Slide 1: The Global Leader in Integrated Solutions for the Food, Beverage & Pharma Markets
The Global Leader in Integrated Solutions for the Food, Beverage & Pharma Markets
Slide 2: The Industry Leader
The Industry Leader The Industry Reference Business Model The Broadest Technology Platform in Taste and Nutrition The Leader in Integrated Solutions © Kerry 2020 | 2
Slide 3: The Kerry Story
The Kerry Story • Our Evolution & Purpose • Industry & Marketplace • Business Model • Technology Overview • Sustainability & Financials • Strategy & Closing © Kerry 2020 | 3
Slide 4: 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
Slide 5: Video
VIDEO © Kerry 2020 | 5
Slide 6: The Industry's Leading Taste & Nutrition Company
The Industry’s Leading Taste & Nutrition Company How we have continuously reinvented ourselves over the past 50 years 2012-Today 1988-2012 Taste & Formed Nutrition in 1972 Ingredients & Dairy & Flavours Savoury © Kerry 2020 | 6
Slide 7: Inspire Food • Nourish Life: Our Journey
April 2018 Kerry Way Framework, Our Leader interviews, employee workshops, Journey focus groups Oct 2018 Introduce Our Purpose 2020 Inspire Food • 22,000+ people completed Nourish Life Jan 2019 Employee workshops Launch of Purpose & Kerry Way Aug 2019 March 2019 250+ workshops completed globally Ker
Slide 8: Our Purpose: Inspire Food • Nourish Life
Our Purpose: Inspire Food • Nourish Life As a world leader in taste and nutrition, our Purpose is to Inspire Food and Nourish Life. Inspiring Food is about Innovation Nourishing Life is about Sustainability Our Values: Courage, Ownership, Inclusiveness, Open-mindedness & Enterprising Spirit © Kerry
Slide 9: Leading Global Business – Meeting Local Consumer Needs
Leading Global Business – Meeting Local Consumer Needs 2019 Breakdown by Business Revenue €7.2bn | EBITDA €1.1bn 82% 90% Taste & Nutrition Taste & Nutrition €6bn Europe €1.5bn Revenue 10% 18% Consumer Foods Taste & Nutrition Americas Taste & Nutrition €3.2bn Revenue End Use Markets Beverage Pharma T
Slide 10: Speciality Ingredients & Flavours Industry Landscape
Speciality Ingredients & Flavours Industry Landscape For the Food, Beverage & Pharma markets Market 18.0% EBITDA margin €75bn €6.0 Revenue €bn €4.7 €3.0 €2.9 €2.7 €2.3 €1.9 €1.8 €1.7 €1.5 €1.5 Kerry T&N Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Relevant food, beverage &
Slide 11: Unique Leading Taste & Nutrition Positioning
Unique Leading Taste & Nutrition Positioning © Kerry 2020 | 11
Slide 12: Industry & Marketplace
INDUSTRY & MARKETPLACE © Kerry 2020 | 12
Slide 13: Accelerating Consumer Change is Reshaping Our Industry
Accelerating Consumer Change is Reshaping Our Industry Consumer Revolution Driving Customer Transformation Reshaping Industry Food for Life & Wellbeing Managing Accelerating Fragmentation Organisational Agility Critical New Taste Experiences Elevated Nutrition that Tastes Great Integrated Innovation
Slide 14: Industry is Moving Towards Integrated Solutions
Industry is Moving Towards Integrated Solutions Integrated Solutions Single Multiple Ingredient Ingredients © Kerry 2020 | 14
Slide 15: Customers are Looking for a Co-Creation Partner
Customers are Looking for a Co-Creation Partner Product Offering Total Customer Offering Meeting Consumer Demand Great Taste Integrated & Solutions Healthy, Nutritious & Trusted & Offering Demanded Sustainable Consumer Solutions & Sustainable Multiple • Support from ideation to launch Ingredients •
Slide 16: Business Model
BUSINESS MODEL © Kerry 2020 | 16
Slide 17: Leading Business Model: Consumer-Led and Customer-Centric
Leading Business Model: Consumer-Led and Customer-Centric Core Technologies Integrated Value Creation Customers Global Regional Authentic Development Local & Applications Taste Product Culinary Process Taste & & Insights Technologies Nutrition & Solutions Channels End Use Markets CPGs Nutrition, • M
Slide 18: Technology Overview
TECHNOLOGY OVERVIEW © Kerry 2020 | 18
Slide 19: Technology Strategy: Breadth | Depth | Integration
Technology Strategy Breadth | Depth | Integration © Kerry 2020 | 19
