Kerry Group Plc · EURONEXT:KRZ
Kerry — Investor Day
39 slides from Kerry's investor day presentation
Slide 1: Kerry Investor Day
Kerry Investor Day
Slide 2: Safe Harbour Statement
Safe Harbour Statement 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, net debt or oth
Slide 3: Group Overview
Group Overview Stan McCarthy CEO Kerry Group KERRY
Slide 4: Tour Leads
Tour Leads Stan McCarthy Gerry Behan Brian Mehigan Andy Royston Ronan Deasy William Lynch CEO Kerry Group President and CFO Kerry Group Chief Marketing Group Financial Head of Investor CEO Kerry Officer Kerry Controller Relations Break-out Leads Eoin O’Connell Michael O’Neill Edmond Scanlon Malcolm
Slide 5: Agenda
Agenda Group/Kerry’s Taste & Nutrition Journey Breakout Experiences *3 Group Lunch Served Breakout Experiences *3 Performance / Closing / Q&A + Stan McCarthy * Gerry Behan + Tour Leads +All + Tour Leads + Brian Mehigan + Stan McCarthy “All 10.15 — 11.00 11.15— 12.40 e- 13.00 — 14.00 14.15 — 15.40 e-
Slide 6: History — Key Milestones
History — Key Milestones 6a > Kerry Listed on Acquisition Enter Enter Evolving 1Kerry Global Technology formed Irish Stock of Beatreme Latin Asia-Pacific Technology programme & Innovation Centre Exchange in US America Platforms architecture complete bo ccceceeseeeseereeeseeersenseesscseevsesseeseese
Slide 7: Go-To-Market Strategy, Taste, Growth platforms
✔ ✔ ✔ › Go-To-Market Strategy › Taste › Growth platforms › Operating model › Nutrition › Disposals › Kerryconnect › Developing markets
Slide 8: No.1 Partner to the Food & Beverage Industry
No.1 Partner to the Food & Beverage Industry Market Leadership i c+) Consumer Ingredients & Flavours Foods Holistic Partnerships ° aa Consumer aad fe) Channel Nutrition & Davellot Customer evelopin Taste General Wellness vee Geography Sustainability 1 Kerry
Slide 9: €5.8bn Revenue, €636m Trading profit
€636m €5.8bn Revenue Trading profit
Slide 10: Our Taste & Nutrition Business Today
Technology Ingredients & Flavours © 41% Savoury & Dairy O 20% Beverage © 17% Cereal & Sweet O 14% Pharma/Functional Ingredients © 8% Regional Ingredients Americas End use market Developing markets 25% | Developed markets 75% Our Taste & Nutrition Business Today 23% 18% 10% 10% 6% 10) [e) [e) 2) [e)
Slide 11: The Recipe for Success
The Recipe for Success Science and Holistic Technology Partnerships KERRY
Slide 12: Kerry's Taste and Nutrition Journey
Kerry's Taste and Nutrition Journey Gerry Behan President and CEO Kerry Kerry’s Taste and Nutrition Journey KERRY
Slide 13: A period of Unprecedented change in the F&B Industry
A period of Unprecedented change in the F&B Industry Developed Markets DEMAND Industry SPECIAL Fae |L. excoxconcusecoeco00ns istry BREET LOCALISED, Focus on Consolidation THE WAR ON 11 Food Companies AUTHENTIC food safety, aypituel BIG FOOD ‘ Fan Kraft Heinz eee eee eens removing artificial TASTE cl
Slide 14: A period of Unprecedented change in the F&B Industry
A period of Unprecedented change in the F&B Industry Developing Markets CLASS CONSUMER SPENDING GROWTH Geopolitical, market and exchange rate volatility SLUGGISH ECONOMY 870 MILLION Nearly 870 million people, or one in eight people in the world, were suffering from chronic undemourishment in 2010-20
Slide 15: The new consumer
The new consumer mod . . ary eet? - Artificial - Frozen - Clean label - Healthy - Packaged - Unhealthy - Authentic - Prepared food - Processed _ - Boxed meals - Value » Fresh More time is being spent shopping the perimeter: 38% Perimeter 18% Centre of Store 44% Navigating Store, Standing in Line, Ch
Slide 16: Trends Driving Foodservice Traffic
Trends Driving Foodservice Traffic Better for you Fresh & Clean Customisation The skinny on Authentic ingredients, Making every experience healthier options clean label personal, fun and interactive G Snacking Premiumisation Indulgence The new meal The growth of handcrafted Dessert-inspired and arti
Slide 17: Taste No.1 — Healthfulness on the Rise
Taste No.1 —Healthfulness on the Rise a How much impact do these have on food/beverage purchase decisions? ee Za = @ taste @ price © HEALTHFULNESS International Food Information Council, Food & Health Survey, 2014 (% rating 4 to 5 on 5-point scale, from No Impact to A Great Impact) 20 1 2 20 1 3 20
Slide 18: Our Vision
Our Vision To be the leader in Taste and Nutrition for the global food, beverage and pharmaceutical industries, creating sustainable value for our customers, employees, environment, community and shareholders. Our Mission To help delight and nourish consumers across the globe. Our Values Commitment
Slide 19: Authenticity
Authenticity Real Food; Home Cooked Simplicity Fresh Tastes; Trusted Labels Restaurant Building Experiences Back Lost Taste Chef Inspired; Taste Enhancement; Premium Convenience Perception Taste We create more authentic and delicious taste experiences. - Unique positioning with our depth of natural
Slide 20: Free From Better For You
