Project Frozen Food, a private company - Valuation Summary

($ in millions)

Private Co. Multiples Range Latest Quarter (1) Implied TEV Range
Methodology Rev, EBITDA, Net Inc. Low -- High Cash Total Debt Low -- High

Comparable Public Companies (Minority Interest Value)

TEV / Revenue
LTM #REF! 1.23x -- 2.13x #REF! -- #REF!
FYE + 1 #REF! 1.08x -- 2.07x #REF! -- #REF!

TEV / EBITDA
LTM #REF! 8.9x -- 11.6x #REF! -- #REF!
FYE + 1 #REF! 8.2x -- 11.6x #REF! -- #REF!

Price / Earnings
LTM #REF! 14.9x -- 19.6x #REF! #REF! #REF! -- #REF!
FYE + 1 #REF! 14.8x -- 18.0x #REF! #REF! #REF! -- #REF!

Precedent Transactions (Controlling Interest Value)

LTM Revenue #REF! 1.64x -- 4.28x #REF! -- #REF!
LTM EBITDA #REF! 11.2x -- 19.6x #REF! -- #REF!

#REF! #REF! -- #REF!

Minority Interest Value

Median #REF! -- #REF!
Mean #REF! -- #REF!

Controlling Interest Value

Median #REF! -- #REF!
Mean #REF! -- #REF!

(1) Frozen Food Co. does not have preferred stock or minority interest on its balance sheet.
Comparable Public Companies Analysis
($ in millions)

Comparable Companies - Food/Beverages | Food Processing

Multiples Analysis

Share
Price % off 52- Market Enterprise TEV / Revenue TEV / EBITDA Price / Earnings
Company Name Ticker 2/11/2013 week High Capitalization Value Cash Debt LTM FYE+1 LTM FYE+1 LTM FYE+1

Kraft Foods Group, Inc. KRFT $47.29 1.5% 27,996 37,720 247 9,971 2.0x 2.0x 11.1x 11.5x 19.6x 18.0x
ConAgra Foods, Inc. CAG 33.37 0.3% 13,705 16,945 477 3,619 1.2x 1.1x 8.9x 8.2x 14.9x 14.8x
H.J. Heinz Company HNZ 60.95 0.4% 19,625 23,703 1,007 5,036 2.0x 2.0x 11.8x 11.6x 17.3x 17.3x
General Mills, Inc. GIS 42.67 0.0% 28,173 36,227 735 8,333 2.1x 2.1x 10.0x 10.6x 14.9x 16.0x
Kellogg Co. K 59.12 0.4% 21,384 29,018 305 7,937 2.1x 1.9x 12.5x 11.1x 17.8x 15.3x
Median 0.4% 21,384
### 29,018
### 477
### 7,937
### 2.0x 2.0x ### 11.1x 11.1x ### 17.3x 16.0x
Mean 0.5% 22,177
### 28,722
### 554
### 6,979
### 1.9x 1.8x ### 10.8x 10.6x ### 16.9x 16.3x

Margins Analysis

CapEx % of
Revenue Growth EBITDA Growth EPS Growth Rev EBIT Margin EBITDA Margin Net Margin
Company Name FYE '11-12 FYE '12-13 FYE '11-12 FYE '12-13 FYE '11-12 FYE '12-13 LTM LTM FYE+1 LTM FYE+1 LTM FYE+1
Kraft Foods, Inc. 4.8% 3.1% -4.7% 3.2% -24.9% 9.0% 2.2% 16.1% 15.2% 18.0% 17.1% 7.6% 8.1%
ConAgra Foods, Inc. 7.8% 17.8% -2.9% 24.1% -5.5% 24.0% 2.6% 11.2% 10.4% 13.9% 13.2% 6.7% 5.9%
H.J. Heinz Company 8.8% 1.5% 3.7% 1.2% 7.1% 4.7% 3.6% 14.4% 14.4% 17.4% 17.3% 9.8% 9.6%
General Mills, Inc. 11.9% 4.8% 2.1% 3.0% -9.4% 8.0% 3.9% 17.9% 16.2% 21.2% 19.5% 11.0% 10.1%
Kellogg Co. 6.5% 16.0% -2.5% 10.8% -2.5% 12.0% 3.4% 14.1% 14.0% 17.0% 17.1% 8.8% 9.1%
Median 7.8% ### 4.8% ### -2.5% ### 3.2% ### -5.5% ### 9.0% ### 3.4% ### 14.4% 14.4% ### 17.4% 17.1% ### 8.8% 9.1%
Mean 8.0% ### 8.7% ### -0.9% ### 8.5% ### -7.0% ### 11.5% ### 3.1% ### 14.7% 14.0% ### 17.5% 16.8% ### 8.8% 8.6%

Source: Company filings, equity analyst research and press releases.

