Capital Markets Day Presentation (Web)

Stan McCarthy CEO
Agenda
Topic 2.00 - 2.15 2.15 - 3.15 The Kerry Growth Model
Unlocking the Potential
Presenter Stan McCarthy
The Kerry Growth Opportunity Ingredients & Flavours
3.15 - 3.30 3.30 - 3.45
Consumer Foods
Gerry Behan Albert McQuaid Mark McCormack Flor Healy
Break 1 Kerry and Kerryconnect Business Transformation Business Enablement Investment and Financials The Kerry Growth Model
Realising the Potential
Michael ONeill
3.45 - 4.00 4.00 - 4.15
Brian Mehigan Stan McCarthy
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.
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
Ingredients & Flavours 68%
Revenue - 2010
Consumer Foods 32%
Trading Profit - 2010

Consumer Foods 25%
Ingredients & Flavours 75%
Ingredients & Flavours Consumer Foods
3,675m 1,768m
Ingredients & Flavours Consumer Foods
401m 132m
Operations in 23 countries
EMEA 60%
Sales by Destination - 2010

Asia-Pacific 10%
Sales to 140 countries 140 manufacturing sites 23,000 employees

Americas 30%
Kerry Worldwide Locations
Head Offices Manufacturing Plants Sales Offices
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
Kerry Group Growth Model 1 Kerry Positioning

1 Kerry embraces Groups 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
8
1 Kerry: Unlocking the Potential

Value realisation framework Common Kerry way of working global execution functional excellence Leveraging scale and synergies
Achievement
of long-term
Enabling: Go-to-market strategies, technology development, end-use-market development Geographic market strategies Platform for acquisitions Challenge now is to truly leverage Kerrys leadership and global opportunity
9
growth and financial targets
Adjusted EPS* 1986 - 2010 (cent)

CAGR 1986-2010 14.5%
200
CAGR 2007-2010 10.6%

194.5
180
166.5
160
143.8
153.9
140
122.9
131.6 133.9
120
101.8
112.1
100
87.9
80
68.0
79.2
60
46.7
57.4
40 20
7.6 8.4 12.7 16.3 17.6
35.8
38.7
21.1
23.0
25.9
28.9
0
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 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%+
Note: * before intangible amortisation and non-trading items
11
Performance v Current Targets
Performance v Targets to Date KPI Target 2008 2009 2010 3 Year Avg
+2% to +4% LFL Revenue volume growth 10% trading margin Margin Adjusted EPS Growth ROAE CFROI
(30bps pa)
+3.4%
+2.2%
+5.5%
+3.7%
8.5% 153.9c +7.0%* 15.7% 10.2%
9.3% 166.5c +8.2%* 16.7% 15.3%
9.5% 194.5c +16.8%* 17.2% 11.6%
+37bps pa CAGR 10.6%
10%+
15%+ 12%+
16.5% 12.4%
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
1 Kerry Ingredients & Flavours Business Growth Strategies
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
Leverage Capabilities & Grow Expertise

- Effective & Efficient Functional Expertise - Best-in-Class Talent Management
- Latin America
- Europe, Middle East, Africa
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 Kerrys technology portfolio for growth Next generation service model
Globally aligned and regionally managed commercial
support functions to deliver 360Customer Care

20
Retail Food & Beverage Market

Global retail revenue of packaged food ($1.9 Trillion USD) and beverages ($1.1 Trillion USD) total ~$3 Trillion USD, with forecasted overall growth around 1-2%
GLOBAL RETAIL PACKAGED FOOD KEY MARKETS MARKET SIZE & ESTIMATED ANNUAL GROWTH (2011-2015)
1.2%
600
GLOBAL RETAIL BEVERAGE KEY MARKETS MARKET SIZE & ESTIMATED ANNUAL GROWTH (2011-2015)
0.9% 1.5% 1.3%
600
RETAIL VALUE (USD$ BILLION)
RETAIL VALUE (USD$ BILLION)
500 400
0.7% 0.8%
1.1% 1.2% 1.2% 1.3% 1.2%
500
300
200 100 0
400
2.4% 1.2% 1.1% 1.1%

1.2%
300
200
1.0%
100 0 Alcoholic Drinks Soft Drinks Hot Drinks
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 36% during the next five years
GLOBAL PHARMACEUTICAL MARKET SALES SPLIT BY REGION (2010) GLOBAL PHARMACEUTICAL MARKET SALES SPLIT BY REGION (2015)
Other Markets 27%
United States 41%
Other Markets 28%
United States 31%
17 High Growth Emerging Markets 12% Top 5 Euro Markets 20%
17 High Growth Emerging Markets 28%
Top 5 Euro Markets 13%
Source: IMS Institute for Healthcare Informatics
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
24
Meat, Poultry & Seafood Prepared Meals
Soups, Sauces & Dressings

