metrics with you earlier on. Our financial ambition is for average revenue go to 5% to 7% over the next 3 years, an average EBITDA margin of 12% plus. So that's it on GPN. What I'm going to do now is we're going to break for Q&A. I'm going to ask my colleagues to join me on the stage. But as they're doing that, we're going to have and Siobhán will join us as well. We're going to have a video. I'm going to talk, just share with you some of the latest creative content around our More campaign. [Presentation]

Okay, everybody. We're going to go to questions. SO as we go, actually, it would be good if the members of the GPN team could introduce themselves as well before we get going. Yes.

Good morning. Steve Yucknut, I'm the Chief Operating Officer. I've been here just about 8 years and prior to coming to Glanbia, I was at Kraft Foods for about 30.

Hi, everybody, Andy Shaw. I joined almost 3 years today actually. Previously that, I was at Red Bull for 14 years across multiple markets and around their U.K. business moves laterally.

Hi, everyone. I'm Wendy Smith, the CFO for the GPN business. I've been with the company just slightly over 2 years. And prior to this, I was at Amazon for about 2 years. And then before that, I worked for Kellogg, Proctor & Gamble and Johnson & Johnson, mostly in FMCG and worked in Asia, North America and Europe as well.

I'm Colin Westcott-Pitt. I'm the Chief Brand Officer. I've been with GPN for 6 years now. And prior to that, I was in -- with Heineken for 8 years in roles in New York and in Amsterdam.

I'm Wendy Davidson. I've been with Glanbia for just about 2 years, actually today. And I joined from the Kellogg Company. Before that, I was with McCormick & Company and before that Tyson Foods.

Okay. So who wants to go first with a question in the room, James Targett.

It's James Targett here from Berenberg. If I may particularly just ask about the guidance for GPN. And on this 5% to 7% organic growth, could you talk a little bit about the drivers of that between the performance situation business in North America, the Lifestyle and Weight Management and the International, the relative growth rates or contribution you're expecting from those 3 areas? And then secondly, just on the margin. You did -- you didn't talk much about kind of the drivers of that 12% plus going forward. So I mean, obviously, we're already at, well, Q4, hoping to keep a 12% already. I appreciate as a plus in the guidance. But I mean, historically, you got up to a 16% margin, albeit in different times, different structure of the business. So going forward, how should we think about margin progression, mix, productivity savings to give an idea of where that could go?

Do you want to go ahead?

James, it's always good to start with a good one. So maybe take the second question first, which is margin. I think our biggest challenge across 2020, if you remember 2020 into '21, our margin profile is increasing all the time post the transformation project. And our biggest challenge in '22 was to deal with 27% inflation in terms of our cost of goods. And we've just passed to our third price increase. So I referenced, we're particularly pleased with our performance considering we've had actually at a macro level, 3 major price increases in the last 15 months. Third one just went live on 1st of October. So those prices will be in place as we move into next year. And while we do expect to see inflation growth next year, nothing like the 27%, we're probably stay in mid- to high single digits. And we do expect to see so some softening in dairy as well. So I think what you're going to see in terms of margin growth is the benefit of the price increases and the benefit of reduced inflation and the benefit of dairy turn. I think the unknown for us is within those -- that price increase, they're just in place. We're watching elasticity carefully. There are substantial price increases in a lot of markets. So today, very early 3 weeks in, pricing is in line with our elasticity assumptions. So that's a big driver of margin. I think as well, we're probably being a little bit cautious as we look into next year, given the volatility we're all seeing in the marketplace and potential recession in the future and what that means. So -- but we do -- we are optimistic to see that margin growth. I think in terms of breakdown, what I said was in terms of growth the key driver of like all of our business that grows in fast will be challenges until we get into half 2 because we're just tracking until we get that velocity up until the new brand is in marketplace, but that's built into our assumptions of 5% to 7% top line growth. We'll see international grow higher than 5% to 7%. We'll see North America in and around that, maybe a little bit less. But all rolls up to that 5% to 7% average net revenue ambition over the next 3 years. In terms of the margin mix, look, the -- you're right, our margin was higher if you go back a number of years ago, but that's really where I'm landing the point around brand investment. We have -- we deliberately set out in '19 that we need to invest more in our brands. And if you look at, you just do the simple math around, if you think about the margin at the time in '17, '18, we have now doubled our marketing investment in international. And we have substantially increased 2.5x the market investment in low end globally as well while a little bit of double. So we are putting more behind our brand, putting more behind our people as we invest. And then -- and that's important because the life stage of a lot of those international markets is very different to, let's say, North America, the U.K. or Australia. So that would be how we see margin. And margins are higher in the U.S. because of the more maturity and the scale of organization we have and the consistency of approach, a little bit less than average in international as we invest in markets of different maturity.

Okay. Next question is from Richard.

Richard Jenkins From Black Creek. Colin, I see is sitting next to Wendy and I'm interested on the stage, the conflict between incremental marketing spend in the digital space and the cycle back on return on investment. Because if you're doubling your marketing spend, the question would be, why not triple it? I know Siobhán wants to fall out of a chair with that question. But if it's -- if you can start to get better feedback on that loop, how is that interrelationship between the financial returns and targets and control and the desire to actually step on the gas? And then I have a second question, if I could.

Yes. So thank you for the question, Richard. And Wendy and I work very, very closely together and real partners. It's a great question. It's actually something we've spent a lot of time focusing on in the last 2 or 3 years. We mentioned -- you mentioned on stage, we now do return on investment studies around 70% of our business. And this is all about rebalancing, rebalance of our investment between trade and marketing and then within marketing itself, how do we use the different media vehicles to different activations across the brands and the products and how do we rebalance that and optimize that over time based on the objectives that we may have and they may be short- and long-term objectives in terms of actually converting into purchase. They might be when we get to diminishing returns on certain media vehicles, which is what we see quite often when we -- after we started investment and is also for certain products, we see certain marketing activation to work more effectively. So for example, amino energy sparkling is actually really effective when we get sampling, when we get cans in people's hands, whereas the standard way can be more effective with media. So it's a constant test and learn. It's constant analytics. It's a job that will never be finished because Wendy will hold all of us as counter pulled in marketing team to make sure those returns are constantly increasing and improving.

I think there's a point to add. Just a small point to add to that is, at the end, we're looking for sustainable growth, not just more -- not just more spend, but sustainable spend that basically gives you a profitable growth rate. So that's exactly what we're looking for. The balance between the top line growth and our margin accretion.

And then the second question, if I could. I don't even know who to address it too, but do you think your brands go across age groups? Or will you need a specific brand to target older active people I kind of have a vested interest in that.

Colin, maybe you can answer that.

Yes, it's a great question. Another one we think a lot of. You'll see all of the data we talked about today and whenever we ask consumer is 18 to 60 years old. So that immediately sets that you're interested in that cohort. It is very important. We bring young people into our brands. That's really, really critical. Doing a lot of work on that. You'll see a lot of the athletes and ambassadors that we use are very, very tailored against that. But we certainly see that as people get more and more interested in the role that nutrition and performance plays in their overall health, whether it'd be across our brands, that's really important. So it is an area that we're always looking at, and we think there's a really good opportunity going forward.

Okay. The next question is from Jason Molins.

First question, Hugh, you mentioned quite a few times that ON has the #1 market share. Can you maybe give a bit of color what your actual market share is where that sits to some of your nearest competitors? And then following on from that, in terms of the competitive landscape, how has that evolved over the last 4 or 5 years, whether that's in the nutrition category or indeed some of the lifestyle brands that you've seen? And then just the growth algorithm, the 5% to 7% that you've outlined, that's including price you've articulated where you see pricing next year. So how should we think about volumes in the sort of 12-month horizon?

Yes. So maybe I start with the last point, Jason. We're not guiding -- we're guiding revenue growth for the simple reason that given the volatility in the market right now, the scale of price increases we put through, the potential elasticity that we feel that revenue guidance of 5% to 7% is the appropriate guidance. We'd obviously be ambitious for volume growth. We'd like to see how this latest price increase impacts the market and impacts demand for the consumer. In terms of category share, I know it's frustrating, but it's even for us, it's very difficult to guess. And that's why I tried to break down some context of what we saw there, which is we're #1 now in FDM in the U.S. We're #1 in e-commerce. We believe we're #1 in unmeasured channels. We don't have that data. I can do the same as I go across all of our international markets. We'll be #1 in channels in certain markets. In that global performance vision, we believe we're around 9%, 10% share, but that's heavy lifting internal work by our own analysis to try and come up with that and it's directional. But the way we'll track it ourselves is looking at it by channel, by sector, by market to see how we're doing on performance.

Okay. Next question is from Alex Sloane.

I've got 2 questions, if I can. The first one, just going back to the doubling of marketing investment around Optimum Nutrition. I mean, clearly, you're seeing good payback in terms of the growth delivery. I wonder about what you're seeing in terms of how that investment is impacting brand loyalty. I think in years gone by here, you've described consumers sometimes being repertoire to our consumers to buying Optimum or potentially a competitor brand if it was on promotion. Have you seen that change at all maybe more in the frequency of that repertoire or more solo consumers if that's the right terminology? And the second one, just you highlighted India as a key success story internationally. And clearly, you have your own local manufacturing there. Is that a blueprint that we should expect to be rolled out in more international markets? And if so, what are the kind of CapEx implications of that?

Yes. Maybe I'll answer the second question and Colin, you can answer the first point. The -- and I might ask Steve to expand on the second. We're quite proud of what we've done in India because there was -- it was definitely a crawl before you walk before you run because -- and what we did first is we launched a local brand with this local partner. So there's no CapEx involved. We work with a local partner. We actually are going to get Steve to talk a little bit about the nutrition -- the concept of how we protect our IP. We proved that model with the local brand. We were confident and then we decided to move above standard. But it has been a repeated model. Once we did that in India. We've now done that in China as well. And that's been great because as I said, if we hadn't done that, we would not have -- we'd have small businesses in those markets unlike we are profitable. And in fact, we could have shut them down. Steve, maybe...

Yes. Maybe I'll build on that just a little bit. If you look at what would it take to expand further, it's probably a conversation between scale and then what is the financial circumstances around tariff and regulatory environment. So India is a very scaled market and the tariffs are onerous and it made a lot of sense for us to put the investment in because it's a significant investment. You're trying to balance between maintaining your quality, maintaining your IP but then being viable on the ground. So you have to have people there that are looking after the business for you in all regards. So you do need to be scaled and then there needs to be enough arbitrage between making it here versus making it there. So that's kind of what drives it. And the same is really true in China, and the blueprint is just about identical. So if you say, how did you make India happen, it's the same way we're making China happen. And the way we protect the IP is with a black box, right? So we have a certain amount of the formula that we protect that we provide to the third party and then they mix it with bulk ingredients, and we feel very good about the quality, and we feel very good that we've protected the brand and the trusted aspect of the IP.

