$2.9 Billion Sales Revenue (a)

Transcription

1 Introducing Kellogg Europe $2.9 Billion Sales Revenue (a) Snacks Emerging Cereal Developed (a) Net sales, fiscal year 2014 Kellogg Company November 20, 2015 Europe 2 1

2 A Diverse European Leadership Team Kellogg Company November 20, 2015 Europe 3 Kellogg Europe Serving > 1.2 Billion Consumers 2 6 Categories Country Clusters 7.5x larger than in 2000 Emerging Markets (a) 450m 59m (a) Net sales, fiscal year 2014, USD Kellogg Company November 20, 2015 Europe 4 2

3 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) Comparable Operating Profit Margin (a) YTD 2015 (b) 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

4 Growth Strategy for Europe Kellogg Company November 20, 2015 Europe 7 Growth Strategy for Europe Stabilize the UK Develop Arabia & Russia Expand Consumption Occasions Grow Pringles Develop Wholesome Snacks Triple Arabia Double Russia Win with Winning Customers Unleash HFS and Impulse Channels Power Up E-Commerce Kellogg Company November 20, 2015 Europe 8 4

5 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

6 2016 First Half Packed with Innovation and Activation Kellogg Company November 20, 2015 Europe 11 Growing Pringles Strengthen the Core New Occasions Geographic Expansion Channel Expansion Kellogg Company November 20, 2015 Europe 12 6

7 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 Strong economies Attractive demographics Fast growing consumption Leading brands in Cereal and Biscuits Russia Large population Advantaged brand portfolio Local manufacturing Foundation for long-term growth Kellogg Company November 20, 2015 Europe 14 7

8 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

9 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