Capital Markets Day Presentation (Web)

Stan McCarthy CEO

2

Agenda

Topic Presenter

» 2.00 - 2.15 The Kerry Growth Model Stan McCarthy

“Unlocking the Potential”

» 2.15 - 3.15 The Kerry Growth Opportunity

» Ingredients & Flavours Gerry Behan

Albert McQuaid

Mark McCormack

» Consumer Foods Flor Healy

» 3.15 - 3.30 Break

» 3.30 - 3.45 1 Kerry and Kerryconnect Michael O’Neill

» Business Transformation

» Business Enablement

» 3.45 - 4.00 Investment and Financials Brian Mehigan

» 4.00 - 4.15 The Kerry Growth Model Stan McCarthy “Realising the Potential”

» 4.15 - 4.30 Q&A 3

Disclaimer: Forward Looking Statements

This presentation contains forward looking statements which reflect

management expectations based on currently available data.

However actual results will be influenced by macro economic conditions,

food industry supply and demand issues, foreign exchange fluctuations and

other, as of today, unknown factors and actual results may differ materially

from these forward looking statements.

4

Introducing Kerry

» Kerry is the global

leader in food

ingredients & flavours

» UK/ROI leader in

branded and

customer branded

chilled foods

» Revenue €5 billion

» Enterprise value

€6 billion

» Market capitalisation

€5 billion

Operations in 23 countries

Sales to 140 countries

140 manufacturing sites

23,000 employees

Ingredients & Flavours €3,675m Consumer Foods €1,768m

Revenue - 2010

Consumer Foods 32%

Ingredients & Flavours €401m Consumer Foods €132m

Ingredients & Flavours 68%

Sales by Destination - 2010

Trading Profit - 2010

Americas 30%

EMEA 60%

Asia-Pacific 10%

Consumer Foods 25%

Ingredients & Flavours 75%

5

Kerry Worldwide Locations

Head Offices

Manufacturing Plants

Sales Offices

6

1 Kerry Business Model – ‘Unlocking the Potential’

» ‘Dual Strategy for Growth’

» Ingredients & Flavours

» Consumer Foods

» Well balanced portfolio

» Consumer/end-use-market focus

» Innovation/NPD driving customer alliances/brand development

» Proven ability to grow in a changing dynamic marketplace

» Strong cash generation : acquisition opportunities

» 1 Kerry

» delivering unrivalled integrated customer solutions

» has significantly enhanced global customer alliances

7

» 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

» Successful implementation of

‘go-to-market’ strategies in line

with 1 Kerry vision objectives

» 1 Kerry ‘Business

Transformation’ underway – to

implement 1 Kerry operating

models, enabled via

Kerryconnect programme

Kerry Group Growth Model – 1 Kerry Positioning

8

1 Kerry: ‘Unlocking the Potential’

» Value realisation framework

» Common Kerry ‘way of working’

» global execution

» functional excellence

» Leveraging scale and synergies

» Enabling:

» ‘Go-to-market’ strategies, technology development, end-use-market development

» Geographic market strategies

» Platform for acquisitions

Achievement

of long-term

growth and

financial targets

“Challenge now is to truly leverage Kerry’s leadership and global opportunity”

9

Adjusted EPS* 1986 - 2010 (cent)

7.6 8.4 12.7

16.3 17.6 21.1 23.0

25.9 28.9

35.8 38.7

46.7

57.4

68.0

79.2

87.9

101.8

112.1

122.9

131.6 133.9

143.8

153.9

166.5

194.5

0

20

40

60

80

100

120

140

160

180

200

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

CAGR

1986-2010

14.5%

CAGR

2007-2010

10.6%

Note: * before intangible amortisation and non-trading items 10

Group Goals & Long Term Targets - Current

» Group revenue: +2% to +4% (LFL) volume growth

» Margin: 10% Group margin in 5 years (30 bps p.a.)

» Adjusted EPS* 10%+

» ROAE* 15%+ and CFROI 12%+


KPI Target

Performance v Targets to Date

2008 2009 2010 3 Year Avg

Revenue +2% to +4% LFL

volume growth ✔ +3.4% ✔ +2.2% ✔ +5.5% ✔ +3.7%

Margin 10% trading margin

(30bps pa) ✔ 8.5% ✔ 9.3% ✔ 9.5% ✔ +37bps pa

Adjusted EPS

Growth 10%+

153.9c

+7.0%*

166.5c

+8.2%*

194.5c

✔ +16.8%*

CAGR

✔ 10.6%

ROAE 15%+ ✔ 15.7% ✔ 16.7% ✔ 17.2% ✔ 16.5%

CFROI 12%+ 10.2% ✔ 15.3% 11.6% ✔ 12.4%

Performance v Current Targets

Note: * double digit growth in constant currency 12

Kerry Growth Model: ‘Realising the Potential’