Really good question regarding sort of loyalty. And I think the way that we think about it is that we realized 3 or 4 years ago that we weren't reaching enough consumers with our communication. So it didn't really matter what we were saying if we were whispering it, then they're not going to hear it very much. So now we look at the actual reach. We look at the quality of that reach because not all channels are exactly the same. And then we also look at the frequency of that reach to make sure we're in front of the consumer when they're thinking about buying the category, as much as we possibly can. So that's a key element. We're also looking at engagement as well, but reach has been a real driver for us, and that's where the investment piece plays out. With regards with the loyalty, we make a real effort to make sure we're very much in touch with what we call our super consumers and the profile that you talked about before. That's why we're very active in gyms, that's why we're very active with personal trainers because that consumer is critical because they are, in effect, much better ways to tell other consumers, people coming into the category about our brand and we are. So we keep very close to them. But again, we've got a big eye on that recruitment and bringing more people in.

Cathal Kenny From Davy. A couple of questions. Firstly, back to the 5% to 7% growth target. Can you perhaps distill that by format powders versus non-powders? Secondly, the role of innovation that's going to in terms of growth over the next couple of years, what's your outlook for that? And finally, on North America, I think one of the slides here, you touched upon changing the route to market in terms of how you approach customers with a holistic portfolio. Can you give us some color in terms of whether that's been a success or not? And are you confident that that's the model you'll continue to adopt?

Yes. Maybe I'll talk to -- Wendy, you might talk to model in North America and I'll speak to the 5% to 7%. Steve always reminds us called the powders are king. The more powders we sell, the more efficient we are with the better margin we make. So powders is a scale. It continues to be a scale part of our business. We do have a significant, I think it's over 60%. We do have a significant RTD business, which we be primary in fast so we'd see some of that philosophy start to increase as we go into the back half of next year. But the primary growth driver will be powder format and that powder format globally. In terms of innovation, just to speak to that, we use tabular metric and innovation when you go back a couple of years, in fact, at our capital markets in 2018, we had one. And what we found is there was unintended consequences for that innovation metric, particularly across our international businesses. When the primary focus, and I'll ask Andy just to expand on this a little bit is there's so much opportunity for standards and amino energy that the focus is on driving distribution and driving awareness of the brands. And we don't want the teams to be distracted in our international markets by innovation. When you look here at North America, you'll see some of the innovation that we have in place, launching our ON RTD into FDM. We launched a plant protein under ON as well as again evolved and are meaner and just in packets. We continue to be innovative in our Tier 1 markets such as U.S., U.K. and Australia, also in Europe, but in our international markets for more focused on distribution and do you want to add?

Yes. No, I just agree. It's particularly outside the U.K., the main challenge we actually had was reducing the range and really focusing on the profitable lines. Focusing on products within the ON portfolio that actually make us good money. And then that actually fuels that brand investment that will give us the sort of medium, long-term growth. So yes, from my perspective, innovation is a pretty small part of our strategic opportunity, particularly in markets like India and China and Asia, we've got loads of great products that we can just get on with selling, building distribution and building the brand.

And in terms of the question on North America. So when I joined 2 years ago, as Hugh said earlier, we had 4 separate sales forces going after the marketplace in very different ways and our business was at that time, a little over 50% in specialty and club. So we were highly dependent in those channels. Over those last 2 years, we've built a scaled organization to be able to go after the marketplace as an entire portfolio of business. So instead of being divided by brand, our sales team, our commercial go-to-market is divided by channel and customer. That gives us the ability to invest in scaled capabilities. So we now have category management team to be able to talk to our customers. We have insights and analytics to be able to really know what the consumer is doing across all that space. And then we've invested in things like shopper marketing, integrated marketing that allows our team to partner with our retailer partners to be able to grow the brands. Really proud to say that our business is now over 50% food, drug, mass, not because the rest of the business got smaller, but we picked up share, and we're actually the fastest-moving SKUs, most productive in those retail partners. But it's allowed us to be able to then sell other parts of the portfolio. So we may have had strength with a brand like SlimFast, we've been able to pick up sports nutrition placement in store because of the anchor relationship we had on the other brands. And because of the efficiencies we've driven, we've been able to actually invest in those additional capabilities to go to market the way they would expect a large company like us to do.

Okay. Constrict of time. So we're going to park any more questions in the room. I believe there's a couple of questions on the webcast, which have come in. So Donard, can you let us know how many we have and what they are, please?

Yes. Thank you, Liam. A lot of them covered there, actually, but a couple of interest too here. One is how do you manage volatility in the international business.

With great difficulty at times, but I think I would say it's a testament to the team that we've built. So if we look at the team in international, the leadership team, 70% of them are new since 2019. And they're all hate the word seasoned because you kind of put brackets old, but they're all kind of mature, experienced leaders and actually particularly within their market. So fantastic to see in the video there. He spent 14 years. Perhaps echoes I thought one of the most professional people I've ever dealt with, and he understands that volatility. So with regulatory challenges, the Indian market, the route to market, the government is very complicated to do business there. So we have the right people on the ground doing that for us. I think the other thing I'd say to that brand peak, the best brands are very resilient in volatile times. But that's why we still talk about the Nikes and the Apples and the Coca-Colas because no matter what happens, they ride through that because they invest for the medium term and for the long term, and that's very much very much the plan with ON, particularly across all these international markets. So it can be challenging undoubtedly, but if we just keep focusing on the basics and putting really good talent in the markets so far, we're very confident for the future.

And our second question, can you speak to some of the additional financial disciplines you now have in place versus a few years ago on areas like promotions and channel inventory?

So one of the things we recently introduced about when I first joined the company, it was revenue growth management, and some of you may have heard of it before. It's basically a disciplined where you're trying to drive sustainable, profitable growth through trade management, promotional management, pricing and assortment. And the way we approach it in GPN was we started by having a small center of excellence where it's a few people that really own the process, the management, the training as well as the objectives. And then what we really went out is to educate and embed revenue growth management within all of our markets. Education came from virtual and in-person training, where we train most of our commercial, marketing as well as finance colleagues to revenue growth management. And we had customized case studies that's really related to the GPM business that we shared. And then I would think my commercial colleagues here would agree that we really did a good job embedding revenue growth management as a discipline within the business. And it's basically leveraging all of the strategy course such as trade promotional management, price pack architecture or even tray pricing to really make sure that we're delivering the kind of top line growth and margin accretiveness that we want to bring to the business. And then finally, when we look at our strategic plan going forward with 2023 and beyond, revenue growth management is actually very well featured as an enabler to drive growth and margin expansion. And I know recurrently we have a really great set of playbooks by brand and then for our key markets to really make sure that we drive the activities that we need to see in order, again, to drive top line growth and to help us drive bottom line accretion as well. So I think in general, it feels like a good success so far. I know we've been going through a lot of pricing increases. You heard earlier 3 rounds and to offset inflation and other pressures. And I think -- I feel like it's going well, and I want to thank the commercial teams, they've really gone out the did all the hard work to make things happen. But it's still a long road to go, but it feels like it's a good enabler. We now have in our P&L to drive sustainable growth.

Okay. Right. We're under a bit of pressure for time. So we're going to take literally a very, very short break, 5-minute break just for a nature break, and then we're going to come back for GN. So we'll see you in 5 minutes. Thank you.

Thank you. [Break]

Okay. Thank you. We're about to get started with Glanbia Nutritionals. Thank you very much.

Okay. Welcome back, everybody. Over the next 30 minutes, I'm looking forward to showcasing the GN and more particularly, the Nutritional Solutions business with some of the team. To be just turning to our first slide here. GN, hopefully, this gives you a sense of scale and global reach of the GN business, strong market positions across whey, premix and cheese and a global footprint with 20 production locations and indeed, 14 innovation locations across North America, Europe and ASPAC, revenue of EUR 3.4 billion and NS now scaled at EUR 1 billion. We're going to cover NS in detail over the remainder of the presentation, and hopefully, that will give you a sense of the scale and reach and capability and the platforms within that. But just to cover cheese or to cover Cheese off earlier on, EUR 2.4 billion business and the revenue includes the output from the JVs in Clovis, New Mexico and St. Johns, Michigan. And we're required to include those under IFRS as the commercial partner. So again, this is a business that you can think about as a #1 position. We produced 1.3 billion pounds of cheese, just under 600,000 tons and every 1 in 4 slices of the cheese that's consumed in the U.S. of American-style cheddar is manufactured in a Glanbia operated facility. We look at this business really as a stable cash generator, strong return on capital employed. We deliver -- it's a business that really matches big with big, and we're supplying all the major retailers and food service companies. As I said, it's a stable cash generator business. We expect to grow earnings over the '21 level in '22 and maintain that over the life of the plan as we've outlined today. Hopefully, as I said, with NS, you'll get a good sense of the key points here. So Siobhán spoke about the categories that Glanbia play into. And I guess, we look at those categories through 3 key platforms here. Customized premix solutions, which is our vitamin and mineral premix business; function and nutritional proteins, which is our protein solutions business; and then our complementary capabilities of which we'll focus and talk to flavors today. That's all connected really to those categories through innovation and insights. And you'll hear a lot about innovation today. Innovation has been at the core of our organization. And as we look at the revenue journey here, a strong track record of revenue growth over the last number of years across all of those platforms. So good growth within the platforms and overall 15% 3-year CAGR growth over the last 3 years. So good growth, but that includes both organic and acquisition growth. Nutritional Solutions is now scaled EUR 1 billion business. When we set out our capital markets ambition in 2018, we wanted to be a scaled $1 billion organization. We've achieved that target 1 year in advance. We set it out for '22. We've had strong average organic volume growth of about 7.9% and good earnings progression beyond that. We've continued to invest heavily in the NS business. Global innovation expertise that we'll showcase and investing in capability to increase our relevance with customers. And we've done that both organically and through acquisitions. We've built on our core strengths in protein and premix, and we've added key acquisitions across the Nutritional's platform and obviously scaled in flavors. So just within that, I wanted to cover a fundamental pillar of our growth and through acquisitions. We've spent EUR 300 million on 4 acquisitions, all completed over the last 4 years of market. And we've engaged with companies who felt that Glanbia was the right home for these businesses. The Watson 29 acquisition gave us complementary customers that gave us East Coast facility and it gave us access to new technology. Foodarom, we had a small startup in flavors because we know how flavors integrate with protein, gave us access to 20,000 flavored library. PacMoore really interesting and important acquisition for us in protein. We have great ingredients. We are the best at innovation and this is the technology that unlocks our ability, extrude the technology to allow us to bring proteins to the world in a range of formats. It's all about increased protein in everything. And extrusion is the technology platform, combined with our ingredients and our innovation to really unlock the potential there. And Sterling, a classroom business, an ingredient is well understood and good health and immunity adding also to our existing portfolio there, lactoferrin and TruCal. So really increasing our dairy bioactives capability there and growing the market overall. Just want to talk a little bit to the go-to-market strategy as GPN did earlier. We set out a number of years ago to be to bring one face to the customer. We wanted to bring our full breadth of capability to those customers to increase our relevance to them. That was to be insight and innovation led are supported by centers of excellence to give us efficiency and scale. And then in terms of efficient scalable model, I think we've demonstrated the strength of our operating model over the last few years as we bought and integrated 4 acquisitions. And that -- the strength of that model has really come through in that time. Just in terms of our competitive edge, what we feel our competitive edges, we have unique access to ingredients. We've got really deep innovation capability and Loren will speak to that shortly. And we really have an accelerated development in terms of our partnership and collaboration. So really, we will talk to our 14 innovation hubs, and we talk about getting customers in, having a real expansive playbook of capability and been able to get solutions quickly to help customers support their brand ambition and to help them solve problems. The customer is at the core of everything we do and we bring a breadth of offerings. And certainly, the increased capability of the ingredient business has enhanced the nature of conversations we're having as customers see us in a different lines. And obviously, then we have a global presence, which is key as customers say, well, can I partner with these companies, have the ability to match my ambition to grow internationally, and we have that with a global footprint and of course, strength of our supply chain is key as well that efficiency that a big organization brings. So this is a customer testimonial. It's Pat Cavanaugh, the Founder and CEO of Ready Nutrition. And he talks here to our journey, the NS journey with them. [Presentation]

