Presentation

April 24, 2015
2015 Annual Shareowners Meeting
Page 1 of 13
April 24, 2015
Honoring Active Duty Employees
SUSAN LANTRY MICHAEL VOLRATH ANTHONY DICOLA ELIZABETH KENNEDY DANIEL BOYINGTON JORDELL SARVER BEN DJABARE VERNER KIERNAN ISSAHAKU ATCHULO JORDAN LEPLEY DAVID PICARD LORTONI BUTLER
2015 Annual Shareowners Meeting
Page 2 of 13
April 24, 2015
2015 Annual Shareowners Meeting
Page 3 of 13
April 24, 2015
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, 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 ability to implement Project K as planned, whether the expected amount of costs associated with Project K will exceed forecasts, whether the Company will be able to realize the anticipated benefits from Project K in the amounts and times expected, the ability to realize the anticipated benefits and synergies from the Pringles acquisition 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; 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.
Agenda
• Leadership Team
• Overview and Strategy
• Corporate Responsibility
2015 Annual Shareowners Meeting
Page 4 of 13
April 24, 2015
Global Leadership Team
John Bryant
Chairman of the Board &
Chief Executive Officer,
Kellogg Company
Amit Banati
President,
Asia Pacific
Margaret Bath
Senior Vice President,
Research, Quality &
Technology
Larry Bruck
Vice President,
Global Marketing
Jim Cali
Senior Vice President,
Global Snacks Category
Kris Charles
Vice President,
Global Communications
& Philanthropy
Wendy Davidson
President,
U.S. Specialty Channels
David Denholm
Chief Executive Officer,
Kashi
Ron Dissinger
Senior Vice President,
Kellogg Company
Chief Financial Officer
Brigitte Schmidt Gwyn
Vice President,
Global Government Relations
Alistair Hirst
Senior Vice President,
Global Supply Chain
Chris Hood
President,
Europe
Brian Huff
President,
U.S. Snacks
Sammie Long
Senior Vice President,
Global Human Resources
Andrew Loucks
President,
U.S. Frozen Foods
Maria Fernanda Mejia
President,
Latin America
Paul Norman
Senior Vice President,
Kellogg Company
Chief Growth Officer
Gary Pilnick
Senior Vice President,
General Counsel & Secretary
Corporate Development
Brian Rice
Senior Vice President,
Kellogg Company
Chief Information Officer
Carol Stewart
President,
Canada
Doug VanDeVelde
Senior Vice President,
Global Breakfast Category
Strategy for Growth
Win in Breakfast
Become a Global Snacks Leader
Grow Frozen Foods
Win in Emerging Markets
2015 Annual Shareowners Meeting
Page 5 of 13
April 24, 2015
Win in Breakfast
New Ways to Engage
• Two‐way dialogue
‒ Nutrition
‒ Sustainability
‒ Community • Transparency
Visit www.openforbreakfast.com
2015 Annual Shareowners Meeting
Page 6 of 13
April 24, 2015
Global Snacks Leader
Grow Frozen Foods
2015 Annual Shareowners Meeting
Page 7 of 13
April 24, 2015
Win in Emerging Markets
Project K
Continuing to make good progress:
• Building supply chain of the future
• Moving to our global business services model
• Reinvesting savings for growth
2015 Annual Shareowners Meeting
Page 8 of 13
April 24, 2015
Long‐Term Operating Principles Grow Comparable
Net Sales
Improve Price / Mix
Sustainable
Growth
Drive Innovation
Grow Brand
Building
Grow Comparable Net Earnings
Grow Comparable Gross Profit
Dollars/ Margin
Overhead Discipline
Reduce Core Working Capital
Manage For Cash
Increase Return
on Invested Capital
Prioritize Capital
Expenditure
Improve Financial Flexibility
50‐Year Dividend History
$2.00
New Annualized Dividend
$2
Dividends per Share
Adjusted for stock splits
$2
$1
$1
$0
1965
1975
2015 Annual Shareowners Meeting
1985
1995
2005
2015
Page 9 of 13
April 24, 2015
Kellogg Company Daily Stock Price
$70
$60
Share Price
$63.85
$50
On Apr. 23, 2015
$40
$30
4/23/10
4/23/15
Heritage of Corporate Responsibility
Marketplace
FPO
Workplace
Environment
Community
Responsible Sourcing
2015 Annual Shareowners Meeting
Now available at
www.kelloggcompany.com
Page 10 of 13
April 24, 2015
Global Signature Cause
Because we believe in the power of breakfast, Kellogg set a goal to provide 1 billion servings*
of cereal and snacks, more than half of which are breakfast, to children & families in need by the end of 2016.
* The goal of 1 billion servings is based on an approximate serving size of one ounce.
Kellogg Lives United
Battle Creek campaign total:
$3 million
Companywide campaign total:
$6.4 million
2015 Annual Shareowners Meeting
Page 11 of 13
April 24, 2015
Battle Creek Vision
BC Vision
In Summary, We Are…
• Executing our strategy
• Making progress on Project K and reinvesting the savings
• Making a difference in our communities
• Building the Kellogg of tomorrow
2015 Annual Shareowners Meeting
Page 12 of 13
April 24, 2015
2015 Annual Shareowners Meeting
Page 13 of 13