Kellogg Company February 21, 2017

CAGNY February 21, 2017

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, zero-based budgeting, 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 (including the exit from its Direct Story Delivery system) as planned, whether the expected amount
of costs associated with Project K will differ from 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 from Revenue Growth Management, the ability to realize the anticipated
benefits and synergies from the acquisitions 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.
This presentation includes non‐GAAP financial measures. Please refer to the Appendices for a reconciliation of these non‐GAAP financial measures to the
most directly comparable GAAP financial measures. Management believes that the use of such non-GAAP measures assists investors in understanding the
underlying operating performance of the company and its segments.

CAGNY 2017 2

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Kellogg Company February 21, 2017

CFO Transition

Thanks, Ron! Welcome, Fareed!

CAGNY 2017 3

Agenda

• Kellogg Company – Solidly on 2020 Growth Plan

• Kellogg North America – Prioritizing to Win

• U.S. Snacks – Transforming our Business

• Closing Remarks

CAGNY 2017 4

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Kellogg Company February 21, 2017

2020 Growth Plan – Kellogg Company

CAGNY 2017 5

Win in Breakfast

Stabilize Grow
Core 4 Emerging
Developed Markets
Markets

CAGNY 2017 6

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Kellogg Company February 21, 2017

Global Snacks Powerhouse

Kellogg International Snacks, in Kilos
+8%
CAGR
2013-2016 • Pringles growth in
all Regions in 2016
• Dedicated Teams
• Revitalized
Acquisition
Wholesome Snacks
in International

2012 2013 2014 2015 2016

CAGNY 2017 7

Emerging Markets Engine
Kellogg Emerging-Markets Volume in Tons

Parati, 2017

• Household penetration Joint Ventures
• Geographic expansion

• Acquisitions
4.5%
Plus: CAGR
• Joint Ventures 2013-2016
x-JVs and Parati

2012 2016

CAGNY 2017 8

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Kellogg Company February 21, 2017

Win Where the Shopper Shops

High Frequency Stores E-Commerce
Route to Market Winning Portfolio
• Digital Shelf
Increased • Click & Collect
Expanding distribution in small can • Home Delivery
emerging markets availability
Winning
Wholesome
• Local distributors Snacks
• Acquired capabilities and
scale
Evolved
Cereal offer
to win

CAGNY 2017 9

Margin Expansion
Currency-Neutral Comparable Basis, Operating Profit as % of Net Sales, Excluding Venezuela *

On-Trend • Renovation
20.0%
Food • Innovation
~18%
17.5%
+100+ bp Invest for • ROI
15.4% • New Marketing model
15.0% 14.4% Impact

12.5%
Price • Revenue Growth
Realization Management
10.0%
2015 2016 2017E 2018E • Ongoing
Productivity • Project K
• ZBB

* See Appendix for reconciliation.

CAGNY 2017 10

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Kellogg Company February 21, 2017

Agenda

• Kellogg Company – Solidly on 2020 Growth Plan

• Kellogg North America – Prioritizing to Win

• U.S. Snacks – Transforming our Business

• Closing Remarks

CAGNY 2017 11

Kellogg North America
A Diverse Portfolio / Strong Category-Leading Positions

Net Sales Category Share Position(a)
RTEC #1
Toaster Pastries #1
Snacks Morning Foods
Crackers #2
Cookies #2
Wholesome Snacks #2
North America
Kashi Other Specialty Frozen Waffles #1
Canada
Frozen Veggie(b) #1
Frozen (a) A.C. Nielsen, xAOC, 52 weeks through 12/31/16
(b) Frozen Meat Substitutes

CAGNY 2017 12

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Kellogg Company February 21, 2017

Unlocking KNA’s Full Potential

Portfolio • Where to play, how to win
Prioritization

Invest
• Shift investment to highest ROI
with Impact

Operational
• Build Capabilities
Excellence

CAGNY 2017 13

Portfolio Prioritization

Based on:

Drive Invest • Consumer / shopper
the Core to Grow demand space
• Past and future
Realize Manage for potential
Potential Profit • Right to win

CAGNY 2017 14

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Kellogg Company February 21, 2017

Driving the Core – Improving Performance

Drive ~40% of • Biggest Core brands
KNA sales
the Core already improving share
• Significant scale
• High margin
• Powerful brand equities,
cover broad set of needs