Solid progress against 1 Kerry objectives to-date

» Customer centric model delivering:

» global alliances

» layering technologies/innovation expertise

» integrated solutions

» brand leadership

» Incremental growth in developed markets

» Accelerated growth in developing/emerging markets

» Industry consolidation – opportunity to further advance Kerry global positioning

» Consumer trends positive for Kerry Business Model

‘Realising the Potential’: Updating Group Long Term Targets

13

Gerry Behan President & CEO Kerry Ingredients & Flavours Americas Region

Albert McQuaid President & CEO Kerry Ingredients & Flavours EMEA Region

Mark McCormack President & CEO Kerry Ingredients & Flavours Asia-Pacific Region

15

Business Definition

Kerry Ingredients & Flavours develops, manufactures and delivers

technology-based ingredients, flavours and integrated solutions for the Food, Beverage and Pharmaceutical markets.

16

1 Kerry Go-to-Market Structure

17

1 Kerry Growth Model – Driving Profitable Growth

18

Drive Global Alignment

- Global Customer & Market Management

- Global Technology & Application Leadership

- Global Process Manufacturing & Supply Chain Leadership

- Leading-Edge Quality Supplier

Accelerate Growth in Emerging Markets

- Asia Pacific

- Latin America

- Europe, Middle East, Africa

Leverage Capabilities & Grow Expertise

- Effective & Efficient Functional Expertise

- Best-in-Class Talent Management

1 Kerry Ingredients & Flavours Business Growth Strategies

19

Global Customer & Market Management

» Global Key Account Management

» Global commercial lead structure (channel specific)

» Expand functional lead responsibility (regulatory, quality, supply chain) to

deliver enhanced integration and operating effectiveness

» End-Use Market Management

» Regionally managed, globally aligned

» Leverage market and consumer insights, culinary and applications

expertise

» Effectively maximise Kerry’s technology portfolio for growth

» Next generation service model

» Globally aligned and regionally managed commercial

support functions to deliver 360°Customer Care

20

Retail Food & Beverage Market

Global retail revenue of packaged food ($1.9 Trillion USD) and beverages ($1.1 Trillion USD) total ~$3 Trillion USD, with forecasted overall growth around 1-2%

0

100

200

300

400

500

600

0

100

200

300

400

500

600

Alcoholic Drinks Soft Drinks Hot Drinks

RET

AIL

VA

LUE

(USD

$ B

ILLI

ON

)

1.2% 0.9%

1.5% 1.3%

1.1% 1.2%

1.2% 1.3%

1.2% 2.4%

1.2% 1.1% 1.1%

1.2%

0.7%

0.8%

1.0%

GLOBAL RETAIL PACKAGED FOOD – KEY MARKETS MARKET SIZE & ESTIMATED ANNUAL GROWTH

(2011-2015)

GLOBAL RETAIL BEVERAGE – KEY MARKETS MARKET SIZE & ESTIMATED ANNUAL GROWTH

(2011-2015)

RET

AIL

VA

LUE

(USD

$ B

ILLI

ON

)

Source: Euromonitor 21

Foodservice Market

Global foodservice market estimated at ~$2 Trillion USD and forecasted to grow to $2.2 Trillion USD by 2015

» North America and Western Europe are still projected to account for more than 80% of chain foodservice sales over the next five years

» 90% of total consumer foodservice value growth to 2014 coming from Asia Pacific and Latin America

Source: Euromonitor 22

Pharmaceutical Market

The global pharmaceutical market has estimated sales of $875 Billion USD, with the market expected to increase at a compound annual growth rate (CAGR) of 3–6% during the next five years

GLOBAL PHARMACEUTICAL MARKET SALES SPLIT BY REGION (2010)

GLOBAL PHARMACEUTICAL MARKET SALES SPLIT BY REGION (2015)

United States 41% Other Markets 27%

17 High Growth Emerging Markets 12%

Top 5 Euro Markets 20%

Source: IMS Institute for Healthcare Informatics

United States 31% Other Markets 28%

17 High Growth Emerging Markets 28%

Top 5 Euro Markets 13%

23

Global Market Strategies – Main Meal

» Global connectivity of processor and CPG and foodservice chain

relationships

» Global meat, poultry and seafood processors play a key role in

the global expansion of foodservice chains

» “Gold Standard” products global collaboration

» Restaurant-quality products in the home

» Consumer demand for authenticity continuing to grow

» Deliver high-quality eating experiences in growing market

sectors. “Meals for Two” segment in NA growing at 10.4% ($), 7.1% (VOL)

