Glanbia plcAnnual Report 2011Financial statementswww.glanbia.comUS Cheese &GlobalNutritionals?'000DairyIreland?'000JV's &Associates?'000OtherBusiness?'000Groupincluding JV's& Associates?'000Total gross segment revenue(a) 1,319,944 1,365,823 524,293 1,046 3,211,106Inter-segment revenue(3,023)(12,639)--(15,662)Segment external revenue 1,316,921 1,353,184 524,293 1,046 3,195,444Segment earnings before interest, tax,amortisation and exceptional items(b) 122,194 57,854 25,226(550) 204,7245.1 The segment results for the year ended 31 December 2011 are as follows:5. Segment informationIn accordance with IFRS 8 - OperatingSegments the Group has foursegments, as follows: US Cheese &Global Nutritionals, Dairy Ireland, JointVentures & Associates and OtherBusiness. These segments align withthe Group's internal financial reportingsystem and the way in which the ChiefOperating Decision Maker assessesperformance and allocates the Group'sresources. A segment manager isresponsible for each segment and isdirectly accountable for theperformance of that segment to theGroup Operating Executive Committeewhich acts as the Chief OperatingDecision Maker for the Group. Eachsegment derives its revenue asfollows: US Cheese & GlobalNutritionals earns its revenue from themanufacture and sale of cheese, wheyprotein and other nutritional solutions;Dairy Ireland earns its revenue from themanufacture and sale of a range ofdairy products and farm inputs; JointVentures & Associates revenue arisesfrom the manufacture and sale ofcheese, whey proteins and dairyconsumer products. The OtherBusiness segment refers to all otherbusinesses which comprise a Propertybusiness unit, a small dairy sales officein Mexico which ceased trading inJune 2011 and a small dairyprocessing operation in Mexico whichwas disposed of in September 2010.Each segment is reviewed in its totalityby the Chief Operating Decision Maker.The Group Operating ExecutiveCommittee assesses the tradingperformance of operating segmentsbased on a measure of earnings beforeinterest, tax, amortisation andexceptional items.2011?'000Segment revenue 3,211,106Inter-segment revenue(15,662)Joint Ventures & Associates revenue(524,293)Reported external revenue 2,671,151Included in external revenue are related party sales between Dairy Ireland and Joint Ventures & Associates of ?98.7 millionand related party sales between US Cheese & Global Nutritionals and Joint Ventures & Associates of ?12.4 million.Inter-segment transfers or transactions are entered into under the normal commercial terms and conditions that would alsobe available to unrelated third parties.5.1 (a): Segment revenue is reconciled to reported external revenue as follows:

Glanbia plcAnnual Report 2011Financial statementswww.glanbia.com5.1 (b): Segment earnings before interest, tax, amortisation and exceptional items are reconciled to reported profit before tax and profit after tax as follows:2011?'000Segment earnings before interest, tax, amortisation and exceptional items 204,724Amortisation(18,472)Exceptional items - rationalisation costs(8,723)Joint Ventures & Associates interest and tax(10,895)Finance income 3,056Finance costs(30,997)Reported profit before tax 138,693Income taxes(25,885)Reported profit after tax 112,808Finance income, finance costs and income taxes are not allocated to segments, as this type of activity is driven by centraltreasury and taxation functions which manage the cash and taxation position of the Group.Other segment items included in the income statement for the year ended 31 December 2011 are as follows:US Cheese &GlobalNutritionals?'000DairyIreland?'000JV's &Associates?'000OtherBusiness?'000Groupincluding JV's& Associates?'000Depreciation of property, plant and equipment 13,272 20,868 7,653- 41,793Amortisation of intangibles 14,198 4,274-- 18,472Capital grants released to the income statement(57)(1,383)(268)-(1,708)Exceptional items - rationalisation costs- 8,723-- 8,723The segment assets and liabilities at 31 December 2011 and segment capital expenditure and acquisitions forthe year then ended are as follows:US Cheese &GlobalNutritionals?'000DairyIreland?'000JV's &Associates?'000OtherBusiness?'000Groupincluding JV's& Associates?'000Segment assets(c) 931,923 571,681 85,237 14,215 1,603,056Segment liabilities(d) 268,418 266,542- 1,190 536,150Segment capital expenditure and acquisitions(e) 140,833 30,432 4,042- 175,307Unallocated assets primarily include tax, cash and cash equivalents, available for sale financial assets and derivatives.2011?'000Segment assets 1,603,056Unallocated assets 245,120Reported assets 1,848,1765.1 (c): Segment assets are reconciled to reported assets as follows: