Slide 1: Preliminary Statement of Results 2022: Expanding Horizons
022 Mary Statement = of Results AD EXPANDING HORIZONS &
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
Slide 3: Preliminary Statement of Results 2022
Preliminary Statement of Results 2022 1 Review of Business 2 Financial 3 Review Outlook & Future Prospects Edmond Scanlon Marguerite Larkin Chief Executive Officer Chief Financial Officer © Kerry 2023 | 3 |
Slide 4: A Record Year of Growth in a Dynamic Operating Environment
A Record Year of Growth in a Dynamic Operating Environment Strong Increased EBITDA volume growth pricing growth 10.3% €8.8bn 8.2% 11.7% Revenue 6.8% 6.1% 10.6% €7.4bn +13% Revenue 4.6% 7.2% €1.2bn €1.1bn EBITDA EBITDA Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 Quarterly Volume Growth Quarterly Pricing Group
Slide 5: Business Review: Taste & Nutrition Overview
Business Review: Taste & Nutrition Overview Excellent growth FY 2022 Performance¹ across our end use Revenue €7,417m +7.8%² markets, regions EBITDA €1,220m +20.4% and channels EBITDA margin 16.5% -120bps → Volumes +7.8% with strong Q4 growth of 6.1% → Pricing +8.7% reflecting increases in input cost
Slide 6: Business Review: End Use Markets
Business Review: End Use Markets +9% Performance by EUM +11% +11% +8% Food EUM achieved strong broad-based growth → Meat – driven by taste, texture and preservation systems Taste & Nutrition → Snacks – led by healthier snacking innovations +13% End Use Market +3% → Dairy – driven by taste solutions
Slide 7: Business Review: Performance by Region
Business Review: Performance by Region Americas Europe APMEA €4.2bn €1.5bn €1.7bn FY: 8.4% | Q4: 6.2% FY: 6.2% | Q4: 6.1% FY: 8.1% | Q4: 5.9% → North America growth led by → Growth led by Snacks, Dairy → Overall growth led by Meat, Beverage, Meat and Bakery and Meals Snacks and Bakery → Strong perfo
Slide 8: Business Review: Dairy Ireland
Business Review: Dairy Ireland FY 2022 Performance¹ Solid performance in Revenue €1,539m +0.2%² a year of significant EBITDA €71m3 +0.6%² inflation EBITDA margin 4.6% -170bps → Volumes +0.2%¹ with Q4 of -4.0%¹ reflecting very strong prior year comparatives → Pricing +36.0%¹ reflected significant inc
Slide 9: 2022 Financial Review
2022 Financial Review Marguerite Larkin Chief Financial Officer © Kerry 2023 | 9 |
Slide 10: 2022 Financial Overview
2022 Financial Overview 6.1% volume growth Revenue €8.8bn 19.3% reported growth EBITDA €1.2bn 12.9% reported growth EBITDA margin 13.9% FY 2021: 14.7% 7.3% constant currency growth Adjusted EPS 440.6c 15.7% reported currency growth Basic EPS 341.9c FY 2021: 430.6c ROACE 10.3% FY 2021: 10.5% Free cas
Slide 11: Group Revenue Analysis
Group Revenue Analysis 2021 2022 €7,351m €8,772m 19.3% Translation Acquisitions Currency Volume Price 6.8% 4.3% Transaction Currency 6.1% 11.7% Disposals 0.2% (9.8%) © Kerry 2023 | 11 | ¹ Pro-forma Group volume and price growth excluding the Consumer Foods Meats and Meals business disposal in 2022 w
Slide 12: Divisional Revenue Analysis
Divisional Revenue Analysis Group Revenue 2022 Taste & Nutrition – Quarterly Organic Growth +18.0% 19.0% +6.1% +16.7% 17.7% 18.0% +7.8% €8.8bn 7.2% 10.6% €7.4bn 11.4% 11.7% 4.6% +36.4% +0.2% 10.3% 6.8% 8.2% 6.1% €1.5bn Group Dairy Taste & Q1 Q2 Q3 Q4 Ireland¹ Nutrition Reported Revenue Volume Growth
Slide 13: Group EBITDA Breakdown
Group EBITDA Breakdown +12.9% €1,216m €1,077m 2021 Operating Input Cost Input Cost Operational Currency Acquisitions Other¹ 2022 Leverage Inflation Recovery Efficiencies / Disposals / Portfolio Mix EBITDA 14.7% 0.4% (1.8%) 0.2% 0.0% 0.6% (0.2%) 13.9% Margin © Kerry 2023 | 13 | ¹ Represents impact fr
Slide 14: Free Cash Flow
Free Cash Flow 2022 2021 €m €m EBITDA 1,216 1,077 Movement in average working capital (201) (38) Pension contributions paid less pension expense (16) (15) Finance costs paid (net) (62) (71) Income taxes paid (80) (72) Purchase of non-current assets (255) (334) Sales proceeds on disposals of non-curr
Slide 15: 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 €2.2bn Undrawn €985m €1.1bn €693m RCF €748m €744m €17m 2022 2023 2024 2025 2026 2029 2031 €970m Weighted average maturity of 4.6 years¹ Key Credit Metrics 2022 2021 Net debt: EBITDA 1.8x 2.0x EBITDA:
Slide 16: Other Financial Matters
Other Financial Matters Finance costs Decrease of €4m to €66m primarily due to higher interest income Pension Net surplus of €61m at year end → Divestment of Russia and Belarus businesses – impairment charge Non-trading items → Accelerate Operational Excellence Transformation Programme Input Costs S
Slide 17: Outlook and Future Prospects
Outlook and Future Prospects Edmond Scanlon Chief Executive Officer © Kerry 2023 | 17 |
Slide 18: Outlook
Outlook → While market conditions for 2023 are currently uncertain, Kerry remains strongly positioned to continue to grow ahead of its markets. → The Group will continue to manage input cost fluctuations with its well- established pricing model. → Kerry will continue to invest capital aligned to its
Slide 19: Medium Term Growth
Medium Term Growth Volume Growth EBITDA Margin 20%+ Deflation T&N 2022 Operational Margin 7.8% Inflation Operational Efficiencies Taste & Leverage 18%+ Group Nutrition Taste & & Mix 6.1% Nutrition 16.5% Portfolio Group Target Group 4-6% Average T&N Margin Target Range 2021 2022 2022 2026 © Kerry 202
Slide 20: Returns Sustainability
Returns Sustainability Cash Conversion ROACE Nutritional Carbon Food Waste Reach Reduction¹ Reduction¹ 80%+ 10-12% 2bn 55%² 50% CONSUMERS BY 2030 BY 2030 BY 2030 82% 10.3% 1.2bn 48% 32% €640m 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 © Kerry 2023 | 20 | ¹ Progress vs 2017 baseline | ² Scope
Slide 21: Expanding Horizons
EXPANDING HORIZONS
Slide 22: Revenue Components FY 2022
Revenue Components FY 2022 Transaction Translation Acquisitions Reported Volume Price Currency Currency / Disposals Growth Americas 8.4% 7.4% 0.1% 12.5% 4.6% 33.0% Europe 6.2% 13.9% 0.2% 2.1% 2.7% 25.1% APMEA 8.1% 7.1% 0.2% 4.5% 6.9% 26.8% Taste & Nutrition 7.8% 8.7% 0.2% 8.2% 4.5% 29.4% Dairy Irela
Slide 23: Volume Growth Breakdown
Volume Growth Breakdown Regional Breakdown FY 2022 Americas 8.4% Europe 6.2% APMEA 8.1% Divisional Breakdown FY 2022 Taste & Nutrition 7.8% Channel Breakdown FY 2022 Dairy Ireland 0.1% Foodservice 14.0% Retail 5.5% Group 6.1% Markets Breakdown FY 2022 Emerging 10.4% Developed 6.8% © Kerry 2023 | 23
Slide 24: EBITDA Margin by Business
EBITDA Margin by Business 2022 2022 2021 2021 Revenue EBITDA % Revenue EBITDA % €m €m €m €m Taste & Nutrition 7,416.6 1,220.1 16.5% 5,729.4 1,013.5 17.7% Dairy Ireland Pro-Forma¹ 1,538.9 70.7 4.6% 1,122.6 70.3 6.3% Dairy Ireland Reported² 1,538.9 70.7 4.6% 1,777.6 136.0 7.7% Eliminations/unallocated
Slide 25: EPS Reconciliation
EPS Reconciliation 2022 2021 Performance € cent € cent Basic EPS (20.6%) 341.9 430.6 Brand related intangible asset amortisation 28.7 26.0 Non-trading items (net of related tax) 70.0 (75.8) Adjusted EPS 15.7% 440.6 380.8 Impact of exchange rate translation (8.4%) Adjusted EPS growth in constant curr
Slide 26: Total Net Debt as at 31 December 2022
Total Net Debt as at 31 December 2022 Debt @ Floating Rates @ Fixed Rates €m €m €m Euro 2,464 (45) 2,509 Sterling 8 8 - US Dollar 688 454 234 Other 27 27 - Gross debt 3,187 444 2,743 Cash (970) (970) - Total net debt 2,217 (526) 2,743 Gross debt 2022 14% 86% Gross debt 2021 14% 86% Weighted average
Slide 27: 2022 Acquisitions Summary
2022 Acquisitions Summary Cash Acquisition Completion Type Activities Consideration Almer Malaysia Sdn. Bhd. March Equity Authentic Taste €68m c-LEcta GmbH¹ March Equity Biotechnology €147m Natreon, Inc. March Equity Proactive Nutrition €52m Business to Business (B2B) Powdered Cheese Business & rela
Slide 28: Share Register Analysis
Share Register Analysis Institutional Analysis Institutions 65% North America 19% Kerry Co-operative UK 17% 11% Continental Europe | Rest of World 25% Ireland 4% Retail 24% © Kerry 2023 | 28 | Shares in issue at 31 December 2022: 176,986,481
Slide 29: Thursday, 23 February 2023 10am local time (3pm GMT)
Thursday, 23 February 2023 10am local time (3pm GMT) © Kerry 2023 | 29 |
Slide 30: Preliminary Statement of Results 2022: Expanding Horizons
022 Mary Statement = of Results AD EXPANDING HORIZONS &