» Expansion of global flavour palette around the world

» Leverage regional taste solutions expertise globally

» Consumer insights-driven development through collaboration

of Applications, R&D and Sensory Science

» Health and wellness platforms

» Platform development utilising multiple Kerry technologies to address clean label trend

» Natural shelf-life extension a key component

Source: AC Nielsen, Euromonitor, National Restaurant Association

» Meat, Poultry & Seafood

» Prepared Meals

» Soups, Sauces & Dressings

» Appetisers & Side Dishes

24

Global Market Strategies – Beverage

» Nutritional Beverages

» Deliver value as both an ingredients and flavours supplier and turnkey solutions provider, leveraging:

» New processing technology (Aseptic & Retort)

» Protein and satiety-enhancing ingredients

» Flavour capability

» Ingredient and texture systems

» Key global growth areas: performance nutrition, clinical nutrition, meal supplement beverages

» Dairy Beverages

» Dairy is a key platform for future beverage development in developed and emerging markets

» Leverage dairy heritage and protein expertise in conjunction with flavour and textural systems

» Coffee & Tea

» Leverage coffee and tea extract portfolio for application in growing areas of the market, utilising new processes to drive product leadership

» In the U.S., RTD tea grew at 12.5% (VOL)

» In the APAC region, China, Indonesia and India forecast annual sales growth of 18%, 14% and 13% respectively

Source: Beverage Marketing Corp., New Nutrition Journal 25

Global Market Strategies – Dairy

Yoghurt & Smoothie Platform

» Capitalise on explosive growth and expansion in various

forms of yoghurt (e.g. drinkable, spoonable and frozen) in

channels and regions around the world:

» North America – per capita consumption to double

» Latin America – QSR soft-serve yoghurt growth

» EMEA – Emerging regions like the Middle East and

Eastern Europe driving growth

» APAC – QSR soft-serve yoghurt growth

» Deliver value to all parts of the supply chain, leveraging

flavours, functional ingredients and customised solutions

to facilitate global growth

Source: Euromonitor, Food Business News 26

Global Market Strategies – Confections, Snacking & Bakery

» Confections & Snacking

» Grow platform for indulgent and healthy snacks, creating customised manufactured solutions that leverage our ingredients and flavours portfolio into growing markets:

» Performance nutrition snacks

» Portion control / bite-size snacks

» Bakery

» Leverage functional ingredients and dairy portfolio to meet industry growth drivers

» Fat reduction

» Clean label / natural shelf-life extension

» Sodium reduction

» Butter & egg replacement

» Texture improvement (Cakes, Bread, etc.)

» Develop next-generation toppings and inclusions into sweet baked goods, focusing on indulgence and functionality

» Heat-stable

» Natural toppings & inclusions

Source: Global Industry Analysts 27

» APAC

» Historical growth of 20% p.a. in China; market still

underpenetrated

» Leverage infant nutrition processing and packaging capabilities in the region to support brand marketers

» Leverage U.S. manufacturing capability in infant cereal

and snacking to meet demand for “Made in USA” claim

» North America

» Baby cereal and snacks grew 12% vs. prior year

» Capitalise on unrivalled development, applications and

processing capabilities to grow in infant snacking and cereal

» EMEA

» Key categories in Europe growing at 5% p.a. to 2015

» Protein fractionation development for multi-stage infant nutrition

Global Market Strategies – Infant & Toddler Nutrition

Infant & Toddler Nutrition and Snacking is a large growth platform around the world, with Kerry pursuing various growth initiatives

Source: UBIC Consulting, AC Nielsen, Euromonitor 28

Global Market Strategies – Nutrition

» Nutrition will continue to be a driving force for growth in the food and beverage industry

» Consumer packaged goods companies and foodservice chain restaurants face growing pressure to deliver nutritious products, and each have different nutritional strategies

» Two key nutritional strategies working in parallel

» Leverage Kerry’s portfolio of technologies and application expertise to deliver nutrition into food, beverage and pharmaceutical products

» Leverage flavour and texture capabilities to build back “taste” in healthier items

Removal of Perceived Unhealthy Ingredients » Artificial Flavours » Salt » Sugar » High-fructose Corn Syrup

Addition of Ingredients with Perceived Health Benefits » Protein » Fiber » Calcium » Omega 3

Foods & Beverages that Aid in the Prevention or Treatment of Disease » Diabetes » Hypoglycemia » Cardiovascular Conditions » Digestive Health