Effective Tax Rate 35% FYE - 1 2011A FY + 1 2013E
Stock Valuation Date 2/11/2013 FYE 2012A FY + 2 2014E
Ticker KRFT CAG HNZ GIS K

Kraft Foods ConAgra H.J. Heinz General Company Company Company Company Company Company Company
Name Group Foods, Inc. Co. Mills, Inc. Kellogg Co. Name Name Name Name Name Name Name
Company Descriptions Kraft manufactures ConAgra Foods, H.J. Heinz Co. General Mills, Inc. Kellogg Company is Insert Company Insert Company Insert Company Insert Company Insert Company Insert Company Insert Company
and sells Inc. is a packaged manufactures and is a global foods a producer of cereal Information Information Information Information Information Information Information
beverages, coffee food company that sells ketchup, company that and convenience
products, beverage sells brands such condiments and developes and foods that are
mixers, processed as Chef Boyardee sauces, frozen food, markets distinctive manufactured and
cheese, lunch and Hebrew soups, beans and food products under marketed globally.
meats, hot dogs, National. pasta meals, infant unique brand
and bacon. food and other names.
processed food
products.

Numbers in millions, except per-share data and ratios

Stock Price as of mkt close (02/11/13) $47.29 $33.37 $60.95 $42.67 $59.12 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
52 Wk High $48.00 $33.46 $61.18 $42.67 $59.38 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
52 Wk Low $42.00 $23.64 $51.51 $36.75 $46.33 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
% Off High 1.5% 0.3% 0.4% 0.0% 0.4% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Enterprise Value $37,720 $16,945 $23,703 $36,227 $29,018 $0 $0 $0 $0 $0 $0 $0
Equity Value $27,996 $13,705 $19,625 $28,173 $21,384 $0 $0 $0 $0 $0 $0 $0
EV / 2012A Sales 2.0x 1.3x 2.0x 2.2x 2.2x NA NA NA NA NA NA NA
EV / LTM Sales 2.0x 1.2x 2.0x 2.1x 2.1x NA NA NA NA NA NA NA
EV / 2013E Sales 2.0x 1.1x 2.0x 2.1x 1.9x NA NA NA NA NA NA NA
EV / 2014E Sales 1.9x 0.9x 1.9x 2.0x 1.8x NA NA NA NA NA NA NA
EV / 2012A EBITDA ex non-recurring items 11.8x 10.2x 11.7x 11.0x 12.2x NA NA NA NA NA NA NA
EV / LTM EBITDA ex non-recurring items 11.1x 8.9x 11.8x 10.0x 12.5x NA NA NA NA NA NA NA
EV / 2013E EBITDA 11.5x 8.2x 11.6x 10.6x 11.1x NA NA NA NA NA NA NA
EV / 2014E EBITDA 10.6x 6.5x 11.3x 10.3x 10.5x NA NA NA NA NA NA NA
EV / 2012A EBIT ex non-recurring items 13.4x 13.1x 14.1x 13.1x 14.5x NA NA NA NA NA NA NA
EV / LTM EBIT ex non-recurring items 12.4x 11.0x 14.2x 11.9x 15.1x NA NA NA NA NA NA NA
EV / 2013E EBIT 12.9x 10.4x 13.9x 12.8x 13.5x NA NA NA NA NA NA NA
EV / 2014E EBIT 11.8x 8.6x 13.6x 12.5x 12.7x NA NA NA NA NA NA NA
2012A Gross Margin 31.4% 21.3% 34.3% 36.3% 41.3% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
LTM Gross Margin 32.3% 23.3% 35.0% 37.2% 40.0% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
2012A EBITDA Margin 17.1% 12.6% 17.3% 19.8% 17.9% NA NA NA NA NA NA NA
LTM EBITDA Margin 18.0% 13.9% 17.4% 21.2% 17.0% NA NA NA NA NA NA NA
2013E EBITDA Margin 17.1% 13.2% 17.3% 19.5% 17.1% NA NA NA NA NA NA NA
2014E EBITDA Margin 17.9% 14.0% 17.0% 19.5% 17.5% NA NA NA NA NA NA NA
2012A EBIT Margin 15.1% 9.8% 14.4% 16.6% 15.2% NA NA NA NA NA NA NA
LTM EBIT Margin 16.1% 11.2% 14.4% 17.9% 14.1% NA NA NA NA NA NA NA
2013E EBIT Margin 15.2% 10.4% 14.4% 16.2% 14.0% NA NA NA NA NA NA NA
2014E EBIT Margin 16.1% 10.6% 14.2% 16.1% 14.5% NA NA NA NA NA NA NA