So hopefully, that reinforces the points: deep innovation expertise, our accelerated development cycle, building our capability to increase our relevance to customers and indeed, that trusted partnership with these brands. And as he has grown and his ambition has grown and we have grown our capability to be able to support head another customer's brand ambition. So just move back here. So look, turning to innovation. In NS, we have really importantly a culture of innovation. Innovation is really at the core of the organization. So I want to introduce Loren Ward, who's our Chief Innovation Officer for Glanbia Nutritionals. And he'll really bring to life this global innovation hub and platform that we have matching to be ahead of our customer ambition and also some of the technologies that we're using to solve issues or challenges for our customers and to build out their brand ambitions, where they have ambition to play in particular sectors, and we're there to partner with them on the journey and to solve the challenges in bringing those products to consumers.

Okay. Thank you, Brian. I'm excited to be here today and share some of the things that we've been doing, some of the investments that we've been making to expand our global R&D footprint. To develop innovation and collaboration centers that our customers can have access to, and we'll go through some of the rationale of why that's important and give you some examples. First of all, I'd just like to show the global footprint back in 2018. That's what you see on the screen right now. There were 7 sites. And if I click, that's what our global footprint looks like today. So some of those have come through acquisition and some of those have come because we've identified a strategic site where we wanted to build an innovation center. There's a few to highlight briefly of things that we've done over the past 4 years. The first, I would say, we've done and built a new innovation center in Singapore. And we've also have a new lab in China, and we're just getting ready to put capabilities into Japan. So that will really help fill out our capabilities to link with customers in the Asia Pacific area. In Europe, we're doing a remodeling and renovation and expansion of our Kilkenny lab and that will bring in pilot plant benchtop facilities and that will help round out our European offerings. In North America, we put a new pilot plant and benchtop facilities in Twin Falls so that we could dig deeper into extrusion, confectionery and flavor applications. So it's really important as you look at customers, they want to link with us to be able to link and do rapid prototyping. They want to learn from the scientists that are there. They want to access the technology that we have. And just in reference to the rapid prototyping, for example, we had a customer, a multinational customer come in about a month ago, and they had a couple of areas they wanted to develop in bakery and confectionery snacking areas. And over the course of 3 days, we're able to put together 30 prototypes. And then with this rapid prototyping and because they're there on site, you can get the feedback and have the dialogue really quickly and then we could refine that down to just a handful of prototypes they wanted to move forward with. And that probably saved at least a half a year of back and forth in development time. So you see that shortened development time with the customer. The other thing customers like when they come, we have a lot of base technologies that solve challenges that customers have. And here are some examples of some of the technologies. We've got a custom premix solution platform, functional and nutritional proteins and complementary capabilities. These aren't all of the technology platforms. These are just some of the technology platforms that we're working with today. And I'll just give a few examples here. Well, maybe just to start, when you look at a technology platform, these aren't single ingredients, they can go in a lot of different directions, so take PepForm, that's up there. PepForm is a peptide carrier system to deliver amino acids of choice. So if a customer comes and they want to use the amino acid loosening and that's amino acid that drives muscle growth, we can do a PepForm leucine. If they want the complementary immuno acids, isoleucine & leucine and valine, we can also do a PepForm version of that with those amino acids. If they want like an anti-stress peptide we link with the amino-acid trip defense. So there's a lot of different types of ingredients that you can do on those platforms, and then they go into a wide variety of formats. It could go into a bar, a ready-to-mix beverage, ready-to-drink beverage, it could go into a gummy and a lot of different applications. So you get a sense of where this can go and how it can be developed as customers come. So a couple of realized examples that have been commercialized that might put a little bit more color and give some examples of some of the things that we've done. I'll start with the NutraShield and microencapsulation technology as an example. We had a large supplement company come to us, and they were interested in developing a gummy, and they wanted to put in that gummy iron and other vitamins. And if you look at mixing those 2 things together, nutritionally, that makes a lot of sense. But if you mix them together from a chemistry standpoint, the iron causes rapid degradation of the other vitamins. So they want a system where you can put it on the same thing, but you want to hit the nutritional end product and you want to prevent or limit the degradation of the other vitamins. So in order to do that, you can encapsulate the iron. You take the iron as the core, you'll put a shell around the outside of that to protect it from interacting with the other components and develop a system then that goes into the gummy that delivers the right nutrition and the right shelf life and the right taste. You can also use that encapsulation to help mask some of the flavors that come from iron as well. Another example would be, if I move to one more GranulPlex, we had a large nutritional company come to us, and they wanted to develop a tablet that did a quick dissolve. So they wanted to put some vitamins in the tablet be able to drop it into water and have a very quick and a few second dispersion of that -- of the tablet. The challenge, if you look at the tablets right now in the marketplace, they're very hard. And the reason is, as they're made very hard because if you make them soft, they chip, crack and break and they don't survive the transportation process. And so the challenge that was presented then is, can you make a hard tablet that dissolves really quickly and rapidly. So the GranulPlex technology allows us to change the particle characteristics to condition the material for the specific application. In this case, we took the carrier material and we changed the particle size, we changed the surface chemistry of that so that we could get good compressibility. So you get a hard tablet. But if you looked at the microscopic view of that, there's interstitial spacing that allows the water to go in and disperse that really quick. So we were able to answer that GranulPlex technology meet the desire that customers so they could launch that into the marketplace and have a hard tablet with quick dispersion. Another example, we have deep expertise in bar formulations across whey proteins, milk proteins, vegetable proteins. We had a customer come who wasn't satisfied with what was out in the marketplace for vegetable proteins. They wanted to make a vegetable protein-based bar with P protein and they wanted certain characteristics and traits with the P protein and they also wanted certain flavor traits. And so we applied some of our protein chemistry platforms and technologies to develop a P protein solution that gave the right texture, and then we also added a complementary capability with the Foodarom flavors to be able to match that and optimize the flavor. Those of you that have worked with flavors and proteins know if you can specifically match those and tailor that application, you're going to get a lot better flavor at the end of the day than just dropping in a standard flavor. One more -- another example, the crunchy milk protein bites, the extrusion platform. If you look at standard extrusion, which is the technology used to make like cold cereals, handheld snacks, puffs, things like that. Typically, the protein content to that would have been around 15%, 20%. The customer that came to us, said, can you make something that's over 70% and the challenge in that is as you try to process proteins, proteins tend to gel, they'll plug up the equipment. So we combined our protein chemist along with the extrusion experts from the PacMoore acquisition to go to work on that problem and develop a platform and a system so that we could do high protein extrusion that would go across snacks, chips, inclusions that type of the platform so customers could come. And in this case, the customer then took that high protein inclusion, put it into a bar and launched it out into the marketplace. The last example I'll give is a complementary capability, the Foodarom flavors. We had a large bakery chain approaches. They asked -- they were on a time crunch. They couldn't find anybody to do the rapid prototyping that was needed and hit the right time lines. We were able to work with their contract manufacturer, bring in the base material, do the rapid prototyping inside, get the flavor, optimize for them and get that out in a timely manner, so that they could meet their launch timing that they wanted to do out in the marketplace. So as just a sense of these technologies, there's a lot of directions you can go with them. We have a lot of technologies that will help our customers solve the challenges that they have. We have done a good job to build out our capabilities, both globally and our technologies internally so that we can help our customers have successful launches out into the marketplace. With that, I'll give it back to Brian. Thanks.