Free From Better For You Avoidance Balance & Moderation Nutrition We develop more nutritious products that are inspired by and good for people. + Long-standing nutritional food and beverage heritage + Unparalleled functional technology portfolio complemented by leading authentic taste delivery + Lea
Slide 21: Kerry's Unique, Holistic Business Model
Kerry’s Unique, Holistic Business Model to Ae hn Applications General Wellness Food Process Science Technology Fundamental Science & Research Kerry’s Taste and Nutrition Journey KERRY
Slide 22: Customer Intimacy
Customer Intimacy Enabling Growth ° Intimate knowledge of customers’ businesses and their consumers * Deep, multi-functional, multi-level, parchacing multi-channel relationships * Proprietary approach that delivers insights that help customers develop heir brands and grow their business ° Digital en
Slide 23: Taste & Nutrition Experienced through a Tour of Kerry's Global Technology & Innovation Centre
Taste & Nutrition Experienced through a Tour of Kerry’s Global Technology & Innovation Centre On the Tour Route: * Discovery * Taste * Nutrition * Food Suites « Beverage Suites * Commercialisation Centre
Slide 24: Performance Overview
Performance Overview Brian Mehigan CFO Kerry Group KERRY
Slide 25: Group Long Term Targets (5yrs 2013-17)
Group Long Term Targets (Syrs 2013-17) Adjusted EPS* Growth +10% p.a. by: VOLUME GROWTH MARGIN EXPANSION Ingredients & Flavours 4% to 6% p.a. Ingredients & Flavours 50 bps p.a. Consumer Foods 2% to 3% p.a. Consumer Foods 20 bps p.a. Group 3% to 5% p.a.** Group 30 bps p.a. (** assumes market growth r
Slide 26: Performance vs 5yr Group Targets (2013-17)
Performance vs 5yr Group Targets (2013-17) KPI Target 2 yr Performance Adjusted EPS Growth 10%+ 9.2% Volume Growth 3% - 5%* 2.7% v* Margin Expansion +30bps +75bps ¥ Returns *assuming market growth rate of 2% to 3% p.a. (market volumes were flat in 2013/2014) KERRY
Slide 27: Strong Earnings Growth While Increasing Return on Capital Employed
Strong Earnings Growth While Increasing Return on Capital Employed 15% 300 14% 275 13% 250 & ra a oO os) 4 12% 225 ‘ & a 11% a 200 10% 175 2011 2012 2013 2014 mEPS* @®ROACE* Note: * before brand related intangible asset amortisation and non-trading items (net of related tax) KERRY| 2
Slide 28: Cash Strategy — 5 year History
Cash Strategy — 5 year History Cash Generation Reinvestment for Growth Acquisitions €1 Billion Free Cash Flow €1.6 Billion Capex €900 million 2010 - 2014 KERRY
Slide 29: Capacity to Grow
Capacity to Grow Net Debt/Adjusted EBITDA* Deb 3.SX pa------------------------------------------------ 700 COVENANT = <3.5X aaa 3.0x 500 400 2.5x 300 200 2.0x 100 — 0 1.5x (100) (200) 1.0x (300) 2010 2011 2012** 2013 2014 New 10 year €750 million bond issued in September at MS +137bps New 5 year €1.
Slide 30: Closing
Closing Stan McCarthy CEO Kerry Group KERRY
Slide 31: No.1 Partner to the Food & Beverage Industry
No.1 Partner to the Food & Beverage Industry Market Leadership Ingredients & Flavours @ Consumer Foods Holistic Partnerships 3 Ce Consumer . fe) Channel Nutrition & mavstanty Customer evelopin eee General Wellness vee Geography Sustainability 1 Kerry
Slide 32: Kerry's Unique, Holistic Business Model
Kerry’s Unique, Holistic Business Model to Ae hn Applications General Wellness Food Process Science Technology Fundamental Science & Research Kerry’s Taste and Nutrition Journey KERRY
Slide 33: Authenticity
Authenticity Real Food; Home Cooked Simplicity Fresh Tastes; Trusted Labels Restaurant Building Experiences Back Lost Taste Chef Inspired; Taste Enhancement; Premium Convenience Perception Taste We create more authentic and delicious taste experiences. - Unique positioning with our depth of natural
Slide 34: Free From Better For You
Free From Better For You Avoidance Balance & Moderation Nutrition We develop more nutritious products that are inspired by and good for people. + Long-standing nutritional food and beverage heritage + Unparalleled functional technology portfolio complemented by leading authentic taste delivery + Lea
Slide 35: Developing Markets
Developing Markets 2008 19% Strategies to Deliver Growth Organic & Acquisitive + Business Development with Key Regional Players 2017 30% + Local Market Consumer Insight, Application and Culinary Expertise + Kerry Centre Platform Development + Leverage Global Purchasing Power + Leverage 1 Kerry Globa
Slide 36: Acquisitions
Acquisitions Market Leadership #1 #1 Consumer Ingredients & Flavours Foods Consumer Channel Customer Taste Nutrition & Developing General Wellness Markets Geography Red Arrow Island Oasis Wellmune Insight Beverages KFI Savory Baltimore Spice PST Rollover Ltd 36
Slide 37: New Acquisitions Announced
New Acquisitions Announced TECHNOLOGY LOCATION GEOGRAPHIC SALES END USE MARKETS RED ARROW he * Grill © Browning Global leader — smoke & grill taste US — WI (x2), Sweden, Germany Americas | EMEA | APAC Meat & culinary Industry leader in natural cold speciality beverage systems US — NY, OH, MA America
Slide 38: The Recipe for Success
The Recipe for Success Science and Holistic Technology Partnerships KERRY
Slide 39: Questions and Answers
Questions and Answers | @ 0 ui x