SUSTAINABILITY: NEW THINKING IN PRACTICE

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2 SUSTAINABILITY: NEW THINKING IN PRACTICE We live in a world of finite resources Consumer is driving business approach to sustainability

3 SUSTAINABILITY BUSINESS CASE GLOBALISATION Strategy Brand Product range CLIMATE CHANGE Raw material shortages Water scarcity Biodiversity loss BUSINESS PERFORMANCE Health & wellness Sustainable/ethical consumerism Online connectivity/transparency EXPANDING POPULATION INCREASING CONSUMPTION Carbon & energy regulation

4 SUSTAINABILITY: A KEY DRIVER OF BUSINESS PERFORMANCE Sustainable practice will drive sustainable business growth Enhance reputation licence to operate Build trust with customers and all stakeholders Improve business efficiencies Drive innovation Manage risk Inspire our people

5 BUSINESS DOESN T OWN ITS REPUTATION, IT EARNS IT!

6 SUSTAINABILITY: SUMMARY BUSINESS CASE Create shared value for business, it s customers, agricultural producers, suppliers, investors and employees BUILDING SUSTAINABLE COMMUNITIES AND IMPROVING LIVELIHOODS

7 SUSTAINABILITY IS CENTRAL TO KERRY S MISSION STATEMENT Kerry Group 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

8 INTRODUCING KERRY Revenue 5.8bn EBITDA 673m** Enterprise Value 9bn* Ingredients & Flavours 71% REVENUE 2012 TRADING PROFIT 2012 Consumer Foods 29% Ingredients & Flavours 79% Consumer Foods 21% Market Capitalisation 8bn* Listed on both the Irish and London Stock Exchanges Ingredients & Flavours Consumer Foods 4,225m 1,712m Note: sales in the Republic of Ireland were < 10% of Group revenue Ingredients & Flavours 506m Consumer Foods 130m KERRY WORLDWIDE LOCATIONS KIF SALES BY REGION 2012 Operations in 24 countries Sales to 140 countries EMEA 39% Asia-Pacific 17% 140 manufacturing sites Americas 44% 24,000 employees Head Offices Manufacturing Plants Sales Offices Consumer Foods Sales are to UK and Ireland * As at

9 OUR INGREDIENTS & FLAVOURS BUSINESS KERRY INGREDIENTS & FLAVOURS REGION Kerry Ingredients & Flavours develops, manufactures and delivers innovative taste systems, functional and nutritional ingredients and integrated solutions for the food, beverage and pharmaceutical markets The largest player in the ingredients and flavours market 2012 revenues were 4.2bn The customer derives maximum synergies through utilising Kerry s broad range of food and beverage technologies, applications and culinary expertise and processing capabilities No. 1 position in Savoury & Dairy and Cereal & Sweet and key leading positions in Beverage, Pharma and Functional Ingredients Americas 44% EMEA 39% Asia-Pacific 17% TECHNOLOGY END USE MARKET Savoury & Dairy Systems & Flavours 44% Cereal & Sweet Systems & Flavours 20% Beverage Systems & Flavours 17% Pharma/Functional Ingredients 9% Regional Ingredients 10% Beverage 22% Meats 18% Bakery 13% Dairy 9% Soups, Sauces & Dressings 7% Cereal & Bars 6% Prepared Meals & Side Dishes 6% Savoury Snacks 5% Ice-cream & Desserts 4% Confectionery 4% Pharma 4% Appetisers 2%

