Introducing Kerry. 6.1bn Revenue. 750m Trading Profit. Sales by Region 13% Asia-Pacific 42% Americas 45% EMEA

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2 Introducing Kerry 6.1bn Revenue 79% Taste & Nutrition 21% Consumer Foods 750m Trading Profit 86% Taste & Nutrition 14% Consumer Foods Sales by Region 13% Asia-Pacific 42% Americas 45% EMEA Kerry is a global leader in taste and nutrition UK/ROI leader in branded and customer branded chilled foods Revenue 6.1bn Enterprise value 13bn* Market capitalisation 12bn* 2 Note: *as at

3 Mission Statement Kerry Group will be: a world 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 selected international markets Through the skills and wholehearted commitment of our employees, we will be leaders in our markets excelling in product quality, technical and marketing creativity and service to our customers We are committed to the highest standards of business and ethical behaviour, to fulfilling our responsibilities to the communities which we serve and to the creation of long-term value for all stakeholders on a socially and environmentally sustainable basis 3

4 Business Development Kerry Formed Acquisition of Denny Listed on Irish Stock Exchange Acquisition of Beatreme in US Enter Latin America Acquisition of Mattessons Wall s Enter Asia-Pacific Evolving Technology Platforms Acquisition of Golden Vale Acquisition of Quest Acquisition of Noon Foods Kerry Opens Innovation & Technical Centre in Beloit Acquisition of Breeo Foods 1 Kerry Programme Global Technology & Innovation Centres Complete. Record year for acquisitions. Repositioned Kerry Foods Portfolio 4

5 * * ,050 1,117 1,121 1,523 1,566 1,707 2,200 2,456 2,622 3,003 3,755 3,693 4,129 4,430 4,646 4,788 4,791 4,521 4,960 5,302 5,848 5,837 5,757 6,105 6,131 Revenue and Adjusted EPS* Revenue ( M) ADJUSTED EPS* (Cent) 5 Note: * before brand related intangible asset amortisation and non-trading items ** restated to reflect the adoption of IAS 19 (2011) Employee Benefits

6 Our Business Structure Taste & Nutrition Consumer Foods Agribusiness Americas Region EMEA Region Asia-Pacific Region Ireland United Kingdom Selected International Markets Ireland 6

7 Kerry Sustainable Business Model a proven strategy for growth Market Leadership Taste & Nutrition #1 Consumer #1 Foods Holistic Partnerships Taste Nutrition & General Wellness Developing Markets Consumer Channel Customer Geography Sustainability 1 Kerry 7

8 Kerry Group Worldwide Locations Manufacturing Footprint San Juan del Rio Global and Regional Technology & Innovation Centres Beloit Naas Campinas Singapore Shanghai Australia Belarus Brazil Canada China Costa Rica Denmark France Germany Guatemala India Indonesia Ireland Italy Malaysia Mexico Netherlands New Zealand Panama Philippines Poland South Africa South Korea Spain Thailand Turkey UK USA Manufacturing Plants Sales Offices 8

9 Taste & Nutrition Kerry is the largest and most technologically advanced developer and provider of taste and nutrition solutions in the world. Kerry has strong customer alliances with leading global, regional and local food, beverage and pharmaceutical companies 4.9bn Revenue in 2016 Our leading-edge research in markets and consumer behaviour and our unparalleled expertise in the science of taste allows us to deliver products that nourish and delight consumers

10 Our Taste & Nutrition Business Today 25% Beverage 5% Cereal & Bars Technology 40% Savoury & Dairy 24% Beverage 16% Pharma/Functional Ingredients 15% Cereal & Sweet 5% Regional Ingredients End Use Market 17% Meats 9% Dairy 8% Bakery 7% Soups, Sauces & Dressings 5% Confectionery 5% Ice-cream & Desserts 5% Prepared Meals & Sides 5% Savoury Snacks 5% Pharma 2% Appetisers 2% Others 54% 30% 16% 74% Developed 26% Developing Americas EMEA Asia-Pacific 10

11 K e r r y T a s t e & N u t r i t i o n D u p o n t ADM G i vaudan DSM M c C o r m i c k S y m r i s e A B F F i r m e n i c h I F F I n g r e d i o n G l a n b i a T a t e & L y l e C h r H a n s e n F r u t a r o m S e n s i e n t T a k a s a g o N o v o z y m e s 65bn Ingredients and Flavours Market Revenue $m Kerry is the largest player in the ingredients and flavours market Highly fragmented, but growing market at 2% to 3% p.a. Benefits to being a scale player Consolidation potential 11 Based on most recently published results for ingredients and flavours divisions only

