Slide 1: Preliminary Statement of Results 2014
Preliminary Statement of Results 2014 24 February 2015
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 Company’s strategy, revenues, earnings, trading profit, trading margin, finance costs, tax rate, capital expenditure, dividends, cash flow,
Slide 3: 2014 Preliminary Statement of Results
2014 Preliminary Statement of Results Stan McCarthy CEO Brian Mehigan CFO ; Outlook & . . Review of Financial . Future . Business Review Prospects
Slide 4: 2014 Full Year Highlights
2014 Full Year Highlights Adjusted Continuing Group Trading EPS* Volume Margin ROACE* bividend +8.1% +2.4% +60bps +14.4% +12.5% > Adjusted EPS* increased 8.1% to 278.9 cent > Group revenue at €5.8 billion reflecting 2.4% continuing volume growth > Group trading margin up 60bps to 11.1% > ROACE* 14.4
Slide 5: 2014 Overview
mm F. 2014 Overview >» Macro economic landscape challenging > > Developed markets - slow pace of recovery, consumer confidence variable ~ cost of living increases ahead of wage growth ~ shrinking middle class Developing markets - impacted by geopolitical and currency issues — growing middle class, u
Slide 6: Revenue & Margin Overview
Revenue & Margin Overview GROUP INGREDIENTS & FLAVOURS €4,337mM Cont vols: +3.4% Margin: +80bps €5,/57m Cont vols: +2.4% Margin: +60bps CONSUMER FOODS €1,509m Cont vols: -0.7% Margin: +30bps KERRY
Slide 7: Business Review - Ingredients & Flavours
Business Review - Ingredients & Flavours 2014 GROWTH Revenue €4,337m +3,4%* Trading profit €593m +6.1% Trading margin 13.7% +80bps > Continuing volumes +3.4% and pricing (0.5%) > Trading profit +6.1% up 7.3% ona LFL basis > Strong operational performance contributing 80bps margin improvement > — Inc
Slide 8: Ingredients & Flavours Revenue Analysis
Ingredients & Flavours Revenue Analysis REVENUE BY TECHNOLOGY YEAR ON YEAR VOLUME GROWTH Ingredients & Taste Solutions Savoury & Dairy 41% Beverage 20% Cereal & Sweet 17% Functional Ingredients | Pharma 14% Regional Technologies 8% Savoury & Dairy +4% Beverage +9% Cereal & Sweet (2%) Functional Ingr
Slide 9: Business Review — Consumer Foods
Business Review — Consumer Foods 2014 GROWTH Revenue €1,509m (0.7%)* Trading profit €125m (2.6%) Trading margin 8.3% +30bps >» Continuing volumes (0.7%) and pricing (0.6%) > Operational improvement in 2014 contributed 30bps margin growth to 8.3% > Portfolio repositioning to-date delivering against c
Slide 10: Performance vs Year Group Targets (2013-2017)
Performance vs 5 Year Group Targets (2013-2017) KPI Target (p.a.) 2 Year Performance eension > +30bps +75bps oo W ane EPS > 10%t+ 9.2% ROAE* > 15%+ 18.3% v ROACE* > 12%+ 14.3% v CFROI > 12%+ 10.9% Optimistic of Achieving Group Targets KERRY Note: * before brand related intangible asset amortisation
Slide 11: Financial Highlights
Financial REVENUE iad ADJUSTED EPS Highlights €5,757m €636m 278.9 cent
Slide 12: Solid Financial Performance in a Volatile Environment
Solid Financial Performance in a Volatile Environment WY ad a@& V 40 > Consumer: disruptive trends/frugal spending » Economic and geopolitical >» Raw materials > Currencies >» Pension liability measurement KERRY PI
Slide 13: Food Price Volatility in 2014
Food Price Volatility in 2014 MONTHLY REAL FOOD PRICE INDICES 2014* ANNUAL FOOD PRICE INDEX* == —Food Dairy Oils — Cereals —— Sugar 210 190 170 150 130 110 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 MARKET ENVIRONMENT KERRY RAW MA
Slide 14: Currency Basket
Currency Basket — —O— 2014 —o—= 2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec FY 2014 (1%) KERRY 14
Slide 15: 2014 Financial Highlights