Data from most recent SEC filing

Basic Shares Outstanding 592 405 321 647 358
Cash and Cash Equivalents 247 477 1,007 735 305
Total Debt on Balance Sheet 9,971 3,619 5,036 8,333 7,937
Less: Convertible Debt figured in FD Shares 0 0 0 0 0 0 0 0 0 0 0 0
Preferred Equity 0 0 0.1 0 0
Less: Preferred Equity figured into FD Shares 0 0 0.1 0 0 0 0 0 0 0 0 0
Minority (non-controlling) Interest 0 98 49 456 2
Net Debt 9,724 3,240 4,078 8,054 7,634 0 0 0 0 0 0 0

Current Debt $6 $9 $916 $2,761 $1,872

Total Current Liabilities $3,209 $2,388 $3,296 $5,736 $4,514
Total Current Assets $4,537 $4,065 $3,898 $4,566 $3,306
Net Working Capital $1,087 $1,209 $510 $855 $359 $0 $0 $0 $0 $0 $0 $0
Shareholders' Equity $3,818 $4,700 $2,914 $7,440 $2,438
Total Assets $23,619 $12,525 $11,912 $22,953 $14,854

Diluted Shares Outstanding 592 411 322 660 362 - - - - - - -

Equity Value $27,996 $13,705 $19,625 $28,173 $21,384 $0 $0 $0 $0 $0 $0 $0

Net Debt $9,724 $3,240 $4,078 $8,054 $7,634 $0 $0 $0 $0 $0 $0 $0
Enterprise Value $37,720 $16,945 $23,703 $36,227 $29,018 $0 $0 $0 $0 $0 $0 $0
YTD from 10-Q Current 9/30/2012 11/25/2012 10/28/2012 11/25/2012 9/29/2012
Net Sales $13,845 $7,047 $5,618 $8,933 $10,634
Cost of Goods Sold $9,172 $5,313 $3,603 $5,562 $6,407
Gross Profit $4,673 $1,734 $2,015 $3,371 $4,227 $0 $0 $0 $0 $0 $0 $0
SG&A $2,349 $951 $1,213 $1,750 $2,728
EBIT (reported) $2,324 $784 $802 $1,621 $1,499 $0 $0 $0 $0 $0 $0 $0
Non-recurring oper. expenses (gains) $170 $10 $0 $29 $23
EBIT ex non-recurring items $2,494 $794 $802 $1,650 $1,522 $0 $0 $0 $0 $0 $0 $0
D&A $261 $186 $171 $286 $302
EBITDA ex non-recurring items $2,755 $979 $973 $1,936 $1,824 $0 $0 $0 $0 $0 $0 $0
Net Income (Continuing Operations) $1,317 $469 $578 $1,091 $955
Non-recurring non-oper. expenses (gains) $0 $0 $0 $0 $0
Normalized earnings $1,428 $475 $578 $1,109 $970 $0 $0 $0 $0 $0 $0 $0
Capital Expenditures (CapEx) $282 $180 $176 $264 $262