Slide 20: Leading Technology Capabilities
Leading Technology Capabilities 1,000+ Leader in R&D Investment – Over 300 PhD’s & Masters Scientists Expertise in Biochemistry, Microbiology, Analytical Chemistry, Food Science, Sensory, Flavorists Core Technology 25 Process 33 EUM Development > 100 Culinary & > 200 Centralised & Technical depth –
Slide 21: Broad Range of Core Technologies
Texturants Proteins Probiotics & Bioactives Modulation Lipids Natural Extracts Broad Range of Enzymes Core Technologies Across Bio- Dairy Taste and Nutrition preservation Flavours Sweet Emulsifiers Flavours Savoury Pharma Flavours © Kerry 2020 | 21
Slide 22: Enabled through our Process Technologies
Thermal Agglomeration Processing Texturants Proteins Encapsulation Extrusion Probiotics & Bioactives Modulation Spray Drying Reaction & Lipids Cooking Methods Natural Extracts Enabled through our Forming, Enzymes Molding & Broad Range of Process Enrobing Core Technologies Across Distillation Technol
Slide 23: Core in our Technologies
Beverage Food Nutrition Taste & Functionality Texturants Proteins Thermal Agglomeration Processing Probiotics & Bioactives Modulation Encapsulation Extrusion Lipids Spray Drying Natural Reaction & Process Core in our Technologies Embedded Extracts Cooking Enzymes Meat Meat Nutrition Broad Range of M
Slide 24: Core Technologies
Texturants Proteins Thermal Agglomeration Processing Food Nutrition Probiotics & Beverage Bioactives Taste & Functionality Modulation Encapsulation Extrusion Lipids Spray Drying Natural Reaction & Extracts Cooking Enzymes Broad Range Methods of Enabled through Meat ourProcess Technologies Embedded F
Slide 25: Leading Global Innovation Platforms
Leading Global Innovation Platforms Taste Discovery, Modulation Dairy & Non-dairy Taste, Authentic Savoury Taste & Delivery Functionality & Nutrition Clean Label Functionality Novel Beverage Processing Meat Free Texture & Taste: Proactive Nutrition 25 & Natural Preservation Technologies Vegan & Flex
Slide 26: The '&' Consumer
The ‘&’ Consumer Demands are increasing & becoming more sophisticated; Consumers are seeking food and beverages which; & & Easily Shared & Accessible - Always-on sharing: & Sustainable Made for me - Available: Digitally/OOH/ the good and the bad & Trusted - Bespoke experience Delivered & - Convenien
Slide 27: Nutrition & Wellness – Beverage
Nutrition & Wellness – Beverage The ‘&’ Consumer The ‘&’ Partner Integrated Integrated Solutions Core Technology Great tasting Technology Capabilities & • Taste Sense™ • Ganeden® • Spray drying & agglomeration processing • Applications • Analytical Delivering recognisable • Fermented tea technology
Slide 28: Plant Protein: The '&' Consumer, The '&' Partner
Plant Protein The ‘&’ Consumer The ‘&’ Partner Integrated Integrated Solutions Core Technology Technology Capabilities Flame grilled aroma & taste • Taste Sense™ • Protein • Applications & • Stocks • Masking flavours • Seasonings, marinades, brines • Analytical • Regulatory Handmade look and • Smoke
Slide 29: Sustainability – Natural Preservation
Sustainability – Natural Preservation The ‘&’ Consumer The ‘&’ Partner Single Ingredient Integrated Integrated Solutions Technology Technology Capabilities Great taste & authenticity • Natural preservation • Spray drying • Applications & ⎻ Fermented ingredients processing • Pyrolysis • Analytical •
Slide 30: Technology Strategy: Breadth | Depth | Integration
Technology Strategy Breadth | Depth | Integration © Kerry 2020 | 30
Slide 31: Sustainability
SUSTAINABILITY © Kerry 2020 | 31
Slide 32: Our Track Record in Sustainability
Our Track Record in Sustainability Partnerships Responsible Environment Sourcing -36% carbon intensity1 Founding member of Vanilla Project, -31% waste intensity2 Origin Green Madagascar Portfolio Access to Impact Nutrition Extensive Sugar Delivering Project Leche, RAIN Programme, Reduction Programme
Slide 33: Delivering Sustainability Impacts for Our Customers Through Our Technology Platforms