12 Kerry Model Delivering in a Changing World Consumers Taste Nutrition Industry Dynamics Connected Transparent Health & Wellbeing Global but Local Millennials Pure & Simple Authentic & Familiar Pleasure & Indulgence Fresh & Invigorating Free from Better-for-you Tailored-for-you Good-for-you Clean label Economic Growth Globalisation/ Nationalism Channel Disruption Geopolitical Currency Volatility Raw Materials Foodservice E-commerce Developing Markets Snacking Fresh & Clean Food-on-the-go Customisation Premiumisation Indulgence Digital Connected Home Delivery Convenience On Trend Demographics Urbanisation Economic Growth Consumerism Food Security 12

13 Science & Technology Expertise: Delivering for Customers No. 1 for investment in R&D Unique Holistic Technology Model 800+ food scientists Global Technology & Innovation Centre architecture rolled out Continued investment in acquiring science and technology 13

14 Kerry s Unique Taste & Nutrition Growth Model Pure & Simple Clean Label; Trusted; No Artificial Ingredients, Free From Taste Authentic & Familiar Cooking Style; Authentic; Taste of Time; Ethnic Free From Nutrition Food Intolerance; Low/No/Reduced Lactose; Gluten Free; Clean/Cleaner Label Better For You Reduced Sugar; Salt and Fat; Balanced Choice Pleasure & Indulgence New Taste; Fine Dining; Patisserie and Coffeehouse Experiences Fresh & Invigorating Taste w/out Compromise; Fresh; Healthy Halo; Natural Mood Good For You Protein Fortification; Carbohydrate Quality; Healthy Lipids; Micronutrient Fortification; Naturally Good For You Tailored For You Infant and Toddler; Performance and Healthcare Nutrition; Weight Management 14

15 Kerry Taste Research Programme Technology Citrus Natural/ Sugar & Salt Dairy Taste Savoury Taste Focus Extracts Perception Smoke & Grill Yeast Consumer Pure & Simple Pleasure & Indulgence Fresh & Invigorating Authentic & Familiar Analysis Process Applications Sensory Excellence, Molecular Analytical, Regulatory Distillation / Extraction / Reduction / Encapsulation / Reaction / Fermentation / Compounding Beverages, Bakery, Confectionery, Dairy, Meats, Soups & Sauces, Snacks, Prepared Meals, Pharma Partners 15

16 Kerry Nutrition Research Programme Lifestage Infant & Children & Early Healthy Seniors Toddlers Adolescents Adulthood Aging Digestive Health Weight Management Allergies and Immunity Muscle Health General Wellness Partners 16

17 Kerry: Leading Partner to Foodservice Channel Largest, most integrated portfolio Customised menu and branded solutions Expertise from ideation to launch Holistic partnership model Kerry Technology & Innovation footprint facilitates global, regional, local development FUNCTIONAL & NUTRITIONAL INGREDIENTS TASTE SOLUTIONS DAIRY & CULINARY SYSTEMS MEAT SYSTEMS AUTHENTIC CULINARY FOUNDATIONS CEREAL SYSTEMS SWEET SYSTEMS BEVERAGE SYSTEMS Natural Preservation Systems Specialty Proteins & Starches Enzymes Natural Fermentates Emulsifiers & Texturants Intact Proteins Protein Hydrolysates Protein Fractions Infant Nutritional Proteins Prebiotics & Probiotics Nutritional Lipids Immunity Actives Sweet Flavours Savoury Flavours Dairy Flavours Natural Extracts Taste Modulators Dry Cheese Dry Dairy Yoghurt Dairy Sauces Frozen Sauces Broths & Stocks Herb Reductions Fermented Ingredients Oleoresins Snack Seasonings Marinades Smoke Systems Bread Crumbs Cracker Meal Batters Breaders Cold-Form Extrusion Meat, Vegetable & Herb Reductions Smoked & Grill Stocks & Bouillons Flavours Puffing Extrusion Co-Extrusion Granola Clustering Toasting Soy Flour Jet Cooking Nuggets Sprinkles Chocolate Compounds Pralines Cookie Pieces Variegates Enrobing Panning Aseptic Agglomeration Encapsulation Functional Lipids Syrups Brands Foodservice Solutions 17

