Kerry Group Plc · EURONEXT:KRZ

Kerry — Investor Day (October 2017)

72 slides from Kerry's investor day presentation, October 2017

1. Slide 1: October 2017 Morning Session

   October 2017 Morning Session

2. 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, trading profit, trading margin, finance costs, tax rate, capital expenditure, dividends, cash flow, n

3. Slide 3: Overview & Strategy

   KERRY Overview & Strategy Edmond Scanlon Chief Executive Officer Leading to Better

4. Slide 4: Today's Plan

   Today’s Plan • Overview & Strategy • The Clean Label Opportunity • Kerry inspired lunch • Key Takeaways introduced by our award • Taste & Nutrition • Leading in Foodservice • Financials winning culinary team • Consumer Foods • Expanding in Developing • Q&A Markets • Future of Food 2025 © Kerry 2017

5. Slide 5: Sustained Performance

   tage i Kerry Her Sustained Performance KERRY

6. Slide 6: Kerry – Leading to Better over the past 45 years

   Kerry – Leading to Better over the past 45 years Our Food & Beverage Heritage © Kerry 2017 | 6

7. Slide 7: Consistent Sustainable Performance Delivery

   Consistent Sustainable Performance Delivery 6,131 750 337 14 323.4 56.0 7.6 0.48 * Before brand related intangible asset amortisation and non-trading items (net of related tax) © Kerry 2017 | 7

8. Slide 8: Kerry Group Today

   Kerry Group Today Financial Results as of FY2016 | Enterprise Value as of 9 October 2017 © Kerry 2017 | 8

9. Slide 9: People to Feed by 2050

   Increase in Global Food demand by PEOPLE TO FEED BY OF THE POPULATION WILL BE

10. Slide 10: Our Marketplace, Our Business Model, Our Structure for Growth

    Our Marketplace Our Business Model Our Structure for Growth Our People

11. Slide 11: Consumer Revolution Driving Unprecedented Fragmentation

    Consumer Revolution Driving Unprecedented Fragmentation Source: Kerry analysis & insight, The Brookings Institution © Kerry 2017 | 11

12. Slide 12: Kerry - Positioned to Win Across the Global Marketplace

    Kerry - Positioned to Win Across the Global Marketplace • Balanced customer set between global, regional & local customers Top 10 • Broad customer base with Top 10 Globals Top 10 Globals Globals no reliance on any one Smaller customer Local Smaller Local Globals Local Smaller Globals Globals • Kerry

13. Slide 13: Kerry's Unique Taste & Nutrition Positioning

    Kerry’s Unique Taste & Nutrition Positioning Through a simple product lens, we provide integrated solutions Value-add Offering © Kerry 2017 | 13

14. Slide 14: How Kerry is Leading to Better

    How Kerry is Leading to Better Through Our Customers’ Lens, Kerry Offers Way More Value-add Offering © Kerry 2017 | 14

15. Slide 15: Kerry Business Model

    Kerry Business Model Consumer, Customer, Sensory & Analytical, Market and Regulation © Kerry 2017 | 15

16. Slide 16: Kerry Business Model

    Kerry Business Model Dairy, Savoury, Smoke & Grill, Citrus, Tea & Coffee, Beverage & Sweet Farm ingredients Consumer and third party commodities Proteins, Fibre, Enzymes, Probiotics, Fermented Ingredients, Texturants Consumer, Customer, Sensory & Analytical, Market and Regulation © Kerry 2017 | 16

17. Slide 17: Our Structure for Growth

    Our Structure for Growth © Kerry 2017 | 17

18. Slide 18: People – The Heartbeat of Kerry

    People – The Heartbeat of Kerry © Kerry 2017 | 18

19. Slide 19: Strategic Priorities & Targets

    & Targets ties ic Priori Strateg KERRY

20. Slide 20: Strategic Priorities for Growth

    Strategic Priorities for Growth © Kerry 2017 | 20

21. Slide 21: Strategic Targets (2018 – 2022)

    Strategic Targets (2018 – 2022) On average across the 5 years Taste & Nutrition 4% to 6% p.a. Taste & Nutrition 40 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 2% above market growth Adjusted EPS Growth* 10%+ p.a. ROACE 12%+ Cash