YTD from 10-Q Prior Year 9/30/2011 11/27/2011 10/26/2011 11/27/2011 10/1/2011
Net Sales $13,620 $6,537 $5,647 $8,471 $10,183
Cost of Goods Sold $9,193 $5,187 $3,695 $5,430 $5,969
Gross Profit $4,427 $1,350 $1,951 $3,041 $4,214 $0 $0 $0 $0 $0 $0 $0
SG&A/Operating Expenses $2,129 $846 $1,223 $1,685 $2,635
EBIT (reported) $2,298 $505 $729 $1,357 $1,579 $0 $0 $0 $0 $0 $0 $0
Non-recurring oper. expenses (gains) ($20) $40 $78 $1 $21
EBIT ex non-recurring items $2,278 $545 $807 $1,357 $1,600 $0 $0 $0 $0 $0 $0 $0
D&A $269 $187 $168 $263 $270
EBITDA ex non-recurring items $2,547 $731 $974 $1,621 $1,870 $0 $0 $0 $0 $0 $0 $0
Net Income (Continuing Operations) $1,438 $277 $476 $850 $999
Non-recurring non-oper. expenses (gains) $0 $0 $0 $0 $0
Normalized earnings $1,425 $303 $527 $851 $1,013 $0 $0 $0 $0 $0 $0 $0
Capital Expenditures (CapEx) $267 $161 $175 $265 $392

Latest 10-K 12/31/2011 5/27/2012 4/29/2012 5/27/2012 12/31/2011

Net Sales $18,655 $13,263 $11,649 $16,658 $13,198
Cost of Goods Sold $12,805 $10,436 $7,650 $10,613 $7,750
Gross Profit $5,850 $2,827 $4,000 $6,045 $5,448 $0 $0 $0 $0 $0 $0 $0
SG&A/Operating Expenses $3,017 $1,998 $2,548 $3,381 $3,472
EBIT (reported) $2,833 $829 $1,451 $2,664 $1,976 $0 $0 $0 $0 $0 $0 $0
Non-recurring oper. expenses (gains) ($13) $464 $224 $101 $24
EBIT ex non-recurring items $2,820 $1,293 $1,675 $2,765 $2,000 $0 $0 $0 $0 $0 $0 $0
D&A $364 $372 $343 $542 $369
EBITDA ex non-recurring items $3,184 $1,665 $2,018 $3,306 $2,369 $0 $0 $0 $0 $0 $0 $0
Net Income (Continuing Operations) $1,437 $474 $940 $1,567 $1,231
Non-recurring non-oper. expenses (gains) $0 ($47) $0 $0 $0
Normalized earnings $1,429 $745 $1,086 $1,633 $1,247 $0 $0 $0 $0 $0 $0 $0
Capital Expenditures (CapEx) $401 $337 $419 $676 $594