Appetisers & Side Dishes
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
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
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
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
HEALTH CONTINUUM
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
Two key nutritional strategies working in parallel Leverage Kerrys 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
29


- Asia Pacific

- Latin America
30
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
San Juan del Rio
31
Beloit
Amsterdam
Sydney
Shanghai
Bristol
Campinas
Kerrys Technology Size

Revenue by Technology
Pharma/Functional Ingredients 9% Savoury & Dairy Systems & Flavours 46%
Revenue by Region
Asia-Pacific 16%
EMEA 38%
Primary/Regional Ingredients 12%
Beverage Systems & Flavours 13%
Cereal & Sweet Systems & Flavours 20%
Americas 46%
* Based on third party revenue
32
Technology Innovation Strategies

Taste Global Taste Solutions Platform Next-generation Flavour Modulation Citrus Platform Expansion Spinning Cone Technology Sauce Platform Natural Food Base Enhancement Systems MSG Replacement
Value Proteins Platform Emulsion Technology Shelf-life Extension Cocoa Extension Fat & Egg Replacement Dairy Replacement Customising Systems for Emerging Markets
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
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
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
against global quality policies

Global standard for root cause analysis and sustainable problem solving Continuous improvement and process automation


- Asia Pacific

- Latin America
39
Emerging Markets
Kerrys 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
China: 1.3b $5,878b 10.3%
India: 1.2b $1,538b 10.4%
Indonesia: 234m $707b 6.1%
Population Nominal GDP Real GDP Growth 2011
Developing Asia 3.6b 8.4%

Source: IMF
41
Asia Pacific Emerging Markets Kerry Growth Strategy

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
Investment in Local Capabilities & Structures Customer Centres China India Indonesia Thailand APAC COEs Sydney, Australia Johor Bahru, Malaysia Leveraging global technologies locally
Emerging Market Economies Latin America
Mexico: 109m $1,040b 5.5%
Colombia: 46m $286b 4.3%
Brazil: 193m $2,090b 7.5%
Chile: 17m $203b 5.3%
Developing Latin America 572m 4.7%

Source: IMF
Argentina: 41m $370b 9.2%
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.) Investment in Local Capabilities & Structures Customer Centres Buenos Aires, Argentina San Jose, Costa Rica
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
LATAM COEs Campinas, Brazil San Juan del Rio, Mexico
Leveraging global technologies locally
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
44
Emerging Market Economies EMEA
Poland: 38m $469b 3.8%
Russia: 140m $1,465b 4.0% Turkey: 71m $742b 8.2%
Saudi Arabia: 26m $444b 2.7%

Nigeria: 156m $217b 8.4%
South Africa: 50m $357b 2.8%
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%
45
Source: IMF
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 Investment in Local Capabilities & Structures Customer Centres South Africa Turkey Dubai Russia EMEA COEs Bristol, UK Amsterdam, Netherlands
Leveraging global technologies locally
46
Kerry Ingredients & Flavours Revenue Profile Mature/Emerging Markets

+ Acquisitions Impact
30% Revenue
15%
22%
2006
2010
2017
Mature
Emerging
47
Emerging markets include Latin & South America, Middle East, Africa, Eastern Europe and Asia Pacific (excluding Australia, New Zealand & Japan)


- Asia Pacific

- Latin America
48
1 Kerry Ingredients & Flavours Business Growth Strategies Will Deliver
Mature Markets
Volume growth 3% - 5%
Emerging Markets
Volume growth 10%
1 Kerry Impact
Global best in class infrastructure
Improve margin +50bps p.a

Capital spend increases from <3% to >4% More local customer penetration Expanded local footprint
Substantial upfront cost
Longer term profit improvement
49
1 Kerry
Technology & Product Groups
Functional Ingredients: Bio-ingredients, Emulsifiers and Texturants
Processing
By working together in the 1 Kerry model, we are uniquely able to deliver a number of benefits to our customers.
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
Premier Kraft Unilever Mars ABF Bakkavor Pepsico Coke Dairy Crest Kerry Nestle Arla Morrisons Boparan Tulip Vion Findus UB Heinz Princes Cranswick Moy Park Greencore Danone Gerber Samworth Muller Warburtons Birds Eye McCain Uniq Kellogg
Kerry Tulip Bakkavor Cranswick Greencore
A Leading Player in Food & Beverage and the Leaders Samworth Kerry Foods in Convenient Fridge Food Danone
Boparan Vion Muller DC Unilever Arla Uniq IDB
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.
Food & Non Alcoholic Beverage Turnover UK/ROI
Nestle Adams
Source: OC&C, Nielsen, Kantar, Co. Reports, Kerry estimates
55
With Significant Opportunity for Growth

70% of the most frequently consumed foods are stored in the fridge
42
Thats how many chances you have each week to stand out in the Fridge
24
In the Cupboard
In the Freezer
(average number of times consumer opens each week)