So hopefully, we didn't go too technical, but I guess it was really important to give a sense to this audience really of the innovation capability within the NS business. And I'll ask then to those of you who are working regularly with flavors, integrating with protein, I was going to hands up who's doing that on a day-to-day basis. But it was -- it is important that we do get a sense of the innovation. And this is what we bring to customers, and we think about our innovation hub and our technologies, we are bringing in technologies that bring functional and nutritional solutions to customers. And that's why we're engaged with them as we filled out this footprint and filled out this capability, we're entering into different conversations with the customers who have been part of their innovation days were brought into the conversation around these are our plans. This is what we're planning to do. How can you support around that. Only last week, we had -- a couple of weeks ago, we had one global food and beverage manufacturer in which we showcased 30 prototypes. We're now working on 5 of those with them. So that's the type of capability that we've tried to bring to the table. So just next up, I just want to talk to a short video really that brings all of this together really about innovation at the core, and the video really shows how we show up with our customers, we're essentially built around them. [Presentation]

Turning now then to the 3 platforms we spoke about, and I just want to take the opportunity to talk to them in a little more detail, giving more color to the journey we've been on building and growing out our capabilities. And I guess, paying ahead of our customers' growth ambitions, both globally and regionally. So customized premix solutions journey started with the acquisition of a small business in Germany. Then we bought Seltzer business in Carlsbad. So from modest beginnings, we've grown this business to over EUR 0.5 billion in 2021. And the last 3 years, we have a 3-year CAGR of 20%. We've replicated our facilities, Orsingen facility in aspect to get ahead of our customers' growth there. New facility in Springfield, Missouri, and then we've expanded in Europe to get ahead of our customers as well, and we plan -- and we're now looking at plans to expand an aspect. And of course, the Watson acquisition gave us a new facility, complementary customers, but a lot of that technology capability that Loren spoke to earlier on, which now gives us different conversations. We were actually accessing that technology to bring value to our customers and then we bought the business because we felt this was a good additive piece to our capability. All of that capability, I guess, is helping us play into those subcategories of the 4 categories that Siobhán mentioned earlier on, and we have opportunities across the piece there. So I guess with that in mind, thinking about our ambition for the business, we are in categories in growth. Hopefully, we've demonstrated and you see a strong -- the global and regional -- global scale. And then we have really good customers both globally. So we're getting ahead of their growth and then regional customers as well. And we have an opportunity to take this technology and leverage it across that global footprint. And hopefully, you've got a good sense of that from Loren and you're asked to get an opportunity, those of you who are here as per the workshop to further engage with those technology platforms and we're anxious to grow the business further and do further M&A. We're not restricted to LatAm or Southeast Asia, but we would like to build out our footprint there, have facilities on the ground there to grow with those customers. But we're ambitious to grow in North America, Europe, and we would see ourselves hopefully acquiring further businesses in this area. Then on the NS key platform functional and nutritional protein. We've built up access to ingredients, our primary manufacturing in our Idaho operations, which is a lot of the heritage of the core business. We've done very successful joint ventures with our member partners in Southwest Cheese goes to Mexico and in Midwest and Siobhán referenced that building $470 million facility on time and full through COVID and that gives us access to -- obviously, it's a cheese facility, but also our store way facility. So it gives us access to ingredients through those joint venture models. We've had a heavy investment in innovation. And you've seen the footprint that Loren put up and how it's evolved significantly. So we've got ahead of that. We want to be strong in innovation. We want to be where our customers are, and we put a lot of investment into that over the last number of years. And Loren, as I articulated that, and you want to address North America across Europe, across Asia. And then adding supporting technologies, as I spoke about Sterling, that cluster of ingredient playing and immunity health enhancing an existing area of active profile offerings that we have in lactoferrin and TruCal. And then PacMoore, which is really the last phase of zig saw in that ingredient innovation technology piece to bring growth in higher levels, which is a difficult thing to do, as Loren said, to a range of customers. All playing again into those categories that we've built up a business that's over $450 million with a 3-year CAGR of 12%. So again, our ambition here is built around categories and growth, strong customer relationships and an innovative partner. Siobhán talked about it earlier on. We believe we're a protein powerhouse. That's not just dairy, it's nondairy. We know how protein work in a range of applications, we're the protein experts, and that's what we bring to the table with customers. We're leveraging the technology to bring protein to the world in a range of convenient formats. And we want to replicate our dominant North America position in international markets in Europe and NASDAQ. And a lot of that innovation investment is to get ahead of that. And obviously, we're ambitious to do further M&A activity as appropriate and as we see as complementary to what we have. On the complementary capabilities, largely today, we're focusing on flavors. We want to scale, as I mentioned, we up weighted our investment here to bring. We knew how flavors integrated with protein. We've now accessed a catalog of 20,000 flavors. We want to unlock that potential across the Nutritional Solutions global platform. And we want to continue to innovate, and we are anxious to do further M&A and double down on this over the next while. Our growth ambition, I think Siobhán has covered this. And again, Mark will later on as well. We're building on our core strength in premix, scaling, existing protein, scaling complementary technologies and M&A across the entirety of the base. We're looking at organic volume growth of 3% to 5% and EBITDA structural margins of 12% overall. So I suppose in conclusion, hopefully, you've got a really good sense of the NS business today. A real sense of global reach and scale. I hope you got a sense of the deep innovation capabilities, a sense of the track record of organic and acquisition growth and a sense of the ambition. And I think you've seen the video where you had some of the team on Loren has been on and you've engaged with some of them in the room and indeed in workshops later on, we're ambitious to grow this platform and to grow the business. So thank you, and I'll hand over to Michael.

Good morning, everybody. And to those of you in Europe, good afternoon, and thank you for being with us, and I'm delighted to have this opportunity to share details with everybody about our ESG journey and update you on our sustainability targets. So as you are aware and as Siobhán spoke to earlier, delivering better nutrition for every step of life journey is our long-standing purpose. Our purpose defines why we exist and also how we have a positive social impact and generate shareholder value. And as Siobhán said earlier, our purpose and products have real meaning and impact in a world where lifestyle diseases are the #1 killer worldwide where better diets and active lifestyles are the most important preventive measures. And that's at the core of what we do and how we do it. And in the GPN sense, that's products that go that are supporting consumers directly. And with Glanbia Nutritionals, it is a true -- the wider food industry and a customer base. If delivering better nutrition is our purpose, our ESG focus is about how we bring that to life. It's about delivering better nutrition responsibly. We have clear science-based targets. We are focused on delivering positive impacts inside and outside our organization. We have strong governance that goes from the Board and linked to our remuneration outcomes. And while delivering sustainability -- while we've been delivering sustainability and CSR initiatives for many years, Glanbia has had a formal sustainability strategy since 2015, focusing particularly on our direct environmental impact. In 2020, we evolved that further to take a more holistic view of ESG with strategy that span climate, environment, people, ethics, quality, safety, transparency and reaching through all parts of our business. Our prioritization of ESG matters is informed by our bi-annual stakeholder materiality work, which evaluates the areas that our stakeholders feel generates the most positive and negative potential impact by Glanbia. So the assessment methodology has evolved over the years in line with the DRI. The feedback has been remarkably consistent. In addition to our long-standing focus on quality and safety across our organization, which are at the core of our business, our stakeholders are concerned about climate change and environmental impacts on diversity and inclusion and on good business practices. Supported by external advisers and aligned to the UN's sustainability -- sustainable development goals, we have taken a rigorous approach to measuring our impact through data, baselining and risk assessment. We have a clear strategy aligned to science-based targets and other relevant benchmarks. And our focus now is about driving action to achieve our targets. In doing so, we keep our stakeholders informed with DRI aligned reporting, our CDP disclosures as well as our annual TCFD and nonfinancial reporting. And we are currently evolving our data systems and processes to meet new disclosure requirements, which are coming with the forthcoming EU CSRD directive. And finally, in this area, we work very closely with EcoVadis on benchmarking and score carding all of our supply chain to ensure that their impacts are in line with our objectives. Today, I'm going to focus primarily on our environmental sustainability agenda where we recently updated some of our targets at our recent IMS. In 2020, we set out our Pure Food Pure Planet sustainability strategy, which prioritized 4 key areas, being climate, water, waste and packaging. We also linked our ambition to remuneration, which was formally approved by shareholders at our 2021 AGM through our updated remuneration policy. And senior management long-term incentives are now directly linked to achievement of our environmental sustainability goals. Moving first to climate and specifically our Scopes 1 and 2 emissions. We aligned to the science-based targets in 2021. And our SBTi validated our plan for a 31% reduction in Scope 1 and 2 emissions. However, in line with a changing global consensus, we have increased our ambition to achieve a 1.5-degree temperature target. And the implications for that as a business is that 31% target is