Kellogg Company
November 20, 2015
Introducing Kellogg Europe
$2.9 Billion Sales Revenue (a)
Emerging
Snacks
Cereal
Developed
(a) Net sales,
Kellogg Company | November 20, 2015
fiscal year 2014
Europe | 2
1
Kellogg Company
November 20, 2015
A Diverse European Leadership Team
Kellogg Company | November 20, 2015
Europe | 3
Kellogg Europe – Serving > 1.2 Billion Consumers
2
6
Categories
≈7.5x larger than in 2000
Emerging Markets(a)
≈450m
Country Clusters
≈59m
2000
2014
(a) Net sales, fiscal year 2014, USD
Kellogg Company | November 20, 2015
Europe | 4
2
Kellogg Company
November 20, 2015
Long-Term Outlook for Europe
Return to Low-Single-Digit Net Sales(a) Growth…
Developed Markets
+LSD%
Cereal
+LSD%
Emerging Markets
+HSD%
Snacks
+MSD%
… Combined with strong operating margin expansion
(a) Excludes the impact of currency translation, differences in the number of shipping days, mark-tomarket adjustments, integration costs, costs related to Project K, Venezuela remeasurement, VIE
deconsolidation, and other items that could affect comparability
Kellogg Company | November 20, 2015
Europe | 5
Operating Discipline
Improving Gross and Operating Margins
Comparable Gross Profit Margin(a)
2012
2013
2014
YTD 2015 (b)
Comparable Operating Profit Margin(a)
2012
2013
2014
YTD 2015(b)
(a) Excludes the impact of acquisitions, dispositions, currency translation, differences in the number of shipping days, mark-to-market adjustments,
integration costs, costs related to Project K, Venezuela remeasurement, VIE deconsolidation, and other items that could affect comparability.
(b) Through 3Q 2015
Kellogg Company | November 20, 2015
Europe | 6
3
Kellogg Company
November 20, 2015
Growth Strategy for Europe
Kellogg Company | November 20, 2015
Europe | 7
Growth Strategy for Europe
• Stabilize the UK
• Grow Pringles
• Develop Arabia & Russia
• Expand Consumption Occasions
• Triple Arabia
• Double Russia
• Develop Wholesome Snacks
• Win with Winning Customers
• Unleash HFS and Impulse Channels
• Power Up E-Commerce
Kellogg Company | November 20, 2015
Europe | 8
4
Kellogg Company
November 20, 2015
Winning in Breakfast
Growing Brands…
…Growing Segments…
...Growing Geographies
Kellogg Company | November 20, 2015
Europe | 9
European Cereal – Stabilizing our Core Business
• 2015 a tough year. Brand remains
in transition
• Expect sequential improvement in 2016
• New positioning, new innovation,
strengthened promotions
• Tough operating environment
• Planning for improved 2016
performance
• New products and strengthened plans
• Leveraging portfolio scale
• Lessons learned from the U.S.
Kellogg Company | November 20, 2015
Europe | 10
5
Kellogg Company
November 20, 2015
2016 – First Half Packed with Innovation and Activation
Kellogg Company | November 20, 2015
Europe | 11
Growing Pringles
Strengthen the Core
New Occasions
Geographic
Expansion
Kellogg Company | November 20, 2015
Channel Expansion
Europe | 12
6
Kellogg Company
November 20, 2015
Developing the Wholesome Snack Category
Investing in our foods
Strategic brand alliances
Channel distribution/
pack flexibility
Kellogg Company | November 20, 2015
Europe | 13
Unlock the Growth in Emerging Markets…
Arabian Peninsula & North Africa
Russia
— Strong economies
— Large population
— Attractive demographics
— Advantaged brand portfolio
— Fast growing consumption
— Local manufacturing
— Leading brands in Cereal and Biscuits
— Foundation for long-term growth
Kellogg Company | November 20, 2015
Europe | 14
7
Kellogg Company
November 20, 2015
Egypt’s Largest Biscuit Business
Biscuit leader in Egypt
Strong brands and products
Platform for expansion
Integration on-track
Kellogg Company | November 20, 2015
Europe | 15
Mass Foods Group Acquisition
Cereal leader in Egypt
Platform for expansion
Strong brands,
manufacturing and
distribution capabilities
Integration on-track
Kellogg Company | November 20, 2015
Europe | 16
8
Kellogg Company
November 20, 2015
Europe – Summary
Focused on achieving our growth potential
Strong plans in Cereal and Snacks
Activating emerging market growth engines
in Arabia and Russia
Playing to win across the region
Committed to profitable growth
Kellogg Company | November 20, 2015
Europe | 17
9