Slides
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Disclaimer: Forward Looking Statements This presentation may contain forward looking statements with projections regarding, among other things, Kerry’s strategy, revenues, earnings, EBITDA, EBITDA margin, finance costs, tax rate, capital expenditure, dividends, share buybacks, cash flow, net debt or other financial measures, the impact of foreign exchange fluctuations, the impact of input cost fluctuations and other competitive pressures. These and other forward looking statements reflect management expectations based on currently available data. However, actual results will be influenced by, among other things, macro-economic conditions, food industry supply and demand issues, foreign exchange fluctuations, raw material and commodity fluctuations, the successful acquisition and integration of new businesses, the successful execution of business transformation programmes and other, as of today, unknown factors. Therefore actual results may differ materially from these projections. These forward looking statements speak only as of the date they were made and Kerry undertakes no obligation to publicly update any forward looking statement, whether as a result of new information, future events or otherwise.
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1. 2. 3. 4. 5. Track Record ofGrowth & Business Development Today’s Market Landscape & Opportunity Kerry’s Differentiated Capability Key Growth Drivers Balanced Financial Model & Growth Algorithm Overview
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1Average 2022-2025 (continuing operations) | 2 Versus 2021 base (total operations) | 3Average 2024-2025 (total operations) | 4Average 2022-2025 (total operations) | 5FY2025 Recent Business Performance and Strategic Development STRONG FINANCIAL PERFORMANCE GROWTH Volume Growth¹ +3.8% (300bps > market) EBITDA Margin² +320bps (FY2025: ~18 %) Cash Conversion⁴ 88% ROACE5 10.6% CCY Adjusted EPS Growth³ +8.6% RETURN STRATEGIC BUSINESS DEVELOPMENT Completed Portfolio Transformation Built out Biotechnology Capability Expanded our Global Footprint Developed New Technologies Business Development Accelerate
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€100bn Potential • High Protein • Functional Nutrition • Snacking Proliferation • Convenience • Premium Experiences • Refreshing Beverage Platforms • T aste Optimisation • Nutritional Optimisation • Clean Label • Supply Chain Risk Mitigation • Cost • Sustainability Enhancement RENOVATION PRICE Today’s Changing Market Landscape Provides Significant Opportunity ~€87bn T oday’s Total Addressable Market • Health & Wellness Focus • Consumer Affordability • GLP-1 • Today’s Digital Consumer • AI • Supply Chain Dynamics • Geopolitical Uncertainty • Regulatory Developments Market Landscape Shifts Driving Opportunity: INNOVATION
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DELIVERING VALUEMULTIPLYING VALUE Kerry’s Differentiated Capability Creating Value For Customers 1 Cumulative 10 year operating and capital investment CREATING VALUE Integrated Technologies Unique End-to-End Food & Beverage Innovation Capability Industry’ s Broadest Channel & Market AccessEmpowered by deep process technology expertise Deployed Locally, on a Global Scale Global Customers Regional Customers Emerging Brands Retailer Brands 60+ Technology & Innovation Centres 1,300+ 34 €3bn+ 100+ Scientists EUM Development & Application Centres Investment in Science & Technology1 Chefs & Baristas Bio-fermentation & Bio-transformation
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Supply Chain Natural Taste Authentic Taste Sustainable Dairy Solutions Raw Material Resilience Cost Mitigation By-products Valorisation Speed to Market Immune Health Cognitive Health Digestive and Microbiome Health Women’s and Early Life Nutrition Healthy Aging and Longevity Productivity and Yield Optimisation Sustainable Ingredients Clean Label Extended Shelf Life Extended Product Quality Functional Performance Elevated Nutrition Enzymes for Healthier Dairy Products Cellular Nutrition Enzymes Enabled Solutions Therapeutics & Vaccines Lactose Free Solutions Functional Ingredient Modulation Solving our Customers’ Most Complex Challenges
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¹ Based on assumption of flat end market growth | ² By 2030 and assumes neutral currency and input costs | ³ By 2030 | CCY = Constant Currency | HSD = High Single Digit Targets are on average from 2027-2030 unless otherwise stated | Alternative performance measures are outlined in the financial definitions within the appendix Financial Targets Medium-Term Financial Targets (2027-2030) GROWTH RETURN Volume Growth1 3-5% EBITDA Margin2 20-21% CCY Adjusted EPS Growth HSD+ Cash Conversion 85%+ ROACE3 12-13%
