KELLOGG COMPANY Barclays Global Consumer Staples Conference Boston - PDF document

Kellogg Company September 4, 2019 KELLOGG COMPANY Barclays Global Consumer Staples Conference Boston ∙ September 4, 2019 KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 Forward-Looking Statements This presentation contains, or incorporates by reference, “forward - looking statements” with projections concerning, among other things, the Company’s global growth and efficiency program (Project K), the integration of acquired businesses, the Company’s strategy, zero -based budgeting, and the Company’s sales, earnings, margin, operating profit, costs and expenditures, interest expense, tax rate, capital expenditure, dividends, cash flow, debt reduction, share repurchases, costs, charges, rates of return, brand building, ROIC, working capital, growth, new products, innovation, cost reduction projects, workforce reductions, savings, and competitive pressures. Forward- looking statements include predictions of future results or activities and may contain the words “expects,” “believes,” “should,” “will,” “anticipates,” “projects,” “estimates,” “implies,” “can,” or words or phrases of similar meaning. The Company’s actual results or activities may differ materially from these predictions. The Company’s future results could also be affected by a variety of factors, including the expected benefits and costs of the divestiture of selected cookies, fruit and fruit flavored-snacks, pie crusts and ice cream cones businesses of the Company, the risk that disruptions from the divestiture will divert management's focus or harm the Company’s business, risks relating to any unforeseen changes to or effects on liabilities, future capital expenditures, revenues, expenses, earnings, synergies, indebtedness, financial condition, losses and future prospects, risks associated with the Company’s provision of transition services to the divested businesses post -closing, the ability to implement restructurings as planned, whether the expected amount of costs associated with restructurings will differ from forecasts, whether the Company will be able to realize the anticipated benefits from restructurings in the amounts and times expected, the ability to realize the anticipated benefits and synergies from business acquisitions in the amounts and at the times expected, the impact of competitive conditions; the effectiveness of pricing, advertising, and promotional programs; the success of innovation, renovation and new product introductions; the recoverability of the carrying value of goodwill and other intangibles; the success of productivity improvements and business transitions; commodity and energy prices; transportation costs; labor costs; disruptions or inefficiencies in supply chain; the availability of and interest rates on short- term and long-term financing; actual market performance of benefit plan trust investments; the levels of spending on systems initiatives, properties, business opportunities, integration of acquired businesses, and other general and administrative costs; changes in consumer behavior and preferences; the effect of U.S. and foreign economic conditions on items such as interest rates, statutory tax rates, currency conversion and availability; legal and regulatory factors including changes in food safety, advertising and labeling laws and regulations; the ultimate impact of product recalls; business disruption or other losses from war, terrorist acts or political unrest; and other items. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to update them publicly. This presentation includes non‐GAAP financial measures. Please refer to the earnings press release, which is available on the Investor Relations page on the Company’s website, www.Kelloggcompany.com , for a reconciliation of these non‐GAAP financial measures to the most directly comparable GAAP financial measures. Management believes that the use of such non-GAAP measures assists investors in understanding the underlying operating performance of the company and its segments. KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 2 1 of 16

Kellogg Company September 4, 2019 Deploy for Growth is Working Deploy for Growth is driving: • Change in mindset • Decisive actions • Improved results KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 3 Long-Term Algorithm – Net Sales Growth % of Total Net Sales 1H 2019, and Organic-Basis Net Sales Growth Over Time KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 4 2 of 16

Kellogg Company September 4, 2019 Developed Markets Cereal – Long-Term Outlook % of Total Net Sales 1H 2019, and Organic-Basis Net Sales Growth Over Time Reasons for Confidence: • Category and share already stabilized in U.K. and Australia • U.S. category consumption only declining (1)% * • Consistency in taste-fun segment, opportunity in wellness segment • Harmonized pack sizes, enhanced offerings in granola * Source: Nielsen, x-AOC, year to date 8/17/19 KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 5 2H: Resumed Brand Building in U.S. Cereal * Source: Nielsen, x-AOC, year to date 8/17/19 KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 6 3 of 16

