Understanding our business 2011 performance and 2012 outlookUnderstanding our business 2011 performance and 2012 outlookUnderstanding our business 2011 performance and 2012 outlookDirectors' Report: Overview Glanbia plc Annual Report 2011Divisional performancewww.glanbia.com52011 EBITA?57.9m Dairy Ireland comprises three business units. Agribusiness produces and supplies inputs to farmers who produce the key raw material, milk, for both Dairy Ingredients and Consumer Products. Dairy Ireland has well invested facilities serving local and global markets.2011 EBITA?122.2m US Cheese is one of the leading producers of American-style cheddar cheese in the USA, from its large-scale manufacturing facilities in Idaho. Global Nutritionals operates from facilities in the USA, Canada, Europe and Asia and incorporates the Group's three nutritional businesses - Ingredient Technologies, Customised Premix Solutions and Performance Nutrition. 2011 EBITA?25.2m Glanbia has three principal international joint ventures - Southwest Cheese in the USA, Glanbia Cheese in the UK and Nutricima in Nigeria - as well as a number of smaller Irish-based joint ventures and associates. More informationwww.glanbia.comwww.glanbiaagribusiness.iewww.countrylife.ieMore informationwww.glanbiafoods.comwww.glanbianutritionals.comwww.bsnonline.netwww.optimumnutrition.comMore informationwww.glanbiacheese.co.ukwww.southwestcheese.comP14P15P36P15P38P40Dairy IrelandUS Cheese & Global NutritionalsJoint Ventures & Associates?1.35 billion revenue4.3% EBITA margin1,702 employees8 manufacturing/processing facilities?1.32 billion revenue9.3% EBITA margin1,858 employees12 manufacturing/processing facilities?524.2 million revenue4.8% EBITA margin1,012 employees4 manufacturing/processing facilities

6Glanbia plc Annual Report 2011www.glanbia.comDirectors' Report: Group performance Group Chairman's statement Dear Shareholder,The Group had a very strong year in 2011. Reported revenue, which excludes Joint Ventures & Associates, increased by 23.3% to ?2.7 billion (2010: ?2.2 billion).Reported EBITA grew 18.4% to ?179.5 million (2010: ?151.6 million). Reported EBITA margin declined 30 basis points to 6.7% (2010: 7.0%). This resulted from margin pressures in our Performance Nutrition business, because of significantly higher whey input prices.Reported adjusted earnings per share increased 21.7% to 46.32 cents per share (2010: 38.07 cents per share). This performance was driven by higher global dairy markets and strong organic revenue growth particularly in the Global Nutritionals business.Glanbia has an 11 year record of steady dividend increases and the Group continues its progressive dividend policy in 2011 with a 10% increase in total dividend for the year (2010: 10%). The Board is recommending a final dividend of 4.94 cents per share (2010 final dividend 4.49 cents per share). This brings the total dividend for the year to 8.27 cents per share (2010: 7.52 cents per share). Subject to approval at the Annual General Meeting (AGM) dividends will be paid on 11 May 2012 to shareholders on the register of members as at 30 March 2012. Irish withholding tax will be deducted at the standard rate where appropriate.The Group will hold its AGM on Wednesday, 9 May 2012 in the Newpark Hotel, Kilkenny. Glanbia will issue an Interim Management Statement in accordance with the reporting requirements of the EU Transparency Directive, in conjunction with the AGM. I look forward to welcoming shareholders on the day.The performance of Glanbia during 2011, particularly in relation to developing new markets, cost management, product innovation and strategic customer relationships, demonstrated once again a very strong level of operational excellence. The quality of our people is a core strength for Glanbia and we invested further this year in US Cheese & Global Nutritionals. US Cheese has built up commercial and sales resources to continue developing export markets for American-style cheddar cheese. Global Nutritionals continued to recruit key sales and business development people and strengthened its management teams across the business to ensure delivery of its organic growth strategy. Asia Pacific is also a region that has seen significant development, driven by increasing demand for nutritional and dairy products.I would like to thank our Group Managing Director John Moloney and all our people for their contribution and commitment to the continued success of the Group.Part of the Board's remit is to approve and oversee major investments by the Group. In January 2011, Glanbia acquired Bio-Engineered Supplements and Nutrition (BSN®) for $144 million. 2010 38.07 7.5210%20102011cents per shareTotal dividend per share 201121.7%cents per shareAdjusted earnings per share 46.32 8.27Group Chairman's statement