2014 Financial Highlights Revenue €5,/57m +2.4% cont vol growth Trading profit €636m +5.3% LFL* Trading margin 11.1% +60bps Adjusted EPS** 278.9 cent +8.1% Basic EPS 273.0 cent 48c in 2013 Free cash flow €303m reed KERRY Note: * like-for-like represents growth before subsidiary translation and acqui
Slide 16: Revenue Analysis
Revenue Analysis 2013 2014 €5,837m €5,757m (1.4%) CONTINUING Sy VOLUMES ACQUSITION/ con) TRANSACTION 2.4% RATIONALISATION aon (0.5 %) CURRENCY VOLUMES (13 7) (0.1%) oO (1.4%) a PRICE | MIX a (0.5%) KERRY
Slide 17: Revenue — Volume Growth Ahead of Markets
Revenue — Volume Growth Ahead of Markets @ Continuing Volumes (1 Price (0.5%) 6,000 4 €5,757m 5,000 ~ 4,000 ~ 3,000 2,000 ~ 1,000 - €1,509m Group Ingredients & Flavours Consumer Foods KERRY 7
Slide 18: Trading Margin Expansion Ahead of Plan
700 4 600 + 500 + 400 + 300 5 200 + 100 + Trading Margin Expansion Ahead of Plan 11.1% Group 13.7% Ingredients & Flavours @ Margin Progression {1 Trading Margin % Consumer Foods KERRY 18
Slide 19: 660
660 640 620 600 580 560 540 520 500
Slide 20: Business Acquisitions and Disposals Update
Business Acquisitions and Disposals Update Consumer Foods > Acquisition of Rollover Ltd in the UK - Q1 2015 (annual revenue €18m) > Disposal of non-core businesses (combined annual revenue €271m) > Chilled savoury pastry business in the UK - Q3 2014 > Direct-to-store business in the UK - Q1 2015 Ing
Slide 21: Kerry Progress Update
1 Kerry Progress Update BUSINESS > *Go-to-market Strategy’ implemented globally > . . STRATEGIES >» Global Technology & Innovation Centre platform completion OPERATING MODEL > > On-going deployment >» Phase 1- completed >» Phase 2- progressing, plan to complete 2017 KERRYCONNECT > >» 2015 - incremen
Slide 22: Trading Margin Progression
Trading Margin Progression 2014 2013 2012* 2011 Ingredients & Flavours 13.7% 12.9% 12.0% 11.9% Consumer Foods 8.3% 8.0% 1.1% 7.8% Group 11.1% 10.5% 9.6% 9.4% KERRY Note: * 2012 restated due to adoption of IAS 19 (2011) ‘Employee Benefits’ 22
Slide 23: ROACE and EPS
15.0% 300.0 14.0% 275.0 13.0% 250.0 EPS* CENT ROACE % 12.0% 225.0 11.0% 200.0 10.0% 175.0 2011 2012 2013 2014 EPS* ROACE*
Slide 24: Free Cash Flow (€m)
Free Cash Flow (€m) 2014 2013 Trading profit 636 611 Depreciation (net) 104 109 Movement in average working capital (59) (9) Pension contributions paid less pension expense (48) (36) Finance costs (42) (50) Taxation (31) (36) Free cash flow before expenditure 560 589 Capital expenditure (net) (257)
Slide 25: Financial Ratios
Financial Ratios BANKING RATIOS 2014 2013 Net debt: EBITDA* 1.6x 1.5x EBITDA: net interest 17.2x 13.3x RETURN RATIOS ROAE** 18.6% 18.0% ROACE** 14.4% 14.2% CFROI 9.1% 12.6% KERRY Note: * calculated in accordance with lender covenants ** before brand related intangible asset amortisation and non-trad
Slide 26: Maturity Profile of Net Debt (€m)
Maturity Profile of Net Debt (€m) 2014 2013 Weighted average maturity years 5.2 6.3 619 620 4 520 | 420 4 320 | 299 220 | 132 M45 M1 120 4 85 52 2015 2016 2017 2020 2022 2023 2025 (80) ~ (180) + (280) < (278) Net debt of €1.2bn (2013: €1.1bn) impacted by FX movement KERRY 26
Slide 27: Other Financial Matters
Other Financial Matters FINANCE €52.9m — a decrease of €14.7m, primarily due to cash generated COSTS from operations, lower interest rates and FX rates Tax on normal trading activity 14.3% (2013: 15.3%) benefiting from TAXATION geographical split of profits, R&D investment - primarily in Ireland and
Slide 28: Outlook and Future Prospects
wz : ta Ca AY CEO = Outlook and Future Prospects
Slide 29: The Changing Consumer
