u.s. snacks

Kellogg Company November 20, 2015

1

Strategy | 2

Kellogg Company | November 20, 2015

Total Snacks Category

2.5% CAGR 4.1% CAGR

Snacking – Large Category and Growing(a)

$57.3B2001

$68B2008

$90B2015

Note: Salty Snacks: bagel snacks, cheese snacks, chips, meat snacks, multigrain snacks, onion snacks, popcorn, pork snacks, pretzels, salted variety packs, salty snack mixes, seafood snacks, other salty snacks. Snack Bars: cereal snacks , cereal treats, fruit snacks, snack bars, nutritional bars, weight control bars(a) Nielsen Scantrack, 5 years ending Sept. 2015

Snacks | 2


2


Macro-Snacking Trend Continues(a)

<3 Snacks

3+ Snacks

(a) Nielsen research

47%53%

61%

2005 2010 2014

80%64%

20%36%

2010 2014

% of Population That Snacks # of Snacks per DayMore People Are Snacking… They Are Snacking More…

Snacks | 3


Macro-Snacking Trend Continues(a)

% of Population Substituting Snacks for Meals

Snacks Are Replacing Meals…

(a) Nielsen research

49% 52% 49%

Breakfast Lunch Dinner

Snacks | 4


3


Enable the Growth

Grow Sales and Share | OP Margin Expansion | Grow Free Cash Flow

Transform SnacksWin in Breakfast Build a Next Generation Natural Business

Win Where The Shopper Shops

Our VisionEnrich and delight the world

through foods and brands that matter

Our PurposeNourishing families so they can flourish and thrive

Fuel for Growth

Culture for Growth/Diverse High-Performing Team

Accelerate Frozen

Kellogg North America 2020 Growth Plan

Snacks | 5


Snacking – Large Category and Growing

2.4%

4.1%

Total Food Snacks

5.0%4.5%

4.0%

3.0%

2.3%

SaltySnacks

SnackBars

Candy Cookies Crackers

Snacking Category Growth(a)

(4-Year CAGR)

Note: Salty Snacks: bagel snacks, cheese snacks, chips, meat snacks, multigrain snacks, onion snacks, popcorn, pork snacks, pretzels, salted variety packs, salty snack mixes, seafood snacks, other salty snacks. Snack Bars: cereal snacks , cereal treats, fruit snacks, snack bars, nutritional bars, weight control bars(a) Nielsen Scantrack, 5 years ending Sept. 2015

Snacks | 6


4


Crackers

Cookies

Bars

Salty

Fruit Snacks

(a) Percentages of business based on 2015 YTD net sales through August 2015

DSD

WH

Category Mix Delivery Mix Total U.S. Snacks Channel Composition

Diversified Portfolio of Snacking OptionsU.S. Snacks Overview(a)

Club

DDD

Conv All Other

Grocery/Mass

Snacks | 7


U.S. Snacks Total Kellogg

Gross Margins(a)Category Share

Crackers

Cookies

Wholesome

SaltyIncluding Potato Chips

Fruit Snacks

$5.7

$6.7

$3.4

$21.3

$1.0

32.0%

11.6%

21.5%

3.8%

15.5%Nielsen XAOC+Conv. 52-weeks ending 10/3/15

Our Position – The Hungry #2

(a) Year-to-date through 3Q 2015; comparable gross margin

$B

Snacks | 8


5


…Kellogg brands over-index with Millennials

Opportunity – Kellogg Snacks Over-Index with Millennials

Millennials are the most frequent snackers…

76%

Percent Who Snack >2x per Day

64% 57%

MillennialsGen X Baby

Boomers

Note: Total snack market: salty snacks, cookies, bars/treats, crackers, toaster pastries(a) Nielsen Scantrack, past 52-weeks ending Sept. 2015

Snacks | 9


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Growth Years = 3.1% CAGR(b)

Pringles acquisition June 2012

A Track Record of Growth

(a) Comparable net sales; (b) Comparable net sales CAGR, 2005 through 2013

Net Sales(a)

Snacks | 10


6


Unprecedented Transformation

Millennials/Latinas –The New Mainstream

Evolving Customer Base

Dynamic Communication Landscape

Picture of Millennial Consumers

Picture ofEvolving

Customer Landscape

Re-Ignite Growth, Follow the Consumer

Snacks | 11


Kellogg Has Had Success in Traditional Retail Channels…

Note: Total snack market: salty snacks, cookies, bars/treats, crackers, toaster pastries(a) Nielsen Scantrack, past 52-weeks ending Sept. 2015

