Kerry Group Plc · EURONEXT:KRZ

Kerry — Investor Day (October 2017)

29 slides from Kerry's investor day presentation, October 2017

  1. Slide 1: October 2017 Afternoon Session

    October 2017 Afternoon Session

  2. Slide 2: Financial Overview

    Financial Overview Brian Mehigan Chief Financial Officer KERRY Leading to Better

  3. Slide 3: Consistent Delivery in a Volatile and Changing Environment

    Consistent Delivery in a Volatile and Changing Environment • Delivering growth AND margin expansion • Working through currency volatility • Developing business portfolio • Managing raw material volatility • Leading in managing change • Increasing consumer fragmentation AUD BRL GBP CAD MYR MXN RUB ZA

  4. Slide 4: Progress vs Current Strategic Plan

    Progress vs Current Strategic Plan Adjusted EPS growth 10%+ +8.4% +9.8% constant currency Volume growth 3% to 5%** +3.2% ✓ Margin expansion +50 bps*** +70 bps ✓ ROACE 12%+ 13.8% ✓ ROAE 15%+ 17.7% ✓ CFROI 12%+ 11.5% – Realising Group Targets * Assumes neutral currency and raw materials | ** Assumes m

  5. Slide 5: Consistent Delivery: Growth AND Return

    Consistent Delivery: Growth AND Return ROACE* % EPS* CENT 400 14% 350 12% 323.4 300 301.9 10% 278.9 250 257.9 8% 234.0 213.4 200 6% 192.1 163.9 150 142.4 151.8 4% 100 2% 50 0% 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 EPS* ROACE* * Before brand related intangible asset amortisation and non

  6. Slide 6: Medium Term Targets 2018-2022

    Term Targets Medium 2022 2018 - KERRY

  7. Slide 7: • Authentic taste • Nutrition, Wellness • Foodservice

    • Authentic taste • Nutrition, Wellness & Functionality • Foodservice • Developing markets • Operating leverage • Portfolio evolution • KerryExcel • Consistent returns • Strong cash conversion • Disciplined capital allocation © Kerry 2017 | 7

  8. Slide 8: Strategic Targets (2018 – 2022)

    Strategic Targets (2018 – 2022) On average across the 5 years Taste & Nutrition 4% to 6% p.a. Taste & Nutrition 40 bps p.a. Consumer Foods 2% to 3% p.a. Consumer Foods 20 bps p.a. Group 3% to 5% p.a.** Group 30 bps p.a. ** Assumes 2% above market growth Adjusted EPS Growth* 10%+ p.a. ROACE 12%+ Cash

  9. Slide 9: • Authentic taste • Nutrition, Wellness • Foodservice

    • Authentic taste • Nutrition, Wellness & Functionality • Foodservice • Developing markets • Operating leverage • Portfolio evolution • KerryExcel • Consistent returns • Strong cash conversion • Disciplined capital allocation © Kerry 2017 | 9

  10. Slide 10: Strategic Targets (2018 – 2022)

    Strategic Targets (2018 – 2022) On average across the 5 years Taste & Nutrition 4% 4% to to 6% 6% p.a. p.a. Taste & Nutrition 40 bps p.a. Consumer Foods 2% 2% to to 3% 3% p.a. p.a. Consumer Foods 20 bps p.a. Group 3% 3% to to 5% 5% p.a.** p.a.** Group 30 bps p.a. ** Assumes 2% above market growth Ad

  11. Slide 11: Taste & Nutrition - Strategic Priorities for Growth

    Taste & Nutrition - Strategic Priorities for Growth © Kerry 2017 | 11

  12. Slide 12: Kerry Business Model – Delivering Above Market Growth Rates

    Kerry Business Model – Delivering Above Market Growth Rates * On average across the 5 years © Kerry 2017 | 12

  13. Slide 13: Consumer Foods: Strategic Priorities for Growth

    Consumer Foods: Strategic Priorities for Growth On average volume growth across the 5 years © Kerry 2017 | 13