no longer sufficient to get us there. And through a sense of work done by our engineers, procurement teams and operations teams, supported by external advisers, we have now updated our targets to achieve a 50% reduction in Scope 1 and 2 emissions by 2030 in order to reach this 1.5 ambition, which is so important globally. And the question is, that's great, but how do you get there? And there's a number of actions we are taking. First of all, our operating emissions throughout Glanbia are roughly 50-50 between Scopes 1 and 2, and there in lights the opportunity. We intend to achieve 100% renewable electricity across Glanbia by 2030. Our sites are going to migrate to this target progressively over the next number of years through a mix of PPAs and self-generation. And in fact, our facility in Orsingen in Germany is the first to move to on-site generation and we are advancing plans for other sites. We've also laid out plans for driving energy efficiency across all of our operations based on comprehensive energy audits across our estate. And those energy efficiencies will be driven on a mix of technology improvements, upgrading our facilities, enhancing our energy management systems and will be delivered in a number of phases over our planned period and will specifically and particularly address Scope 1 emissions. Our work in Scope 3 is ongoing, focusing in particular on the dairy supply chain. And in 2021, again, SBTi validated our target of a 25% intensity reduction in Scope 3 emissions by 2030. Our current approach by the nature of Scope 3 is very much partnership-driven. Within Scope 1 and 2, we are in direct control. Our decisions actually decide when and how we make the move. In Scope 3, it is very much working with your supply chain and working in collaboration and close partnership. And that's a very important principle, which we are pursuing. We were an early leader and collaborator as part of the industry Environmental Stewardship Committee that delivered to the U.S. Dairy Net Zero initiative, which remains the core U.S. focused on net zero by 2050. We're working in close collaboration with our joint venture partners who share our commitment to reduce emissions and who also in the case of Dairy Farmers of America have an ambitious SBTi target. So our approach overall in this area is 4-pronged and it's quite iterative as technologies evolve and we learn more. First of all, working with the rest of the industry and with our advisers, we've evaluated the technologies available to reduce on-farm admissions to understand the most effective, what also is important, those which are economically viable and feasible. We've also undertaken data mapping of our direct milk suppliers. And now we have 100% of that supply mapped. And that's a very important step because this allows each farm to understand its specific emission sources and calculate its baseline emission factor. So on a per farm basis, each farm that you visit will just have a slightly different structure, its own way of doing things, and it's really important that the technology is actually matched that rather than a [indiscernible] approach. We're currently conducting further work in this area to drive insights and build a more robust profile of all of the actions across our supply base. And our JV mill partners are doing likewise. And this is currently where we're putting most of our effort. But bringing it all together, understanding technology, understanding the individual farm structure, we bring together an emissions plan on a per farm basis that is -- delivers the reductions that we're looking for, but equally are economically viable. And in that regard, working with the U.S. industry and our supplier representatives, we are looking at a range of incentives and support to underpin that transition. The adoption of low carbon fuel standards across many U.S. states, federal schemes and support and related tax credits now coming available under the recent Inflation Reduction Act are all opportunities to create the incentives and support to allow farmers to make an economic transition. Many of our farmer suppliers are already adopting anaerobic digestion and other emissions reduction technologies, and our ambition is to promote that more widespread. A program such as this is large, is complex and it's multi-stakeholder, and we strongly believe, as I said earlier, in a partnership approach, which will best deliver the reductions we are seeking. So it's very much work in progress, and we will continue to update as we go forward. But I think an important point maybe to iterate at this stage, is that our current work on TCFD financial quantification, which will be in our forthcoming '22 annual report has largely concluded that Glanbia is mitigating our identified risks in a transition scenario through a combination of supply chain arrangements and the delivery of our emissions reductions programs by 2030, and that's very encouraging. Moving on to our water targets. Water has been a long-standing focus for Glanbia over many, many years. And as an organization, we are hugely committed toward conservation. And a lot of the programs which we have run over many years, you could see actually in where we are today. Since 2015, we have reduced freshwater consumption intensity across the organization by about 17%. And we're now focusing on a further 10% absolute reduction of freshwater use by 2025. And that's an annualized saving of over 500 million liters of water each year. As an organization, we've become quite adept at recovering water from our fresh milk deliveries as we separate out the nutritional content and reuse the water in our processes and then ultimately treating it and returning it to the environment. That means that overall, as an organization, we actually have a positive water balance. Actually, more water leaves our factories that we actually take in as fresh water. An example of how this is done would be in our Gooding plant in Idaho, where we harvest the water that comes in our milk supplies. We use it in our processes. We treat it, and then we use it for irrigation, which grows crops and those crops go back to farms and the process starts all over again. So quite circular in that regard. But it is an example of the focus that's there. In relation to waste, and this is an important area for us, food waste, as you may know, is ranked as perhaps one of the top 3 actions that can be taken in terms of climate change, as a planet, as a society, 30% of waste -- our food is actually wasted and isn't actually consumed. In the developing world, that's caught in process, but in a developed world, that is largely post consumer. So there is a strong emphasis on working on our food waste. So like many in our sector, we are committed to a 50% reduction in our food waste by 2030. Our current focus and in terms of a higher order of use of your waste at 78% of our current food waste actually is recycled to animal feed but our absolute target is to actually reduce that level of surplus are nondeployed resources and actually get that overall number down. On our overall waste target, we had a zero waste landfill target. We've actually upgraded that to achieving true certification. But that's important is that zero waste landfill could be just a diversion strategy, whereas a true certification is actually waste reduction, is targeting absolute waste reduction. And we are committed that by 2025, all of our sites across land be only certified against that true certification. Moving on to Consumer Packaging. And you touched on this area earlier. Our overall target is for consumer packaging to be 100% recyclable, reusable or compostable by 2030. And this is a major focus for GPN and [indiscernible]. And the recycling element and focus is well advanced, dedicated resources that are in place with projects running across all packaging types within GPN and also the development of new packaging types for the future. Hugh did mention the work that was done on the black tub, that was an important piece of work. It's an iconic part of the GPN brand. It has broadly, widely recognized or valued by consumers. But at the end of the day, just to ensure that it is maximizing its recyclability. It's already made of recyclable material, but just to ensure that actually when it goes through the whole life cycle that those recyclability rates are actually achieved and the new iteration of the tub, which is coming on screen, as Hugh already said, is going to be widely recycled and certified as such. So good work in taking place there. I want to update you briefly on our diversity, equity and inclusion work, which again has been the subject of a full strategy review in 2020. And the achievement of our goals again here is directly linked to our annual incentives for senior leaders. So Glanbia as a company does have a strong culture and has good employee engagement scores overall. However, our DEI review in 2020 did call out that we needed to make more explicit what we felt was our internal culture. Our support and sponsorship of diversity and inclusion and to ensure our work practices enabled a more diverse workforce. Board-approved strategy is being executed right across the organization, building and -- working on building an actively inclusive culture, growing gender and racial representation and senior management, in particular, and creating more equitable work practices and benefits. And our work to date since we completed our strategy has largely been working on our leadership, building leadership awareness, building leadership skills and impact but equally going to our employees and giving a voice to our diverse employees through the establishment of employee resource groups for women, racial and ethic and LGBTQ employees. We're supporting that with a focus on smart working and flexible working principles, which are being implemented to make the workplace more successful overall. And more recently, we've also focused on parental leave benefits to create globally consistent standards. We are tracking how this is going down with our consumers. We do attract employee perceptions of our culture of inclusion. And today, thankfully, we are seeing positive results, but we have a distance to go, and we are very committed to it. We are working, as I said earlier, to build increased diversity representation at management level through retention, development, succession and hiring. And our business unit leaders are incentivized to deliver annual representation, improvement targets although we do see that as a multiyear program. In conclusion, as I said at the start, we are on a journey. We have a well-developed governance process. We've built good data analytics and we've set stretching and relevant targets, which are subject to external reporting and validation. Our incentive programs are designed to support delivery. Overall, we believe our business with positive total impact supporting population has well-being. Our climate goals are now aligned to global momentum to slow and limit global warming to 1.5. We are informed by our stakeholders in setting clear priorities and people are at our core as employees, customers, consumers, communities and investors. And we are committed to making Glanbia a purpose-led dynamic place to work for everybody who shares our purpose. And as we go on this journey, we will report openly and transparently as we progress in our journey, again, aligned to GRI reporting. And finally, as Bill Gates famously said, "people overestimate what can be achieved in a year and underestimate what can be achieved in a decade." Thank you for your time.