HEALTH CONTINUUM

29







- Asia Pacific

- Latin America






30

San Juan del Rio

Campinas

Shanghai

Sydney

Bristol

Global Technology & Applications Leadership

» Execute through regional Centres of

Excellence (COE) supported by satellite customer centres

» 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

» Develop flavours and functional ingredients

platforms globally with regional product

management and application

Beloit

Amsterdam

31

Kerry’s Technology Size

Revenue by Technology Revenue by Region

Pharma/Functional Ingredients 9%

Savoury & Dairy Systems & Flavours 46%

Cereal & Sweet Systems & Flavours 20%

Beverage Systems & Flavours 13%

Primary/Regional Ingredients 12%

Asia-Pacific 16%

Americas 46%

EMEA 38%

* Based on third party revenue 32

Taste

Global Taste Solutions Platform

Next-generation Flavour Modulation

Citrus Platform Expansion

Spinning Cone Technology

Sauce Platform

Natural Food Base Enhancement

Systems

MSG Replacement

Nutrition

Yoghurt Platform

Clean & No-fry Bread Crumb

Proteins Platform

Natural & Clean-label Solutions

Salt Reduction Systems

Next-generation Flavour

Modulation

Food Safety Solutions

Pharma Technologies

Satiety Ingredients

Value

Proteins Platform

Emulsion Technology

Shelf-life Extension

Cocoa Extension

Fat & Egg Replacement

Dairy Replacement

Customising Systems for

Emerging Markets

Technology Innovation Strategies

33

No One Delivers Taste Like Kerry

Kerry is the global leader in developing and delivering consumer preferred taste solutions.

34

Delivering Consumer-Preferred Taste Solutions

35







- Asia Pacific

- Latin America






36

Global Process Manufacturing & Supply Chain Leadership

» Evolve global manufacturing footprint that optimises process technology investment

» Evolve a best-in-class functional structure and capability around process manufacturing management

» Engineering

» Supply Chain

» Quality

» Manufacturing

» Performance Management

» Drive profitability through continuous improvement initiatives and process automation

» Kerry Foods Model

» Develop and implement a continuous improvement programme as part of an overall environmental sustainability programme

37

Leading-edge Quality Supplier

» Regionally managed quality teams with

global governance

» Total Quality philosophy into the

complete product life cycle

» Global Kerry Quality Management

Systems incorporating regional

procedures and requirements that execute

against global quality policies

» Global standard for root cause analysis

and sustainable problem solving

» Continuous improvement and process

automation

Kerry Quality Management Systems

» Management Responsibility

» Food Safety

» Regulatory

» Design & Development

» Manufacturing Quality

» Supply Quality

» Document Management & Control

» Measurement & Equipment Control

» Customer Care

» Food Defence & Security

» Storage & Warehouse Distribution

38







- Asia Pacific

- Latin America






39

Emerging Markets

Kerry’s strategy in emerging markets - in line with global market trends and issues

Global Dynamics

» Multinationals globalising their brands

(CPG, Foodservice Chains)

» Consolidation will accelerate as producers seek greater efficiencies

» Demand for convenience in retail &

foodservice will continue to grow

» Investments in innovation will increase

as producers seek competitive

differentiation

» Government legislation will play an

increasing role

» Food threats & supply chain challenges

Strategies

» Capitalise on brand globalisation in

regions & key growth accounts

» Leverage global purchasing power to deliver maximum value

» Capitalise on population & GDP

growth & urbanisation trend

» Transfer of proven Kerry End Use

Market & Technology expertise

» Continue to invest in innovation and leading edge technology solutions

» Invest in strategic acquisitions

40

Emerging Market Economies – Asia Pacific

• Population • Nominal GDP • Real GDP Growth 2011

China: 1.3b $5,878b 10.3%

Developing Asia 3.6b 8.4%

Indonesia: 234m $707b 6.1% India: 1.2b $1,538b 10.4%

Source: IMF 41

Asia Pacific Emerging Markets – Kerry Growth Strategy

Investment in Local Capabilities & Structures

Customer Centres

China

India

Indonesia

Thailand

APAC COEs

Sydney, Australia

Johor Bahru, Malaysia

Leveraging global technologies locally

Dairy

Grow wet cheese capabilities

Prepared Meals

Consumer-preferred taste solutions for noodle applications; Grow wet sauce capabilities

Meat

Global chain / processor connectivity

Bakery

Leverage functional ingredients platform and systems into growing markets; Bolster sweet ingredients capability

Ice Cream & Frozen Desserts

Leverage sweet ingredients technology with stabiliser systems into high growth regions

Tea & Coffee

Market differentiation strategy leveraging extract portfolio, syrups and sauces in new formats

Nutritional Beverages

Provide turnkey solutions for infant nutrition in high growth regions

Pharma

Expansion of manufacturing and applications footprint in China and India

42

Emerging Market Economies – Latin America

Mexico: 109m $1,040b 5.5%

Argentina: 41m $370b 9.2%


Developing Latin America 572m 4.7%

Source: IMF

Brazil: 193m $2,090b 7.5% Colombia: 46m $286b 4.3%

Chile: 17m $203b 5.3%

43

Latin America Emerging Markets – Kerry Growth Strategy

Meat

Global chain/processor connectivity

Savoury Snacks

Leverage portfolio of technologies to meet rising consumer demand for healthier products (e.g. sodium reduction, natural, etc.)