22. Slide 22: M&A Strategy – Scalable Business Model

    M&A Strategy – Scalable Business Model © Kerry 2017 | 22

23. Slide 23: Leading to Better

    Leading to Better © Kerry 2017 | 23

24. Slide 24: President & CEO Kerry Taste & Nutrition

    President & CEO Kerry Taste & Nutrition

25. Slide 25: Kerry Taste & Nutrition

    Kerry Taste & Nutrition President & CEO Chief Strategy Officer Kerry Taste & Nutrition Kerry Taste & Nutrition © Kerry 2017 | 25

26. Slide 26: Taste & Nutrition: Leading to Better

    KERRY Taste: & Nutrition The industry’s leading, globally-connected Taste and Nutrition company, operating with a local, proactive entrepreneurial mindset Leading to Better © Kerry 2017 | 26

27. Slide 27: Today Kerry is Positioned to Play Right Across the Global Marketplace

    Today Kerry is Positioned to Play Right Across the Global Marketplace Key Insights • Profound consumer led food revolution at unprecedented pace Top 10 Top 10 Top 10 Globals Globals Globals • Highly fragmented Smaller marketplace Local Local Globals Local Smaller Smaller Globals Globals • Projected

28. Slide 28: © Kerry 2017 | 28

    * In the new structure © Kerry 2017 | 28

29. Slide 29: Taste & Nutrition – End Use Market & Business Profile

    Taste & Nutrition – End Use Market & Business Profile 16% Meat 15% Food Service Chain 12% Bakery & 8% Food Service Confectionery Independent Operators 12% Cereal, Sweet & Other 2% Food Service Convenience 12% Meals 75% Retail 9% Dairy 7% Snacks 27% Beverages 5% Pharma © Kerry 2017 | 29

30. Slide 30: Our Taste & Nutrition Evolution – Unique & Differentiated

    Our Taste & Nutrition Evolution – Unique & Differentiated • Consumer centricity, insights & relevance • Global scale & depth of expertise • Agility & speed • Local execution • Growth & value creation © Kerry 2017 | 30

31. Slide 31: Kerry Taste & Nutrition

    Kerry Taste & Nutrition © Kerry 2017 | 31

32. Slide 32: Shifting Sources of Consumer Driven Growth – A Changing World

    Shifting Sources of Consumer Driven Growth – A Changing World Europe 1% 64 North America 6% Central & South America 18% 35 Middle East & North Africa 48% Sub-Saharan Africa 86% Asia Pacific 153% Total % Growth 2015 - 2030 Source: The Brookings Institution, The U.N. © Kerry 2017 | 32

33. Slide 33: The Global Opportunity in Nutrition, Health & Wellness & Clean Label

    The Global Opportunity in Nutrition, Health & Wellness & Clean Label Source: Euromonitor, Mintel, Kerry Analysis * % represent CAGR (2011-2015) of new product launches tracked with a clean label claim | Clean label claims: no additives/preservatives, natural, organic or GMO free © Kerry 2017 | 33

34. Slide 34: Digital Engagement is Shaping Consumer Behaviour and Opening New Routes to Market

    Digital Engagement is Shaping Consumer Behaviour and Opening New Routes to Market © Kerry 2017 | 34

35. Slide 35: Global Regulatory Trends – Transparency, Food Safety, Regulation

    Global Regulatory Trends – Transparency, Food Safety, Regulation Agencies in many developing countries are establishing and Mexico, France, Denmark, Finland, strengthening regulatory South Africa, Thailand and Hungary regimes – local understanding US – California, Pennsylvania and and response is cr