56
With Significant Opportunity for Growth

Added Value Chilled Foods Markets 18bn Retail Value
Kerry Drive 9.5bn

+3.5% vol growth
Cooked Meats Meat Snacking Cheese Pastry Chilled Ready Meals
Sausage Rashers Spreads RTC All IOI Categories
Kerry Nurture 4.0bn

+1% vol growth
Yogurts Desserts Pizza Pasta Soup Sauce
Non Kerry 4.5bn

+3% vol growth
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
Superior Technology to Create Delicious, Healthy Affordable Food
Fantastic Quality With Lean Efficiency
58
Turning Deep Consumer Insight into Compelling Propositions
Turning deep consumer insight into compelling propositions
59
Fostering Customer Support to Grow Together
In-Store POS & Dems

Delivering a point of purchase vision for Chilled Ready Meals
Creating health territories for Chilled Ready Meals across our Customers
Best for the Performance Best
Healthy Meals
Full with Nature

Food For Longevity Healthy Grazing Meals
Easy Healthy
Ultimate Tasty, So Healthy
Healthy Proportions Naked / Nude Food
Think Smart, Stay Sharp
Living Goodness
Healthy Oriental
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
Delivering Fantastic Quality with Lean Efficiency
- Development of Kerry Production System - All Sites Engaged

KLP Maturity
- Ongoing Maturity assessment to achieve ambition - Develop Lean across the extended - Roll out of KPS enterprise to all sites
- Specialist Training
- 15 Sites Engaged - Mgt directed Jishuken activites
- Lean Maturity Model - One Voice One System

2011 2012 2013 2015
- 6 Pilot Sites
2009
2010
Lean mindset change Elimination of waste Consistent quality Standard work Continuous improvement - 8 step problem solving
62
Consumer Foods Topline Growth Objectives 2-3% CAGR

End Use Markets Drive Categories
3% 4.5%
CRM
Private Label 1.5% CAGR Foodservice 1.5% CAGR
Savoury Pastry
1% 2.7% Forecast Market CAGR Kerry CAGR Target
Cooked Meats Branded 3.6% CAGR Meat Snacking
1% 3.6%
5% 5%
Cheese
1% 3.1%
2010
2017
63
Consumer Foods Margin Expansion
Driven by: Volume growth (operational leverage) Greater efficiencies Lean Programme and capital investment
2010 2017 % Margin
+20 bps p.a.
Mix
64
Acquisition and Development Strategy Kerry Foods
65
1 Kerry and Kerryconnect
Michael ONeill Group Director of Business Services
67
Agenda
1 Kerry Business Transformation Why 1 Kerry? Overview of 1 Kerry Operating Model Project and its link to Kerryconnect Kerryconnect
Objectives & timelines

Kerryconnect progress to date Kerrys future with Kerryconnect
68
1 Kerry Business Transformation
69
Why 1 Kerry?
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
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 KPIs 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
Outputs from 1 Kerry Operating Model

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
All to be enabled and sustained by Kerryconnect

73
1 Kerry Business Transformation
74
Kerryconnect Objectives
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
75
The Kerryconnect Programme Plan (350m)

Kerryconnect is estimated to be a 7 year programme, investing circa 50m p.a. on average 2009 2010 2011 2012 2013 2014 2015 2016
Phase 0 Phase 1 Phase 1 and 2
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.
76
Kerryconnect Timeline
2009
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
2010
2011
2012
2013
2014
2015
2016
Progress on Kerryconnect To-date

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 Kerrys 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
78
Kerrys Future With Kerryconnect

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
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 Kerrys complexity to be executed efficiently and consistently
80
Brian Mehigan CFO
82
Performance v Current Targets

Performance v Targets to Date
KPI
Target
3 Year Avg 2008 to 2010 +3.7%
2011
2012
Revenue
+2% to +4% LFL volume growth 10% trading margin

(30bps pa)
On track
Margin
+37bps pa CAGR 10.6%
Behind**
Adjusted EPS*
Growth ROAE* CFROI
10%+ 15%+ 12%+
On track
16.5%
12.4%
On track
Reconfirm adjusted EPS* guidance for 2011 to grow at a range of 8% to 12%

Note: ** due to raw material lag and 1 Kerry costs
83
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
Operating Model/Kerryconnect Financial Impact
Net P&L Impact
'm
1% margin increase
2010 2011 2012 2013 2014 2015 2016 2017
Years
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

Peer Average 3.9%
Increased capital expenditure required to support higher growth markets

87
Return on Average Equity (ROAE*)

10yr Avg 15.3% Target 15%+ 3yr Avg 16.5%
18%
17%
16%
15%
14%
13%
12% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
88
Cashflow Return on Investment (CFROI)