Delivering Sustainability Impacts for Our Customers Through Our Technology Platforms Sugar reduction Plant-based Circular model Removal of harmful Clean label Solutions to to improve offerings that that results in substances and preservation maximise extract nutrition while also support a less waste
Slide 34: Our Sustainability Strategy – Innovation Enabling
Our Sustainability Strategy – Innovation Enabling Sustainable Nutrition Impact We Innovation Vision 2030 Commitments Will Deliver Sustainable Solutions Sustainable Agriculture Better for People Co-creating solutions with 100% of key raw materials Enabling more sustainable customers that address the
Slide 35: Financials
FINANCIALS © Kerry 2020 | 35
Slide 36: Leading Track Record
Leading Track Record Revenue Trading Profit €7.2bn €903m +10% +13% CAGR CAGR €337m €14m Adjusted EPS Dividend 393.7c 78.6c +13% +17% CAGR CAGR 7.6c 0.48c © Kerry 2020 | 36
Slide 37: History of Consistent Growth and Return
History of Consistent Growth and Return 80%+ Cash Conversion 500 14% on average across this period 12%+ ROACE 450 12% 12% on average across this period 400 393.7 10% 350 353.4 341.2 8% 323.4 300 9%+ EPS CAGR 301.9 6% over 10 years 278.9 257.9 250 234.0 4% 213.4 200 192.1 2% 150 0% 100 2010 2011 2012
Slide 38: Group Medium Term Targets
Group Medium Term Targets On average across plan Volume Growth Margin Adjusted GROWTH Expansion Investments EPS Growth 3-5% for growth T&N 4-6% Foods 2-3% +30bps +10% Cash Dividend Total Shareholder RETURN ROACE Conversion Growth Return 12%+ >80% 10%+ Outperformance Note 1: Volume growth targets ass
Slide 39: Drivers of Value Creation
Drivers of Value Creation • Authentic Taste • Nutrition, Wellness & Functionality Growth • Foodservice EPS • Developing Markets Growth • Operating Leverage Margin • Portfolio Evolution • KerryExcel Total • Consistent Returns Shareholder Return • Strong Cash Conversion Return • Disciplined Capital Al
Slide 40: Strategy & Closing
STRATEGY & CLOSING © Kerry 2020 | 40
Slide 41: Taste & Nutrition – Strategic Priorities for Growth
Taste & Nutrition – Strategic Priorities for Growth Authentic Nutrition, Developing Foodservice Taste Wellness & Markets Functionality +10% +7% Target: Organic Volume Growth of 4-6% p.a. © Kerry 2020 | 41
Slide 42: Taste & Nutrition Strategy in Action – Clean Label
Taste & Nutrition Strategy in Action – Clean Label Nutrition & Taste Functionality Technologies Technologies Replace Reduce 5 ‘R’ Reduce specific ingredients Replace ingredient(s) with and simplify product ingredient clean label alternatives – statements Natural flavours, colours, preservatives and
Slide 43: Leader in Developing Markets
Leader in Developing Markets Deep Local Deployment Target Building +10% +10% Volume Teams CAGR €1.6bn growth p.a. 28% T&N 1Kerry Relationships Investing Local Kerry’s locally-led Understanding approach – successfully deployed over 20+ years 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 © Kerry 2
Slide 44: Leading End-to-end Partner for Foodservice
Leading End-to-end Partner for Foodservice Menu Innovation & New Platforms Themed & Seasonal Offerings Nutrition-led Innovation • Proprietary consumer research • Insight driven strategy • Clean Label/Better for you • Collaborative ideation • On-trend formats and • Tailored for you flavours • Global
Slide 45: Continuing to Deliver Strategic Value Through Acquisitions
Continuing to Deliver Strategic Value Through Acquisitions Strategic Strategic Value Priorities Strategic Acquisitions Creation Improved Taste Taste Developing Taste Nutrition Markets Foodservice Enhanced Nutrition Organic-led Strategy Nutrition New Functionality Quest Organic-led Strategy SunPure M
Slide 46: Inspire Food • Nourish Life
Inspire Food • Nourish Life © Kerry 2020 | 46
Slide 47: Video
VIDEO © Kerry 2020 | 47
Slide 48: Kerry – The Industry Leader
Kerry – The Industry Leader The Industry Reference Business Model The Broadest Technology Platform in Taste and Nutrition The Leader in Integrated Solutions © Kerry 2020 | 48
Slide 49: The Global Leader in Integrated Solutions for the Food, Beverage & Pharma Markets
The Global Leader in Integrated Solutions for the Food, Beverage & Pharma Markets