Strategic Management and Visionary Leadership Presenter Group CEO

Strategic Management and Visionary Leadership Presenter: Group CEO, Don Wehby Current Trends and Issues in Business and Hospitality Management- March 10, 2014

Our TEAM Together Everyone Achieves More

Our History Founded in 1922 as a small trading company and wharf operated by: • Dr. John J. Grace • Mr. Fred William Kennedy Expanded and Diversified over the years. Moved from privately owned to publicly listed on: • Jamaica Stock Exchange • Trinidad & Tobago Stock Exchange Grace. Kennedy Group today, comprises some 60 subsidiaries and associated companies: • Caribbean • North and Central America • United Kingdom • Africa

Our Structure GK Group Hardware & Lumber GKFG GK Foods

2013 vs. 2012 -10% Growth

2013 vs. 2012 -24% Growth

Vision To be a Global Consumer Group delivering long term consumer and shareholder value, through brand building and innovative solutions in food and financial services, provided by highly skilled and motivated people. 7

Mission To take the taste of Jamaican and other Caribbean foods to the world and world-class financial services to our region. 8

Global Consumer Group 15% of revenue from three different continents • North America & Caribbean • Europe • Africa 50% of profits derived outside Jamaica Leverage relationships with multinational companies and form partnerships to enhance our offerings 9

Strategic Drivers Consumer Centricity Operational Excellence Sustainable Growth & Innovation Performance Driven Culture Global Consumer Group 10

Strategic Choices: Central Tensions 11

Grace. Kennedy’s 2020 Campaign MAP 2012 2013 2014 2015 2020 Performance Driven Organisation § § § Accountability and execution culture Align all employees with the strategy and vision Build international expertise Reward system aligned with strategy & performance Develop effective leaders and staff at all levels Do things right the first time, on time, within budget Consumer Centricity & Innovation Jamaican Trading Group § Develop global market research capabilities § Design solutions rooted in consumer needs, attitudes, and behaviors § Seek cross-product synergies and technological solutions § Ensure high levels of consumer satisfaction Growth & Sustainability § § § Grow Grace. Kennedy-owned brands Grow our international food business Develop strategic partnerships Mobilise financial resources Grow domestic & regional financial & money services Operational Excellence § § § Strengthen M&A capabilities and resources Leverage IT platforms and improve efficiency Manage Capital Effectively Enhance Risk Management and internal controls Optimise Group structure Targeting International benchmarking for operational excellence Globally Rationalise Operations § Optimal platforms Global Consumer Group Caribbean Financial Services Group Rebalance Jamaica versus International § Internationalise systems § Significant staff rotation 12

Achieving our Goals 20% ROE Global Consumer Group Major Strategic Initiatives Strategic Drivers Sustainable Growth and Innovation Consumer Centricity Operational Excellence Performance Driven Culture § How can we use innovation to enable our Strategy? § How can we ensure that we are truly consumer centric? § How do we create an environment which enables our people to deliver superior results? § How can we maximize shareholder value? 13

Where are we now? 14

Where are we now? Our objective is to have at least 15% of total revenue generated from each of 3 continents by 2020 2013 Actual 13% 17% 64% North America 6% Europe Africa <1% Caribbean & Others 15 Jamaica

Where are we now? Our objective is to have at least 50% of profits coming from countries outside of Jamaica by 2020 2013 Actual 36% 64% Inside Jamaica Outside Jamaica 16

Strategic Focus Areas

Our Domestic Foods Market Our Domestic Market Continues To Account For The Majority of Grace. Kennedy’s Revenues From its Foods Division. Protect and Grow Market Share Develop New Products Improve the Experience of our Hi-Lo Shoppers

Manufacturing: Our Factories Grace. Kennedy Ltd. is one of the largest single-entity food manufacturer in the Caribbean. Over 50 per cent of the food sold under the Grace brand in Jamaica is manufactured in one of our five (5) factories which are located across the island. Dairy Industries (JA) Limited Grace Foods Processors Canning Division National Processors Division Grace Food Processors Ltd. (Meats) Grace Agro. Processors Division

Grace Foods (UK) 2007 Acquisition has been profitable for the last 3 years • Sainsbury’s- 588 stores • Asda- 533 stores • Tesco -1331 stores • Co-op -1678 stores • Iceland - 788 stores • Morrison’s - 455 stores • Waitrose- 292 stores

International Expansion (Europe & Africa) AFRICA EUROPE France- 4150 Stores Germany- 700 Stores Holland- 450 Stores Spain- 52 Stores Czech Republic- 95 Stores Russia-50 Stores • Distribution company established in Ghana • Beverages & canned mackerel launched • Product distribution & consumer acceptance well received

Grace Foods International (USA) USA West Coast Mexico Quebec & Eastern Canada - Expand to new markets - Increase presence in multiples - Target new segments Hispanics in the USA Canadian Mainstream Western Canada Latin Americans Central America South East Asians

Banking and Insurance Introduce New Products Improve Customers’ Experience Using Technology Expand Outside Of Jamaica

Grace. Kennedy Money Services Represent Western Union in nine countries > 50% Market Share in all markets Will continue to expand with Western Union across the region Jamaica , Trinidad, Guyana and six other Caribbean islands We continue to explore Technology Driven Banking Solutions Mobile Wallet & Stored Value Card

Grace. Kennedy Ltd. & Technology

Grace. Kennedy Ltd. & Technology

Grace. Kennedy Ltd. & Social Media “Swiss Beatz Loves Grace” 27

Corporate Social Responsibility Grace. Kennedy Formal Internship Programme. All 10 interns who started the programme during 2013 have been hired by the company. Grace. Kennedy Foundation Awards J$2. 5 m in Bursaries to Recipients of Carlton Alexander Bursaries 28

Corporate Social Responsibility Don Wehby meeting Mr. Leon Williams who was 103 years old at the 2012 Central Kingston Christmas Treat. Don Wehby greeting Mr. Leon Williams who is now 104 years old at a Birthday Celebration held for centenarians living in Central Kingston. 29

Corporate Social Responsibility 30

“The best way to predict the future is to create it. ” -Peter Drucker

The Home We Built for You 32