kerry - 2003 preliminary results presentation...kerry - 2003 preliminary results presentation •...
TRANSCRIPT
![Page 1: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/1.jpg)
![Page 2: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/2.jpg)
Kerry - 2003 Preliminary Results Presentation
• Introduction and Overview Hugh Friel
• Financial Review Brian Mehigan
• Business Review Hugh Friel
• Prospects and Future Development Hugh Friel
• Q&A
![Page 3: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/3.jpg)
2003 Strategic Focus
• Consumer: Focus on healthy, convenient, lifestyle foods
• Innovation: Lead industry development
• Growth: Sales, margin and cash flow
• Efficiencies: Business, financial, operational
Ingredients worldwide market leadership
Consumer Foods leadership in added value categories
Flavours build world class positioning
![Page 4: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/4.jpg)
2003 Good Results
• Year-on-year currency movement
• Kerry businesses well positioned to meet consumer needs
• Positive stimulus for innovation – NPD
• Solid progress: sales, margin, free cash flow and acquisition
programmes
Kerry = Change = Results
![Page 5: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/5.jpg)
• Like-for-like sales growth of 4.6%
• Like-for-like operating profit* growth of 7.6%
• Earnings* increased by 10.3% to €208m
• Earnings per share* increased by 10.1% to 112.1 cent
• Like-for-like earnings* growth of 15%
• Free cash flow generated €204m
• Acquisition expenditure €208m
Note: * before goodwill and exceptional items
2003 Performance Highlights
![Page 6: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/6.jpg)
Food Industry Review – Challenge and Opportunity
• Balanced diet and healthy lifestyles
• Opportunity to improve nutritional profile of food and beverage
products
• NPD - high protein, high energy, tasty, naturally flavoured, low-
carbohydrate, functional, organic, ‘wellness’ and
indulgence products
• Which - meet food safety and convenience requirements ‘food-to-
go’, ease of cooking etc.
Kerry Core Capabilities:
Commercialisation of concepts, scientific knowledge, culinary
expertise, consumer understanding
![Page 7: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/7.jpg)
2001 2002 2003
Ireland 6% 4% 3%
Rest of Europe 4% 6% 5%
Americas 6% 7% 6%
Asia Pacific 6% 5% 12%
Group 5% 6% 5%
Turnover : Like-for-like % Growth
![Page 8: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/8.jpg)
94 95 96 97 98 99 00 01 02 03
112.1
101.8
87.9
79.2
68.0
57.4
46.7
38.735.8
28.9
0
20
40
60
80
100
120
EPS* (cent) Growth
Note: * before goodwill and exceptional items
![Page 9: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/9.jpg)
Financial Review2003
![Page 10: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/10.jpg)
2003 Financial Highlights
Note: * before goodwill and exceptional items
Turnover
Operating profit*
Earnings*
EPS*
FRS3 EPS
€3,693m -1.6%+4.6% like-for-like
€309m +1.0%+7.6% like-for-like
€208m +10.3%
112.1 cent +10.1%
86.7 cent +54.5%
![Page 11: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/11.jpg)
Currency Exposure Management
• Balance sheet – matching assets and liabilities
• Foreign exchange transactions - natural hedges and tactical
hedges
• Profit translation exposure: not hedged
• 20% depreciation Dollar v Euro
• 10% depreciation Sterling v Euro
![Page 12: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/12.jpg)
Euro - US Dollar Trend
Avg Fx Rate 2003 2002 % Change1.13 0.94 +20%
0.85
0.90
0.95
1.00
1.05
1.10
1.15
1.20
1.25
1.30
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0.98
1.14
1.05
2003
2002
H1 H2 1.26
0.87
1.08
![Page 13: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/13.jpg)
Euro - Sterling Trend
0.50
0.55
0.60
0.65
0.70
0.75
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0.65
0.68
0.65
2003
2002
H1 H2
0.70
0.61
0.66
Avg Fx Rate 2003 2002 % Change0.69 0.63 +10%
