Introducing Kerry The World’s Leading Taste & Nutrition Company February 2020
Introducing KerryThe World’s Leading Taste & Nutrition Company
February 2020
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
Who We Are
Kerry Group is a global leader
in taste and nutrition serving
the food, beverage and
pharmaceutical industries,
and a leading supplier of
added-value brands and
customer-branded foods to
the Irish, UK and select
international markets
© Kerry 2020 | 3
Globally Connected Winning Locally
26,000+Employees
1,000+R&D Scientists
151ManufacturingLocations Globally
150+Sales in 150+ countries
18,000+Products
€7.2bnRevenue in 2019
What We DoLeading to better food, in a better way, for a better future
Our Technologies Our Approach Our Expertise Our Solutions Our People
Authentic Taste,Nutrition,
Wellness & Functionality
Collaboration with our customers and working
with their suppliers
Culinary & InsightsDevelopment & ApplicationsProduct Process Technologies
Global Technology CentresNutrition Discovery CentresState-of-the-art pilot plants
Unparalleled integrated solutions capability
across a wide variety of end use markets
(Beverage, Meat, Bakery & Confectionery, Cereal & Sweet, Meals, Dairy, Snacks, Pharma)
Largest Taste & Nutrition Foundational
Technology Portfolio
Holistic Partnerships
End to End Expertise
Branded & Bespoke Product Solutions
26,000+ People Passionate About Food
117 Nationalities includingNutritionists, Flavourists,
Chefs, Food Scientists, Mixologists, Regulatory and
Marketing Specialists
How We Work with Customers:Our Unique Business Model
© Kerry 2020 | 5
A. Foundational Technologies – Authentic Taste, Nutrition, Wellness & Functionality
B. Unique integrated technology value creation approach –deployed through specialist end use market teams
C. Unparalleled channel and customer access
3 Kerry’s business model comprises 3 core inputs
Where We OperateGlobally Connected, Winning Locally
© Kerry 2020 | 6
Tralee, Co. Kerry, Ireland Naas, Kildare, Ireland
Beloit, Wisconsin, U.S.
Countries withManufacturingfacilities
© Kerry 2018 | 7
1972 Started as a Dairy Cooperative
3,000+ Dairy suppliers
100% SDAS certified under Origin Green programme
1.19bn Litres of milk supplied
From Our From Food For Food Heritage …
Making better more authentic and delicious taste experiences that also
meet nutritional needs
A leading supplier of added-value branded and customer-branded
chilled food products
Taste & Nutrition Kerry Foods
… to the World’s Leading Taste and Nutrition Company
8 Global and Regional Technology & Innovation Centres
18k+ Products
151 Manufacturing Facilities
REVENUE IN 2019€6.0bn
Taste & Nutrition
© Kerry 2019 | 10
TasteTechnologies
Nutrition &FunctionalityTechnologies
Replace
Taste & Nutrition Strategy in Action– Clean Label
Replace ingredient(s) with clean label alternatives –Natural flavours, colours, preservatives and sweeteners
ReinventCustomers looking to scale their business, while maintaining their identity
e.g. Certified Organic | Non-GMO
RepositionReposition products in the marketplace• Product positioning and format• Packaging, culinary processing• Small batch, home-cooked, authentic
ReduceReduce specific ingredients and simplify product ingredient statements• Natural ingredients that are
multi-functional• Sugar and sodium reduction
RemoveEliminate specific ingredient(s)• ‘No No’ lists• BPA free• BHT free
5 ‘R’Clean Label
Kerry Health & Nutrition Institute
80+Research
Papers
200+Nutrition Articles
15White Papers
8Specialised Webinars
20Research Partners
1,000+R&D
Scientists
No.1 Sausage brand in GB and Ireland
No. 1 Kids cheese snack brand in GB
No. 1 Dairy spreads brand in Ireland
No. 1 Meat snack brand in GB
Kerry Foods
REVENUE IN 2019€1.3bn
2019 Financial Performance
© Kerry 2019 | 13
Revenue
€7.2bn
Trading Profit
€903m
Group Revenue by Division
83% Taste & Nutrition
17% Consumer Foods
Group Trading Profit by Division
90% Taste & Nutrition
10% Consumer Foods
Volume Growth(Like-for-like) of
+2.8%
Free Cash Flowof
€515m
Group TradingMargin of
12.5%
Constant Currency Adjusted EPS
+8.3%
Total Dividend per Share up 12.0% to
78.6 cent
Return on Average Capital Employed of
11.8%
(74% cash conversion)
Strategic Priorities for Growth
Authentic Taste
Consumer Foods
Nutrition, Wellness &
Functionality
Developing Markets
Core
Adjacencies
NEW OCCASIONS
NEW CHANNELS
NEW CUSTOMERSFoodservice
© Kerry 2019 | 14
Taste & Nutrition
15
Nourishing a better world
kerrygroup.com/sustainability
Sustainability Pillars
Sustainable Growth
Environmental Sustainability
Marketplace Sustainability
WorkplaceSustainability
CommunitySustainability
16© Kerry Group 2019 |
Towards 2020 – Sustainable Development
2019 Highlights
Climate Change Resource EfficiencyWaste Reduction
Nutrition & HealthResponsible SourcingProduct Quality
Our PeopleBusiness Ethics Health & Wellbeing
Social ImpactEconomic DevelopmentShared Purpose
REDUCTION IN CARBON
INTENSITY
Versus 2013 base year
REDUCTION IN WASTE
INTENSITY
Versus 2013 base year
RESEARCH, DEVELOPMENT
& APPLICATION
Industry leading investment
SUSTAINABLE FUNDING
ARRANGED
ESG linked revolving credit facility
HEALTH & SAFETY
Reduction in recordable
incidents
EMPLOYEE PARTICPATION IN
THE KERRY WAY WORKSHOPS
Courses completed
PROJECT LECHE
Honduran teachers trained
on nutrition
RAIN PROGRAMME
Farmers trained on
conservation
23% €291.5m 17% 1,000
31% €1.1bn 90% 190
Environmental Sustainability
Marketplace Sustainability
WorkplaceSustainability
CommunitySustainability
We aim to protect the natural environment and enhance the lives of the people who create and consume our products
Project ‘RAIN’ Addressing food security, Niger, West Africa
Project Leche Improving nutrition, Honduras
Special Olympics Building more inclusive communities, UK & Ireland
Key Community Projects
The World’s Leading Taste & Nutrition Company @WeAreKerry