Confectionery

Leverage cereal technologies & processes into key regional confectionery markets

Cereal Bars

Focus on cluster growth into bar & cereal markets

Ice Cream & Frozen Desserts

Premium toppings & inclusions for high volume markets

Nutritional Beverages

Platform development to penetrate infant nutrition market and leverage Group capabilities

Soft Drinks

Leverage modulation technology & tea extract platform into emerging growth markets


Customer Centres

Buenos Aires, Argentina

San Jose, Costa Rica

LATAM COEs

Campinas, Brazil

San Juan del Rio, Mexico


44

Emerging Market Economies – EMEA

Poland: 38m $469b 3.8%


Source: IMF

Developing CIS 280m 5.0% Developing Central & Eastern Europe 176m 3.7% Developing Middle East & North Africa 412m 4.1% Developing Sub-Saharan Africa 818m 5.5%

Russia: 140m $1,465b 4.0%

Turkey: 71m $742b 8.2%

Saudi Arabia: 26m $444b 2.7%

South Africa: 50m $357b 2.8%

Nigeria: 156m $217b 8.4%

45

EMEA Emerging Markets – Kerry Growth Strategy

Meat

Leverage meat systems into poultry across all targeted markets and develop functional meat systems in Russia, Eastern Europe & Middle East

Savoury Snacks

Target growth in Middle East and selected African markets

Processed Cheeses

Leverage dairy technology for cost optimisation and product improvement for branded and foodservice channels

Bakery

Target growth in branded bread manufacturers and independent bakeries in Middle East & African markets

Ice Cream

Drive sweet systems & flavours and functional ingredients into growing Russian impulse/luxury segment and into selected markets in Africa

Alcoholic Beverages

Capitalise on growth in African Beer market with cost-effective brewing ingredients platform

Soft Drinks

Expand taste and functional ingredients capabilities into beverage markets focusing on flavour modulation, malt beverage solutions and citrus portfolio


Customer Centres

South Africa

Turkey

Dubai

Russia

EMEA COEs

Bristol, UK

Amsterdam, Netherlands


46

Kerry Ingredients & Flavours Revenue Profile Mature/Emerging Markets

2006 2010 2017

Rev

enu

e

Mature Emerging

15% 22%

30%

+

Acquisitions

Impact

Emerging markets include Latin & South America, Middle East, Africa, Eastern Europe and Asia Pacific (excluding Australia, New Zealand & Japan) 47







- Asia Pacific

- Latin America






48

1 Kerry Ingredients & Flavours Business Growth Strategies Will Deliver

Mature Markets

» Volume growth 3% - 5%

» Capital spend increases from <3% to >4%

Emerging Markets

» Volume growth 10%

» More local customer penetration

» Expanded local footprint

1 Kerry Impact

» Global best in class

infrastructure

» Substantial upfront cost

» Longer term profit improvement

Improve margin +50bps p.a

49

By working together in the 1 Kerry model, we are uniquely able to deliver a number

of benefits to our customers.

1 Kerry

Technology & Product Groups

Functional Ingredients: Bio-ingredients, Emulsifiers and Texturants

Processing EUMs & Applications

50







- Asia Pacific

- Latin America






51

Acquisition and Development Strategy – Kerry Ingredients & Flavours

52

Flor Healy CEO Kerry Foods

54

A Leading Player in Food & Beverage and the Leaders in Convenient Fridge Food

Kellogg

Uniq

McCain

Birds Eye

Warburtons

Muller

Samworth

Gerber

Danone

Greencore

Moy Park

Cranswick

Princes

Heinz

UB

Findus

Vion

Tulip

Boparan

Morrisons…

Arla

Nestle

Kerry

Dairy Crest

Coke

Pepsico

Bakkavor

ABF

Mars

Unilever

Kraft

Premier

Food & Non Alcoholic Beverage Turnover UK/ROI

Adams

Nestle

IDB

Uniq

Arla

Unilever

DC

Muller

Vion

Boparan

Danone

Samworth

Greencore

Cranswick

Bakkavor

Tulip

Kerry

Kerry Foods competes in

Convenient Fridge Food

UK/ROI turnover in: Chilled Ready Meals, Ready to Cook, Cooked Meats, Sausage, Rashers, Pastry, Yellow Fats, Cheese, Yogurts, Desserts, Pizza, Pasta, Sauce, Soup, Sandwiches.

