Q1 2019 Interim Management Statement - Kerry Group

Q1 2019Interim Management Statement2 MAY 2019

© Kerry Group 2019 |

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, net debt or other financial measures, the impact of foreign exchange fluctuations,

the impact of raw material 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 the Group 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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© Kerry Group 2019 | 3

Q1 2019 IMS

Outlook

3© Kerry Group 2019 |

Performance Review

Edmond Scanlon, Chief Executive Marguerite Larkin, Chief Financial Officer

Overview1

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© Kerry Group 2019 |

Q1 2019 Overview – Solid Start to the Year

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Highlights

Business

Performance

• Developed – key innovation drivers: ‘food for wellbeing’, ‘new taste experiences’ & ‘made for me’

• Developing – consumer localisation preferences reshaping market dynamicsMarkets

• Volume growth – continued strong market outperformance

• Portfolio enhancement – continued evolution aligned to consumer preferences

• Acquisitions – performed very well, good progress on integration

• Taste & Nutrition – solid start to the year, with good business development

• Consumer Foods – brands performing well, with private label challenged

© Kerry Group 2019 |

Q1 2019 Highlights – Consistent Performance

• Volume growth +3.3%

• Taste & Nutrition +3.8%

• Consumer Foods +0.8%

• Pricing (0.2%)

• Group trading margin +10bps

• Taste & Nutrition +10bps

• Consumer Foods (10 bps)

• Net debt of €1.9bn

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3.8%

0.8%

3.3%

T&N Foods Group

Volume Growth

© Kerry Group 2019 |

Revenue Growth Analysis

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Q1 2019

10.3%

3.6%

Volume

Q1 2018

3.3%

Volume

0.0%

Transactioncurrency

(0.2%)

Price

4.7%

Acquisitions/disposals

2.5%

Translation currency

© Kerry Group 2019 |

2.6% 2.4%

9.3%

3.8%

AMERICAS EUROPE APMEA T&N

Business Review – Taste & Nutrition

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• Developed – Meat, Snacks and Dairy EUMs delivered good growth

• Developing – Brazil and Mexico performed well

• Acquisitions of Fleischmann’s (FVC) and Southeastern (SEM) performed well

• Beverage had excellent broad-based performance

• Meat and Snacks EUMs delivered good growth

• Northern Europe and Russia delivered strong growth

• Meat, Beverage and Snacks EUMs delivered strong growth led by the Foodservice channel

• Growth right across the region led by China

• Strategic investments in capacity expansion and additional processing capability in China, India and the Middle East

YTD Growth by Region

Note: ¹ volume growth

YTD Growth

Revenue +3.8%Trading margin +10bps

• Continued volume growth ahead of our markets

• Meat, Snacks and Dairy EUMs all delivered strong growth

• Developing Markets volume growth of 9.0% and Foodservice volume growth of 5.1%

• Margin progression – good underlying growth driven mainly by enhanced product mix, operating leverage and efficiencies, offset by investments and Brexit risk mitigation costs

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Americas Europe APMEA

© Kerry Group 2019 |

Business Review – Consumer Foods

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• Richmond – solid growth with chicken sausage performing well

• Spreads – traditional category challenged, but growth in spreadable butter

• Category volumes continue to be impacted by reduced promotional activity

• Frozen – robust performance across the range

• Dairy snacking – Cheestringsgrowing strongly, supported by new listings

• Meat snacking – Fridge Raiders’ extended snacking range reaching a broader consumer market

Note: ¹ volume growth

YTD Growth

Revenue +0.8%Trading margin (10bps)

• Solid volume growth with brands performing well and private label challenged

• Trading margin reflecting Brexit risk mitigation costs

• Realignment for growth programme progressing to plan

• Food to Go range expanded with new launches in Cheestrings and Fridge Raiders ranges

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Everyday Fresh Convenience Meal Solutions Food to Go

© Kerry Group 2019 |

Outlook 2019

• Continue to outperform our markets

• Taste & Nutrition: strong innovation pipeline and good growth prospects, as we continue to evolve our unique business model aligned to the changing market landscape

• Consumer Foods: building on strategy – realigning core and investing in adjacencies to outperform market, whilst navigating the current uncertain environment

• Invest for growth as pace of marketplace fragmentation and localisation accelerates

• Pursue M&A opportunities aligned to our strategic growth priorities

Note: * before brand related intangible asset amortisation and non-trading items (net of related tax) 9

In 2019, we expect to deliver adjusted EPS* growth of 6% to 10% on a constant currency basis

Q1 2019Interim Management Statement2 MAY 2019