Kellogg Snack Dollar Share by Channel

13.7%12.7%

11.4% 11.0%

Total

11.0%

Snacks | 12Kellogg Company | November 20, 2015


7

92.5% 85.6% 79.8%

7.5% 14.4% 20.2%

Kellogg Competitor A Competitor B% Non Single Serve

% Single Serve


… And Traditional Grocery Formats

(a) Nielsen, AOD CY 2011 – YTD through Sept. 2015 xAOC + Convenience

Single Serve Contribution to Snack $ Sales (a)

Key Unlock: Right Channel, Right Brand,

Right Format

Single Serve

Snacks | 13


19 Years of Growth

From Acquisition to Growth

Engine

Unlock Our Advantaged Repertoire Portfolio

From Weight-Management

to Weight-Wellness

Mom’s YES Treat

Our BrandsProfiles of Success

Snacks | 14


8


1996 2015E

Over $1 Billion in Sales

Consecutive Years of Growth19

Cheez-It…The #1 Cracker Brand

Growing %HH Penetration(a)

Within Every Cohort!• General population• Millennials• Hispanic• Households with kids

(a) Nielsen, YTD through Sept. 2015Snacks | 15


Formula for SuccessIncrease Investment in Core Expand Across Channels

Source from Adjacencies Expand Across Occasions

Cheez-It – Positioned for Continued Growth

Snacks | 16


9


Regional StarsKeebler

Opportunity = Repertoire Portfolio with Variety-Seeking Millennials

Unlock Our Advantaged Repertoire Portfolio

Snacks | 17


Invest in the Core Expand Across Channels


Formula for SuccessReset Cookies for Growth

Snacks | 188


10


Protein / SatietyProtein / SatietyVisible Ingredient Bars[Snack Bars / Nut Bars]

Visible Ingredient Bars[Snack Bars / Nut Bars]

Special K – From Weight Management to Weight Wellness

Snacks | 19

Re-setting the Brand for Growth

-5%

7%

Consumption – Total Bars(a)

52-Weeks 12-Weeks

(a) AC Nielsen, xAOC, periods ending 10/31/15, Cereal ,Snack, Protein Granola, and Nut Bars


(a) AC Nielsen , year-to-date through 9/19/15

Growing behind strong innovation, seasonal offerings, and licensed propertiesRice Krispies Treats – Mom’s YES Treat

Double-digit growth across every channel! (a)

Snacks | 20


11


Invest on the Core Expand Across Channels


Fuel Growth by Finding More Ways for Mom to Say Yes!

Formula for Success

Snacks | 21


2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E

Sales Growth 2012 – 2020E

(a) Kellogg Internal Financial Reporting, Salty Snacks NSV CAGR, 2012-2015E; (b) NSV 2016E-2020E CAGR

≈4% CAGR(a)

Accelerate(b)

Pringles U.S. — From Acquisition to Growth Engine

Enablers of Pringles Growth• Capacity Expansion

• Perfect Shelf – Accelerate Grocery

• Amplify Excitement via Commercial Innovation

Snacks | 22


12


Increase Investment in Core Expand Across Channels


Pringles – Accelerate GrowthFormula for Success

Snacks | 23


Kellogg SnacksImproving Trends Across All Categories

5.3

(4.9)

0.3

(10.3)

2.4

(3.5)(1.5)

(6.7)

5.3

(2.4)

(0.2)

(5.8)

Salty Snacks Cookie Cracker Wholesome Snacks

Kellogg (ex Kashi) Snack Trends % $ Change(a)

FY 2014 YTD 2015 L12 Weeks(a) Nielsen xAOC + Convenience, Scantrack, periods ending 10/31/2015

Salty Snacks Wholesome SnacksCookie Cracker

Our Actions are Driving Improvement

Snacks | 24

2015 Lapping the intro. of Pringles Tortilla


13


Ready to capitalize on changing demographics (Millennial and Hispanic shoppers)

Distort investment & focus behind our big brands

Step change our On-the-Go offering

Committed to profitable growth

Kellogg Snacks – Returning to Profitable Growth

Snacks | 25

u.s. snacks

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