And I'm now going to hand over to Mark.

Thanks, Michael, and good morning to everyone here, and let me extend my welcome to all of you here and online as well. You've now heard a detailed overview of the strategy and the ambition we have for Glanbia Performance Nutrition and Glanbia Nutritionals as well as our goals on ESG. What I would like to do this morning is take you through some important points regarding the group's financial performance and also to summarize our overall financial ambition for the next 3 years. You would have seen that Glanbia as a group has significantly evolved since our last Capital Markets Day. In 2018 with a focus on leading and growing our core, optimizing our business and applying disciplined financial management. Hugh has outlined how well we are positioned to capture the global potential of a $1 billion Optimum Nutrition brand as well as our ability to build on the GPN lifestyle portfolio. And Brian has shown how we can build on our core strength in customized premix solutions while also scaling our extensive capability in proteins. We've been optimizing our business through innovation and refining our business and operating model. Most recently, of course, with the sale of our 40% stake in Glanbia Ireland. We have also and we'll continue to look for ways to expand margins by further leveraging our group operations and using technology to ensure our operations are efficient and effective. And we do all this with a disciplined approach to financial management by ensuring that we have strong cash generation, strong balance sheet, which allows us to invest behind our businesses organically as well as to pursue accretive acquisitions. And we have consistently returned capital to shareholders via dividend and more recently, through share buyback activity also. So firstly, I would like to take a look back at our track record of performance. Here, you can see our reported adjusted earnings per share and dividend payout over the last 10 years. From 2011 to 2021, we have reported a compound annual growth rate of 6.5% in adjusted earnings per share, notwithstanding a very challenging year in 2020 when the pandemic was at its peak. Adjusted earnings per share has grown from EUR 0.463 in 2011 to EUR 0.778 in 2021. And in 2022, we are on track to report adjusted earnings per share between EUR 0.98 and EUR 1 based on our latest guidance of 10% to 13% constant currency growth or 26% to 29% reported growth. During the same period, we've increased our dividend at a compound annual growth rate of 13.5%. This, of course, was impacted by our decision to move to a payout ratio of between 25% and 35% from 2017 onwards. This is well received by our shareholders, and the group's dividend has increased from EUR 0.803 a share in 2011 to EUR 0.293 a share in 2021. You will also be aware that we also increased our 2022 interim dividend by 10%, which was paid out last month. Turning to operating cash flow performance. The group introduced operating cash flow conversion as a remuneration metric in 2018. And as such, we've insured cash flow and working capital optimization have been an important focus for the business. In the 5 years to 2021, over 90% of EBITDA was converted into operating cash flow. Based on the expectation for this year of an 80% conversion, that would mean over EUR 1.6 billion of operating cash flow will have been generated for the 5 years ending 2022. We have a centralized approach to liquidity management, which has served us well in recent years, particularly. An important part of our focus on operating cash flow has been to ensure we have appropriate receivables and payables terms as well as strong sales and operating planning processes to manage inventory levels. The last 3 years of COVID and post-COVID related supply chain disruptions as well as significant inflation have made working capital management more challenging for the group, but we've navigated this well and will continue to ensure a strong focus on cash generation going forward. The return on capital employed metric is also an important one for the group, and we are in the process of improving this metric following 2020 which was impacted by the pandemic-related reduction in profit after tax when the metric dipped below 10% for that year. The 5-year average return on capital employed to 2021 is 11.3%, and we expect to finish 2022 above 10.5%. The metric is a key factor for investment decisions, as I will outline later and we know it is an important metric for our shareholders also. The group has maintained a strong balance sheet over the last 5 years, which has allowed us to invest behind strategic capital investments as well as acquired businesses in GPN and Nutritional Solutions. Our year-end debt, which has varied between approximately EUR 370 million and just over EUR 600 million has consistently been below 2x at the end of each of the last fiscal years and this year, we expect it will be below 1.5x. This is well below our bank covenant of 3.5x. As a group, of course, we are comfortably stretching this ratio to between 2x and 3x should there be an appropriate investment knowing that with strong cash generation, we can bring the ratio down again over succeeding quarters. The group has committed debt facilities of EUR 1.3 billion currently, with weighted average maturity of just over 3 years. We are currently in the process of renewing our revolving credit facility, which we expect to have included shortly. So at year-end, the group will not have any commitment coming due before December 2027. Therefore, at year-end, we expect the weighted average maturity of our debt facilities to be over 5.5 years. So let me then summarize the key group metrics that we presented at the 2018 Capital Markets Day for the 2018 to 2022 period and our performance against them. I think it's fair to say at that time, no one had visibility to an oncoming pandemic, the war in Ukraine and the consequent inflation we are currently managing. In addition, global trade and tariff disputes meant managing a global organization was more challenging than was anticipated at the time. So I'm happy to report that the group has been resilient in the face of these macro factors and for most metrics outlined in 2018, we have met or exceeded the ambition we set out for investors. The group is on track to generate over EUR 1.6 billion in operating cash flow with a conversion rate of over 90% in the 5-year period. We expect return on capital employed will have averaged over 10.5% for the period within the 10% to 13% target range. And the adjusted -- the average adjusted earnings per share for the period is expected to be below the target range of 5% to 10%, probably around 4.5% which is primarily due to the impact of the pandemic and GPN sales as global lockdowns took effect in 2020. And we will have issued dividends at a payout ratio of over 30% during the period and I might add, we also returned significant funds through share buyback activity during the period, which was not anticipated in 2018. Now looking to the future. Some of the key areas I want to speak to, firstly, our joint venture model, how we are thinking of optimizing our business and our approach to financial management in the coming 3 years. Firstly, just from a joint venture perspective, the group has significant experience in managing joint venture arrangements. And the focus is on having strong partners, managing investment primarily through the joint venture, having nonrecourse financing arrangements and ensuring strong returns from our arrangements. Following the disposition of the group's 40% stake in Glanbia Ireland, the group now has 4 joint ventures. Two in the U.S. Southwest Cheese in New Mexico and Midwest Cheese and Michigan, which are both 50% joint ventures with Dairy Farmers of America and Select Milk Producers. These joint ventures which use premium cheese and whey products and are strategically aligned with our Glanbia Nutritionals business, as Brian referred to earlier. Our joint venture partners guarantee milk supply to these large operations and Glanbia Nutritionals received commissions for the commercialization of the cheese and whey output. These joint ventures also provides an important strategic source of whey to the group as needed. The other 2 joint ventures, Glanbia Cheese U.K. and Glanbia Cheese EU are 50% joint venture with Leprino Foods, and as the leading mozzarella manufacturer in Europe. So the current group investment in all of these joint ventures is approximately EUR 200 million. And the average return on capital employed from 2018 to 2022 in these JVs is expected to be approximately 15%. In addition, over the last 5 years, the group has received over EUR 150 million in dividends from its joint ventures, which did include Glanbia Ireland. Another important element of fueling growth for the group is ensuring we continue to optimize our business. In 2022, we have made progress in simplifying our group structure most recently through the sale of the group's interest in Glanbia Ireland. We will continue to evaluate our assets with a focus on our core businesses with a view to investing behind those assets that will drive growth and assist the group in achieving its ambition. We have centers of excellence in financial transaction services, information technology and procurement and we continue to evaluate opportunities to further centralize and leverage our operations, for example, in human resources and finance, with the objective of leveraging our scale and therefore, managing costs and enhancing our margins. As Hugh mentioned, we've made significant progress with the GPN transformation program, which has enabled that business to underpin margins. And finally, we are pursuing numerous opportunities to digitize our operations with our IT strategy to further enhance efficiencies. We've deployed the leading technologies from SAP as our digital platform, which supports the automation of our key business processes. We are currently upgrading our ERP system to SAP's latest technology, S/4 HANA which will bring machine learning and artificial intelligence capabilities to the group. We are in the enviable position of having a single global instance of SAP that acts as a digital core for our key data with one global governance model, standardized business process and at an optimized cost. We have a 2-year road map to leverage the business process innovations enabled by SAP for HANA. Over the next 3 years, our digitization program will be focused on supply chain, customer engagement, manufacturing and operations, finance and HR systems. So let me turn to capital allocation. As I mentioned, our focus on cash flow allows us to have a disciplined approach to capital allocation so we can invest for growth and also return capital to shareholders. As you can see here, we've had a balanced approach to capital allocation over the last 5 years with EUR 1.5 billion allocated between growth opportunities and returns. Approximately EUR 300 million has been allocated to strategic capital projects to enhance capabilities across the business. Key projects included the rationalization of manufacturing operations in GPN, additional manufacturing capability and nutritional solutions to meet customer needs, acquisition integration activity, information technology rollouts and research and development activity. Approximately EUR 0.5 billion has been allocated to acquisitions in the 5-year period, being slim faster level up in GPN and Watson, Foodarom, PacMoore and Sterling Technologies in Nutritional Solutions. These acquisitions, some of which are very recent, averaged a 10% return on capital employed in the 5 years 2018 to 2022. Approximately EUR 400 million has been returned to shareholders via dividends in line with our payout ratio range between 25% and 35%. And in late 2020, the group initiated share buyback activity. And since then, we spent just under EUR 300 million, buying back 23.8 billion shares at an average price of EUR 11.81. As the group look forward then a strategic CapEx and acquisition opportunities, our investment committee assesses all material projects with a view to achieving a 12% after-tax return by the end of year 3, with the objective of ensuring the group's return on capital employed remains within a range of 10% to 13%. In recent years, this target has been more timely achievable on organic capital projects than in acquisitions, which may take a little longer due to multiples continuing to be at relatively high levels. However, as Brian mentioned earlier, the recent bolt-on acquisition activity in Nutritional Solutions has been completed in a relatively noncompetitive environment, where our relationships have been built over time. Management from the acquisition target have joined our group post acquisition and integration has been executed quickly, enabling us to meet our return targets more in line with our target timing. Strategic CapEx has been generally focused on manufacturing capabilities at our manufacturing footprint, information technology, project rollouts as well as R&D and innovation projects. As we look to acquisition targets, we are focused on new and complementary capabilities or access to new markets, channels or formats. We are mindful of valuation multiples. So it's not to overpay for a target as we are focused on return on investment, and we do look for opportunities to unlock synergies via integration into our operations. So we expect the average return on capital employed for 2018 to 2022 will be over 10.5%. And we would expect to see further progression over the 2023 to 2025 period and to be firmly within our target range of 10% to 13%. Now I'd like to turn to the macro environment, which no doubt is a challenging one currently and just make some comments. Firstly, the current economic environment is uncertain, and it is possible some of our end markets may be in recession in the near term. We have, of course, seen downturns before, and our brands performed reasonably well during the financial crisis, for example, so we believe we are reasonably well positioned to manage through a challenging economic environment given our consumer base and the categories we play in. Inflation has been a big factor in the last year, and we have shown the ability of our brands to appropriately price to recover the increased costs we are facing with the majority of price increases in market now. We continue to monitor for elasticity effect. On currency, the majority of our revenues are in USD. And with the strength of the dollar, of course, you will see the positive impact on our reported results in EUR, albeit we do guide constant currency performance. The strong dollar is also a headwind for our international operations, which was supplied product from the U.S. and it is possible we will see some additional elasticity into '23 due to this impact. On taxation, we anticipate the OECD tax rate alignment to a minimum rate of 15% will happen in 2024, at which case the current Irish corporation tax rate would rise to 12.5% to 15%. Consequently, we would expect that the group's effective tax rate will gradually rise over the coming 2 years to a raise above 15%. And finally, on interest and financing. I mentioned earlier that we are in good shape. On financing, and we expect that our committed facilities will have a maturity of over 5.5 years by the end of this year. Although interest rates are rising, we currently have a significant portion of our base debt at fixed rates as a result of refinancing we did last year. As a result, we expect our finance charges just to rise modestly during the 3-year period subject to acquisition activity. So before I summarize our 3-year targets, I wanted to show you that we have discussed today is tied to our management remuneration also. From a short-term incentive perspective, remuneration is linked to group adjusted earnings per share growth, operating cash flow, ESG targets and business unit-specific metrics. On long-term incentives, the key metrics are adjusted earnings per share, return on capital employed and ESG targets. So to bring this together then, our adjusted earnings per share ambition is compiled from a number of things we discussed today. Firstly, 5% to 7% average annual revenue growth for GPN and 3% to 5% average annual volume growth for Nutritional Solutions, both organic metrics. Secondly, earnings growth with both GPN and Nutritional Solutions underpinning EBITA margins of at least 12% with opportunities to move above this over time. And thirdly, capital allocation by continuing to refine our business model, invest in technology and accretive acquisition activity. Consequently, we have an ambition to achieve an average adjusted earnings per share growth of between 5% and 10% through organic and acquisition activity over the 3-year period. To conclude then, these are the key group metrics that we have ambition for in the next 3 years. Average adjusted earnings per share growth of between 5% and 10%, average operating cash flow conversion of over 80% and average return on capital employed between 10% and 13%. And hopefully, from what you've seen today, you can understand why we believe the group is well positioned to achieve these targets. So with that, I'll hand it back to Siobhan.

Thank you, Mark, and thank you to all of my colleagues who have presented to you this morning. Hopefully, that has given you a really good sense of Glanbia, our ambition, our future growth journey. Suffice to say that we have transformed our group. We have an incredibly strong portfolio in better nutrition. We have built great capabilities to execute our strategy, which is now focused and clear. You'll have seen today the bench strength that we have just a sample of, there's a superb bench right across Glanbia sitting in the markets where we have all of our activities. You see more of those focus you -- those who are here with us on site this morning. But we have an incredible pool of talent, hugely ambitious for Glanbia and for the growth journey. And I think one of the things that hopefully you've seen, particularly in Mark's presentation, is the resilience that we have developed as an organization. The journey of Glanbia overall of the years has been a lot of portfolio evolution, as I've mentioned. We've learned a lot along the way. We have to be agile. We've had to move with the market, which is great because that's what we want to do. And I think that resilience will stand us in really good stead in what is an incredibly volatile world now. We have built new muscles in the organization. We have transformed our GPN business. We had done a lot of work in GN and that one face to the customer a few years earlier. I think that muscle will be really, really good and will underpin our commitment deliver the financial metrics that we shared with you this morning. So thank you very much. Those of you who have participated virtually and in personal. I think we're now going to take some Q&A. My colleagues will join me up here. And then those of you that are insist you, we have, hopefully, some exciting further pieces that you can engage with the teams during the morning. So thank you very much.

Okay, everyone.

Sorry, Liam, just a very small point just as -- I know you won't have met our group's CHRO as part of the presenting heretofore. So just to introduce Sue. Sue who's been with us a long number of years, very experienced in the whole talent agenda as part of our executive team based here in Chicago. So obviously, Sue was delighted to join us here for any Q&A you have as well. Thank you.

[Operator Instructions] So Donard, if you could just tell us -- read out a couple of the questions that have come in, please. Thank you.

Thank you, Liam. First off, how do the sports nutrition category and your brands performed during the last financial crisis?

So a couple of things. If you look back at it, actually -- actually maybe focus on the presentation as well. First of all, if I look at the ON consumer that I spoke about. You saw that -- what they confirm for us is our product is essential. And also, when we look at the protein category, we see the increase in penetration, and we see consumers saying they're not only going to cut back 70% they are going to either increase or maintain their consumption as opposed to [indiscernible] products over time. And I think if you look back at the Great Recession, what we saw, we used the expression internally, recession resilient, not recession proof. But what you found back then, and like who's to know, I don't think the recession will be at the same level we saw in the Great Recession. But as people were losing their jobs, health became a greater priority for them. We found out that they actually took better care themselves. They worked out more. And we actually did well in 2009, 2010 in terms of demand for our sports nutrition products. If you look at the range, 70% of our products are powder. That's the most affordable format for protein consumption. If you think about a tub of whey goes standard now may retail for $85, $75 to $78 servings per tub, you're looking at maybe 115, 120 per serving of really high-quality protein versus in a protein bar from over $3. So the mix of our business, the scale of our protein capability would lend itself to a more affordable purchase. And we're actually starting to see consumers some are trading down in terms of supply and some are actually trading up because they're getting value -- better value per serving. And we might see some softening and are ready to eat, let's say. You can see that category be more impacted ready to drink. Well, our SlimFast shake is a meal replacement shake. You get a stake for less than $2.50, a lot cheaper than a McDonald's Happy Meal. So we would see our portfolio being relatively recession resilient, and we saw that certainly in the Great Recession in 2009, 2010 as well.