  14. Slide 14: • Operating leverage • Portfolio evolution • KerryExcel

    • Authentic taste • Nutrition, Wellness & Functionality • Foodservice • Developing markets • Operating leverage • Portfolio evolution • KerryExcel • Consistent returns • Strong cash conversion • Disciplined capital allocation © Kerry 2017 | 14

  15. Slide 15: Strategic Targets (2018 – 2022)

    Strategic Targets (2018 – 2022) On average across the 5 years Taste & Nutrition 4% to 6% p.a. Taste & Nutrition 4040bps bpsp.a. p.a. Consumer Foods 2% to 3% p.a. Consumer Foods 2020bps bpsp.a. p.a. Group 3% to 5% p.a.** Group 3040bps bpsp.a. p.a. ** Assumes 2% above market growth Adjusted EPS Growth

  16. Slide 16: Margin Drivers

    Margin Drivers • Leverage 1 Kerry platform • New foundation technologies • Manufacturing excellence • Fragmentation response • Leverage routes to market • New markets • Supply chain excellence • Localisation of footprint • Leverage customer centres • New channels / geographies • Commercial excellenc

  17. Slide 17: Kerryconnect Programme – Built for Scale

    Kerryconnect Programme – Built for Scale T&N EMEA 2015 – 2017 acquisitions Cloud migration T&N Asia-Pacific New cloud platform T&N Latin America Foods (phase 1) Foods (phase 2) T&N North America Corporate Foods (phase 2) * ICT cost expressed as a % of revenue © Kerry 2017 | 17

  18. Slide 18: • Consistent returns • Strong cash • Disciplined capital

    • Authentic taste • Nutrition, Wellness & Functionality • Foodservice • Developing markets • Operating leverage • Portfolio evolution • KerryExcel • Consistent returns • Strong cash conversion • Disciplined capital allocation © Kerry 2017 | 18

  19. Slide 19: Cash Conversion Target > 80%

    Cash Conversion Target > 80% On average across the 5 years * Expressed as a percentage of adjusted earnings after tax © Kerry 2017 | 19

  20. Slide 20: Capital Allocation Decision Framework

    Capital Allocation Decision Framework Reinvestment Returning cash to shareholders 3%-5% of revenue Grow in line with revenue Continuing to lead industry consolidation Double digit growth in dividends © Kerry 2017 | 20

  21. Slide 21: Disciplined M&A

    Disciplined M&A Consumer, Customer, Sensory & Analytical, Market and Regulation © Kerry 2017 | 21

  22. Slide 22: Other Matters

    Other Matters © Kerry 2017 | 22

  23. Slide 23: Other Matters

    Other Matters © Kerry 2017 | 23

  24. Slide 24: Brexit – Sterling Mitigation Plans Well Progressed

    Brexit – Sterling Mitigation Plans Well Progressed © Kerry 2017 | 24

  25. Slide 25: Structure Change – Taste & Nutrition

    Structure Change – Taste & Nutrition © Kerry 2017 | 25

  26. Slide 26: Strategic Targets (2018 – 2022)

    Strategic Targets (2018 – 2022) On average across the 5 years Taste & Nutrition 4% to 6% p.a. Taste & Nutrition 40 bps p.a. Consumer Foods 2% to 3% p.a. Consumer Foods 20 bps p.a. Group 3% to 5% p.a.** Group 30 bps p.a. ** Assumes 2% above market growth Adjusted EPS Growth* 10%+ p.a. ROACE 12%+ Cash

  27. Slide 27: Leading to Better

    Leading to Better © Kerry 2017 | 27

  28. Slide 28: Leading to Better

    KERRY Leading to Better

  29. Slide 29: Capital Markets Day October 2017

    Leading to Better Capital Markets Day October 2017

Kerry Group — Investor Day (October 2017) on 6ix