Slide 1: Q3 Interim Management Statement
KERRY Q3 INTERIM MANAGEMENT STATEMENT 6 NOVEMBER 2014
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: Q3 2014 Interim Management Statement
Q3 2014 INTERIM MANAGEMENT STATEMENT Brian Mehigan, CFO 3
Slide 4: Q3 YTD 2014 Highlights
Q3 YTD 2014 HIGHLIGHTS CONTINUING GROUP VOLUMES PRICING TRADING MARGIN +2.4% -0.2% +60bps › Continuing volume growth +2.4% › Ingredients & Flavours +3.6% › Consumer Foods -1.2% › Group trading margin up 60bps › Ingredients & Flavours +80bps › Consumer Foods +20bps › Net Debt of €1.3bn › Continued in
Slide 5: Q3 YTD 2014 Overview
Q3 YTD 2014 OVERVIEW › Good Kerry performance in a challenging market environment › Developed markets weaker – impacting consumer spend on food › Strong innovation pipeline in taste and nutrition to meet changing consumer trends › Developing markets slower - geopolitical & currency issues affecting
Slide 6: Q3 YTD: Revenue Growth Analysis
Q3 YTD: REVENUE GROWTH ANALYSIS 2.4% (0.2%) (0.1%) (1.6%) (1.9%) (0.6%) Q3 YTD 2013 Continuing volumes Price Transaction currency Rationalisation Reporting currency Acquisitions / Q3 YTD 2014 revenue volumes disposals revenue 6
Slide 7: Q3 YTD: Business Review – Ingredients & Flavours
Q3 YTD: BUSINESS REVIEW – INGREDIENTS & FLAVOURS GROWTH Revenue +3.6%* Trading margin +80bps › Continuing volumes +3.6% and pricing -0.2% › Strong operational performance contributing 80bps margin improvement › Lower industry inventory levels due to the input pricing environment › Demand for Kerry ‘
Slide 8: Q3 YTD: Ingredients & Flavours Revenue Analysis
Q3 YTD: INGREDIENTS & FLAVOURS REVENUE ANALYSIS REVENUE BY TECHNOLOGY* Q3 YTD CONTINUING VOLUME GROWTH Americas +3.6% EMEA +0.1% APAC +11.3% Ingredients & Taste Solutions Total +3.6% Savoury & Dairy 44% Beverage 19% Cereal & Sweet 18% Pharma/Functional Ingredients 10% Regional Technologies 9% Note:
Slide 9: Q3 YTD: Business Review – Consumer Foods
Q3 YTD: BUSINESS REVIEW – CONSUMER FOODS GROWTH Revenue -1.2%* Trading margin +20bps › Continuing volumes and pricing decreased -1.2% and -0.3% respectively › Good operational performance contributed +20bps margin improvement › Increased market fragmentation & retail environment pressures › New prod
Slide 10: Other Updates
OTHER UPDATES › Ireland – on plan for opening in Q1 2015 GLOBAL TECHNOLOGY & › Singapore opened in Q3 2014 INNOVATION CENTRES › Moscow (Regional Development & Application Centre) - October 2014 › EMEA – key implementation milestones over next 6 months KERRYCONNECT › APAC – regional design progressin
Slide 11: 2014 Outlook: Summary
2014 OUTLOOK: SUMMARY › Continued growth ahead of our markets › Innovation key to market recovery › Continued investment in growth strategies › Nutrition › Taste › Developing markets › Kerry technology centres › Continued investment in 1 Kerry and Kerryconnect › Foods repositioning progressing well
Slide 12: Kerry
KERRY Q3 INTERIM MANAGEMENT STATEMENT 6 NOVEMBER 2014