Kerry : Annual Financial Report

SCIENCE-BACKED SUSTAINABLE NUTRITION

Kerry Group

Annual Report 2023

CONTENTS

STRATEGIC

REPORT

Our Performance in 2023 4

At a Glance 6

Chairman's Statement 8

Chief Executive Officer's Review 10 Our People 14

Our Business Model 24

Our Markets 26

Our Strategy 28

Our Technologies 30

Strategy & Targets 32

Key Performance Indicators 34

Financial Review 36

Business Review: Taste & Nutrition 42

Business Review: Dairy Ireland 45

Sustainability Review 46

Risk Management Report 92

DIRECTORS'

REPORT

Board of Directors 108

Report of the Directors 112

Governance Report

Corporate Governance Report 118

Audit Committee Report 135

Governance and Nomination

Committee Report 141

Sustainability Committee Report 148

Remuneration Committee Report 150

FINANCIAL

STATEMENTS

Independent Auditors' Report 184 Financial Statements 192

Notes to the Financial Statements 200

SUPPLEMENTARY INFORMATION

Financial Definitions 269

Kerry Group Annual Report 2023

1

Strategic Report

STRATEGIC REPORT

Our Performance in 2023 4

At a Glance 6

Chairman's Statement 8

Chief Executive Officer's Review 10 Our People 14

Our Business Model 24

Our Markets 26

Our Strategy 28

Our Technologies 30

Strategy & Targets 32

Key Performance Indicators 34

Financial Review 36

Business Review: Taste & Nutrition 42

Business Review: Dairy Ireland 45

Sustainability Review 46

Better for People 51

Better for Society 56

Better for Planet 62

Climate-Related Risk and Opportunity 70

EU Taxonomy 84

Risk Management Report 92

FUSING SCIENCE AND CULINARY EXPERTISE TO PIONEER SUSTAINABLE NUTRITION SOLUTIONS THAT WILL NOURISH GENERATIONS TO COME

2 Kerry Group Annual Report 2023

Strategic Report

Kerry Group Annual Report 2023

3

Strategic Report / Our Performance in 2023

OUR PERFORMANCE IN 2023

SOLVING OUR CUSTOMERS' COMPLEX CHALLENGES WITH DIFFERENTIATED SOLUTIONS

4 Kerry Group Annual Report 2023

Strategic Report / Our Performance in 2023

PERFORMANCE MEASURES

Financial

Group Revenue

€8.0bn

2022: €8.8bn

Group EBITDA¹

€1.2bn

2022: €1.2bn

Net Cash from

Operating Activities

€1,038m

2022: €722m

Basic

EPS

410.4c

+20%

2022: 341.9c (20.6%)

Total Dividend

Per Share

115.4c

+10.1%

2022: 104.8c +10.1%

Volume Growth¹

-0.9%

2022: +6.1%

Group EBITDA Margin¹

14.5%

2022: 13.9%

Free Cash Flow¹ (cash conversion %)

€701m

92%

2022: €640m 82%

Constant Currency

Adjusted EPS¹

430.1c

+1.2%

2022: 440.6c +7.3%

Return on Average Capital Employed¹

10.0%

2022: 10.3%

Non-Financial

Consumers reached with Positive and Balanced Nutritional Solutions²

1.25bn

2022: 1.2bn

Scope 1 & 2

Carbon Reduction²

48%

2022: 45%

Reduction in

Food Waste²

39%

2022: 41%

¹ See Key Performance Indicators section pages 34-35 and the Supplementary Information section page 269 for definitions, calculations and reconciliations of Alternative Performance Measures

² See Sustainability Review pages 46-69 for further information on non-financial metrics

Kerry Group Annual Report 2023

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Strategic Report / At A Glance

AT A GLANCE

Kerry is a world leader in sustainable taste and nutrition solutions. Using our unique capabilities, we partner with customers to create healthier, tastier, and more sustainable products that are enjoyed by over 1 billion people around the world.