The Changing Consumer Demographics Nir ote > Shrinking middle class > Millennial growth > Urban centres growing rapidly >» Single households > Ethnic expansion Life is an experience Instant gratification Social and ethical responsibility Value seeking Pace of Life > Less personal time > Need for con
Slide 30: Kerry Market Positioning
Kerry Market Positioning > Market leading Taste & €2> Nutrition platforms Insight & Innovation >» Global Technology Application and Culinary leadership : Sp > Accelerating growth in é / a Applications . . Y ‘ & Culinary Developing Markets y Excellence ea*/, “, nourish consumers a >» Expanding global
Slide 31: Kerry Technology Initiatives
Kerry Technology Initiatives Local global solutions Dairy Nutrition Beverage / Grow corineD Stable Citrus Single Serve Deep dairy G heritage r DAIRY COMPLETE Geiss Protect profitability Attain speed to market. 09 Market Drivers. Naturally Functional Sugar Reduction Dairy Permission to Indulge Protei
Slide 32: Kerry's Nutrition Positioning
Kerry’s Nutrition Positioning Demographic Health Focus Ingredients Examples Key Nutritional Requirements Infant & Toddlers 2 Xe Children & Adolescents A Early Adulthood Healthy Ageing Seniors Rapid growth & Learning & Lifestyle factors, Maintenance/ Specific health issues development development. ma
Slide 33: Foodservice is a Round the Clock Operation
Foodservice is a Round the Clock Operation Accompaniment Late Night Snack Breakfast Dinner Mid-morning Snack Afternoon Snack Millennials - Eating Occasions Breakfast 13% Morning Snack 16% Lunch 16% Afternoon Snack 17% Dinner 18% Evenin Snack 20% KERRY 33
Slide 34: Kerry Global Foodservice Strategy
Kerry G >» Continue to drive growth in Foodservice Channel through Chain Menu innovation and brand expansion > Leverage all Kerry technologies and solutions obal Foodservice Strategy Dual Strategy Global Foodservice Chain Strategy Global Foodservice Brand Strategy KERRY 34
Slide 35: Developing Markets Growth Strategies (2014 €1.1bn)
Developing Markets Growth Strategies (2014 €1.1bn) 2008 2014 2017 19% 25% 30% Strategies to Deliver Growth Organic & Acquisitive >» Business development with key Regional players >» Local Market Consumer Insight, Application and Culinary Expertise > Kerry Centre engagement > Leverage 1 Kerry global
Slide 36: Consumer Foods Strategy: New World of Grocery
Consumer Foods Strategy: New World of Grocery Supermarket Discounters » More channels, more fragmented, more complex » Market polarisation here to stay >» Channel hopping - new shopping behaviour » Online 6% share growth (+19.2%) Premium End Squeezed Middle Value End KERRY 36
Slide 37: Kerry Foods Strategy
Kerry Foods Strategy Snack Pack > Capitalise on snacking, health and convenience trends >» Continue to outperform etail growth rates through Kerry Foods channel strategies and insights >» Continue to broaden Kerry Foods’ footprint beyond UK and Ireland Deliver compelling consumer propositions for to
Slide 38: Future Prospects
Future Prospects > Kerry business model delivering; growth, margin expansion, strong cash generation > Successfully building our strategic pillars for sustainable growth > Our Taste & Nutrition technologies aligned to developed and developing market requirements > Kerry Foods’ repositioning for toda
Slide 39: Questions and Answers
Questions and Answers
Slide 40: Additional Information
Additional Information
Slide 41: Business Review - Ingredients & Flavours Americas
Business Review - Ingredients & Flavours Americas 2014 GROWTH Revenue €1,901m +3,3%* > Continuing volumes +3.3%, pricing (0.4%) >» Continued development through category growth sectors and foodservice channel, despite overall weaker industry environment >» Food & Beverage demand in Mexico impacted b