And just another follow-up on GPN from the Q&A earlier. Historically, there have been low barriers to entry in the sports nutrition category. When whey prices have declined, this led to smaller brands promoting heavily to gain share. How does GPN protect itself in that scenario?

Yes. It's a great question. I think our business is fundamentally -- and the category is fundamentally different than 5-plus years ago. I think there's probably 3 reasons for that one. Our customers, 2/3 of our business now is in FDMC and online, our customers are far more disciplined, they're larger. They're looking for revenue pricing growth within their businesses as well. I think the second thing is our competitive set. We don't -- our competitors are also now public companies. They're also more disciplined. They're also looking to drive growth across their portfolio. And the third thing fundamentally is to scale the level of investment, now the scale of our business, the scale of the category, the level of investments required to reach the consumers that Colin spoke about, whether it be through food, drug, mass whether be online, the ability to reach those consumers given the scale of the Amazon business, let's say. So for those 3 reasons, I think the barriers to entry are fundamentally different now than they were 5 to 10 years ago.

Okay. Our next question is from Jason Molins.

First, Mark, you mentioned portfolio optimization in your remarks. Just for clarity, is that a backward-looking comment? Or are you thinking about the portfolio maybe disposals going forward? And then in terms of the NS, Brian, a few questions to you if you don't mind. Just given the macro backdrop, concerns and talk about destocking. Can you maybe discuss a bit about visibility that you see at the moment? How those sort of customer engagements are taking place? And then final question on NS is really the innovation centers that you've developed and you showed the sort of pre-imposed or certainly where you are today, if we're to look forward, where do you sort of see white spot and further investment required to get to the call that you want to get to?

Yes, I'll just take first -- so yes, of course, I was referring to the Glanbia Ireland sale that we made, but I think the point I was also making was that we continuously look at our assets in terms of how we believe our core or noncore. And if we determine that something is noncore, we may make a different decision. I was referring specifically to the Glanbia Ireland one, which clearly was noncore for us going forward.

And just in relation to, I guess, we had the IMS last week, we certainly are seeing with some of our customers an element, maybe more particularly on the dairy side, an element of destocking and rightsizing the inventory level. I think in terms of core consumption, our discussions with customers, they're reasonably optimistic in terms of overall consumer demand and consumption, but there is an element of destocking that we're seeing across both dairy and non-dairy, but maybe more particularly in dairy. And on the innovation centers, I think -- you could see from the '18 to '22 movement and the track that Lauren spoke to, we've had significant investment, is your question specifically about innovation or white spots in terms of acquisitions? I presume it's innovation specifically. We're really happy with where we are today. I mean, I think the key piece for us was having something credible in Europe, and that's what the investment we're thinking was all about building our innovation hub in Singapore to really get ahead of our ASPAC ambition was important, and we're seeing the benefit of that coming through now. Lauren referenced that we are setting up satellite in China and ultimately in Japan. So there is a white spot in China and Japan that we will fill out, and we will have a hub in Singapore with satellite in China and Japan. And then within those hubs, and we have a campus in Idaho, we'll start to build out the capability, we've set a benchmark for the type of overall capability for ingredients, ingredient testing, applications capability that we need to have in North America and Europe and in ASPAC and it will be building up a bit of that capability within those centers rather than maybe further innovation hopes, but we'll look at that as it evolves.

Okay. Any other questions in the room? Okay. I go to Richard first, and then we'll go to Cathal.

I wanted to ask HR politically incorrect question, if I might. [indiscernible] is actually a fairly diverse company to begin with. So I'm not belittling the targets. But I think all organizations struggle with diversity, equity and inclusion and merit and individual targets. Give me some sense of what the conflict internally is around that. Thank you.

Around our DEI targets, I think, as Michael mentioned, we've been on a journey. And so we've had a lot of discussion internally, particularly, I would say, around gender representation. And then broadly, just starting to really look at buyback and some other types of targets as well. We are really in a process of baselining our current data. And so where we are and looking at that, I think as you know as well, we've been on a journey, and Michael said it. We certainly have aspirations to do a whole lot better. We're looking at parity from a gender representation perspective. And on buyback, I think as you all know, very difficult to get data from just a privacy perspective. So really starting, again, looking at baselining that in the United States, and that's where people have to self-identify, so even harder to get some of that data. So it is a challenge, absolutely for us. But one which we do have a road map. We want to continue to improve. We want to set aggressive but achievable targets as we go forward. So we are baselining that right now.

I think just an add-on, Richard. I think it is a great point actually because, obviously, there was always that piece about a meritocracy and actually, really keeping that fees first, but what we've recognize on this journey is we don't feel we've to compromise anything actually that we can actually -- we can achieve a better balance to be frank in our organization that gives that real landscape that our talent can be there very best within us and within our organization. And as Hugh have said, part of this early stage of the journey has been very good to listen to the voices of and we have communities of employees who want to be open up more opportunities opened up to them. So I think actually, we sometimes say in Glanbia the journeys we travel across a number of different agendas, we will do it authentically. And this is a real part of this. We will travel this journey very authentically with our teams of people, we're moving barriers that actually can help them develop their career, achieving therefore, the diversity, equality and all of those goals in a way that is obviously, of course, staying true to driving the organization forward as well.

Okay, Cathal?

A couple of questions. Firstly, to Brian on Premix. Your largest competitor is more vertically integrated upstream. Can you talk a little bit about the pros and cons as you see it to vertical integration? And secondly, staying with premix just on Slide 17, you talked about some categories at the base of that slide. Can you talk about the most important subcategories from a premix perspective? And finally, it's just a question on incentives to Hugh and Brian in terms of how your leadership teams are incentivized and there's alignment, obviously, with the various targets?

Okay. So the -- I suppose the question around the #1 in the premix market, I guess, access to ingredients is not an unimportant piece, but we haven't found it as a barrier in terms of our ability to grow and evolve our business, and indeed, the margin profile will be comfortable enough with that in that context. So yes, we're careful -- procurement strategy around our raw materials for the Premix business, and we've built up strong relationships in relation to that. And we feel that's good for us at the moment. We obviously do have that vertical integration in the dairy side where we have access to ingredients. So we can see the benefits of that. But in that, it's more around tweaking our production process to allow you to have better functionality. We have technologies. So we sourced ingredients. We add the technology. So we feel is that as a significant disadvantage in terms of our ability to serve our customers. In terms of the category, across the board, we see sports nutrition, mainstream food and beverage, infant and clinical are important sectors for us. And then obviously, we can see companion nutrition as something that's actually a newer opportunity at the premium level where we're seeing opportunities in growth in that category, all of it relatively small at this point in time. So all of those subcategories are relevant to us, but I suppose healthy lifestyle, sports, nutrition, mainstream food and beverage would be the major ones for us. Infant clinical are important, and we have good positions with customers in the -- and then there's some evolving like companion nutrition. Does that answer your question? [indiscernible] overall expense do we want to incentives overall across the 2 businesses maybe?

Yes, I can start and chime in. But from a leadership perspective at both Brian and Hugh's level, they are aligned with the exec as well. So looking at -- specifically looking at the EBITDA of each of those businesses, along with revenues, volumes and also including a stip ESG target as well. So again, aligning with the exec -- bringing that further down into the organization.

We would have business volume margin would be incentivized at my level and with the team as well in terms of focus and I guess the same for the incentives for Hugh.

Very simple margin delivery. Revenue growth and cash which are 3 main metrics.

I've got a couple of more questions in the room, James Targett.

Just coming back to SlimFast and then I've got another more general question. So could you say what was the decline in SlimFast year-to-date if you take out the kind of the Keto range? Because I don't think perhaps I appreciate it to become as large as the portfolio that it had been. So what was the underlying decline? And would that -- do you expect that core Keto still range to be a headwind to sales growth next year? And if the diet category doesn't recover, can the SlimFast brand be repositioned to deliver growth even without that traditional market coming back? I guess that's my question [indiscernible]?

James. I'll answer the last bit first. Yes, look, when we bought SlimFast part of the strategic rationale was always about broadening into the weight management space to extend from diet. And also -- at a core level, it's actually a ready-to-drink proposition. It's a meal replacement shake. And for us as well, it's -- the biggest [indiscernible] 20-gram protein meal replacement shake. And for us, that was a significant opportunity. So we absolutely believe in our ability to extend the brand into that weight management -- broader weight management, it will take some time. And the primary format we'll do that which will be ready to drink shake -- protein shakes. In terms of the overall performance, we don't break it down, at best I give us a 2-year example that we have there that if you look at the core range, if you look at the keto decline, it's about minus 40%, '20 to '22 and the core range is actually flat, the high protein. The high protein, low-carb is flat over the last 2 years, which we're particularly pleased about, given the minus 8% decline in the category. And the original is -- and other is about minus 1%. And actually, within that, there's a diabetic offering we have that we've delisted, which is part of that in powder. So we would be -- we would be positive about velocity growth -- sequential velocity growth in that core range of high-protein -- high-protein low-carb from quarter 1 of next year.

And my second question is just on the Board's view of the future of Glanbia, when signing off on the new financial ambitions and investment plans for the next period. Is it fair to say that they've concluded that the best interest of shareholders to serve by keeping Glanbia in its current structure?

Yes, it is. It's a simple answer to your question, James. We did -- we would always do a very deep strategic process at this time of the year. So we've actually completed our strategic planning process, obviously, before we will come and lead to the market with targets. Part of that process was doing a very deep portfolio review, looking at the market opportunities we have, looking at the portfolio that we might potentially service those markets with and we have concluded and the Board absolutely have concluded that the structure we have is the appropriate structure and we will drive forward growth under our current agenda.

Our next question is Alex Sloane.