PEOPLE	21,000+		1,100+
OUR
	Employees		R&D Scientists
GLOBAL	137			70+
OUR
FOOTPRINT	Manufacturing		Technology and
Locations		Innovation Centres
OUR	+9%	+12%	+12%	+13%	+16%
PROVEN	Revenue	EBITDA	Adjusted	Share	Dividend
TRACK	CAGR	CAGR	CAGR	CAGR	CAGR
	EPS	Price	per share

RECORD1

1 CAGR = Compound Average Growth Rate (1986 - 2023)

6 Kerry Group Annual Report 2023

Strategic Report / At A Glance

OUR BUSINESSES

Taste & Nutrition

A world-leading provider of taste and nutrition solutions for the food, beverage and pharmaceutical markets.

We use our broad range of ingredient solutions to innovate with our customers to create great tasting products, with improved nutrition and functionality, while ensuring a better impact for the planet.

Our leading consumer insights, R&D team of over 1,100 food scientists and extensive global footprint enable us to solve our customers' most complex challenges with differentiated solutions. At Kerry, we are driven to be our customers' most valued partner, creating a world of sustainable nutrition.

Geography	End Use Market	Channel
	7%
24%		31%

22%

26%

Americas	Food	Retail
Europe	Beverage	Foodservice
APMEA	Pharma
86%		96%
Group Revenue		Group EBITDA
€8.0bn
	€1.2bn
14%		4%

Taste & Nutrition Dairy Ireland

Dairy Ireland

A leading provider of Irish value-add dairy ingredients and consumer products. Our dairy ingredients product portfolio includes functional proteins and nutritional bases, while our well-loved dairy consumer brands can be found in chilled cabinets in retailers across Ireland and the UK.

Kerry Group Annual Report 2023

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Strategic Report / Chairman's Statement

CHAIRMAN'S STATEMENT

KERRY DELIVERED

A RESILIENT

PERFORMANCE

IN 2023 AGAINST

A CHALLENGING

BACKDROP, WHILE

DEMONSTRATING

AGILE CAPITAL

DEPLOYMENT

Overview

I am pleased to report a solid performance against the backdrop of significant macroeconomic challenges and geopolitical issues. During 2023, the Group's Taste and Nutrition segment delivered volume growth which represented a good market outperformance. This exemplifies the resilience of the organisation and our collective drive to deliver long-term sustainable results through the execution of our strategy.

The Group continues to evolve its portfolio to enable long-term growth and solidify our position as a market leader in the industry, meeting our customers' needs to enhance the nutrition, wellness and functionality of their products in a way that protects people and the environment, without compromising on taste.

Strategic Update

2023 is the second year of Kerry's refreshed strategic plan and the management team has continued to make progress in implementing the Group's strategy, supported by agile capital deployment.

Through targeted capital investments and strategic M&A activity, the Group continues to evolve its footprint and technology portfolio to strengthen Kerry's position as a world-leading taste and nutrition company and to enable sustainable long-term growth. To support our growth ambitions, the Group is investing in a range of digital initiatives which will make it easier and faster for our customers to do business with us.

The Group will remain disciplined and flexible in terms of assessing the various capital allocation options

available and will prioritise those that will generate sustained value over the longer-term taking account of prevailing market conditions.

Sustainability

The Group's Beyond the Horizon sustainability strategy underpins Kerry's future growth as we continue to partner with our customers across the globe to create a world of sustainable nutrition.

The Group's standalone Sustainability Committee was established in 2023 to enhance Board oversight of the implementation of the Group's sustainability strategy as we help our customers create healthier, more nutritious products that taste great in a way that protects people and the environment around us.

Details regarding the Group's sustainability strategy, targets, performance, policies and programmes are outlined in the Sustainability Committee Report on pages 148-149, in the Sustainability Review on pages 46-91 and in the 2023 Sustainability Report, which is available on kerry.com.

Corporate Governance

The Board is committed to maintaining the highest standards of corporate governance. During 2023, the Board reviewed the Company's corporate governance policies and procedures to monitor compliance with the UK Corporate Governance Code and the Irish Corporate Governance Annex (together the Code) alongside the latest developments in best practice. We also engaged with our stakeholders during the year as we believe listening to their views and needs

8 Kerry Group Annual Report 2023