![Page 14: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/14.jpg)
Turnover Analysis
2002 2003
€3,755m €3,693m
+5%
Like-for-like
+2%
Acquisition/Disposal
-9%
Currency
-2%
![Page 15: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/15.jpg)
Like-for-like Acquisition / Currency Reported
Growth Disposal Growth
Ireland 3% (6%) 0% (3%)
Rest of Europe 5% 3% (10%) (2%)
Americas 6% 13% (20%) (1%)
Asia Pacific 12% 1% (3%) 10%
Group 5% 2% (9%) (2%)
Turnover : Like-for-like
![Page 16: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/16.jpg)
Geographic Split
Ireland36%
Rest of Europe34%
Americas26%
Asia Pacific
4%
Turnover : Geographical
Like-for-like Growth %
2003 2002
Ireland 3% 4%
Rest of Europe 5% 6%
Americas 6% 7%
Asia Pacific 12% 5%
Group 5% 6%
![Page 17: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/17.jpg)
Geographic Split
Ireland22%
Rest of Europe36%
Americas37%
Asia Pacific
5%
Operating Profit* Growth
Note: * before goodwill and exceptional items
2003 Growth %
Like-for-like Reported
Ireland 11% 10%
Rest of Europe 8% 2%
Americas 6% (6%)
Asia Pacific 12% 14%
Group 8% 1%
![Page 18: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/18.jpg)
Quality Indicators 2003
Note: * before goodwill and exceptional items
Operating profit* margin
Free cash flow
Return on average equity*
8.4% +30bps+30bps like-for-like
€204m 2002: €232m
15.2% 2002: 15.2%
![Page 19: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/19.jpg)
Like-for-like growth +30bps
Acquisitions / Disposals +10bps
Currency -10bps
Operating Margin* Change
Note: * before goodwill and exceptional items
Operating margin* 8.1% 8.4%
Operating margin* change +30bps
![Page 20: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/20.jpg)
2002 margin reported 4.6% 8.5% 12.8% 8.9% 8.1%
Acquisitions / disposals 0.3% 0.2% (0.6%) - 0.1%
Currency - (0.1%) (0.2%) - (0.1%)
Like-for-like 0.3% 0.2% 0.1% 0.3% 0.3%
2003 margin reported 5.2% 8.8% 12.1% 9.2% 8.4%
Ireland ROE Americas Asia Pacific Total
Operating Margin* % by Region
Note: * before goodwill and exceptional items
![Page 21: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/21.jpg)
2003 Free Cash Flow (€m)
99 00 01 02 03
204
232
101109103
0
50
100
150
200
250
![Page 22: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/22.jpg)
EBITDA* 259 296 331 390 392
Movement in working capital 3 13 (34) 46 8
Capital expenditure (net) (79) (96) (89) (92) (93)
Interest (40) (48) (46) (50) (41)
Taxation (28) (42) (44) (43) (40)
Dividends (12) (14) (17) (19) (22)
Free Cash Flow 103 109 101 232 204
1999 2000 2001 2002 2003
Five Year Free Cash Flow (€m)
Note: * before exceptional items
![Page 23: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/23.jpg)
2002 2003
63% Debt : Equity 52%
34% Debt : Market Capitalisation 27%
7.8x EBITDA* : Net Interest 10.5x
2.1x Debt : EBITDA* 1.9x
Financial Ratios
Note: * before exceptional items
![Page 24: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/24.jpg)
Other Financial Matters
• Pension Pension charge increased by €7m due to
acquisitions and funding of the deficit
• Taxation Tax charge on continuing operations down
from 31% to 28%
• Finance Charges Decreased €13m year-on-year due to rate,
volume and currency
• Financing Debt term extended by issue of US$650m
Senior Notes
• Restructuring Plan to reorganise operating plants acquired -
(no material net effect on earnings envisaged)
![Page 25: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/25.jpg)
Business Reviews
![Page 26: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/26.jpg)
Kerry Today: A Global Food Company
Ingredients (ASI’s)
Savoury ingredients
Sweet ingredients
Nutrition / Protein
Food coating systems
Foods (UK & Irl)
Prepared meals
Branded savoury
Cheese and spreads
Convenience meats
Speciality poultry
Beverages
Flavours
Botanical / Herbal extracts
Savoury flavours
Sweet flavours
Cheese and dairy flavours
Functional flavours