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Target Volume Growth Breakdown & Key Drivers 3.8% Our History (2022-25) Geographical Growth Profile Americas €3.7bn Europe €1.4bn APMEA €1.6bn Total 3.6% ~3-5% 2.1% ~1-2% 5.8% ~5-9% 3.8% 3-5% 2022-25 Indicative Ranges 2027-30 Key Growth Drivers Foodservice MSD+ Emerging Markets HSD Renovation ~40% PIPELINE Kerry Market Target Range 3-5% (2027-30) Note: average volume growth shown above. Geographical revenue shown is for FY2025
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2017 2025 5% VOLUME CAGR OUR COMPETITIVE ADVANTAGE SIGNIFICANT MARKET CHANGES DRIVING OPPORTUNITY High Growth Menu Areas • Refreshing Beverage • Premium Coffee • Chicken Menu Innovations Multi-Segment Growth Opportunity • High Growth Emerging Chains Rapidly Upscaling • Large Leading Chains Reinventing Operational Efficiency Needs • Speed of service • Labour challenges / costs A ~3% outperformance of the foodservice market 70% Revenue Growth LEADING TRACK RECORD Deeply embedded INNOVATION PARTNERSHIPS across every foodservice segment Our broad, deep and channel-relevant TECHNOLOGY PORTFOLIO A longstanding and dedicated BUSINESS MODEL empowered by foodservice experts across all functions 1. Foodservice A Structural Tailwind for Kerry
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2. Emerging Markets STRONG TRACK RECORD OUR PRESENCE TODAY FUTURE GROWTH DRIVERS 2017 2025 7% Volume CAGR Employees 9,000 R&D scientists 500 Manufacturing facilities 40 RD&A centres 39 Sales offices 44 Health & Wellness Regulatory Developments Foodservice/ Convenience Snacking Beverage Occasions / Platforms Extensive In- Market Footprint Scale Customer Access Portfolio Breadth Local Food & Beverage Expertise €1.3bn €2.2bn Consumer Dynamics Kerry Differentiators
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OPPORTUNITIES • Solving increasingly complex challenges through Kerry’s layered technology solutions • Deeper customer relationships – increasing growth opportunities • Margin expansion opportunity through product mix RENOVATION AREAS Taste Cleaner labels SustainabilityCost Nutrition / Wellness Supply chain DRIVERS OF RENOVATION 1. Consumer 2. Supply Chain 3. Regulatory 3. Product Renovation A structural shift providing a growth platform for Kerry Consumer expectations, supplychain complexity and regulatory scrutinyare forcing brands to make existing products work harder - creating repeatable, scalable, renovation demand
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High Protein Masking Customer Product Renovation Today Next Level Salt Reduction Step Change Taste Enhancement ~40% of Kerry’s Pipeline is Product Renovation
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Solving real business problems Manufacturing OperationsRD&A Business FunctionsCommercial Supply Chain DIF FE RE NTIA TE D TECHNO LOGY AI Decision Intelligence Scaling New Enterprise AI Platform & Data Lake Established Unified Enterprise Business Applications Scaling AI Experience Platforms Employee Experience Customer Experience Sustainability On-Time in Full Cash Return Growth TechnologyData Process People Accelerating value delivery Enabling strategic execution within Kerry Digital and AI Personalised Customer Experience Agile Product Innovation Responsible Sourcing & AI Self-Driving Supply Chain Intelligent Connected Plant & Asset Optimisation Simplification, Automation & Process Excellence Digital is embedded in Kerry — better, faster and more efficient Unlocking new business models and doing things differently
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Kerry’s Balanced 2030 Targets Framework and Targets GROWTH Volume Growth1 EBITDA Margin2 3-5% 20-21% Constant Currency Adjusted EPS Growth HSD+ Cash Conversion % 85%+ ROACE3 12-13% Carbon Reduction4 Food Waste Reduction4 Nutritional Reach 55% 50% 2bn people RETURN SUSTAINABILITY3 ¹ Based on assumption of flat end market growth | ² By 2030 and assumes neutral currency and input costs | ³ By 2030 | 4 Versus 2017 Base Year | HSD = High Single Digit Targets are on average from 2027-2030 unless otherwise stated | Alternative performance measures are outlined in the financial definitions within the appendix
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Target Volume Growth Breakdown & Key Drivers +3.7% Historic Revenue Growth Perspective (10 Year History) Volume Growth Target Range Assumptions (T arget Range 3-5% growth) • Continued end market outperformance of 300bps+ • Assumes flat end market growth rate • Addressable market growth of 1-2% Key Growth Drivers Volume Growth Price +0.8% Foodservice MSD+ Emerging Markets HSD Renovation ~40% PIPELINE
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Continued Strong EBITDA Margin Progression Note: EBITDA margin targets assume neutral currency and raw materials ¹ 2025 Gross Margin | ² Average investment per annum over plan 14.7% 17.9% 2021 2025 Efficiencies – Accelerate 2.0 Operating leverage & portfolio mix 2028 EBITDA margin target 19-20% 20-21% 2030 EBITDA margin target Clear Roadmap and Plans to Meet Targets Strong Track Record of EBITDA Margin Expansion Gross Margin of 38%¹ Moving to 39%+ by 2030 | R&D investment of 5 -6%² Key drivers: • Operating leverage • Portfolio mix • Efficiencies Continued investments 320bps Key margin expansion drivers: • Portfolio developments • Efficiencies • Operating leverage & mix
