Kerry Group Plc · EURONEXT:KRZ
Kerry — CAGNY 2023 Conference
30 slides from Kerry's conference presentation, Feb 23, 2023
Slide 1: Kerry CAGNY 2023 Conference
KERRY CAGNY 2023 CONFERENCE Shing Life
Slide 2: Edmond Scanlon, CEO, Kerry Group
Edmond Scanlon CEO, Kerry Group © Kerry 2023 | 2|
Slide 3: Disclaimer
Disclaimer This presentation 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 or other financial measures, the impact of
Slide 4: Key Messages: Growth, Evolution, Winning Strategy
Key Messages WINNING GROWTH EVOLUTION STRATEGY © Kerry 2023 | 4 |
Slide 5: Growth
KERRY
Slide 6: A Growth-led Industry Leader
€8.8bn €1.2bn A Growth-led Revenue EBITDA Industry Leader €8.8bn 147 70 Manufacturing R&D locations centres 9.5% CAGR 23,000+ 1,100+ Employees R&D scientists 15,000+ 1.2bn €0.3bn Customers Consumer reach 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
Slide 7: Growth Across Our Taste & Nutrition Business Dimensions
Growth Across Our Taste & Nutrition Business Dimensions Food 66% Beverage 27% Pharma & Other 7% 72% Retail 28% Foodservice Global ~1/3 Regional ~1/3 Local ~1/3 Americas 56% 22 Core Technologies Europe 21% 25 Process Technology APMEA 23% Platforms © Kerry 2023 | 7 |
Slide 8: Evolution
Slide 9: Portfolio Rotation and Growth
Portfolio Rotation and Growth © Kerry 2023 | 9 | ¹ Pro-forma revenue excluding proposed divestment of Sweet Ingredients Portfolio
Slide 10: Business Development Aligned to Strategy
Business Development Aligned to Strategy JINING ARIAKE U.S.A. NATURE Hangman Flavours © Kerry 2023 | 10 | ¹ Pro-forma business profile including primary dairy activities
Slide 11: Enhancing Our Technology Capabilities
Enhancing Our Technology Capabilities ARIAKE U.S.A. JINING NATURE © Kerry 2023 | 11 |
Slide 12: Winning Strategy
Slide 13: Our Winning Strategy
Our Winning Strategy © Kerry 2023 | 13 |
Slide 14: Enabling Our Customers Move Along the Sustainable Nutrition Spectrum
Enabling Our Customers Move Along the Sustainable Nutrition Spectrum © Kerry 2023 | 14 |
Slide 15: Solving Our Customers' Challenges with Differentiated Solutions
Solving Our Customers’ Challenges with Differentiated Solutions Customer Challenges Kerry Solutions © Kerry 2023 | 15 |
Slide 16: Marcelo Marques, President and CEO Latin America
Marcelo Marques President and CEO Latin America Taste & Nutrition © Kerry 2023 | 16 |
Slide 17: Our Presence Today
Our Strong Track Record in Our Presence Today Emerging Markets +10% Target Volume Growth 9% Average €2.2bn Volume Growth €1.3bn R&D Centres Manufacturing Facilities Sales Offices 9,000+ 500+ 43 35 32 2017 2022 Total RD&A Manufacturing R&D Sales Employees Employees Facilities Centres Offices © Kerry
Slide 18: The Dynamic Evolving Consumer
The Dynamic Evolving Consumer Love for Local Home Sustainable Health and to over Consumption Wellbeing 6.7 BILLION Dynamic and Rapidly Evolving Consumers Authentic Premium Trust and Taste Value Transparency Equation Digital Convenience © Kerry 2023 | 18 |
Slide 19: Winning in High-Growth Snacking Category
Winning in High-Growth Snacking Category Market and Customer Kerry Solution Challenge Dairy and savoury taste Local LATAM taste leadership Healthier nutritional Strong local market presence profile – creation, application and development expertise New government regulations Improved nutrition: • Sod
Slide 20: Leading Better-For-You Beverage Category
Leading Better-For-You Beverage Category Market and Customer Kerry Solution Challenge New better-for-you energy drink Natural taste extracts Reduced sugar No added sugar Added health benefits Targeting digital Proactive nutrition consumer base Expand range across Asian markets © Kerry 2023 | 20 |
Slide 21: The Taste, Nutrition and Sustainability Partner for Foodservice
The Taste, Nutrition and Sustainability Partner for Foodservice Market and Customer Kerry Solution Challenge Nutritional profile improvement across full menu New beverage menu ranges Sustainability objectives Clean label preservation New menu platforms Sodium reduction Plant-based options Great tast
Slide 22: Marguerite, CFO, Kerry Group
Marguerite CFO, Kerry Group
Slide 23: Performance in 2022
Performance in 2022 Growth Returns Sustainability Revenue EBITDA Cash Consumers Carbon Food Waste ROACE Volume Margin Conversion Reached Reduction¹ Reduction¹ 6.1% 13.9% 82% 10.3% 1.2bn 48% 32% CONSUMERS 13.9% 82% 10.5% 10.3% €8.8bn €1.2bn 1.2bn €640m 48% 32% 14.7% 84% €1.1bn 1.1bn €7.4bn €566m 33%
Slide 24: Mid-Term Revenue Outlook
Mid-Term Revenue Volume Growth Outlook Volume growth driven Key Drivers by outperformance 8.7% 8.0% across our markets 7.8% and channels Taste & 6.1% Emerging Markets Group Taste & Nutrition Nutrition 4-6% Average Group Target Range Channels End Use Markets 2021 2022 © Kerry 2023 | 24 |
Slide 25: Mid-Term EBITDA Margin
Mid-Term EBITDA Margin Steps to Achieving Our Margin Target 20%+ Deflation T&N EBITDA Margin Target Operational Operational efficiencies 18%+ 2022 Inflation leverage Group 16.5% Portfolio and mix Target T&N EBITDA Margin 2022 2026 © Kerry 2023 | 25 |
Slide 26: Mid-Term Returns
Mid-Term Returns Cash Conversion ROACE 80%+ 82% Target 10-12% 10.3% Average Target €640m 2020 2021 2022 2020 2021 2022 © Kerry 2023 | 26 |
Slide 27: Beyond the Horizon Sustainability Strategy
Beyond the Horizon Sustainability Strategy Sustainability Nutritional Carbon Food Waste 2bn 55% 50% Reach CONSUMERS Reduction1 BY 2030 Reduction1 BY 2030 BY 2030 1.2bn 48% 32% 2020 2021 2022 2020 2021 2022 2020 2021 2022 ¹ Reduction versus 2017 baseline (Scope 1 and 2 carbon reduction) The use by Ke
Slide 28: Key Messages: Growth, Evolution, Winning Strategy
Key Messages WINNING GROWTH EVOLUTION STRATEGY © Kerry 2023 | 28 |
Slide 29: Kerry CAGNY 2023 Conference
KERRY CAGNY 2023 CONFERENCE Shing Life
Slide 30: Financial Metric Definitions
Financial Metric Definitions Volume Growth Free Cash Flow This represents the sales performance year-on-year, Free cash flow is EBITDA plus movement in average working excluding pass-through pricing on input costs, currency capital, capital expenditure, payment of lease liabilities, impacts, acquisi