10-K Prior Year 12/31/2010 5/29/2011 4/27/2011 5/29/2011 12/31/2010

Net Sales $17,797 $12,303 $10,707 $14,880 $12,397
Cost of Goods Sold $11,778 $9,390 $6,754 $8,927 $7,108
Gross Profit $6,019 $2,914 $3,953 $5,954 $5,289 $0 $0 $0 $0 $0 $0 $0
SG&A/Operating Expenses $3,058 $1,510 $2,304 $3,192 $3,299
EBIT (reported) $2,961 $1,404 $1,648 $2,762 $1,990 $0 $0 $0 $0 $0 $0 $0
Non-recurring oper. expenses (gains) $25 ($49) $0 $4 $48
EBIT ex non-recurring items $2,986 $1,354 $1,648 $2,766 $2,038 $0 $0 $0 $0 $0 $0 $0
D&A $354 $361 $299 $473 $392
EBITDA ex non-recurring items $3,340 $1,715 $1,947 $3,239 $2,430 $0 $0 $0 $0 $0 $0 $0
Net Income (Continuing Operations) $1,887 $831 $1,006 $1,798 $1,247
Non-recurring non-oper. expenses (gains) $0 ($15) $11 $0 $0
Normalized earnings $1,903 $789 $1,013 $1,801 $1,278 $0 $0 $0 $0 $0 $0 $0
Capital Expenditures (CapEx) $448 $466 $336 $649 $474
LTM 9/30/2012 11/25/2012 10/28/2012 11/25/2012 9/29/2012 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899 12/30/1899
Net Sales $18,880 $13,773 $11,621 $17,119 $13,649 $0 $0 $0 $0 $0 $0 $0
Cost of Goods Sold $12,784 $10,562 $7,557 $10,745 $8,188 $0 $0 $0 $0 $0 $0 $0
Gross Profit $6,096 $3,211 $4,064 $6,374 $5,461 $0 $0 $0 $0 $0 $0 $0
SG&A/Operating Expenses $3,237 $2,103 $2,539 $3,446 $3,565 $0 $0 $0 $0 $0 $0 $0
EBIT (reported) $2,859 $1,108 $1,525 $2,928 $1,896 $0 $0 $0 $0 $0 $0 $0
Non-recurring oper. expenses (gains) $177 $434 $146 $129 $26 $0 $0 $0 $0 $0 $0 $0
EBIT ex non-recurring items $3,036 $1,542 $1,671 $3,057 $1,922 $0 $0 $0 $0 $0 $0 $0
D&A $356 $371 $346 $564 $401 $0 $0 $0 $0 $0 $0 $0
EBITDA ex non-recurring items $3,392 $1,913 $2,017 $3,621 $2,323 $0 $0 $0 $0 $0 $0 $0
Net Income (Continuing Operations) $1,316 $666 $1,042 $1,807 $1,187 $0 $0 $0 $0 $0 $0 $0
Non-recurring non-oper. expenses (gains) $0 ($47) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Normalized earnings $1,431 $917 $1,137 $1,891 $1,204 $0 $0 $0 $0 $0 $0 $0
CapEx $416 $357 $419 $675 $464 $0 $0 $0 $0 $0 $0 $0
Sell-side research projections JP Morgan JP Morgan JP Morgan JP Morgan JP Morgan

Date of research report 11/8/2012 1/24/2013 11/26/2012 12/19/2012 2/5/2013

2013E
Sales $19,239 $15,627 $11,821 $17,464 $15,316
EBIT $2,925 $1,624 $1,702 $2,826 $2,149
 EBITDA $3,285 $2,066 $2,043 $3,406 $2,626
EPS $2.63 $2.25 $3.53 $2.67 $3.86
CapEx $500 $344 $359 $674 $640
2014E
Sales $19,835 $18,751 $12,330 $17,950 $15,742
EBIT $3,194 $1,980 $1,749 $2,889 $2,281
EBITDA $3,551 $2,626 $2,101 $3,506 $2,761
EPS $2.93 $2.50 $3.77 $2.82 $4.12
CapEx $516 $400 $440 $700 $400
Convertible Debt
Amount Outstanding $0 $0 $0 $0 $0
Conversion Price $0.00 $0.00 $0.00 $0.00 $0.00
Number of Shares 0 0 0 0 0 0 0 0 0 0 0 0
Amount of Debt to Subtract from Net Debt 0 0 0 0 0 0 0 0 0 0 0 0
Amount of Shares to add to FD Shares 0 0 0 0 0 0 0 0 0 0 0 0

Preferred Equity - Convertible

Amount Outstanding - - 0.1 - -
Conversion Price $0.00 $0.00 $0.00 $0.00
Number of Common Shares 0 0 0.092 0 0 0 0 0 0 0 0 0
Amount of Debt to Subtract from Net Debt 0 0 0.061 0 0 0 0 0 0 0 0 0
Amount of Shares to add to FD Shares 0 0 0.092 0 0 0 0 0 0 0 0 0

Number of Options Exercisable

A 19.0 4.4 36.5 16.0
B
C
D
E
F
G
H
I
Weighted Average Strike Price
A $23.33 $43.90 $26.69 $47.00
B
C
D
E
F
G
H
I
Calculation
A 0.0 5.7 1.2 13.7 3.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0
B 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
C 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
D 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
E 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
F 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
G 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
H 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
I 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Sum 0.0 5.7 1.3 13.7 3.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0

EPS 5 Yr Growth

FX Country
USD / FX
Discounted Cash Flow (DCF) Analysis
Links to 'Comp Spread' Tab
BEST BUY CO. - EXAMPLE ONLY