18 Developing Markets: Kerry s Footprint for Growth Dynamic growth economies Population growth Growing consumer spend Global, regional and local customer base Local taste preference ASIA-PACIFIC Greater China India Indonesia Malaysia Philippines Thailand Vietnam EMEA South Africa Nigeria Turkey Middle East Russia Eastern Europe LATAM Brazil Mexico Central America Demand for convenience Leveraging Kerry Global Technologies and Expertise % % % 18

19 Consumer Foods Kerry Foods is a market leading supplier of added-value branded and customer branded chilled food products to the Irish, UK and selected international markets 1.3bn Revenue in 2016 Kerry Foods portfolio of consumer branded products includes over 20 high profile brands across three major market sectors; Meat & Savoury Products, Meal Solutions and Dairy Products

20 Consumer Foods at a Glance Technology Region Customers Meat Products Meal Solutions Dairy Products Rest of Europe Ireland GB Brand Private Label 20

21 Diversified Product Portfolio Segment Key Product Market Position MEAT PRODUCTS 5.5bn #1&2 sausage brands in GB #2 (fastest growing) meat snacking brand in GB #1&2 breakfast product brands in Ireland #1 cooked meat brand in Ireland DAIRY PRODUCTS 4.5bn Largest branded dairy supplier in Ireland #1 spreads brand in Ireland #1 cheese brand in Ireland #1 kids cheese snack in GB #1 customer brand dairy spreads and RTE cheese in GB MEAL SOLUTIONS 4.3bn #1 GB customer brand supplier of chilled ready meals frozen ready meals ready to cook 21

22 Consumer Foods Strategic Growth Pillars Consumer Channel Customer Geography We will use consumer-led insight and innovative technology to develop compelling propositions that delight shoppers in our core categories meat, dairy and meals We will ensure our products are readily available to all our consumers, across all channels, when ever and where ever they shop We will work collaboratively with our customers to ensure we create products they, and their consumers, love to buy We re committed to expanding our footprint beyond the UK and Ireland into new markets, to reach new customers 22

23 Kerry Foods: Continued Innovation for Today s Consumer Authenticity/Flavour Snacking New Health Free from Convenience 23

24 Sustainability Kerry is committed to the highest standards of business and ethical behaviour to fulfilling our responsibilities to the communities which we serve and to the creation of long term value for all stakeholders on a socially and environmentally sustainable basis Our Sustainability Framework Environment Sustainability Marketplace Sustainability Workplace Sustainability Community Sustainability

25 Kerry s Towards 2020 Programme A comprehensive programme for sustainable growth Four critical areas of focus which reflect global concerns and issues of material importance to our shareholders, employees and suppliers, translated into actions that help direct our day-to-day activities Directed by Senior Leadership through the Kerry Sustainability Council, with functional responsibility for implementation that embeds sustainability within the business Environment Marketplace Workplace Community Climate Change Nutrition and Health Our People Social Impact Resource Efficiency Responsible Sourcing Business Ethics Economic Development Waste Reduction Product Quality Health and Wellbeing Shared Purpose Groupwide time-bound, quantified targets established to measure progress 25

26 Group Long Term Targets (5 Years ) VOLUME GROWTH Growth Adjusted EPS 10%+ p.a. by: MARGIN EXPANSION Taste & Nutrition 4% to 6% p.a. Taste & Nutrition 50 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 market growth rate of 2% to 3% p.a.) (plus an additional 100 bps from Kerryconnect project) Return ROACE 12%+ CFROI 12%+ ROAE 15%+ 26

27 Future Prospects: Kerry Model for Future Growth Technology leadership for global, regional and local customers Aligned and agile for delivery in a changing marketplace Focused on end-use-markets and consumer needs Supported by Group s unrivalled Technology & Innovation network (including inmarket development) Recent Groupwide RD&A investment driver of future performance 1 Kerry distributed risk model Positioned for scalable organic and acquisition growth In 2017, we expect to achieve good revenue growth and 5% to 9% growth in adjusted EPS* to a range of to cent per share (2016: cent) 27 Note: before brand related intangible asset amortisation and non-trading items (net of related tax)

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