Source: OC&C, Nielsen, Kantar, Co. Reports, Kerry estimates

A Leading Player in Food & Beverage and the Leaders in Convenient Fridge Food

55

70% of the most frequently consumed foods are stored in the fridge…

That’s how many chances you have each week to stand out in the Fridge

24

8

In the Cupboard

In the Freezer

42

(average number of times consumer opens each week)

With Significant Opportunity for Growth

56

Kerry Drive €9.5bn +3.5% vol growth

Cooked Meats Meat Snacking Cheese Pastry Chilled Ready Meals

Kerry Nurture €4.0bn +1% vol growth

Non Kerry €4.5bn +3% vol growth

Sausage Rashers Spreads RTC All IOI Categories

Yogurts Desserts Pizza Pasta Soup Sauce

With Significant Opportunity for Growth

Added Value Chilled Foods Markets €18bn Retail Value

Source: Source: Nielsen Scantrack/Kerry estimates 57

Key Elements of Kerry Foods Strategy

Turn Deep Consumer

Insight Into Compelling

Propositions

Foster Customer Support

To Grow Together

Fantastic Quality With

Lean Efficiency

Superior Technology to

Create Delicious, Healthy

Affordable Food

58

Turning deep consumer insight into compelling propositions

Turning Deep Consumer Insight into Compelling Propositions

59

Best for the Best for the BestBest

Full with Full with NatureNature

Healthy Healthy Performance Performance

MealsMeals

Easy Easy HealthyHealthy

Healthy Healthy ProportionsProportions

Think Smart, Think Smart, Stay SharpStay Sharp

Food For Food For LongevityLongevity

Ultimate Tasty, Ultimate Tasty, So HealthySo Healthy

Naked / Naked / Nude FoodNude Food

Healthy Healthy Grazing Grazing MealsMeals

Healthy Healthy OrientalOriental

Living Living GoodnessGoodness

Best for the Best for the BestBest

Full with Full with NatureNature

Healthy Healthy Performance Performance

MealsMeals

Easy Easy HealthyHealthy

Healthy Healthy ProportionsProportions

Think Smart, Think Smart, Stay SharpStay Sharp

Food For Food For LongevityLongevity

Ultimate Tasty, Ultimate Tasty, So HealthySo Healthy

Naked / Naked / Nude FoodNude Food

Healthy Healthy Grazing Grazing MealsMeals

Healthy Healthy OrientalOriental

Living Living GoodnessGoodness

Delivering a point of purchase vision for Chilled

Ready Meals

Creating health territories for Chilled Ready Meals across our Customers

In-Store

POS & Dems

Fostering Customer Support to Grow Together

60

Using superior technology to create food that is delicious, healthy and

affordable

Using Superior Technology to Create Food that is Delicious, Healthy and Affordable

61

KLP Maturity

- 6 Pilot Sites

2012 2013 2015 2009

- Roll out of KPS to all sites

- Ongoing Maturity assessment to achieve ambition

2010

- 15 Sites Engaged - Mgt directed

Jishuken activites

2011

- Development of Kerry Production System

- All Sites Engaged

- Specialist Training

- Lean Maturity Model

- One Voice – One System

Lean mindset change Elimination of waste Consistent quality Standard work Continuous improvement - 8 step problem solving

- Develop Lean across the extended enterprise

Delivering Fantastic Quality with Lean Efficiency

62

2010 20173.1%

5%

3.6%

2.7%

4.5%

1%

5%

1%

1%

3%

Cheese

Meat Snacking

Cooked Meats

Savoury Pastry

CRM

End Use Markets Drive Categories

Consumer Foods – Topline Growth Objectives 2-3% CAGR

Private Label

1.5% CAGR

Foodservice

1.5% CAGR

Branded

3.6% CAGR

Forecast

Market CAGR

Kerry CAGR

Target

63

% Margin

2010 2017

Driven by:

» Volume growth

(operational

leverage)

» Greater efficiencies –

Lean Programme and

capital investment

» Mix

Consumer Foods Margin Expansion

+20 bps

p.a.

64

Acquisition and Development Strategy – Kerry Foods

65

Michael O’Neill Group Director of Business Services

1 Kerry and Kerryconnect

67

Agenda

» 1 Kerry Business Transformation

» Why 1 Kerry?