Fiscal Year Ending ($MMs) 02/25/06 02/25/07 02/25/08 02/25/09 02/25/10 02/25/11

Revenue $16,658 $17,464 $17,950 $20,643 $23,739 $27,300

EBITDA $3,406 $3,506 $1,559 $1,792 $2,061

EBIT $2,826 $2,889 $1,239 $1,424 $1,638

Less: Estimated Taxes at 35% 989 1,011 433 499 573
Tax-effected EBIT $1,837 $1,878 $805 $926 $1,065

Plus: D&A 580 617 320 368 423

Less: CapEx (674) (700) (454) (522) (601)
Less: Changes in Working Capital (81) (49) (269) (310) (356)

Free Cash Flow $1,662 $1,746 $402 $462 $531

Assumed Tansaction Date of 11/20/06

PV of FCF @ a Discount Rate of 11% $1,617 $1,530 $317 $328 $340

Assumed EBITDA Exit Multiple of 9.0x

PV of Terminal Value of $11,882

TEV - Sensitivity Analysis Terminal EBITDA Multiple

$16,014 7.0x 8.0x 9.0x 10.0x 11.0x
9.0% 14,224 15,651 17,078 18,505 19,931
Discount

10.0% 13,789 15,162 16,534 17,906 19,278

Rate

11.0% 13,374 14,694 16,014 17,335 18,655

12.0% 12,977 14,248 15,518 16,789 18,060
13.0% 12,598 13,821 15,044 16,268 17,491

Source:
Discounted Cash Flow (DCF) Analysis - Project AC/DC
THERE SHOULD BE NO HARDCODES ON THIS TAB

Fiscal Year Ending ($MMs) 02/25/06 02/25/07 02/25/08 02/25/09 02/25/10 02/25/11

Revenue $185.7 $222.8 $267.4 $320.9 $385.1 $462.1

EBITDA $22.3 $26.7 $32.1 $38.5 $46.2

EBIT $20.1 $24.1 $28.9 $34.7 $41.6

Less: Estimated Taxes at 0% 7.0 8.4 10.1 12.1 14.6
Tax-effected EBIT $13.0 $15.6 $18.8 $22.5 $27.0

Plus: D&A 2.2 2.7 3.2 3.9 4.6

Less: CapEx (11.1) (13.4) (16.0) (19.3) (23.1)
Less: Changes in Working Capital 1.1 (0.8) (1.6) (2.2) (2.8)

Free Cash Flow $5.2 $4.2 $4.3 $4.9 $5.7

Assumed Tansaction Date of 11/20/06

PV of FCF @ a Discount Rate of 21% $4.9 $3.3 $2.8 $2.6 $2.5

Assumed EBITDA Exit Multiple of 8.5x

PV of Terminal Value of $174

TEV - Sensitivity Analysis Terminal EBITDA Multiple

$190 6.5x 7.5x 8.5x 9.5x 10.5x
19.0% 159.7 181.7 203.7 225.7 247.7
Discount

20.0% 154.4 175.6 196.8 218.1 239.3

Rate

21.0% 149.3 169.8 190.3 210.8 231.3

22.0% 144.5 164.3 184.0 203.8 223.6
23.0% 139.8 158.9 178.0 197.1 216.2

Source:
Precedent Transactions - Food/Beverages | Food Processing
($ in millions)

Announce Target LTM Transaction

Date Acquiror Target Target Description Revenue EBITDA EBITDA Margin Value

Selected Transactions

06/07/00 Unilever, plc BestFoods, Inc. Consumer foods company and maker of $8,660 $1,614 18.6% $22,995
the brands Knorr Soups, Skippy Peanut
Butter, and Hellman's Mayonnaise,
among others.

06/25/00 Philip Morris Companies, Inc. Nabisco Holdings Corp. International manufacturer of cookies $8,482 $1,326 15.6% $19,017
and crackers, among other consumer
foods products.

07/17/00 General Mills Pillsbury Consumer foods company and maker of $6,078 $802 13.2% $10,500
Hungry Jack pancake mixes, Green
Giant frozen foods, and other items.

04/12/07 Nestle SA Gerber Leading maker of baby foods, selling $1,600 $340 21.3% $5,500
pureed fruits and vegetables in over 80
countries at the time of acquisition.

