Gifted Hands: The Ben Carson StoryGifted Hands: The Ben Carson Story

Joel Allmandinger

Lortoni Butler

Joseph Franklin

Efren Gonzalez

Andrew Herzog

Joel Allmandinger

Lortoni Butler

Joseph Franklin

Efren Gonzalez

Andrew Herzog

We honor our employees on active duty

We honor our employees on active duty

Gregory Lindsay

Rhet Ponchinlan

Jesse Schweikhart

John Spelman

Gregory Lindsay

Rhet Ponchinlan

Jesse Schweikhart

John Spelman

Kathleen Wilson-ThompsonSenior Vice President, Global Human Resources

Jim JennessChairman of the Board Kellogg Company

David MackayPresident and Chief Executive Officer,Kellogg Company

Brian RiceSenior Vice President, Kellogg CompanyChief Information Officer

John BryantChief Operating andFinancial Officer,Kellogg Company

Brad DavidsonSenior Vice President, Kellogg CompanyPresident,Kellogg North America

Tim MobsbySenior Vice President, Kellogg CompanyExecutive Vice President, Kellogg InternationalPresident, Kellogg Europe

Paul NormanSenior Vice President, Kellogg CompanyPresident,Kellogg International

Dave PfanzelterSenior Vice President, Kellogg CompanyPresident, U.S. Specialty Channels

Gary PilnickSenior Vice President, General Counsel and Secretary, Corporate Development

Juan Pablo VillalobosSenior Vice President, Kellogg CompanyPresident, U.S. Morning Foods

Dr. Celeste ClarkSenior Vice President, Global Nutrition and Corporate AffairsChief Sustainability Officer

Margaret BathVice President,Research, Quality & Technology

Todd PenegorVice President,Kellogg CompanyPresident,U.S. Snacks

Mark BaynesVice President,Kellogg CompanyGlobal Chief MarketingOfficer

GlobalLeadership Team

GlobalLeadership Team

Carlos MejiaPresident,Kellogg Latin America

David DenholmPresident,Kellogg Asia Pacific

Forward-Looking StatementsForward-Looking Statements

This presentation contains, or incorporates by reference, “forward-looking statements” withprojections concerning, among other things, the Company’s strategy, 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, brand building, ROIC, working capital, growth, new products, innovation, cost reduction projects, and competitive pressures. Forward-looking statements include predictions of future results or activities and may contain the words “expects,” “believes,” “should,” “will,” “will deliver,”“anticipates,” “projects,” “estimates,” 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 other factors, including competitive conditions and their impact; the effectiveness of pricing, advertising, and promotional spending programs; the success of productivity improvements and business transitions; the success of innovation and new product introductions; the recoverability of carrying amounts of goodwill and other intangibles; the availability of and interest rates on short-term financing; changes in consumer behavior and preferences; commodity and energy prices and labor costs; 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; U.S. and foreign economic conditions including interest rates, taxes and tariffs, and currency rate translations or unavailability; legal and regulatory factors; the ultimate impact of product recalls; the underlying price and volatility of the Company’s common stock and the impact of equity-based employee awards; business disruption or other losses from 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 publicly update them.

Summary of Financial ResultsSummary of Financial ResultsMillions Except EPSMillions Except EPS

Reported Internal

Net Sales $ 12,822 $ 11,776 9% 5% 1

Operating Profit $ 1,953 $ 1,868 5% 4% 1

Earnings Per Share $ 2.99 $ 2.76 8%

Full - Year Growth

2008 2007

1 Internal sales and operating profit growth exclude the impact of foreign currency translation and if applicable, acquisitions, dispositions and shipping day differences.