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Key Drivers of Margin Development Accelerate 2.0 FOOTPRINT OPTIMISATION DIGITAL EXCELLENCE OPERATING LEVERAGE / PORTFOLIO MIX → Manufacturing Footprint → Supply Chain Optimisation → Operations and Supply Chain → Commercial and R&D → Global Business Services Enterprise-wide initiative: Organisational digital enablement: → Volume Led Revenue Growth → Multi-layered T echnology Solutions → Biotechnology Solutions
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€640m €701m €766m €643m 2022 2023 2024 2025 10.3% 10.0% 10.6% 10.6% 2022 2023 2024 2025 Continued Strong Free Cash Flow Conversion €2.8bn Free Cash Flow 88% Cash Conversion (2022-2025) New Cash Conversion Target 85%+ €3.5bn Free Cash Flow (2027-2030) Cash and Returns 12-13% By 2030 Further Progression on Return on Average Capital Employed Note: historical free cash flow and cash conversion performance shown above is based on 2022 -2026 financial definition. See financial definitions slide in appendix for details on updated free cash flow methodology used for 2030 targets.
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Capital Investment 4-5% of revenue Dividends Double-digit growth1 2 M&A Disciplined strategic approach Share Buybacks Evaluate ongoing based on market conditions and strategic alternatives 3 4 Supported by a strong financial position Strong, consistent cash generation from operating activities Committed to maintaining strong investment grade rating Long weighted average maturity of debt REINVESTMENT CAPITAL RETURNS Capital Allocation Priority Framework
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¹ Based on assumption of flat end market growth | ² By 2030 and assumes neutral currency and input costs | ³ By 2030 | CCY = Constant Currency | HSD = High Single Digit Targets are on average from 2027-2030 unless otherwise stated | Alternative performance measures are outlined in the financial definitions within the appendix Financial Targets Medium-Term Financial Targets (2027-2030) GROWTH RETURN Volume Growth1 3-5% EBITDA Margin2 20-21% CCY Adjusted EPS Growth HSD+ Cash Conversion 85%+ ROACE3 12-13%
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Key Takeaways 1. 2. 3. 4. 5. Track Record ofGrowth & Business Development Today’s Market Landscape & Opportunity Kerry’s Differentiated Capability Key Growth Drivers Balanced Financial Model & Growth Algorithm
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APPENDIX The Future of Sustainable Nutrition
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Financial Metric Definitions Volume Growth This represents the sales performance period -on-period, excluding pass-through pricing on input costs, currency impacts, acquisitions, disposals and rationalisation volumes. Organic Growth This represents the performance period -on-period, excluding translation currency impacts, acquisitions, disposals and rationalisation volumes. EBITDA EBITDA represents profit before taxation and before finance income and costs, other income, depreciation (net of capital grant amortisation), intangible asset amortisation, non -trading items and share of joint ventures’ results after taxation. Net Debt Net debt comprises borrowings and overdrafts, interest rate derivative financial instruments, lease liabilities and cash at bank and in hand. Cash Conversion Cash conversion is defined as free cash flow, expressed as a percentage of adjusted earnings after taxation. Free Cash Flow Free cash flow is EBITDA plus the movement in working capital, capital expenditure net (purchase of assets, payment of lease liabilities, inflow/(outflow) from the sale of assets (net of disposal expenses) and capital grants received), pension contributions paid less pension expense, finance costs paid (net), other income and income taxes paid. For the Medium -Term Financial targets for 2027 -2030 the Group has updated its working capital methodology within the cash conversion metric from an average working capital basis to a point -to-point basis, reflecting the movement between opening and closing working capital balances during the reporting period. Return on Average Capital Employed (ROACE) ROACE is defined as profit after taxation attributable to equity holders of the parent before non -trading items (net of related tax), brand related intangible asset amortisation and finance income, costs and other income expressed as a percentage of average capital employed. Average Capital Employed Average capital employed is the average of total capital employed over the last three reported balance sheets. Total capital employed is calculated as shareholders’ equity, less the vendor loan note relating to the Sweet Ingredients Portfolio, less the Retained Investment in Kinisla Group Limited, plus net debt.