Thanks. I have 2 actually, starting with the Board. [indiscernible] opened referencing the increasing independence of the Board that's been achieved over the past few years. I wonder if you go and then maybe any others on stage could talk to how the Exco Board interactions have evolved over the last 18 months when obviously, the performance of the business has also improved? And then just secondly, referenced a few times in the presentations that in GPN, you're watching elasticities closely. I wonder if these did deteriorate in a tougher environment, if you'd be inclined in the shorter term to prioritize the top line or that margin target or if the targets that you've laid out do you already embed some caution on that front?

Thank you firstly to the Board again. I think it's the important reference point I would make in the first instance is that all of the Boards that I have worked through many years with Glanbia have been phenomenally ambitious for the organization. I think our largest shareholder, clearly, we had a significant representation on our Board has always had a very strong, passionate approach, driving the group forward. And in fact, as the Chairman referenced they're very decision to actually free up Board seats to want of a better phrase, to actually bring on diversity. The current Chairman of our largest shareholder was very clear and very supportive with our own term. And clearly, [indiscernible] that diversity of thought, diversity of experience would just be additive to our Board. Our Board is very engaged as our Chairman is very engaged with the executive team. We have great constructive conversations. The Board has been very engaged, as you would expect in our strategic process and the strategic review that I've just mentioned. And we have really good conversations about driving the group forward. We have lots of constructive perspectives. We have a really new skill sets that we brought on, a lot of North American experience, a lot of brand building experience, a lot of ingredient experience with [indiscernible] and others who have joined us recently. So we've always -- as an organization, our culture is to be very open and transparent, as a team, as the exec team, we are very open with our Board. We really bring the Board into the areas of opportunity and quite frankly, the areas of challenge. And I think that transparency has stood us as a collective very strongly. So we have a super Board who, again, likewise, with each of us as a team, very ambitious, and we gauge collectively and individually with our Board members right across different agendas.

Alex, I suppose the 2 things I suppose -- the simple answer is, we have elasticity built into excess plants and it's within that guidance 5% to 7%. As you would expect, given the volatility we're seeing now, we have built in some caution around that as well. But it's just we'll be more confident as we go into next year, but given the price increases have just landed on shelf right now, we're watching carefully, but they are -- elasticity assumptions are built into the guidance.

Okay. Donard, do you mind going through the webcast questions, please?

Yes. There's a few more here, Liam. So the first is, are there any further cost savings to come from the GPN transformation initiatives? What is the margin potential of the GPN business?

I can enter the last one because we've just guided 12% plus. So that's the margin within the business. Clearly, we would be ambitious for more that's why the plus sign is there, but we're just being cautious as we face into potentially recession next year. Although, as I said earlier on, we do believe our brands are recession resilient. The project momentum, effectively, the consolidation, the simplification is all complete. I think we have great discipline within the organization now, which will continue apply. And I think -- I think it's also the -- so we don't see margin move around that. I think where we would see potential margin improvement is around inflation coming back, some import material costs starting to come back based on what we saw in '21 and '22. And also scale play as we continue to drive growth across the business, we have -- we will see some synergies around that as well. But our guidance, as we've said, is 12% plus.

Just a slight build here. I think it's fair to say that the -- skews upon that the muscle that you've built through the transformation program is that really solid underpin and that's really what's giving us the confidence to say that 12% plus because that has been such an all-encompassing program right through GPN and that underpin now, I think, is really secure.

Thank you. The next question is, do you expect your CapEx to increase to deliver growth and your sustainability targets?

I say, I mean, for the next 3 years, I would expect our CapEx will be roughly in a range of probably EUR 70 million to EUR 80 million if you include strategic CapEx around EUR 16 million and sustain of about EUR 20 million. There are many different projects that we even talked about some of the things that we're doing here in GPN and GN, but very much in line with what we've seen over the last number of years. So no significant increase in CapEx, I would say, over the next 3 years.

In relation to sustainability, the projects that we have on the slate at the moment are within that CapEx envelope and our returning.

The next question is back to GPN. Are you concerned about larger players moving into the sports and lifestyle nutrition space, such as recent Nestle and Pepsi Co acquisitions? Do you worry that as larger players move into space, they may outspend you on advertising and promotion, marketing or product development?

Yes. No. I think a couple of comments. One, we watch -- we take all our competitors. We treat all our competitors with equal respect small or large. We've clearly seen some of the larger CPGs enter into the space. They've been in this space before. But what I'd say as well from what you've seen today, you should have a sense on the scale of our own business as a large CPG business in North America and ability to compete in that. So I think we'd be more focused on our own investment levels, our own brand strategy, the scale of the opportunity we have ourselves, but we do keep a respectful and healthy watch on our competitors as well. But it's not something we would see as they are a different threat than any other within our business mix.

And just 2 questions on the group structure again. What quantifiable evidence do you have of synergies between GPN and GN that would not be available to the group if the businesses were separate? And the second part is, how do you manage the fact that GPN is competing with GN customers?

Yes. So to the first question, obviously, as we were doing our strategic planning and indeed as we will do it through all our strategic planning, we look at the synergistic piece. I think what you've seen and we've referenced indeed as a journey through '21, '22, a number of themes. Firstly, supply. I mentioned earlier when I was speaking about the knowledge we have collectively in that growing very attractive category of performance nutrition. We started, as that category started in truth, we started with the evolution of the technology and dairy protein that is centered around nutritional solutions, that innovation that Lauren spoke to where there's a huge expertise. But we also know what's happening in the primary producer. We know the supply. We have great insight of what the actual supplier -- the available supply in that space. That raw material is clearly, a significant input to GPN. So I think there was an insight and analytics piece that through this year, [indiscernible] had informed Hugh and his team in terms of procurement because Brian and his team could just bring insights as to how the market was moving. We saw that as a very clear financial advantage this year in terms of the procurement of GPN and getting ahead of what became a very spiky markets. We didn't get to those spikes in terms of our cost of goods. The other piece I would say wasn't just about price, it was about availability. Our customers in GPN have called out the fact that we could supply and be on shelf in a period of quite significant volatility of supply where some indeed in our space couldn't. So I think that's a very real benefit. I think there is insights around the consumer lens that both parts of the organization can use from a category point of view, we are in better nutrition. We have innovation capability across both Nutritional Solutions and GPN. There are certain insights in developing our business. We don't need to do twice. We absolutely have 2 separate commercial phases to the organization with a little bit to your second question. But of course, there is the overarching in price that we can leverage across both. I think that's from me now -- before I go to your second one, just from an organizational point of view, there is a scale that and scale is beneficial, particularly as Mark talked on in his area. We have really strong centers of excellence on systems and systems development, procurement, finance, all those classic. What I call the infrastructural part of the organization. And some folks might say, well, you can have that anyway. But actually, it is most efficient when you can deploy that at scale. And we saw the benefit of that, quite frankly, through areas like liquidity management with COVID, we have a really strong center of excellence and we leverage that across both GPN and GN. To the latter point, which was around -- sorry, Oh, yes, of course. Yes, that's a really interesting point and a point obviously that has been part of the evolution of the group. When we were -- when we bought GPN actually as far back as 2008, we made a very conscious strategic decision that we would actually from a commercial perspective evolve both parts of our group in that area of better nutrition. So Brian and his team would actually develop real solutions capability that could transcend a number of growing categories. Yes, we were anchored in that area protein. But we knew that we could take that anchor of dairy protein into a broader proteins into areas like premix add other things towards like flavors and really develop to be that partner of choice for customers. Quite separately then, we were building brands. We're building brands in GPN. So when we talk to our customers in NS, customers know that we have leading brands, but we're very respectful of the relationships with those customers. Our customers know that. It's not been an issue for us because it is a quite dedicated and separate activity for the both commercial sides of the business treated as such. Brian can speak more eloquently than I with GPN as a key customer and as a key customer relationship for NS. So there's areas where we can do things together. There's areas we are very separate. And that is absolutely enabled a value-additive strategy for the totality of the organization versus an alternative route.

Yes, I think that sums it up. I mean, GN and GPN are a global key account, and we have a number of global key accounts, and we have regular interactions around how we can support their brand ambition. But remember there into a number of categories we have infant clinic and nutrition supplements, which I should have mentioned earlier in Premix as well. So we have a lot of categories that we're playing into that are not necessarily categories that GPN, but they're a global key account and important as there are a number of other strategic global accounts and regional accounts that we have, and we give them -- and we engage with them in that way.

Thank you. The next question, have you any more share buybacks planned?

That's obviously better for the Board. I think the point I was trying to make today is that we have now clearly used share buybacks as an opportunity for us to allocate capital and something we're very happy to do. I think as we go into next year, we'll continue to assess that as we look at our CapEx program, M&A program. And to the extent that we have excess cash, and of course, we're very happy to talk as a Board as to whether we would actually deploy additional share buybacks.

Thank you. And the last question or 2 partner that's in at the moment. How are lower way prices likely to impact both GPN and NS? And what are the building blocks for margins in both businesses?

Maybe I'll handle that as an overall piece and the guys can come in. So I think -- and we referenced this indeed in Q3. Overall, lower whey prices would be to the advantage of the group. Obviously, it's a big input cost for GPN. As we said, when we had our Q3 IMS, directionally, they are coming down. We are well positioned and have already purchased for Q1. We pursed about 50% of Q2. So it's probably going to be maybe the second half of '23 when we receive that crystallized. In Brian's business, where you're really going to see that show up is in the pricing. So we've actually given a volume metric because really, as you know, the pricing for dairy can move around. So you're going to see probably a negative pricing dynamic in NS on the back of that. But overall, when you take the totality of the margin profile of the organization, we expect it to be a net positive as we run through the year.

Okay. I don't think there are any more questions in the room. So I'd like to ask Siobhan to make some concluding remarks. And then when Siobhan is finished, we're going to shut down the webcast and move on to the next part of the day.

Thanks, Liam. I think I probably said sufficiently at this point in time, just to restate what I said earlier, hugely ambitious for this organization. I want to thank to all of my own colleagues and all of my wider colleagues here for the huge work, obviously, in getting Glanbia to where it is today. And obviously, our Chairman is massively supportive with the Board of our journey. We believe that we have tremendous opportunities to really grow this organization, and we have such a fantastic bench of really motivated, ambitious, passionate people across our total business. I want to thank you all for your attention, both in the room and virtually. As always, we are very pleased to take any follow-up questions that you might have as you synthesize a lot of information that we've given you today, but hopefully, that ambition has become very, very clear from us, and we will be taking Glanbia forward to a further exciting phase of growth in the years ahead. Thank you very much.

Okay, everyone. So we're going to take another very, very short break. We're going to reconvene in here with Colin from GPN. And then after his presentation, which will be quite short we're going to move on to the plant tour. So if you want to take a very quick break and come back and then we'll move on to the next stage of the day. Thank you.