36. Slide 36: Global Foodservice is a Key Consumer Driven Growth Channel

    Global Foodservice is a Key Consumer Driven Growth Channel APMEA ROW Source: Kerry internal estimates, Euromonitor, MC Allegra, Globaldata © Kerry 2017 | 36

37. Slide 37: Fragmentation, Select Premiumisation and Value are Re-Shaping the N. America Landscape

    Fragmentation, Select Premiumisation and Value are Re-Shaping the N. America Customer and Channel Landscape Premium: New Brands Driving Growth Core: The Squeezed Middle Value: Meeting Minimum Incomes Largest National and Regional Chains (>100 outlets) Smaller Chains, Independents, Restaurants, Broad

38. Slide 38: Consumer Revolution Driving Unprecedented Fragmentation

    Consumer Revolution Driving Unprecedented Fragmentation Source: Kerry analysis & insight, The Brookings Institution © Kerry 2017 | 38

39. Slide 39: Kerry Taste & Nutrition

    Kerry Taste & Nutrition © Kerry 2017 | 39

40. Slide 40: Kerry Business Model - Overview

    Kerry Business Model - Overview Consumer, Customer, Sensory & Analytical, Market and Regulation © Kerry 2017 | 40

41. Slide 41: Kerry Business Model

    Kerry Business Model Dairy, Savoury, Smoke & Grill, Citrus, Tea & Coffee, Beverage & Sweet Farm ingredients Consumer and third party commodities Proteins, Fibre, Enzymes, Probiotics, Fermented Ingredients, Texturants Consumer, Customer, Sensory & Analytical, Market and Regulation © Kerry 2017 | 41

42. Slide 42: Kerry Taste & Nutrition – Our Unparalleled Go-To-Market Footprint

    Kerry Taste & Nutrition – Our Unparalleled Go-To-Market Footprint © Kerry 2017 | 42

43. Slide 43: Kerry Taste & Nutrition – Our Product Process Technology Capability

    Kerry Taste & Nutrition – Our Product Process Technology Capability © Kerry 2017 | 43

44. Slide 44: Kerry Taste & Nutrition

    Kerry Taste & Nutrition © Kerry 2017 | 44

45. Slide 45: Strategic Priorities for Growth

    Strategic Priorities for Growth © Kerry 2017 | 45

46. Slide 46: Our Taste & Nutrition Strategic Priorities for Growth

    Our Taste & Nutrition Strategic Priorities for Growth © Kerry 2017 | 46

47. Slide 47: Leveraging and Strengthening our Unique Industry Leading Foundational Technologies

    Leveraging and Strengthening our Unique Industry Leading Foundational Technologies © Kerry 2017 | 47

48. Slide 48: Kerry Business Model – Delivering Above Market Growth Rates

    Kerry Business Model – Delivering Above Market Growth Rates * On average across the 5 years of the plan © Kerry 2017 | 48

49. Slide 49: Kerry – Leading to Better

    Kerry – Leading to Better Consumer, Customer, Sensory & Analytical, Market and Regulation * On average across the 5 years of the plan © Kerry 2017 | 49

50. Slide 50: Leading to Better

    Leading to Better © Kerry 2017 | 50

51. Slide 51: Consumer Foods – Duncan Everett, CEO Kerry Foods

    Consumer Foods Duncan Everett CEO Kerry Foods KERRY Leading to Better

52. Slide 52: Agenda

    Agenda 1 2 Marketplace Consumer Context : Foods ata ? Glance Strategic : Priorities Financial ? Targets Leading to Better © Kerry 2017 | 52

53. Slide 53: Marketplace Context

    Marketplace Context 1) KERRY

54. Slide 54: Global Trends Influencing the Growing Consumer Spaces

    Global Trends Influencing the Growing Consumer Spaces Eating Out Snacking Food-to-go of Home Hot & Cold Easy Meals Healthy Solus Eating Solutions Chef’s Aids Protein Power Mobile Drive for World Convenience Free From Meat Alternatives Millennials Seniors Authenticity Perfect Portions © Kerry 2017 |