CAGNY 2017 15

Drive
the Core Core 6 Cereal – Growing Share
Share of U.S. RTEC Category
Core 6 Kellogg’s Brands
22.9 • Our improved
22.7
22.3
consumption
and share
performance
has been driven
by Core 6
brands
2014 2015 2016

Source: Nielsen, xAOC, 52-week periods
CAGNY 2017 16

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Kellogg Company February 21, 2017

Drive
the Core Core 6 Cereal – More to Come in 2017
Shopping Experiences
Food That Rocks Brands That Matter
That Inspire
Innovate
New Advertising
Across All Core 6

Renovate

CAGNY 2017 17

Drive
the Core Pop-Tarts – Sustained Growth

2016: • Accelerate teen
$700 million
engagement
at retail*
• Step change in
Steady
growth in
food experience
consumption
and share* • Expand On-the-Go

* Nielsen, xAOC, 52 weeks ended 12/31/16
CAGNY 2017 18

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Kellogg Company February 21, 2017

Drive
the Core
Eggo – Returning to Growth

2016: • Core renovation
(removal of artificials)
$691 million
at retail*
• Family fun
Consumption
and share* • Increased brand
returned to building 2017
growth in Q4

CAGNY 2017 * Nielsen, xAOC; retail sales 52 weeks ended 12/31/16; Q4 performance refers to 13 weeks ended 12/31/16. 19

Invest to Grow – Building on Momentum

Invest ~25% of
KNA sales
• Strong growth
to Grow
• High margins
• Unique and
differentiated
• Significant potential to
expand consumption

CAGNY 2017 20

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Kellogg Company February 21, 2017

Invest
to Grow Cheez-It – Stronger Than Ever

Share Leader in Crackers (2016) • Increase
investment in core
Over $1 Billion in U.S. Net Sales
• Expand across
channels and
occasions
1996 20 Consecutive Years of Growth 2016
• Source from
+8.6% in 2016
4-year CAGR ≈6% Growth
adjacencies

CAGNY 2017 21

Invest
to Grow Pringles – More to Grow

+4% CAGR • Increase investment
U.S. Net Sales, 2013-2016
in core
• Expand across channels
• Unlock occasion through
small sizes

CAGNY 2017 22

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Kellogg Company February 21, 2017

Invest
to Grow Rice Krispies Treats – Solid Momentum

+9% CAGR
Net Sales, 2013-2016
• Invest in core
• Channels and occasions
2013 2014 2015 2016

• Capitalize on seasonal
and licensed opportunities

* Net Sales in U.S.

CAGNY 2017 23

Realize Potential – Investing to Get Back On Trend

Realize ~15% of
• Significant potential
Potential KNA sales
but underperforming
• Investing in food and
packaging
• Sales decline near-term,
before returning to growth

CAGNY 2017 24

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Kellogg Company February 21, 2017

Realize
Potential Kashi – Cereal in 2016, Snacks in 2017

• Innovate and renovate core
• Return to communication
in February 2017
• Cereal growth accelerating
in Natural Channel
• Gradual improvement
ahead in Snacks
CAGNY 2017 25

Realize
Potential Special K Bars – Refreshing Our Line-Up

Transforming the Portfolio:
• 8 new items
• Bars and bites
• Communication in Q1

CAGNY 2017 26

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Kellogg Company February 21, 2017

Manage for Profit – Improving Margins

• Leverage productivity
Manage for initiatives to improve margins
~20% of

Profit KNA sales
• Contain declines through
tactical investment

• “Graduate” brands to
higher-priority buckets
• Rationalize where necessary

CAGNY 2017 27

KNA – Prioritizing to Win

Drive Invest • Deliberate choices
the Core to Grow
• Shifting investment to
match growth potential
Realize Manage for
Potential Profit • Portfolio will deliver low
SD growth over time

CAGNY 2017 28

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Kellogg Company February 21, 2017

Unlocking KNA’s Full Potential

Portfolio • Where to play, how to win
Prioritization

Invest
• Shift investment to highest ROI
with Impact

Operational
• Build Capabilities
Excellence

CAGNY 2017 29

Invest with Impact – Prioritization & Measurement

• Deploying resources to highest
ROI brands and activities

• Moving from “Push” to
“Pull” in Snacks
• “Agile” ROI – Marketing Mix
Model moving to real-time
• Migrating with consumer
to digital
CAGNY 2017 30

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Kellogg Company February 21, 2017

