Kerry Group Plc · EURONEXT:KRZ
Kerry — Investor Presentation (May 2005)
19 slides from Kerry's investor presentation, May 24, 2005
Slide 1: Kerry Group plc International Financial Reporting Standards
Kerry Group plc International Financial Reporting Standards 24 May 2005 KERRY
Slide 2: Kerry Group - IFRS
Kerry Group - IFRS • The purpose of this presentation is to provide information on the impact of the adoption of IFRS. The financial information contained herein represents our current best estimates and may be affected by changes to IFRS standards, interpretations thereof and the emergence of best
Slide 3: Communication Timetable
Communication Timetable Full year Interim Results 2004 2004 IFRS audited Results to 30 June Annual Irish / UK to 31 December 2005 under Results Irish / GAAP 2005 under IFRS, with UK GAAP reconciliation IFRS, with comparatives comparatives 1 March 2005 24 May 2005 30 August 2005 February 2006
Slide 4: Summary
Summary • For all accounting periods beginning from 1 January 2005, Kerry Group will report its results under IFRS • Comparative information is provided for 2004 and is the subject of this presentation • IFRS impact on 2004 – Turnover no change – Cash flow no change – Adjusted EPS -0.8 cent -0.6% –
Slide 5: IFRS - Key Impact on 2004 Figures
IFRS - Key Impact on 2004 Figures • Income Statement – No change in turnover – Pension expense reduced by €3m – Amortisation charge reduced by €60.5m – Deferred tax charge increased by €5.2m Resulting in a minor reduction of 0.8 cent in adjusted EPS • Balance Sheet – Reflects Pension deficit of €199
Slide 6: Reconciliation of 2004 Earnings per Share (Cent)
Reconciliation of 2004 Earnings per Share (Cent) Under IAS 19 IFRS 3 IAS 12 IAS 38 Irish / UK Employee Business Income Intangible Under GAAP Benefits Combinations Taxes Assets IFRS Adjusted EPS* 123.7 1.6 - (3.0) 0.6 122.9 Goodwill / intangible amortisation (37.2) - 32.5 - (0.6) (5.3) Non-trading it
Slide 7: Reconciliation of December 2004 Balance Sheet
Reconciliation of December 2004 Balance Sheet €m Net assets (Irish / UK GAAP) 1,044 Pension deficit on balance sheet (199) Decrease in deferred tax liability 38 Goodwill balance sheet increase 67 Remove 2004 proposed dividend 18 Net assets (IFRS) 968
Slide 8: Zero Cash Impact
Zero Cash Impact • Cash flow generation • Cash balances • Borrowings • Payment of dividends
Slide 9: Key Accounting Changes
Key Accounting Changes Key IFRS changes that impact Kerry Group financial statements are Intangible amortisation IAS 38 ‘Intangible Assets’ and IFRS 3 ‘Business Combinations’ Pensions IAS 19 ‘Employee Benefits’ Deferred tax IAS 12 ‘Income Taxes’ Dividends IAS 10 ‘Events after the Balance Sheet Date’
Slide 10: IAS 38 Intangible Assets and IFRS 3 Business Combinations
IAS 38 Intangible Assets and IFRS 3 Business Combinations Irish / UK GAAP Policy • Amortise goodwill and intangible assets over estimated useful life (not exceeding 20 years) IFRS Policy • Goodwill not amortised but subject to an annual impairment review • More intangibles identified on acquisitions
Slide 11: IAS 19 Employee Benefits - Pensions
IAS 19 Employee Benefits - Pensions Irish / UK GAAP Policy • The Group has accounted for pensions in accordance with SSAP 24 and the pension expense has broadly equalled the cash contribution IFRS Policy • Defined contribution schemes no change • The Income Statement charge is based on the current s
Slide 12: IAS 12 Income Taxes - Deferred Tax
IAS 12 Income Taxes - Deferred Tax Irish / UK GAAP Policy • Deferred tax was recognised only on timing differences that arose from the inclusion of gains and losses in tax assessments in periods different from those in which they were recognised in the financial statements IFRS Policy • Deferred tax
Slide 13: IAS 10 Events after the Balance Sheet Date - Dividends
IAS 10 Events after the Balance Sheet Date - Dividends Irish / UK GAAP Policy • Dividends were accrued in the accounting period to which they related, even if the shareholder approval of that dividend took place after the balance sheet date IFRS Policy • Proposed dividends do not meet the definition
Slide 14: IAS 32 and IAS 39 Financial Instruments
IAS 32 and IAS 39 Financial Instruments These standards introduce changes to accounting for derivative and other financial instruments. IFRS 1 allows, for the year ended 31/12/2004, derivatives and other financial instruments to be accounted for under Irish / UK GAAP. Kerry Group will apply IAS 32 a
Slide 15: Other Issues
Other Issues • IAS 21 Effects of changes in foreign exchange rates – Impact - reserve movement of €0.6m negative • IFRS 5 Non current assets held for sale – Impact - €4.4m reclassified from fixed assets to current assets • IAS 14 Segmental reporting – Impact - segmental reporting rules already compl
Slide 16: Reconciliation of Profit After Tax 2004
Reconciliation of Profit After Tax 2004 €’000 Profit after tax (Irish / UK GAAP) 145,785 Pension adjustment IAS 19 2,971 Goodwill adjustment IAS 38 and IFRS 3 60,500 Income taxes IAS 12 (5,206) Profit after tax (IFRS) 204,050
Slide 17: IFRS Impact on 2004 Numbers
IFRS Impact on 2004 Numbers The impact of IFRS on key items in the Consolidated Income Statement and Consolidated Balance Sheet is as follows IFRS Irish / UK GAAP Change €m Change % Turnover €4,129m €4,129m - - Trading profit* €356m €349m €7m 2% PAT €204m €146m €58m 40% Adjusted EPS* 122.9c 123.7c (
Slide 18: Guidance
Guidance No impact on guidance for the year
Slide 19: the science of food
the science of food KERRY