October 2017
Afternoon Session
Chief Financial Officer
Consistent Delivery in a Volatile and Changing Environment
• Delivering growth AND margin expansion
• Developing business portfolio
• Leading in managing change
• Working through currency volatility
• Managing raw material volatility
• Increasing consumer fragmentation
Market Kerry 2012 2013 2014 2015 2016
AUD BRL GBP CAD MYR MXN RUB ZAR USD
2012 2016
Sources: Kerry estimates, ECB FX rates, FAO annual food price index © Kerry 2017 | 3
Progress vs Current Strategic Plan
© Kerry 2017 | 4
Adjusted EPS growth 10%+ +8.4% +9.8%constant currency
Volume growth 3% to 5%** +3.2% ✓
Margin expansion +50 bps*** +70 bps ✓
ROACE 12%+ 13.8% ✓
ROAE 15%+ 17.7% ✓
CFROI 12%+ 11.5% –
Realising Group Targets
* Assumes neutral currency and raw materials | ** Assumes market growth of 2% - 3% p.a. | *** Includes 100 bps benefit arising from the Kerryconnect project
Adjusted EPS, ROACE & ROAE are calculated before brand related intangible asset amortisation and non-trading items (net of related tax)
Consistent Delivery: Growth AND Return
* Before brand related intangible asset amortisation and non-trading items (net of related tax) © Kerry 2017 | 5
142.4 151.8163.9
192.1213.4
234.0257.9
278.9301.9
323.4
0
50
100
150
200
250
300
350
400
0%
2%
4%
6%
8%
10%
12%
14%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EPS* ROACE*
ROACE* % EPS* CENT
2018 - 2022
© Kerry 2017 | 7
• Authentic taste• Nutrition, Wellness
& Functionality• Foodservice• Developing markets
• Operating leverage• Portfolio evolution• KerryExcel
• Consistent returns• Strong cash conversion• Disciplined capital
allocation
Strategic Targets (2018 – 2022)On average across the 5 years
© Kerry 2017 | 8
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 Conversion > 80%
Relative TSR – Outperforming Peers
*Assumes constant currency I TSR = Total Shareholder Return I Cash conversion is expressed as a percentage of adjusted earnings after tax
Adjusted EPS and ROACE are calculated before brand related intangible asset amortisation and non-trading items (net of related tax)
© Kerry 2017 | 9
• Authentic taste• Nutrition, Wellness
& Functionality• Foodservice• Developing markets
• Operating leverage• Portfolio evolution• KerryExcel
• Consistent returns• Strong cash conversion• Disciplined capital
allocation
Strategic Targets (2018 – 2022)On average across the 5 years
© Kerry 2017 | 10
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 Conversion > 80%
Relative TSR – Outperforming Peers
4% to 6% p.a.
2% to 3% p.a.
3% to 5% p.a.**
*Assumes constant currency I TSR = Total Shareholder Return I Cash conversion is expressed as a percentage of adjusted earnings after tax
Adjusted EPS and ROACE are calculated before brand related intangible asset amortisation and non-trading items (net of related tax)
Taste & Nutrition - Strategic Priorities for Growth
© Kerry 2017 | 11
Kerry Business Model – Delivering Above Market Growth Rates
© Kerry 2017 | 12* On average across the 5 years
© Kerry 2017 | 13
Consumer Foods: Strategic Priorities for GrowthOn average volume growth across the 5 years
© Kerry 2017 | 14
• Authentic taste• Nutrition, Wellness
& Functionality• Foodservice• Developing markets
• Operating leverage• Portfolio evolution• KerryExcel
• Consistent returns• Strong cash conversion• Disciplined capital
allocation
Strategic Targets (2018 – 2022)On average across the 5 years
© Kerry 2017 | 15
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 40 bps p.a.
** Assumes 2% above market growth
Adjusted EPS Growth* 10%+ p.a.
ROACE 12%+ Cash Conversion > 80%
Relative TSR – Outperforming Peers
40 bps p.a.
20 bps p.a.
30 bps p.a.
*Assumes constant currency I TSR = Total Shareholder Return I Cash conversion is expressed as a percentage of adjusted earnings after tax
Adjusted EPS and ROACE are calculated before brand related intangible asset amortisation and non-trading items (net of related tax)
Margin Drivers
© Kerry 2017 | 16
• Manufacturing excellence
• Supply chain excellence
• Commercial excellence
• Service excellence
• New foundation technologies
• New markets
• New channels / geographies
• Manage churn with agility
• Fragmentation response
• Localisation of footprint
• Increased R&D
• Kerryconnect/Business Services
• Leverage 1 Kerry platform
• Leverage routes to market
• Leverage customer centres
• Leverage footprint
Kerryconnect Programme – Built for Scale
* ICT cost expressed as a % of revenue © Kerry 2017 | 17
T&N EMEA
T&N Asia-Pacific
Foods (phase 1)
Corporate
2015 – 2017 acquisitions
New cloud platform
Foods (phase 2)
Cloud migration
T&N Latin America
T&N North America
Foods (phase 2)
© Kerry 2017 | 18
• Authentic taste• Nutrition, Wellness
& Functionality• Foodservice• Developing markets
• Operating leverage• Portfolio evolution• KerryExcel
• Consistent returns• Strong cash
conversion• Disciplined capital
allocation
Cash Conversion Target > 80% On average across the 5 years
* Expressed as a percentage of adjusted earnings after tax © Kerry 2017 | 19
© Kerry 2017 | 20
3%-5% of revenue
Continuing to lead industry consolidation
Double digit growth in dividends
Capital Allocation Decision Framework
Reinvestment Returning cash to shareholders
Grow in line with revenue
Disciplined M&A
© Kerry 2017 | 21
Consumer, Customer, Sensory & Analytical, Market and Regulation
© Kerry 2017 | 22
Other Matters
Other Matters
© Kerry 2017 | 23
Brexit – Sterling Mitigation Plans Well Progressed
© Kerry 2017 | 24
Structure Change – Taste & Nutrition
© Kerry 2017 | 25
Strategic Targets (2018 – 2022)On average across the 5 years
© Kerry 2017 | 26
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 Conversion > 80%
Relative TSR – Outperforming Peers
*Assumes constant currency I TSR = Total Shareholder Return I Cash conversion is expressed as a percentage of adjusted earnings after tax
Adjusted EPS and ROACE are calculated before brand related intangible asset amortisation and non-trading items (net of related tax)
© Kerry 2017 | 27
Leading to Better
© Kerry 2017 | 28
October 2017