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

Glanbia plc Annual Report 2011www.glanbia.com7Directors' Report: Group performance Group Chairman's statement One of the Board's objectives for the year was to satisfy itself on the successful integration of this business into our Performance Nutrition portfolio. Good progress was made during the year and BSN® is performing well and in line with expectations.There were a number of Board changes during the year. Victor Quinlan retired as a Non-Executive Director and Vice-Chairman of the Board. Henry Corbally was elected Vice-Chairman of the Board. Edward Fitzpatrick, James Gilsenan and Anthony O'Connor also retired this year as Non-Executive Directors and William Carroll, David Farrell, Patrick Murphy and Eamon Power were appointed to the Board. All appointments and retirements to the Board were made on 26 May 2011. I would like to welcome our new Board members and offer retiring members best wishes for the future and to thank them for their contribution. During the year the Board approved a revised executive remuneration policy for the period 2012 to 2014, details of which are set out in the Remuneration Committee report starting on page 53.The Directors attach great importance to Glanbia's reputation and the need for clear and transparent communication with our shareholders and wider stakeholder groups. During the year Glanbia executives and senior management held investor meetings in eight cities in Europe and North America. The Group also participated in five investor and industry conferences. In addition, Glanbia conducted an investor perception survey and this has given us good insight into how we can enhance our investor communications further. In 2012, Glanbia has a full programme of investor relations activity planned including the re-launch of the corporate website this year. Glanbia has had two very strong years in terms of both financial and operational performance. While the outlook for global dairy markets is positive overall, there is significant macroeconomic and fiscal uncertainty. As a result, we are somewhat cautious in our outlook for growth in 2012 However, Glanbia is very well positioned overall and we look forward with confidence.Liam HerlihyGroup Chairman Liam Herlihy / Group Chairman" The Group delivered a very strong performance in 2011 and this is reflected in record financial results for the year. This builds on an excellent performance by Glanbia in 2010 and positions the Group very well for the future."Total Group EBITA analysis2011?204.7m> Increasing raw material input costs in Performance Nutrition> Higher milk input costs and price competition in Consumer Products> Increased investment in markets and people capabilities to underpin growth2010?173.2m> Positive global dairy markets> First time contribution of BSN®> Strong organic volume growth in Global Nutritionals18.2%US Cheese awardsUS Cheese and Southwest Cheese continued their great tradition of winning at the World Cheese Championship Contest this year, which had a record 2,313 entries in 2012. US Cheese and Southwest Cheese won a total of nine awards, including a clean sweep in pepper flavoured cheese. This was the third consecutive year of winning gold for peppered flavoured cheese and the seventh year out of the past nine years. This is an excellent achievement and a clear demonstration of product quality and consistency. Operations in Twin Falls were also awarded gold in the medium cheddar category, bronze in mild cheddar, bandaged sharp cheddar and Monterey Jack. A silver medal was awarded for their entry in the dessert cheese category, which was Monterey Jack with walnuts. Southwest Cheese won a bronze medal for Colby Jack cheese, cut from a 640lb block.