Frozen Foods. Michael Allen, President U.S. Frozen Foods Kellogg Company 11/12/09. Forward-Looking Statements

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1 Frozen Foods Forward-Looking Statements This presentation contains, or incorporates by reference, forward-looking statements with projections 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. 1

2 Growth of Top 10 in Frozen Category 3 Year CAGR 6.4% 5.9% 3.0% 2.4% 1.1% Frozen Food Industry Average = 2.0% -0.3% -1.3% -1.3% -2.4% -3.4% Kellogg A B C D E F G H I Source: IRI InfoScan; 3 year CAGR, 52 weeks ending 9/30/07 10/4/09 Frozen Foods Share Performance 72.6% Kellogg Nearest Competitor 42.8% 18.9% 11.0% 10.5% 12.6% Waffles Veggie N/O Pizzas Source: IRI InfoScan, FDMx, 52 Weeks ending 10/04/09. 2

3 Kellogg s Frozen Foods Business Waffles Pancakes Baked Goods Burgers / Patties Meals / Entrees % Growth Frozen Breakfast + 6.3% Kellogg Portfolio + 7.4% Frozen Veggie + 0.5% Kellogg Portfolio + 5.3% Pizza Entrees Meals + 1.8% Natural / Organic + 8.9% Kellogg Portfolio % Source: IRI InfoScan; U.S. FDMx Dollar Sales 52-week vs. Y/A, period ending 09/06/09 Eggo Frozen Breakfast 3

4 Kashi Frozen Frozen Veggie A Growth Opportunity Consumer Insights 26% of Americans are reducing their meat consumption Vegetarianism continues to rise, primarily driven by health concerns and animal welfare advocacy Meat reducers are looking for alternatives to meat consumption, which still satisfy the core need (meat-like taste, texture format) Vegetarians are looking for healthy meal solutions, which support their lifestyle decision and provide some portability / convenience Heat n Eat 4

5 Frozen Veggie Category Growth Total Kellogg 15.5% 11.0% 8.2% 5.6% 6.1% 0.1% 0.1% 1.1% -2.3% -2.2% Note: Kellogg numbers do not include Gardenburger 5

6 Summary Kellogg Frozen Foods Leader in important Frozen Foods categories Leverage the Kashi brand in the growing Natural/Organic Frozen Meals Category Well positioned to gain significant opportunity in the important Frozen Veggie category Building an even stronger Kellogg 6