Unlocking KNA’s Full Potential

Portfolio • Where to play, how to win
Prioritization

Invest
• Shift investment to highest ROI
with Impact

Operational
• Build Capabilities
Excellence

CAGNY 2017 31

Building New Capabilities

• New Marketing Model
 Data Analytics & Agile ROI
 “Demand Chain” Shopper Segmentation

• Revenue Growth Management
 Pack formats
 Price-pack architecture

• Productivity
 Zero-Based Budgeting

• Single Go-to-Market Model / E2E Supply Chain
 DSD Exit unlocks resources to accelerate growth

CAGNY 2017 32

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Kellogg Company February 21, 2017

Summary

• Portfolio prioritization
Prioritizing to Win: • Investing for impact
• Driving operational excellence

• Margin expansion
Progress Already Evident:
• Improved core brand performance

• Exiting DSD
Transformation Continues:
• Transforming U.S. Snacks

CAGNY 2017 33

Agenda

• Kellogg Company – Solidly on 2020 Growth Plan

• Kellogg North America – Prioritizing to Win

• U.S. Snacks – Transforming our Business

• Closing Remarks

CAGNY 2017 34

Page 17 of 28
Kellogg Company February 21, 2017

U.S. Snacks – Portfolio Overview

2016 Net Sales
$3.2 billion
Retail Sales*
$0.7 bn Fruit Snacks
Retail Sales*
$1.0 bn

Salty
Retail Sales*
$0.2 bn Crackers
Retail Sales*
each Bars $0.2 bn
each
Cookies

Retail Sales*
$0.5 bn

* Retail sales figures are from Nielsen, xAOC, with Cheez-It figures xAOC+Convenience; 52 weeks ended 12/31/2016

CAGNY 2017 35

Exiting DSD – Rationale & Benefits

Drivers to Exit DSD US Snacks Benefits
• Category requirements not dependent on DSD • More effective and efficient route to market
= Lower costs, higher fill rate, lower
• Consumer splintering trips across more channels inventory

• Evolving Customer landscape not serviced by DSD • Investment to accelerate growth
= More support across more brands
• Increased sophistication in Customer warehouse
• Scale behind One Kellogg route to market
• Higher share & fill-rates in warehouse channel = Cross category promotions

CAGNY 2017 36

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Kellogg Company February 21, 2017

Simplified Route to Market – Customer Benefits

SIMPLIFIED ROUTE TO MARKET CUSTOMER BENEFITS

1. Margin Expansion

2. Inventory Management

3. Increased Growth

CAGNY 2017 37

Transition Plan in Place

1. • DSD network
Infrastructure Intact • Incentive plans
• Manufacturing network

2. • Already serves 75% of Kellogg U.S.
Established Warehouse System • IT, invoicing and customer service in place

3. • Playbook from M&A integrations
Seasoned Transition Team • Fully resourced, cross-functional team
• Retailer support

CAGNY 2017 38

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Kellogg Company February 21, 2017

Financial Impact
US Snacks
Operating Margin Expansion*

• Accelerated Net Sales
Growth after Transition

• Increased Brand
Investment

• Higher OP Margin

2016 2017 2018 2019 KNA 2016

CAGNY 2017 * Currency-neutral comparable basis

US Snacks – Roadmap

2016 2017 2018/2019

Reset Transform Accelerate

• Improve Efficiencies • Exit DSD • Increase Brand Investment

• Focus Investments • Optimize Portfolio • Stronger, leaner portfolio

• Establish RGM Capability • From “Push” to “Pull” • Joint Business Partnership

CAGNY 2017 40

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Kellogg Company February 21, 2017

Reset the Business Fundamentals
1.
• Project K Network Consolidation
Improve Efficiencies • Launched ZBB
Reset
2.
• Focused on Priority Brands
Focus Investments − Cheez-It, Pringles, Rice Krispies Treats

3.

Revenue Growth Management • Established Price-Pack Architectures

CAGNY 2017 41

The Playbook – 2016 Cheez-It Pilot

Invest to Grow Expand Occasions/Formats Platform Innovation
Big increase
In Brand
Building

Dial-up
Digital

Expand into
Social/Mobile

Net Sales* • Gross Margin* • Consumption • Share
* Currency-neutral comparable basis

CAGNY 2017 42

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Kellogg Company February 21, 2017

2016 – Gaining Traction

2016 Net Sales Growth % Customers Growing*
1H vs 2H 1H vs 2H
60%

+1.2% 40%

20%
% NSV
0%
(3.2%) % Customers Growing
1H 2016 2H 2016 1H 2016 2H 2016

CAGNY 2017 * Number of customers recording NSV growth, based on % of Kellogg’s U.S. Snacks’ net sales. 43

Transform the Portfolio
1.

