Kerry Group Plc · EURONEXT:KRZ

Kerry — H1 2023 Earnings Presentation

27 slides from Kerry's earnings presentation, Aug 2, 2023

  1. Slide 1: Half Year Results 2023

  2. Slide 2: Disclaimer: Forward Looking Statements

    Disclaimer: Forward Looking Statements This presentation/announcement may contain forward looking statements with projections regarding, among other things, the Group’s strategy, revenues, earnings, EBITDA, EBITDA margin, finance costs, tax rate, capital expenditure, dividends, cash flow, net debt o

  3. Slide 3: Half Year Results 2023: Food Industry Transformation

    Half Year Results 2023 The way we produce, consume, and dispose of food is unsustainable for our planet and its people As a global leader in the food industry, Kerry has an important role to play in the transformational change Edmond Scanlonrequired to tackle the Marguerite Larkin Chiefglobal Execut

  4. Slide 4: H1 2023 Highlights

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  5. Slide 5: Business Review: Taste & Nutrition Overview

    Business Review: Taste & Nutrition Overview H1 2023 Performance Growth driven by Revenue €3,539m +1.4%¹ strong foodservice EBITDA €523m +1.4% performance EBITDA margin 14.8% -20bps → Volumes +1.4% with Q2 growth of 1.6% vs strong comparatives → Pricing +5.4% reflecting increases in input costs → EBI

  6. Slide 6: Taste & Nutrition: Regional Review

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  7. Slide 7: Business Review: Dairy Ireland

    Business Review: Dairy Ireland H1 2023 Performance Performance Revenue €675m -2.5%¹ reflected market EBITDA €29m -24.0% conditions EBITDA margin 4.3% -120bps → Volumes -2.5% with growth in Dairy Consumer Products more than offset by lower volumes in Dairy Ingredients → Pricing +0.4% with reduced pri

  8. Slide 8: H1 2023 Financial Review

    H1 2023 Financial Review Marguerite Larkin Chief Financial Officer © Kerry 2023 | 8 |

  9. Slide 9: H1 Financial Overview

    H1 Financial Overview 0.6% volume growth Revenue €4.1bn 1.6% reported growth EBITDA €518m H1 2022: €518m EBITDA margin 12.6% H1 2022: 12.8% 2.1% constant currency growth Adjusted EPS 180.0c 2.0% reported growth Basic EPS 201.7c H1 2022: 128.4c ROACE 10.1% H1 2022: 10.2% Free cash flow €232m 73% cash

  10. Slide 10: 9)60?+/(>(70(+D7&%E#"# MJCDIN JCHI

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  11. Slide 11: Divisional Revenue Analysis

    Divisional Revenue Analysis Group Revenue H1 2023 Taste & Nutrition Business +5.1% Year on Year Regional Volume Growth +0.6% +6.8% +1.4% Americas Europe APMEA €4.1bn €3.5bn 9.1% 9.1% 7.1% 7.1% (2.2%) 4.6% (2.5%) €0.7bn Group Dairy Taste & Ireland Nutrition (2.2%) Reported Revenue Volume Growth Organ

  12. Slide 12: Group EBITDA Breakdown

    Group EBITDA Breakdown €518m €518m H1 2022 Operating Leverage Input Cost Input Cost Cost Efficiency Currency Acquisitions H1 2023 / Portfolio Mix Inflation Recovery Initiatives / Disposals EBITDA 12.8% 0.0% (0.7%) 0.3% 0.0% 0.2% 12.6% Margin © Kerry 2023 | 12 |

  13. Slide 13: H1 Free Cash Flow

    H1 Free Cash Flow H1 2023 H1 2022 €m €m EBITDA 518 518 Movement in average working capital (103) (164) Pension contributions paid less pension expense (3) (7) Finance costs paid (net) (19) (15) Income taxes paid (55) (32) Capital expenditure (net)¹ (106) (74) Free cash flow 232 226 Cash conversion²

  14. Slide 14: Strong Credit Metrics with Long Debt Maturity Profile

    Strong Credit Metrics with Long Debt Maturity Profile Maturity Profile of Net Debt Total Net Debt of €1.8bn Undrawn €979m €1.5bn RCF €751m €744m 2023 2025 2028 2029 2031 €628m Weighted average maturity of 5.3 years Key Credit Metrics H1 2023 H1 2022 Net debt: EBITDA 1.6x 2.1x EBITDA: Net interest 19

  15. Slide 15: Capital Allocation and Dividend

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  16. Slide 16: Outlook and Future Prospects

    Outlook and Future Prospects Edmond Scanlon Chief Executive Officer © Kerry 2023 | 16 |

  17. Slide 17: 2023 Outlook and Guidance

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  18. Slide 18: Strategic Priorities by Region

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  19. Slide 19: Summary and Group Outlook

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  20. Slide 20: Appendix

  21. Slide 21: Revenue Components H1 2023

    Revenue Components H1 2023 Transaction Translation Acquisitions / Reported Volume Price Currency Currency Disposals Growth Americas (2.2%) 3.2% 0.0% 2.0% (2.9%) 0.1% Europe 4.6% 13.8% 0.0% (1.6%) (11.0%) 5.8% APMEA 7.1% 2.6% 0.1% (3.9%) (0.1%) 5.8% Taste & Nutrition 1.4% 5.4% 0.0% (0.1%) (4.0%) 2.7%

  22. Slide 22: EBITDA Margin by Business

    EBITDA Margin by Business H1 2023 H1 2023 EBITDA H1 2022 H1 2022 EBITDA Revenue EBITDA Margin Revenue EBITDA Margin €m €m % €m €m % Taste & Nutrition 3,539.3 522.8 14.8% 3,444.9 515.4 15.0% Dairy Ireland 674.5 29.2 4.3% 695.4 38.4 5.5% Eliminations/unallocated (92.2) (34.0) (82.5) (36.1) Group 4,121

  23. Slide 23: EPS Reconciliation

    EPS Reconciliation H1 2023 H1 2022 Growth € cent € cent Basic EPS 57.1% 201.7 128.4 Brand related intangible asset amortisation 14.9 13.0 Non-trading items (net of related tax) (36.6) 35.0 Adjusted EPS 2.0% 180.0 176.4 Impact of exchange rate translation 0.1% Adjusted EPS growth in constant currency

  24. Slide 24: Total Net Debt as at 30 June 2023

    Total Net Debt as at 30 June 2023 Debt @ Floating Rates @ Fixed Rates €m €m €m Euro 2,264 (11) 2,275 Sterling 8 8 - US Dollar 209 209 - Other 27 27 - Gross debt 2,508 233 2,275 Cash (661) (661) - Total net debt 1,847 (428) 2,275 Gross debt H1 2023 9% 91% Gross debt H1 2022 14% 86% Weighted average m

  25. Slide 25: Share Register Analysis

    Share Register Analysis Institutional Analysis Institutions 65% Kerry Co-operative North America 19% 11% UK 17% Continental Europe | Rest of World 26% Ireland 3% Retail 24% © Kerry 2023 | 26 | Shares in issue at 30 June 2023: 177,098,561

  26. Slide 26: Financial Metric Definitions

    Financial Metric Definitions Volume Growth Free Cash Flow This represents the sales performance excluding pass-through Free cash flow is EBITDA plus movement in average working pricing on input costs, currency impacts, acquisitions (net of capital, capital expenditure net (purchase of assets, paymen

  27. Slide 27: Slide 27

Kerry Group — H1 2023 Earnings Presentation on 6ix