Slide 1: Science-Backed Sustainable Nutrition
Slide 2: 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, share buybacks, cash flow, net debt or other financial measure
Slide 3: Kerry Group executive presenters
Slide 4: Key Messages
Key Messages Diversified business with strong growth differentiators Underpinned by science and technology foundation Supported by strategic capital deployment © Kerry 2024 | 4 |
Slide 5: A Well-Balanced, Diversified Global Business
A Well-Balanced, Diversified Global Business EUROPE Snacks Dairy Bakery €1.5bn Taste & Meat Nutrition AMERICAS Meals End Use €3.8bn APMEA Markets €1.6bn Pharma & Other Beverage Global / Regional Technology & Innovation Centres Manufacturing Facilities Sales Offices €8bn €1.2bn 137 21,000+ 1,100+ 70+
Slide 6: Taste & Nutrition Business Evolution
Taste & Nutrition Business Evolution Portfolio Transformation Taste and Nutrition Ingredients and Flavours Global €7bn Expansion €4bn €3bn €1bn 1986 2000 2010 2017 2023 © Kerry 2024 | 6 | The pro-forma Taste & Nutrition business profile shown above excludes the divested Sweet Ingredients Portfolio a
Slide 7: Group Portfolio Transformation
Group Portfolio Transformation ADDING SIGNIFICANT RECENT TECHNOLOGY CAPABILITY PORTFOLIO ROTATION¹ Authentic Taste JINING ARIAKE U.S.A. Savoury NATURE Enzymes Taste STRATEGIC Proactive Health ACQUISITIONS Revenue Biotechnology Natural Microbial Pharma €1.1bn Extracts Fermentation Preservation Probio
Slide 8: Strongly Positioned for Growth with Key Market Differentiators
Strongly Positioned for Growth with Key Market Differentiators Sustainable Foodservice Emerging Nutrition Markets © Kerry 2024 | 8 |
Slide 9: Leading in Sustainable Nutrition
Leading in Sustainable Nutrition Supporting our customers across the spectrum with science-backed solutions CUSTOMER Kerry Kerry Food Kerry Carbon ENABLEMENT Nutri-Guide Waste Estimator Profiler TOOLS
Slide 10: Unique Leading Positioning in Foodservice
Unique Leading Positioning in Foodservice DRIVERS OF KERRY AND CHANNEL GROWTH Consistently outperforming in a high-growth channel Increased Penetration Channel Growth Drivers 5% Back-of-House New Menu VOLUME €2.1bn Efficiency Solutions Offerings / Platforms CAGR €1.3bn Nutritional Seasonal Items / L
Slide 11: Our Strong Track Record in Emerging Markets
Our Strong Our Leading Presence in Emerging Markets Track Record In Emerging Markets 8% €2.2bn VOLUME CAGR €1.3bn RD&A Centres Manufacturing Facilities Sales Offices 9,000+ 500+ 44 36 34 Total RD&A Manufacturing RD&A Sales employees employees locations centres offices 2017 2023 Note: Detail as per 3
Slide 12: Solving Our Customers' Challenges with Science-Backed Solutions
Solving Our Customers’ Challenges with Science-Backed Solutions MARKET DYNAMICS TECHNOLOGIES Recognised Natural Natural Extracts Ingredients Sweet & Salt Modulation Enhanced Nutrition SCIENCE-BACKED Enzymes Health Need States SUSTAINABLE NUTRITION Fermentation SOLUTIONS Food Waste Natural & Conventi
Slide 13: Dr. Albert McQuaid, Chief Science & Technology Officer
Dr. Albert McQuaid Chief Science & Technology Officer, Kerry Group
Slide 14: Leading investment in science and technology ecosystem
€3bn+ Leading investment in science and technology eco-system¹ Research, Development & Applications Capabilities 22 Core Technologies 33 End Use Markets Development and Applications Centres 70+ Technology & Innovation Centres Globally ¹ Cumulative 10 year operating and capital investment © Kerry 202
Slide 15: Solving Our Customers' Challenges with Science-Backed Solutions
Solving Our Customers’ Challenges with Science-Backed Solutions MARKET DYNAMICS TECHNOLOGIES Recognised Natural Natural Extracts Ingredients Sweet & Salt Modulation Enhanced Nutrition SCIENCE-BACKED Enzymes Health Need States SUSTAINABLE NUTRITION Fermentation SOLUTIONS Food Waste Natural & Conventi
Slide 16: Science & Technology Strategy
Science & Technology Strategy Focus Areas Taste Biotechnology • Microbial Fermentation • Natural Extracts Enzymes • Modulation Peptides & Organic Acids • Dairy & Non-Dairy Probiotics, Postbiotics & Bioactives • Smoke & Reaction • Antimicrobial Extracts • Encapsulation & Delivery Systems • Prot