» Overview of 1 Kerry Operating Model Project and it’s link to

Kerryconnect

» Kerryconnect

» Objectives & timelines

» Kerryconnect progress to date

» Kerry’s future with Kerryconnect

68

1 Kerry Business Transformation

69

» Aligning the Global Kerry Organisation internally to efficiently deliver

“One Face to the Customer” externally

» Leverage our talent, capability and scale through a sustainable, efficient

global 1 Kerry business model

» Enable functional excellence across a diverse portfolio of Technologies,

End Use Markets and Geographies

» Delivering efficient integration of new acquisitions

Why 1 Kerry?

All to be enabled and sustained by Kerryconnect

70

1 Kerry Operating Model Overview

» Output of the business planning process, focused on “How” Kerry will organise

our people and resources to achieve our Growth Strategy

» Developed and championed by the Group and Regional Executive Teams

» We designed a “1 Kerry Organisation” with 8 functional workstreams

» - Circa 250 Kerry business people involved the design

» We were supported with input on external best practices

» We designed standard “ways of working” for the business

» A consistent set of KPI’s are defined for each functional workstream which will

assist in driving functional best practice

» Opportunities for improvement have been scoped and regional implementation

plans agreed for the 1 Kerry Processes in advance of Kerryconnect

71

1 Kerry Organisation

72

» Global 1 Kerry Organisation design agreed with clear Roles &

Responsibilities

» Global 1 Kerry Processes designed and business owned

» Global Functional Excellence Programme scoped:

» Global Supply Chain Optimisation

» Deployment of Lean Manufacturing

» Global Category Management led by Procurement

» Shared Service Centres Plan

Outputs from 1 Kerry Operating Model

All to be enabled and sustained by Kerryconnect

73

1 Kerry Business Transformation

74

» Implement Kerry Best Practice Processes consistently across the

organisation

» Implement Master Data Management standards globally to enable

one consistent view of our business

» Implement an Integrated Global I.C.T. System to enable our

processes and Data Model for efficiency and sustainability

Kerryconnect Objectives

75

Kerryconnect Phase 0:

» This was focussed on C.R.M. and Business Intelligence to enable the “Go to Market Strategy”.


» This is defined as “getting the foundation and basics right” and will address Finance, Master Data

Management, Purchasing, H.R. and Trade Promotion Management processes.


» This will address Supply Chain, Manufacturing & Customer Care processes and the design will

commence during Phase 1 rollout.

2009 2010 2011 2012 2013 2014 2015 2016

The Kerryconnect Programme Plan (€350m)

Phase 0

Phase 1

Phase 1 and 2

Kerryconnect is estimated to be a 7 year programme, investing circa €50m p.a. on average

76

Kerryconnect Timeline

2009 2010 2011 2012 2013 2014 2015 2016

Back Office Operating Model Review

Phase 1 Design & Pilot (N.I. & Germany)

Phase 1 GB & Irl Deployment

Overall Operating Model Review

Phase 2 Design & Pilot

Phase 1 & 2 Europe

Phase 1 & 2 APAC

Phase 1 & 2 Americas

Globalise 1 Kerry Processes

77

» “Customer Relationship Management” system has been implemented globally

and assists in executing efficiently our “Go to Market Strategy”

» Global Ways of Working have been designed and agreed for Phase 1 with clear

Business Ownership

» Phase 1 has been successfully piloted according to plan with no negative impact

to ongoing business. By end of Q1 2012 circa 30% of Kerry’s business will be

utilising Phase 1 capability

» We are realising the potential of “Master Data Management” as a means to

leverage business benefit

» Kerry has developed its knowledge and capability to implement Kerryconnect

Progress on Kerryconnect To-date

78

» Kerry best practice can be shared and implemented efficiently across

the Group

» Consistent Master Data will enable “one global view of our business”

for better business decision making

» Enable our Global Supply Chain, Manufacturing and Procurement

Teams to deliver efficiency and maximise scale

» Maximise Shared Service Centre capability

Kerry’s Future With Kerryconnect

All aligned to deliver a quality, innovative, value proposition to our Stakeholders

79

Summary

» Kerryconnect is a global platform for our 1 Kerry Strategy

» Kerryconnect is owned by the Business Executive Teams

» Kerryconnect is on time and on budget

» Kerryconnect enables and sustains functional excellence for the

business

Kerryconnect enables Kerry’s complexity to be executed efficiently and consistently

80

Brian Mehigan CFO

82

KPI Target

Performance v Targets to Date

3 Year Avg 2008 to 2010

2011 2012

Revenue +2% to +4% LFL

volume growth ✔ +3.7%

Margin 10% trading margin

(30bps pa) ✔ +37bps pa

Adjusted EPS*

Growth 10%+

CAGR

✔ 10.6%

ROAE* 15%+ ✔ 16.5%

CFROI 12%+ ✔ 12.4%

Performance v Current Targets

Reconfirm adjusted EPS* guidance for 2011 to grow at a range of 8% to 12%

On track

On track

On track

Note: ** due to raw material lag and 1 Kerry costs


Behind**

Long Term Targets – Investment

84

Operating Model/Kerryconnect – Financial Impact

Cost

» Programme estimated to cost c. €350m over 7 years (2010 to 2016)