10 KERRY DELIVERS IN COLLABORATION WITH OUR CUSTOMERS TASTE CONVENIENCE CONSUMER PREFERRED SOLUTIONS NUTRITION VALUE

11 INGREDIENTS & FLAVOURS STRONG CUSTOMER ALLIANCES

12 GLOBAL TECHNOLOGY APPLICATION AND CULINARY LEADERSHIP Best-in-class global development and applications model Layer and leverage development and process capability Raw material category technology management Ensure regional development and management of customised system technologies while maintaining global alignment R&D EXPENDITURE 4.7% 4.9% 4.6% 4.5% 4.4% R&D Expenditure % of KIF Revenue* 0.0% -20.0% -40.0% -60.0% -80.0% % Develop flavours and technical ingredients platforms globally with regional product management and application GLOBAL TECHNOLOGY & INNOVATION CENTRES Significant investment in technology know-how and applications via acquisitions Naas Beloit Execute through Kerry Global Technology & Innovation Centres supported by Regional Development & Application Centres San Juan del Rio Johor Bahru Shanghai Note: * 2008 to 2010 re-presented in line with management reporting changes

13 KERRY FOODS Kerry Foods is a leading manufacturer of added-value branded and customer branded chilled foods to the UK and Irish consumer foods markets

14 OUR CONSUMER FOODS BUSINESS CONSUMER FOODS SIGNIFICANT CUSTOMERS Supplies added value chilled foods across Ireland and the UK 2012 revenues of 1.7bn Has achieved #1 brand position in most of its markets through a process of organic growth, acquisitions and strategic investment Leading supplier of chilled products to all the major supermarkets including in the UK, Tesco, Morrisons, Sainsbury s and Asda and in Ireland, Tesco, SuperValu and Dunnes Key brands include Richmond, LowLow, Wall s, Dairygold, Charleville, Mattessons, Cheestrings, Denny REGION TECHNOLOGY CUSTOMERS GB Ireland Other Meat & Savoury Provisions Meal Solutions Dairy Products Brand Private Label

15 KERRY GROUP SUSTAINABLE GROWTH MODEL 1 KERRY POSITIONING 1 Kerry embraces Group s Dual Strategy for Growth - building on our global leadership in ingredients & flavours and our chilled foods leadership position in the UK and Irish markets All divisions are well advanced in the implementation of go-tomarket strategies in line with 1 Kerry vision objectives

16 1 KERRY BUSINESS TRANSFORMATION BUSINESS STRATEGIES OPERATING MODELS KERRYCONNECT Kerry Ingredients & Flavours Go-to-market Strategy Kerry Foods Go-to-market Strategy Securing Sustainable Growth Driving market leadership and global alignment Optimising scale and efficiency benefits Building talent for a global organisation Enabling better business Standardised ways of working Common data Integrated ICT system

17 SECURING SUSTAINABLE GROWTH EMBEDDING SUSTAINABILITY IN OUR BUSINESS Kerry s Sustainability plan represents a journey of continuous improvement an ongoing process and strategy to secure sustainable growth It offers Kerry Group a framework through which to ensure the long-term development of the organisation by building competitiveness, while at the same time enhancing the quality of life and protecting our natural resources SOCIAL Bearable Equitable Sustainable Viable ENVIRONMENT ECONOMIC ENVIRONMENT SUSTAINABILITY MARKETPLACE SUSTAINABILITY WORKPLACE SUSTAINABILITY COMMUNITY SUSTAINABILITY SECURING SUSTAINABLE GROWTH

18 KERRY SUSTAINABILITY JOURNEY: EMBEDDING SUSTAINABILITY IN OUR BUSINESS Sustainability is at the heart of our business strategy Integrated in 1 Kerry strategies and operational activities Executed and delivered by business leadership and key functions Groupwide time-bound, quantified targets established to measure progress. Directed and governed by our Kerry Sustainability Council

19 KERRY GROUP: 1 KERRY SUSTAINABILITY APROACH FOCUS AREAS ENVIRONMENT MARKETPLACE WORKPLACE COMMUNITY

20 1 KERRY SUSTAINABILITY PROGRAMME ENVIRONMENT 2 MARKETPLACE 3 WORKPLACE 4 COMMUNITY Climate Efficiency Waste Quality Sourcing Nutrition People Ethics Social Economic Aspirations Aspirations Aspirations Aspirations Three Year Strategic Plan Three Year Strategic Plan Three Year Strategic Plan Three Year Strategic Plan 2013 Goals 2013 Goals 2013 Goals 2013 Goals