Kellogg Company September 4, 2019 Developed Markets Cereal – Toward Stabilization Kellogg Net Sales, Change Versus Year Ago, Organic Basis KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 7 Developed Markets Snacks – Long-Term Outlook % of Total Net Sales 1H 2019, and Organic-Basis Net Sales Growth Over Time Reasons for Confidence: • Accelerated growth • U.S. back in growth, behind 5 biggest brands • Pringles momentum worldwide • Expanded on-the-go offerings and distribution • Opportunity to expand wholesome snacks internationally KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 8 4 of 16

Kellogg Company September 4, 2019 Developed Markets Snacks – Revitalized U.S., Steady Growth Abroad Developed Markets Snacks Developed Markets Snacks % of Net Sales, 1H 2019, Excluding Subsequently Net Sales Growth Versus Prior Year, Organic Basis Divested Businesses KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 9 Cheez-It – Accelerated Growth in U.S. Innovation: On the Go: Brand Building: Source: Nielsen, xAOC; calendar years 2017 and 2018; 2019 is calendar year to date, through 8/17/19 KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 10 5 of 16

Kellogg Company September 4, 2019 Rice Krispies Treats – Momentum in U.S. Innovation: Brand Building: On the Go: Source: Nielsen, xAOC; calendar years 2017 and 2018; 2019 is calendar year to date, through 8/17/19 KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 11 Pop-Tarts – Revitalized in the U.S. On the Go: Brand Building: Innovation: Source: Nielsen, xAOC; calendar years 2017 and 2018; 2019 is calendar year to date, through 8/17/19 KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 12 6 of 16

Kellogg Company September 4, 2019 RXBAR – Expanding Distribution & Awareness in U.S. Brand Building: Total Distribution Points 4-Week Average Innovation: Source: Nielsen, xAOC KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 13 Pringles – Revitalized in the U.S. Brand Building: Innovation: On the Go: Source: Nielsen, xAOC; calendar years 2017 and 2018; 2019 is calendar year to date, through 8/17/19 KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 14 7 of 16

Kellogg Company September 4, 2019 International Developed Markets Snacks • Sustaining Pringles momentum • Revitalizing wholesome snacks KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 15 Developed Markets Frozen – Long-Term Outlook % of Total Net Sales 1H 2019, and Organic-Basis Net Sales Growth Over Time Reasons for Confidence: • Sustained growth by Eggo • Sustained growth by MorningStar Farms • Rising consumer demand for meat alternatives/plant-based protein • Exciting expansion planned for MorningStar Farms KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 16 8 of 16

Kellogg Company September 4, 2019 Eggo – Growth on Growth in U.S. Brand Building: Innovation: Source: Nielsen, xAOC; calendar years 2017 and 2018; 2019 is calendar year to date, through 8/17/19; Kellogg syrup carriers KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 17 MorningStar Farms – Current Growth Innovation: Source: Nielsen, xAOC; calendar years 2017 and 2018; 2019 is calendar year to date, through 8/17/19 KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 18 9 of 16

Kellogg Company September 4, 2019 MorningStar Farms – Coming Soon New Packaging: International Expansion: KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 19 Plant-Based Protein – Expanding From Frozen KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 20 10 of 16

Kellogg Company September 4, 2019 Emerging Markets – Long-Term Outlook % of Total Net Sales 1H 2019, and Organic-Basis Net Sales Growth Over Time Reasons for Confidence: • Accelerated growth • Expanded geographic presence • More diversified portfolio • Extending product lines to more affordable offerings • Improving distribution KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 21 Emerging Markets – Accelerated Growth Net Sales, Change Versus Year Ago, Organic Basis * Total Company refers to all products and categories. KELLOGG COMPANY | BARCLAYS CONFERENCE| September 4, 2019 22 11 of 16