Sustainable and Dependable Performance2006-2008Sustainable and Dependable Performance2006-2008

$10,907

$11,776

$12,822

2006 2007 2008

Sales($ Millions)Sales

($ Millions)

$1,766

$1,868

$1,953

2006 2007 2008

$2.51

$2.76

$2.99

2006 2007 2008

Operating Profit($ Millions)

Operating Profit($ Millions)

EPSEPS

Another year of growthAnother year of growth

Creating Value for ShareownersCreating Value for Shareowners

5-Year Total Shareowner ReturnApr. 23, 2004 – Apr. 23, 2009

Kellogg 3%Packaged Foods (5)%S&P 500 Index (17)%Dow Ind. Avg. (14)%

5-Year Total Shareowner ReturnApr. 23, 2004 – Apr. 23, 2009

Kellogg 3%Packaged Foods (5)%S&P 500 Index (17)%Dow Ind. Avg. (14)%

$20

$25

$30

$35

$40

$45

$50

$55

4/23/04 10/23/04 4/23/05 10/23/05 4/23/06 10/23/06 4/23/07 10/23/07 4/23/08 10/23/08 4/23/09

$39.11$39.11

We believe that Kellogg is the best-executing food company, … It’s skew toward healthy and convenient foods, and strong commitment to reinvesting for the long-term, make Kellogg a superb core holding ...

Jonathan Feeney, Janney Montgomery Scott

This is an extremely strong company that delivers versus expectations and consistently performs at or near the peak of its class.

Tim Ramey, D.A. Davidson

We believe the company’s commitment to innovation, … investment in brand building, and cost controls position the company for outperformance in the future.

Chris Growe, Stifel Nicolaus

…We continue to believe that K offers a compelling investment opportunity for investors.

Terry Bivens, JP Morgan

Kellogg remains an extremely well-positioned, well-managed company…

Jon Andersen, William Blair & Co.

Kellogg has a long-term track record of superior earnings growth, quality and consistency despite near-term challenges...

Brian Spillane, Bank of America / Merrill Lynch

Kellogg remains one of the most forward thinking and adaptive companies in our food coverage universe.

Vincent Andrews, Morgan Stanley

Analysts’ ReactionsAnalysts’ Reactions

Adapting to a Changing EnvironmentAdapting to a Changing Environment

Unemployment Rateat 25-Year High

March 2009

Consumer Confidence PlummetsFurther in February

February 2009

February 2009

$4 Trillion in U.S.

Housing Value Lost

March 2009

Commodity Prices

Continue to Skyrocket

Global Recession

is Deepening

March 2009

Focused StrategyFocused Strategy

●Grow Cereal ≈ 53% of sales

●Expand Snacks ≈ 40% of sales

●Grow Cereal ≈ 53% of sales

●Expand Snacks ≈ 40% of sales

$0

$2

$4

$6

$8

$10

$12

CarbonatedBeverages

Salty Snacks Cold Cereal TotalChocolate

Candy

Soup Bottled Juices- SS

Cookies Crackers Bottled Water Coffee

Ten Largest Center Store Food CategoriesU.S. Dollars (billions)

Ten Largest Center Store Food CategoriesU.S. Dollars (billions)

Advantaged Categories –Size and Importance . . . Advantaged Categories –Size and Importance . . .

Source: IRI Builders CY 2007, Total U.S. All Outlets; Center Store Dollar Ranking Source: IRI Builders CY 2007, Total U.S. All Outlets; Center Store Dollar Ranking

2005 2006 2007 20082005 2006 2007 2008

. . . And Growing Kellogg U.S. Total Category Growth. . . And Growing

Kellogg U.S. Total Category Growth

Kellogg Categories are Growing and RelevantKellogg Categories are Growing and Relevant

Kellogg estimates of compound annual category growth rate.Snacks category defined as crackers, cookies and wholesome snacks.Kellogg estimates of compound annual category growth rate.Snacks category defined as crackers, cookies and wholesome snacks.

Ready To Eat Cereal +4% CAGR

Snacks +5% CAGR

Kellogg is Cereal Category LeaderKellogg is Cereal Category Leader

Core Brands Make Up ≈ 80% of U.S. RTEC Sales Core Brands Make Up ≈ 80% of U.S. RTEC Sales

Source: IRI data as of December 28, 2008. Source: IRI data as of December 28, 2008.