Slide 42: Business Review — Ingredients & Flavours EMEA
Business Review — Ingredients & Flavours EMEA 2014 GROWTH Revenue €1,549m (0.5%) * > Continuing volumes (0.5%), pricing (0.8%) >» Slow economic recovery > Political and currency issues impact performance in EMEA developing markets >» H2 improvement in South Africa but Russia weaker > Realignment of
Slide 43: Business Review - Ingredients & Flavours Asia-Pacific
Business Review - Ingredients & Flavours Asia-Pacific 2014 GROWTH Revenue €807m +11.8%* > Continuing volumes +11.8%, pricing (0.3%) > Strong Kerry performance - outperforming market growth rates >» Developed markets (ANZ, Japan) weaker industry conditions > Excellent growth through Nutritional solut
Slide 44: Revenue Growth Components FY 2014
Revenue Growth Components FY 2014 — wouunes | pace {RADE youes IME: REPORTING ISS) or gredients 3.4% | (0.5%) (0.1%) (1.2%) 1.6% (1.7%) 0.3% (0.2% consumer (0.7%) | (0.6%) 0.1% (1.8%) (3.0%) 2.5% (5.3%) (5.8%) Group 2.4% |) (0.5%) (0.1%) (1.4%) 0.4% (0.5%) (1.3%) (1.4%) KERRY 44
Slide 45: Trading Profit Growth
Trading Profit Growth 2014 2013 REPORTED LFL €M €M GROWTH €M GROWTH % Ingredients & Flavours 593 558 35 7.3% Consumer Foods 125 129 (4) (2.1%) Eliminations/unallocated (45) (45) - - Group before Kerryconnect (centre) 673 642 31 6.2% Kerryconnect (centre) (37) (31) (6) - Group 636 611 25 5.3% LU SUSI
Slide 46: Trading Margin by Business
Trading Margin by Business 2014 2013 TRADING TRADING REVENUE = PROFIT REVENUE PROFIT €M €M % €M €M % Ingredients & Flavours 4,337 593 13.7% 4,327 558 12.9% Consumer Foods 1,509 125 8.3% 1,601 129 8.0% Eliminations/unallocated (89) (82) - (91) (76) - Group 5,757 636 11.1% 5,837 611 10.5% KERRY 46
Slide 47: EPS Reconciliation
EPS Reconciliation 2013 2014 GROWTH € CENT € CENT % 257.9 Adjusted EPS* 278.9 +8.1% (9.4) Brand related intangible asset amortisation (8.2) (200.5) Non-trading items (net of related tax) 2.3 48.0 Basic EPS 273.0 KERRY Note: * before brand related intangible asset amortisation and non-trading items (
Slide 48: Net Debt (€m) as at Dec 2014
Net Debt (€m) as at 31 Dec 2014 @ FLOATING @ FIXED DEBT RATES RATES Euro 664 323 341 Sterling - - - US Dollar 791 256 535 Other 24 24 - Gross debt 1,479 603 876 Cash (284) (284) - Net Debt 1,195 319 876 Gross Debt 100% 41% 59% Net Debt 100% 27% 73% Weighted average period for which rate is fixed: 4.
Slide 49: Exchange Rate Movements
Exchange Rate Movements Average Exchange Rates — 2014 v 2013 8% 4 4% 3% + wD GBP -2% + (1%) (4%) (5%) 1% + (7%) (7%) 12% 4 (11%) (12%) -17% + -22% (20%) KERRY
Slide 50: Group Long Term Targets (5 Years 2013-2017)
Group Long Term Targets (5 Years 2013-2017) Adjusted EPS* Growth +10% p.a. by VOLUME GROWTH MARGIN EXPANSION Ingredients & Flavours 4% to 6% p.a. Ingredients & Flavours 50bps p.a. Consumer Foods 2% to 3% p.a. Consumer Foods 20bps p.a. Group 3% to 5% p.a. Group 30bps p.a. (assumes market growth rate
Slide 51: 6.0 5.8 5.6 5.4 5.2 5.0 4.8 4.6 0 14.0% 600.0 160 12.0% 8.0%
6.0 700 5.8 600 5.6 500 5.4 400 5.2 300 5.0 200 4.8 100 4.6 0 14.0% 600.0 160 12.0% 8.0% 500.0 140 10.0% 6.0% 120 400.0 8.0% 100 4.0% 300.0 6.0% 80 60 2.0% 200.0 4.0% 40 100.0 0.0% 2.0% 20 0.0 0.0% 0 -2.0%
Slide 52: 0
450 600 400 500 350 300 400 250 300 200 200 150 100 100 50 0 0
Slide 53: Shareholder Analysis
Shareholder Analysis INSTITUTIONAL ANALYSIS UK 16% North America 19% Continental Europe | Rest of World 16% | Ireland 3% Institutions 54% Kerry Co-operative 14% Retail 32% KERRY Shares in issue at 31 December 2014: 175,806,602 53
Slide 54: Preliminary Statement of Results 2014
Preliminary Statement of Results 2014 24 February 2015