![Page 27: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/27.jpg)
Key Developments 2003
• Nutritional bars
• Nutritional drinks
• Breakfast items
• Organic foods
• Functional foods
• Citrus flavours
• All-natural flavours
• Botanical extracts
• Functional flavours
• Health supporting components
FlavoursIngredients
• Added-value meat products
• Ready meals
• Cheese snacks
• Chilled desserts
• ‘Food-to-go’
• Branded flavoured syrups
• Seasonings
• Flavoured coatings
• RTU sauces
• RTD beverages
FoodserviceFoods
![Page 28: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/28.jpg)
Ireland Rest of Europe Americas Asia Pacific Group
5%
12%
6%
5%
3%
0
5
10
15
Like-for-like Sales Growth by Region
![Page 29: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/29.jpg)
Ireland Rest of Europe Americas Asia Pacific Group
8%
12%
6%
8%
11%
0
5
10
15
Like-for-like Operating Profit* Growth by Region
Note: * before goodwill and exceptional items
![Page 30: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/30.jpg)
Business Review - Ireland
Ireland
Turnover €1,332m (3.0%) +2.6%
Operating Margin 5.2% +60bps +30bps
2003 Total Growth Like for Like
• Excellent progress in natural cheese and cheese snacking
• Continued growth through Denny brand
• Poultry performance down year-on-year
• Freshways expansion completed
• Functional dairy – new applications
![Page 31: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/31.jpg)
Business Review – Rest of Europe
Rest of Europe
Turnover €1,265m (2.2%) +4.9%
Operating Margin 8.8% +30bps +20bps
2003 Total Growth Like for Like
• Good results: Wall’s, Richmond, Mattessons brands
• Ready meals continued growth
• Flavoured coatings: good growth in Europe and Far East
• Growth in Mastertaste Europe through multinational customer base
![Page 32: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/32.jpg)
Business Review - Americas
Americas
Turnover €939m (0.6%) +5.9%
Operating Margin 12.1% -70bps +10bps
2003 Total Growth Like for Like
• Margin back 70bps due to cost infrastructure, acquisitions and currency
• Growth across nutritional foods and beverages
• Kerry ASI’s well positioned to capitalise on consumer ‘health’ focus
• Excellent performance through Nutriant unique soy ingredients
• Foodservice: continued progress through flavoured syrups, seasonings
and RTU products
• Mastertaste US well established
![Page 33: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/33.jpg)
Business Review – Asia Pacific
Asia Pacific
Turnover €157m +9.9% +12.3%
Operating Margin 9.2% +30bps +30bps
2003 Total Growth Like for Like
• Excellent business performance
• Good volume growth in seasonings, coatings systems and bakery in
Australia and New Zealand
• South East Asia: significant growth through nutritional and functional
ingredients
• North Asia: nutritional sector grew 10% year-on-year
• Good regional progress in growing branded beverage foodservice
applications
![Page 34: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/34.jpg)
99 00 01 02 03
€88m
€78m
€59m
€52m€44m
0
10
20
30
40
50
60
70
80
90
R&D Expenditure (€m)
1.8%*
2.0%*2.0%*
2.1%*
2.4%*
Note: * figures relate to R&D as a percentage of turnover
![Page 35: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/35.jpg)
9900
0102
03
989594
101
928789
74
65
57
0
20
40
60
80
100
Capital Expenditure (€m)
Capex Depreciation
![Page 36: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/36.jpg)
Sweet Nutrition & Flavourings & Culinary MastertasteProtein Seasonings Flavours
Ingredients / Flavours Acquisitions Since 2000
2000 Shade Foods Solnuts
2001 SPI Iowa Soy Alferi Voyager San Giorgio
SPI Creative Aromont Geneva
Siber Demicombe Corol Hickory
Nutrir
2002 Ringger Ringger Stearns & Lehman St. Louis Flavours
Roskam IDSA Thailand Metarom
Turtle Lake Rector IFI
2003 Guernsey Bel Pacific Seasonings SunPure
Da Vinci Gourmet Crystals International
