Kerry Group Plc · EURONEXT:KRZ
Kerry — Investor Day (2020)
19 slides from Kerry's investor day presentation, 2020
Slide 1: Performance and Targets
KERRY Performance and Targets
Slide 2: Our Value Creation Framework
Our Value Creation Framework © Kerry 2021 | 2
Slide 3: Track Record of Long-Term Growth & Financial Delivery
Track Record of Long-Term Growth & Financial Delivery Strong Growth Since 1986 Revenue Trading Profit Adjusted EPS €7.0bn €797m 345c +9% +13% +12% CAGR CAGR CAGR €337m €14m 7.6c © Kerry 2021 | 3 | See 2020 Annual Report for definition of metrics
Slide 4: Financial Performance vs Mid-Term Targets
Financial Performance vs Mid-Term Targets Tracking well before Covid-19 impacted performance in 2020 Volume Growth Margin Progression EPS Growth ROACE Cash Conversion 3-5% +30bps +10% 12%+ 80%+ ✓ average 3.2% 15bps average ~ 8.5% ✓ average 12% ~ 74% average average 2018 2019 2020 2021e 2018 2019 2
Slide 5: Key Sustainability Achievements & Performance
Key Sustainability Achievements & Performance Beyond the Horizon Better for People Better for Society Better for the Planet Ranked #16 of the world's 350 1bn+ CONSUMERS Expanded reach of positive and balanced nutrition to over 1 billion consumers TOP 5% most influential food and agriculture companie
Slide 6: Drivers of Value Creation
Drivers of Value Creation Taste Nutrition Emerging Markets Strong Cash People Generation Society Consistent Returns Portfolio Operating Operational Reinvestment Mix Leverage Efficiencies for Growth Planet © Kerry 2021 | 6 |
Slide 7: Our Mid-Term Targets (2022-2026)
Our Mid-Term Targets (2022-2026) Revenue Margin Cash Return People Society Planet Expanding Diversity & 4-6% 18%+ 80%+ 10-12% Nutritional Reach Inclusion Carbon Volume Growth¹ EBITDA Margin Cash Conversion¹ Return on by 2026 Average Capital Positive & Nourishing Employed¹ Food Waste Balanced Communi
Slide 8: Strong Revenue Growth
4-6% Strong Revenue Growth Average Volume Growth Key Growth Platforms → Authentic Taste → Plant-Based → Food Waste → Health & Bio-Pharma © Kerry 2021 | 8 | See appendix for definition of metrics
Slide 9: Step-Change Margin Expansion
Step-Change Margin Expansion 18%+ Group EBITDA Margin by 2026 20%+ Taste & Nutrition Portfolio Mix Operating Operational Reinvestment Leverage Efficiencies for Growth → Increased depth of → Leverage global → Continuous → Science, technology technology solutions footprint improvement & innovation → I
Slide 10: Accelerate – Operational Excellence Transformation Programme
Accelerate – Operational Excellence Transformation Programme Accelerate Operational Excellence Manufacturing Excellence Supply Chain Excellence → Next Generation Manufacturing → Optimise Warehouse & Distribution Network → Asset & footprint optimisation → Raw Material Category Optimisation → Digital
Slide 11: Strong Cash Conversion & Returns
Strong Cash Conversion & Returns 80%+ Cash 10-12% Conversion ROACE → Focused Capital Expenditure Aligned to Strategic Growth Priorities → Strict Working Capital Management to Deliver Days Improvement © Kerry 2021 | 11 | See appendix for definition of metrics
Slide 12: Key Sustainability Targets – Beyond the Horizon
Key Sustainability Targets – Beyond the Horizon Better for People Better for Society Better for the Planet Increasing our Carbon Reduction 2bn+ CONSUMERS Reaching over two billion people with sustainable nutrition solutions by 2030 Nourishing Communities Engaging with others through community partne
Slide 13: Capital Allocation Framework
Capital Allocation Framework Disciplined Capital Allocation Driving Shareholder Return Reinvestment Returning Cash to Shareholders Capital Expenditure 4-5% of Dividends Capital Revenue Growth of 10%+ Deployment M&A Share Buybacks Aligned to Strategy © Kerry 2021 | 13 |
Slide 14: Strategic Reinvestment to Create Value
Strategic Reinvestment to Create Value Capital Strategic Priorities Value Creation Deployment Growth Organic & Acquisitive Investment Return Taste Nutrition Emerging Markets Sustainability © Kerry 2021 | 14 |
Slide 15: Assumptions and Other Matters
Assumptions and Other Matters Currency Assumed constant currency Pricing Confident of raw material pass through pricing model Group effective tax rate of 15%+ in the later years of the plan, Tax based on the assumed enactment of a Global Minimum Tax Regime Reporting Updating for realignment of Dairy
Slide 16: Mid-term targets summary
Mid-term targets Volume Growth EBITDA Margin Cash Conversion ROACE (2022-2026) 4-6% 18%+ by 2026 80%+ 10-12% Reach 2bn People with Reduction in Carbon Reduction in Food Waste By 2030 Sustainable Nutrition 55% 50% © Kerry 2021 | 16 | See appendix for definition of metrics
Slide 17: Appendix
KERRY Appendix
Slide 18: Definitions
Definitions Financial Metrics Non-Financial Metrics Volume Growth Nutritional Reach This represents the sales performance year-on-year, excluding pass-through This the number of people reached globally by Kerry products that have a pricing on raw material costs, currency impacts, acquisitions (net o
Slide 19: Creating a World of Sustainable Nutrition
Creating a World of Sustainable Nutrition