• Redeploy spending to drive growth

2. • Invest behind Demand Based Model
− Increase Brand Building
− Expand Occasion/Format
− Drive Platform Innovation

3.
• Focus high margin, high velocity SKUs
Optimize Category Portfolios

CAGNY 2017 44

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Kellogg Company February 21, 2017

Accelerate Growth Behind “Pull” Model
1.
• Higher investment, higher ROI
Increase Brand Investment • Broader support across portfolio

2.
• Grow new margin enhanced portfolio
Stronger, Leaner Portfolio • Higher-velocity shelf set

3.
• Launch cross-category programs
Joint Business Partnership • Partner of Choice for eCommerce

CAGNY 2017 45

Invest
to Grow Cheez-It – Sustain Momentum

Invest to Grow Expand Occasions /Formats Innovation
Increased Media Investment
--Multi-cultural
--Millennials

CAGNY 2017 46

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Kellogg Company February 21, 2017

Invest
to Grow Pringles – Dial Up Growth

Invest to Grow Expand Occasions /Formats Innovation
• Increased Media, Dial-up Digital
• Millennial & Multi-cultural Focus
• Tent Pole Merch Activation

CAGNY 2017 47

Invest
to Grow Rice Krispies Treats – Sustain Growth

Invest to Grow Expand Occasions /Formats Innovation
New Campaign
--Millennial Focus
--Multi-cultural

Seasonal Minis/Fun Sheets

CAGNY 2017 48

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Kellogg Company February 21, 2017

Realize
Potential Special K – A New Portfolio

Invest to Grow Renovate Portfolio Innovation
Drive Re-assessment
• Transform the Portfolio
• Invest in the Food
• New Campaign Behind Masterbrand

CAGNY 2017 49

Invest
to Grow

Drive
the Core
Keebler – More Elves!

Invest to Grow Expand Occasions /Formats Innovation

Masterbrand Campaign
across Categories in 2017

CAGNY 2017 50

Page 25 of 28
Kellogg Company February 21, 2017

In-store Activation – Stronger Than Ever

Established
Tent-pole
Events

Pre-built
Shipper &
Modules

CAGNY 2017 51

Transforming Snacks

 Good Progress Made in 2016
• Focused investment drove priority brands
• Savings programs drove margin expansion
• Sales turned to growth in 2H

 DSD Exit Unlocks Resources for Accelerated growth
• Solid plans around transition
• Boosting investment in Brand Building

 A Stronger Kellogg Snacks is Emerging
• Better Growth and Profitability Over Time

CAGNY 2017 52

Page 26 of 28
Kellogg Company February 21, 2017

Agenda

• Kellogg Company – Solidly on 2020 Growth Plan

• Kellogg North America – Prioritizing to Win

• U.S. Snacks – Transforming our Business

• Closing Remarks

CAGNY 2017 53

In Summary…

 Good Progress on 2020 Growth Plan
• Stabilizing Developed RTEC
• Expanding Snacks Worldwide
• Building Scale in Emerging Markets
• Increased Confidence in 2018 OP Margin Goal

 KNA is Prioritizing to Win
• Growing the brands in which we are investing
• Investing in our food, and marketing for impact and ROI
• Driving margin expansion

 Transforming U.S. Snacks
• Build on momentum of invest-to-grow brands
• DSD exit enables step-change in investment
• Positioning portfolio for accelerated growth

CAGNY 2017 54

Page 27 of 28
Kellogg Company February 21, 2017

Q&A
Q&A
55

Appendix

Kellogg Company and Subsidiaries
Reconciliation of Non-GAAP Amounts - Reported Operating Margin to Comparable Operating Margin
excluding Venezuela
Year ended 2016 and 2015

2016 2015
Reported operating margin 10.7% 8.1%
Mark-to-market -2.0% -3.3%
Project K and cost reduction activities -2.5% -2.4%
Other costs impacting comparability 0.0% 0.5%
Integration and transaction costs -0.1% -0.2%
Venezuela remeasurement -0.1% -0.9%
Comparable operating margin 15.4% 14.4%
Comparable operating margin excluding Venezuela 15.4% 14.4%

CAGNY 2017 56

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