55. Slide 55: Channel Proliferation Driving Significant Change in Grocery Landscape

    Channel Proliferation Driving Significant Change in Grocery Landscape Hyper/Supermarkets Convenience Discount Other Hypermarkets Supermarkets Convenience Discount Online Other Source: TNS Worldpanel Source: IGD Research, UK Channel Opportunities 2017 Decline of Growth of Rise of Increase in Food on

56. Slide 56: Multi-channel Shopper Behaviour Driving Real Opportunity in the Food Space

    Multi-channel Shopper Behaviour Driving Real Opportunity in the Food Space Coffee specialists Online QSRs (Quick Service Restaurants) Discounters Food-to-go specialists Convenience Convenience, Forecourt & other retailers Supermarkets & Supermarkets & Hypermarkets Hypermarkets Source: IGD 2017/Niels

57. Slide 57: Consumer Foods at a Glance

    Consumer Foods at a Glance ) 2 KERRY

58. Slide 58: Consumer Foods at a Glance

    Consumer Foods at a Glance © Kerry 2017 | 58

59. Slide 59: Leading the Way in Chilled Foods

    Leading the Way in Chilled Foods • #1 Sausage Brand GB and Ireland • #1 Cooked Meats Brand Ireland • #1 Dairy Spreads Brand in Ireland • #1 Cheese Brand in Ireland • #1 Customer Brand Dairy Spreads in GB • #1 GB Customer Brand Convenience Meal Solutions • #1 Kids Cheese Snack Brand in GB • #1 Meats

60. Slide 60: Consumer Foods Strategic Value Creation Model

    Consumer Foods Strategic Value Creation Model Supermarkets & Hypermarkets Convenience Discounters Online Coffee Specialists QSRs (Quick Service Restaurants) Food-to-go Specialists Convenience, Forecourt & Other Supermarkets & Hypermarkets © Kerry 2017 | 60

61. Slide 61: Strategic Priorities

    ies t ic Priori 3) Strateg KERRY

62. Slide 62: Strategic Priorities 2022

    Strategic Priorities 2022 1. Implement Cost Optimisation Programme focused on; Simplification | Prioritisation | Pace | Efficiency to fuel topline growth and margin expansion 2. Mitigate Brexit Challenges Address business structural issues over time 1. Deliver our cash conversion target of 100% thro

63. Slide 63: Driving Growth & Winning in Chilled

    Driving Growth & Winning in Chilled (Everyday Fresh and Convenience Meal Solutions) © Kerry 2017 | 63

64. Slide 64: And Expanding Into Fast Growing Adjacencies

    And Expanding Into Fast Growing Adjacencies Eating Out of Home Solus Healthy Eating Solutions Millennials Seniors © Kerry 2017 | 64

65. Slide 65: Consumer Foods: Strategic Priorities for Growth

    Consumer Foods: Strategic Priorities for Growth On average across the 5 years * Average over 5 years © Kerry 2017 | 65

66. Slide 66: Brexit – Challenges & Opportunities

    Brexit – Challenges & Opportunities 1 Uncertainty 1 KerryExcel 1 Strong UK footprint • Consumer sentiment • Cost optimisation • Outcome programme 2 Targeted business wins • More competitive 2 Address structural than Euro based 2 Tariffs business issues over time players 3 Labour 3 Export 3 Reduce tr

67. Slide 67: Financial Targets

    | Targets 1a manc 4)F

68. Slide 68: Financial Targets

    Financial Targets * Average over 5 years © Kerry 2017 | 68

69. Slide 69: Leading to Better

    to Better ing 5) Lead KERRY

70. Slide 70: Leading to Better in Chilled

    Leading to Better in Chilled * Average over 5 years © Kerry 2017 | 70

71. Slide 71: Leading to Better

    Leading to Better © Kerry 2017 | 71

72. Slide 72: Leading to Better – Capital Markets Day October 2017

    Leading to Better Capital Markets Day October 2017

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