21 PROGRESS IN ENVIRONMENTAL SUSTAINABILITY We have programmes in place to measure, manage and reduce climate change impacts - good progress recorded in carbon, energy, water conservation and waste minimisation Joined Carbon Disclosure Project 2010 To achieve targeted 8% reduction in greenhouse gas emissions by the end of 2012 and an overall 12% reduction in emissions by 2014 compared to the baseline year 2009 Reduce water use by 4% by 2014 (compared to baseline year 2011) Reduce waste by 6.5% by 2014 (compared to baseline year 2011) Partnering with farmers and our customers in sustainable sourcing of strategic ingredients and supply chain initiatives

22 KERRY S RESPONSIBILITY TO THE MARKETPLACE As the world s leading supplier of food and beverage ingredients and flavours, Kerry recognises and embraces our responsibility to our customers and to the broader community to provide nutrition that can be consumed with confidence as part of a well balanced diet

23 UNDERSTANDING AND DELIVERING ACROSS THE NUTRITIONAL MANAGEMENT SPACE

24 KERRY S NUTRITION AND HEALTH PORTFOLIO

25 KERRY FOODS: BETTER FOR YOU PROGRAMME

26 SUSTAINABLE SOURCING Partnering with our suppliers and customers in sustainable sourcing of strategic ingredients and supply chain initiatives SEDEX Membership Partnering with our Dairy Farmers in Ireland in sustainable milk production On farm sustainability programme Focus on Profit Programme Kerry milk contract to 2025 Kerry Group investment in milk processing Kerry is committed to implementation of Origin Green Programme across our manufacturing and dairy supplier base in Ireland

27 IRELAND S SUSTAINABILITY CREDENTIALS Ireland has specific natural advantages Temperate climate, plentiful rainfall, no water irrigation, rich soil 80% grassland vs. 40% in mainland EU Lowest greenhouse gas emissions per kg of milk solids Lowest water stress index in the world Ireland has an enviable reputation for animal care and stockmanship Excellent quality milk We have one of the most favourable environmental and animal welfare conditions in the world

28 SUSTAINABILITY WORKPLACE PROGRAMMES Central to our success is the commitment, skill and creativity of our people Our focus: Through our Kerry Code of Conduct we focus critical attention on ethical business practices and provision of a safe and healthy workplace Provision of structured training and development programmes Embed social responsibility as a way of working Embrace diversity across our workplace, our customer base and the communities we serve Ensure competitive wages and fair/equitable labour standards

29 SUSTAINABILITY PROGRAMMES IN OUR COMMUNITIES Kerry continues to support outreach activities in our local communities and has developed specific programmes focusing on: Health and Nutrition Entrepreneurship Amenity/Community Development Education, Arts and Sport Sustainable Agriculture

30 KERRY GROUP/CONCERN RAIN PROJECT IN AFRICA Pioneering initiative to improve undernutrition and reduce mortality rates in children in developing world 5 year programme launched in December 2011 Pilot RAIN ( Realigning Agriculture to improve Nutrition) project in Zambia Project aims to identify sustainable,scalable, replicable solutions for prevention of undernutrition To influence international policy in relation to prevention of childhood stunting And provide valuable learnings around integrated agriculture and nutrition in reducing child mortality and undernutrition

31 SUSTAINABILITY OUR JOURNEY Sustainability critical to our Business Performance, Development and Profitable Growth Our sustainability goals will be achieved through continued: Successful execution of our 1 Kerry Sustainability Programme Collaboration with our valued customers Engagement with all our stakeholders Passion, capabilities and commitment of our Kerry people Implementation of Origin Green Programme ENVIRONMENT SUSTAINABILITY MARKETPLACE SUSTAINABILITY WORKPLACE SUSTAINABILITY COMMUNITY SUSTAINABILITY SECURING SUSTAINABLE GROWTH

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