10yr Avg 12.0% Target 12%+ 3yr Avg 12.4%
16%
15%
14%
13%
12%
11%
10%
9%
8%
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
89
Dividend Per Share

CAGR 1986-2010 18.6%
30 28 26 24 22
Target double digit in line with EPS growth
3yr Avg 12.9%

28.8
25.0
22.5
20.0
20
18.0
18
16.0
16
14.0
14 12
12.7 11.5 10.0 9.1 7.9 6.6 4.2 4.9 5.6
10 8 6 4
2.1
2 0
2.3
2.5
2.7
2.7
2.9
3.3
3.6
0.5
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 90
Long Term Targets Volume and Margin Growth
91
1 Kerry Ingredients & Flavours Business Growth Strategies Will Deliver
Mature Markets
Volume growth 3% - 5%
Emerging Markets
Volume growth 10%
1 Kerry Impact
Global best in class infrastructure
Improve margin +50bps p.a

Capital spend increases from <3% to >4% More local customer penetration Expanded local footprint
Substantial upfront cost
Longer term profit improvement
92
Consumer Foods Growth Objectives

Volume Growth 2-3%
Margin Improvement
% Margin
Private Label 1.5% CAGR Foodservice 1.5% CAGR Branded 3.6% CAGR
+20 bps p.a.
2010
2017
2010
2017
93
Long Term Targets - Summary
94
Long Term Targets

Adjusted EPS* Growth
Driven by: Revenue Growth (LFL Volume) Kerry Ingredients & Flavours (Including Emerging markets 4% to 6% p.a. 10% p.a.)
10%+ p.a.
Consumer Foods
Group Margin expansion Kerry Ingredients & Flavours Consumer Foods Group Financial and Tax Leverage Return: ROAE* 15%+ and CFROI 12%+ on average
2% to 3% p.a.
3% to 5% p.a. 50 bps p.a. 20 bps p.a. 30 bps p.a.
+ an additional 100 bps at end of project Structures aligned with 1 Kerry model
95
1 Kerry Realising the Potential

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
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
Sustainability and consistency of performance

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

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Stan McCarthy CEO

Presenter Stan McCarthy

The Kerry Growth Opportunity Ingredients & Flavours

3.15 - 3.30 3.30 - 3.45

Gerry Behan Albert McQuaid Mark McCormack Flor Healy

3.45 - 4.00 4.00 - 4.15

Brian Mehigan Stan McCarthy

Disclaimer: Forward Looking Statements

Trading Profit - 2010

Ingredients & Flavours 75%

Ingredients & Flavours Consumer Foods

Ingredients & Flavours Consumer Foods

Sales by Destination - 2010

Sales to 140 countries 140 manufacturing sites 23,000 employees

Kerry Worldwide Locations

Head Offices Manufacturing Plants Sales Offices

1 Kerry Business Model Unlocking the Potential

Well balanced portfolio

Proven ability to grow in a changing dynamic marketplace

Kerry Group Growth Model 1 Kerry Positioning

- building on our global

1 Kerry: Unlocking the Potential

growth and financial targets

Adjusted EPS* 1986 - 2010 (cent)

CAGR 2007-2010 10.6%

Group Goals & Long Term Targets - Current

ROAE* 15%+ and CFROI 12%+

Note: * before intangible amortisation and non-trading items

Performance v Current Targets

8.5% 153.9c +7.0%* 15.7% 10.2%

9.3% 166.5c +8.2%* 16.7% 15.3%

9.5% 194.5c +16.8%* 17.2% 11.6%

+37bps pa CAGR 10.6%

Note: * double digit growth in constant currency

Kerry Growth Model: Realising the Potential

Incremental growth in developed markets

Realising the Potential: Updating Group Long Term Targets

1 Kerry Go-to-Market Structure

1 Kerry Growth Model Driving Profitable Growth

1 Kerry Ingredients & Flavours Business Growth Strategies

Drive Global Alignment

Accelerate Growth in Emerging Markets

Leverage Capabilities & Grow Expertise

Global Customer & Market Management

End-Use Market Management

Globally aligned and regionally managed commercial

support functions to deliver 360Customer Care

Retail Food & Beverage Market

0.9% 1.5% 1.3%

RETAIL VALUE (USD$ BILLION)

RETAIL VALUE (USD$ BILLION)

1.1% 1.2% 1.2% 1.3% 1.2%

2.4% 1.2% 1.1% 1.1%

Other Markets 27%

United States 41%

Other Markets 28%

United States 31%

17 High Growth Emerging Markets 12% Top 5 Euro Markets 20%

17 High Growth Emerging Markets 28%

Top 5 Euro Markets 13%

Source: IMS Institute for Healthcare Informatics

Global Market Strategies Main Meal

Meat, Poultry & Seafood Prepared Meals

Soups, Sauces & Dressings