Slide 17: Salt Reduction in Snacks
Salt Reduction in Snacks MARKET NEED Regulation driving salt reduction MODULATION BUILT SCIENTIFIC & TECHNICAL EXPERTISE FROM A FOOD HERITAGE PROCESS EXPERTISE Cost effectiveness • Unique Breadth of Assets • Bioconversion Technology • Analytical Consumer taste and Raw Materials – • Enzymatic Modific
Slide 18: Coffee Sustainability
Coffee Sustainability MARKET NEED Climate change affecting coffee quality ENESYZ® TECHNOLOGY SCIENTIFIC & TECHNICAL EXPERTISE PLATFORM PROCESS EXPERTISE Cost effective acrylamide reduction • Strain Identification and • Bioprocessing • Enzyme Design Isolation • Media Definition • Omics Adaptable to c
Slide 19: Meat – Clean-Label Shelf-Life Extension
Meat – Clean-Label Shelf-Life Extension MARKET NEED Clean-label extended shelf life SCIENCE PROCESS TECHNOLOGY TECHNICAL EXPERTISE Validated food safety • Microbial Challenge • Fermentation • Meat Application delivery Studies • Drying • Sensory • Anti-microbial Screening • Vacuum & Spray Drying • Da
Slide 20: Our Science & Technology Strategy
Our Science & Technology Strategy Extensive science and technology ecosystem and expertise Delivering a leading product technology portfolio Targeted deployment to meet today and tomorrow’s market needs © Kerry 2024 | 20 |
Slide 21: Marguerite Larkin, Chief Financial Officer
Marguerite Larkin Chief Financial Officer Kerry Group
Slide 22: Performance in 2023
Performance in 2023 GROWTH RETURNS SUSTAINABILITY REVENUE EBITDA CASH NUTRITIONAL CARBON FOOD VOLUME MARGIN ROACE REACH REDUCTION¹ WASTE CONVERSION REDUCTION¹ -0.9% +60bps 92% 10% 1.25bn 48% 39% Group Consumers © Kerry 2024 | 22 | Note: Alternative performance measures are outlined in the financial
Slide 23: Consistent Volume Growth – Supported by Diversified Business
Consistent Volume Growth – Supported by Diversified Business Taste & Nutrition volume growth CHANNELS GEOGRAPHIES 6% Emerging Foodservice ~5% ~8% 4% 4% Retail Developed ~3% ~2% 3 Year 5 Year 10 Year Volume CAGR: 2017-2023 CAGR CAGR CAGR © Kerry 2024 | 23 |
Slide 24: EBITDA Margin Progression
EBITDA Margin Progression Taste & Nutrition EBITDA Margin Progression © Kerry 2024 | 24 |
Slide 25: Cash and Returns
Cash and Returns FREE CASH FLOW ROACE CASH CONVERSION 92% 10.5% 10.3% 10.0% €701m 82% €640m 84% €566m 2021 2022 2023 2021 2022 2023 © Kerry 2024 | 25 |
Slide 26: Our Capital Allocation Framework
Our Capital Allocation Framework REINVESTMENT CAPITAL RETURNS Capital Dividends Investment Capital Deployment Share M&A Buybacks © Kerry 2024 | 26 |
Slide 27: Strategic Capital Investment
Strategic Capital Investment Investing in our leading global footprint to support our customers with local innovation and manufacturing capabilities © Kerry 2024 | 27 |
Slide 28: M&A - Enhancing Our Strategic Platforms and Technology Capabilities
M&A - Enhancing Our Strategic Platforms and Technology Capabilities AUTHENTIC TASTE Savoury Taste Dairy Taste Natural Extracts PROACTIVE HEALTH Probiotics & Bioactives Pharma BIOTECHNOLOGY Microbial Fermentation Enzymes PRESERVATION Bio-preservation KEY DIVESTMENTS CONSUMER FOODS MEA
Slide 29: Capital Returns
Capital Returns 37 years of 115.4c of cash returned to shareholders through 1986 Dividends Per Share History 2023 dividends over past ten years Share Buybacks programme commenced in 2023 to commence post completion of current programme © Kerry 2024 | 29 |
Slide 30: Edmond Scanlon, Chief Executive Officer
Edmond Scanlon Chief Executive Officer Kerry Group
Slide 31: Key Messages
Key Messages Diversified business with strong growth differentiators Underpinned by science and technology foundation Supported by capital deployment © Kerry 2024 | 31 |
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Slide 33: Financial Metric Definitions
Financial Metric Definitions Volume Growth Free Cash Flow This represents the sales performance year-on-year excluding Free cash flow is EBITDA plus movement in average working pass-through pricing on input costs, currency impacts, acquisitions capital, capital expenditure net (purchase of assets, p