» Costs will be weighted to the earlier years but software and hardware investments

will be capitalised and amortised

» P&L impact approximately €50m per annum on average

Savings

» Savings phased to latter end of programme when operational synergies realised

» 2% margin increase driven by incremental savings, offset by 1% cost increase above

Summary

» Slight negative impact on EPS until 2013, positive thereafter

» Software amortisation a cost in arriving at adjusted earnings per share

» Net savings will progressively increase and deliver an additional 1% margin increase

when project complete

85

2010 2011 2012 2013 2014 2015 2016 2017

€'m

Years

Net P&L Impact

1% margin increase

0

Operating Model/Kerryconnect – Financial Impact

This 1% margin increase attributable to efficiency gains arising from the operating model and Kerryconnect investment is in addition to the 30bps group margin expansion target arising from operating leverage and business mix

86

Capital Expenditure – % of Revenue

Increased capital expenditure required to support higher growth markets

Peer Average 3.9%

87

Return on Average Equity (ROAE*)

10yr

Avg

15.3%

3yr

Avg

16.5%

Target

15%+

12%

13%

14%

15%

16%

17%

18%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

88 Note: * before intangible amortisation and non-trading items

Cashflow Return on Investment (CFROI)

10yr

Avg

12.0%

3yr

Avg

12.4%

Target

12%+

8%

9%

10%

11%

12%

13%

14%

15%

16%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

89

Dividend Per Share

0.5

2.1 2.3 2.5 2.7 2.7 2.9 3.3 3.6

4.2 4.9

5.6 6.6

7.9

9.1 10.0

11.5

12.7

14.0

16.0

18.0

20.0

22.5

25.0

28.8

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

CAGR

1986-2010

18.6%

3yr

Avg

12.9%

Target

double digit

in line with

EPS growth

90

Long Term Targets – Volume and Margin Growth

91

1 Kerry Ingredients & Flavours Business Growth Strategies Will Deliver

Mature Markets

» Volume growth 3% - 5%

» Capital spend increases from <3% to >4%

Emerging Markets

» Volume growth 10%

» More local customer penetration

» Expanded local footprint

1 Kerry Impact

» Global best in class

infrastructure

» Substantial upfront cost

» Longer term profit improvement

Improve margin +50bps p.a

92

2010 2017

Volume Growth 2-3%

Consumer Foods – Growth Objectives

Private Label

1.5% CAGR

Foodservice

1.5% CAGR

Branded

3.6% CAGR

% Margin

2010 2017

+20 bps

p.a.

Margin Improvement

93

Long Term Targets - Summary

94

Long Term Targets

» Adjusted EPS* Growth 10%+ p.a.

Driven by:

» Revenue Growth (LFL Volume) Kerry Ingredients & Flavours 4% to 6% p.a.

(Including Emerging markets 10% p.a.)

Consumer Foods 2% to 3% p.a.

Group 3% to 5% p.a.

» Margin expansion Kerry Ingredients & Flavours 50 bps p.a.

Consumer Foods 20 bps p.a.

Group 30 bps p.a.

+ an additional 100 bps at end of project

» Financial and Tax Leverage Structures aligned with 1 Kerry model

Return:

» ROAE* 15%+ and CFROI 12%+ on average


1 Kerry

» Multinationals globalising brands

(CPG, efficient global management

model)

» Deeper market knowledge

» Optimisation of technology portfolio

» technology layering

» technology transferability

» Optimisation of global processing

» Applications expertise

» Brand optimisation

1 Kerry – ‘Realising the Potential’

Sustainability and consistency of performance

Benefits

» Ability to grow globally

» Collaborative brand innovation

» Consumer-ready solutions

» Synergistic benefits through R&D and

marketing collaboration

» Concentrated supply chain

» Increased speed to market

97

Summary: Our Next Phase of Profitable Growth

» 1 Kerry

» Compass for the future

» Realisation of Kerry business potential

» Business transformation programme well underway

» Providing unrivalled customer solutions to an expanding global consumer marketplace

» Investment for growth in developed and developing markets

» Investment for efficiency

» Capitalise on industry consolidation opportunity

Acquisition opportunities to further advance Kerry global positioning

» On track to deliver earnings as guided for 2011

Confident of delivering our strategic growth initiatives and objectives over next 5 year cycle

98

Documents

Capital Markets Day Presentation (Web)