2008 Base Sales Growth +3%2008 Base Sales Growth +3%

Focused StrategyFocused Strategy

Strong growth in the domestic category

International snack bar category growth

Strong growth in the domestic category

International snack bar category growth

Expand SnacksExpand Snacks

Strengthening Our Platform for GrowthStrengthening Our Platform for Growth

Consistent and Relevant Business ModelConsistent and Relevant Business Model

●Strong innovation / renovation

● Invest in brand building

●Cost control

●Strong innovation / renovation

● Invest in brand building

●Cost control

Innovation / Renovation Innovation / Renovation

• $54 million investment

• Adds 157,000 square feet

• Target completion: September 2009

• $54 million investment

• Adds 157,000 square feet

• Target completion: September 2009

Expansion of the W. K. Kellogg Institute for Food ResearchExpansion of the W. K. Kellogg Institute for Food Research

2009 Innovation / Renovation2009 Innovation / Renovation

2%3%

3%4%5%5%

8%

Kellogg PepsiCo GeneralMills

Kraft H.J.Heinz

Hershey SaraLee

2%3%

3%4%5%5%

8%

Kellogg PepsiCo GeneralMills

Kraft H.J.Heinz

Hershey SaraLee

Commitment to Advertising InvestmentCommitment to Advertising Investment

As of most recent 10k filing.As of most recent 10k filing.

2009 Advertising: Efficiencies and Effectiveness2009 Advertising: Efficiencies and Effectiveness($ Millions)($ Millions)

Media Deflation

Media Deflation

Efficiency Initiatives

> $40 million

Efficiency Initiatives

> $40 million

• Global commercial production• Media consolidation• Media planning and optimization• Media mix

• Global commercial production• Media consolidation• Media planning and optimization• Media mix

Cost SavingsCost Savings

• - LEAN manufacturing

• Indirect procurement savings

• Overhead discipline

• - LEAN manufacturing

• Indirect procurement savings

• Overhead discipline

Annual savings of $1 billion in

Confidence and visibility for another year of sustainable,

dependable growth

Confidence and visibility for another year of sustainable,

dependable growth

Corporate Responsibility ReportCorporate Responsibility Report

www.kelloggcompany.com/CRwww.kelloggcompany.com/CR

Workplace

Marketplace

Environment

Community

In 2008, Kellogg Company contributed

nearly $9 million in cash and $25 million in

product to charitable groups around the world

In 2008, Kellogg Company contributed

nearly $9 million in cash and $25 million in

product to charitable groups around the world

Corporate Social ResponsibilityCorporate Social Responsibility

Corporate GivingCorporate GivingUnited WayUnited Way

• $3.1 million campaign (58% of local campaign total)

• 1,800 employees volunteered for Days of Caring

• Incremental $500,000 grant for basic needs

• $3.1 million campaign (58% of local campaign total)

• 1,800 employees volunteered for Days of Caring

• Incremental $500,000 grant for basic needs

Battle CreekBattle Creek

U.S. CompanywideU.S. Companywide• $5.3 million companywide

(supporting 28 communities)

• 2009 Summit Awards - Corporate Philanthropy, CommunityInvestment and Volunteerism

• $5.3 million companywide (supporting 28 communities)

• 2009 Summit Awards - Corporate Philanthropy, CommunityInvestment and Volunteerism

Kellogg is donating an entire day’s cereal production = 3.5 million pounds

Kellogg is donating an entire day’s cereal production = 3.5 million pounds

OverallRankingOverall

RankingIndustry *Ranking

Industry *Ranking

Top 14%Top 14%

A Company You Can Trust:Practicing Good Corporate GovernanceA Company You Can Trust:Practicing Good Corporate GovernanceCorporate Governance Ranking by Institutional Shareholder ServicesCorporate Governance Ranking by Institutional Shareholder Services

Top 2%Top 2%86%86% 98%98%

* Food, Beverage, and TobaccoAs of 4/1/09

Kellogg honored for second-consecutive year as the food industry’s most shareholder-friendly company and for the third-consecutive year as one of the world’s most ethical companies

Kellogg honored for second-consecutive year as the food industry’s most shareholder-friendly company and for the third-consecutive year as one of the world’s most ethical companies