![Page 37: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/37.jpg)
Convenience Savoury Cheese & Ready Foodservice DirectSnacking Products Spreads Meals Sales
Golden Vale � � � �
Platters �
Deli Products � �
Northern Foods � � �
(Van Distribution)
Freshways � �
Hibernia / Diversity � � �
Kerry Foods Acquisitions Since 2000
![Page 38: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/38.jpg)
Trading Outlook
• Strong business growth opportunities
• High rate of innovation
• Flavour capabilities central to NPD
• Excellent growth outlook for unique soy and functional dairy
applications
• Foods – further development of added value branded
segments
• Branded foodservice development in fast growing global
beverage sector
![Page 39: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/39.jpg)
Prospects
• Trading outlook very encouraging
• Strategy good fit for convenience, nutrition and lifestyle food
and beverage growth
• Strong pipeline of acquisition opportunities supported by a
healthy balance sheet
• Full year prospects in line with market expectations
![Page 40: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/40.jpg)
AdditionalInformation
![Page 41: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/41.jpg)
EPS Broker Estimates - Full Year 2004
2004 EPS % € Cent Growth
Consensus 120.0 7.0
Davy 118.8 6.0
SSSB 123.6 10.3
ABN Amro 118.8 6.0
Goodbody 119.9 7.0
Merrion 119.0 6.2
NCB 121.5 8.4
Cazenove 118.5 5.7
![Page 42: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/42.jpg)
Group
Ireland €1,332 €69 5.2% €1,374 €63 4.6%
Rest of Europe €1,265 €112 8.8% €1,293 €109 8.5%
Americas €939 €114 12.1% €945 €120 12.8%
Asia Pacific €157 €14 9.2% €143 €13 8.9%
Total €3,693 €309 8.4% €3,755 €305 8.1%
2003 2002
Operating Operating
Turnover Profit* % Turnover Profit* %
Analysis of Results by Region (€m)
Note: * before goodwill and exceptional items
![Page 43: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/43.jpg)
EPS Reconciliation
2002 2003 Growth
€ cent € cent %
101.8 EPS* 112.1 10.1%
(22.3) Goodwill amortisation (25.9)
(23.4) Exceptional items (net of tax) 0.5
56.1 FRS3 EPS 86.7 54.5%
Note: * before goodwill and exceptional items
![Page 44: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/44.jpg)
Euro 160 160 -
Sterling 44 44 -
US Dollar 419 322 97
Others 82 82 -
705 608 97
86% 14%
Weighted average period for which rate is fixed: 2.8 years
Net @ Floating @ Fixed Borrowings Rates Rates
Debt Profile (€m)
![Page 45: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/45.jpg)
31 Dec 2003 31 Dec 2002€m €m
Within one year (39) 115
Between 1 and 2 years 142 306
Between 2 and 5 years 31 313
Between 5 and 10 years 321 30
After 10 years 250 -
705 764
Weighted average maturity in years: 7.8 2.4
Maturity Profile of Net Debt
![Page 46: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/46.jpg)
Cash Flow (€m)
Cash from operations 400 436
Interest and taxation (81) (93)
Capital expenditure (93) (92)
Equity dividends (22) (19)
Free cash flow 204 232
Acquisitions and disposals
- Businesses acquired (212) (247)
- Businesses sold 1 33
- Acquisitions restructuring (17) (34)(228) (248)
Financing - issue of share capital 2 5
(22) (11)
Exchange adjustment 81 66
Decrease in borrowings 59 55
Opening net debt (764) (819)
Closing net debt (705) (764)
2003 2002
![Page 47: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/47.jpg)
Foreign Ownership27%
Irish Ownership73%
Kerry Co-op 31%
Irish Individuals 25%
Irish Institutions 17%
North American Institutions 17%
UK Institutions 7%
Continental Europe / Rest of World Institutions 3%
Shares in issue: 186 million
Shareholder Analysis
December 2003
![Page 48: Kerry - 2003 Preliminary Results Presentation...Kerry - 2003 Preliminary Results Presentation • Introduction and Overview Hugh Friel • Financial Review Brian Mehigan • Business](https://reader030.vdocument.in/reader030/viewer/2022040920/5e97dc5126ef45103d753380/html5/thumbnails/48.jpg)