07/03/07 Kraft Foods, Inc. Groupe Danone (Biscuit Division) Biscuit and baked goods division of $2,700 $525 19.4% $7,200
Group Danone.

04/28/08 Mars Wm. Wrigley Jr. Company Confectioner and maker of gum brands $5,389 $1,181 21.9% $23,082
such as Juicy Fruit, Orbit, Extra and Big
Red.

12/02/00 PepsiCo., Inc. Quaker Oats Company Maker of numerous consumer foods $4,903 $877 17.9% $14,204
products and beverages, including
Gatorade.

12/02/00 Kellogg Co. Keebler Foods Co. Leading maker of cookies and crackers, $2,697 $395 14.6% $4,423
including the Keebler, Cheez-It, Carr's
and Famous Amos brands.

02/13/13 Berkshire Hathaway H.J. Heinz Co. Manufactures and sells ketchup, $11,621 $2,017 17.4% $27,648
condiments and sauces, frozen food,
soups, beans and pasta meals, infant
food and other processed food
products.
Median 17.9%
Mean 17.8%
 Heinz Stock Price on 2

Heinz Basic Shares Outstanding on 10/28/1

Heinz FD Shares Outstanding on 10/28/1
Implied Wrigley Purchas

Implied Transacti

Heinz stock optio

Vested and U
 Implied TEV /
Revenue EBITDA

2.7x 14.2x

2.2x 14.3x

1.7x 13.1x

3.4x 16.2x

2.7x 13.7x

4.3x 19.6x

2.9x 16.2x

1.6x 11.2x

2.4x 13.7x

2.66x 14.2x
2.66x 14.7x
 Heinz acquisition by Berkshire Hathaway Statistics

Consideration per Share

Heinz Stock Price on 2/13/13

Outstanding on 10/28/12 (mil)

Outstanding on 10/28/12 (mil)
mplied Wrigley Purchase Price
Plus: Debt
Preferred
Minority Interest
Less: Cash
Implied Transaction TEV

Dilutive Shares Calculation (TSM)

Heinz stock options (mil)

Vested and Unvested

Restricted Stock
Financial Projections
KRAFT FOODS, INC.

Fiscal Year Ending ($MMs) 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17

Revenue $19,239 $19,835 $20,430 $21,043 $21,675

EBIT 2,925 3,194 3,269 3,367 3,468
Depreciation and Amortization 360 357 511 526 542
EBITDA 3,285 3,551 3,780 3,893 4,010
Capital Expenditures (500) (516) (613) (631) (650)
Working Capital Requirements (58) (60) (60) (61) (63)

Discounted Cash Flow (DCF) Analysis

Fiscal Year Ending ($MMs) 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 Discount Rate and Tax Rate Assumptions

Revenue $16,873 $19,835 $20,430 $21,043 $21,675 Discount Rate 6.6%

Tax Rate 35.0%
EBIT $2,565 $3,194 $3,269 $3,367 $3,468
Less: Taxes 898 1,118 1,144 1,178 1,214 Terminal Value Assumptions
Debt-Free Earnings $1,667 $2,076 $2,125 $2,189 $2,254 Terminal Year EBITDA $4,010
Less: Capital Expenditures (439) (516) (613) (631) (650) Terminal EBITDA multiple 12.00
Less: Working Capital Requirements (51) (60) (60) (61) (63)
Add: Depreciation and Amortization 316 357 511 526 542 Terminal Value $48,118
Net Investment ($174) ($218) ($162) ($167) ($172) Discount Period 4.88
Unlevered Free Cash Flow: $1,493 $1,858 $1,963 $2,022 $2,083 Discount Factor @ 6.6% 0.73
Discount Period 0.88 1.88 2.88 3.88 4.88 PV of Terminal Value $35,232
Discount Factor @ 6.6% 0.95 0.89 0.83 0.78 0.73
PV of Net Debt-Free Cash Flows: $1,412 $1,648 $1,633 $1,578 $1,525 Distribution of Value

Total NPV Valuation: $43,028 1 Period Cash Flow 18.1%

Terminal Cash Flow 81.9%
Total 100.0%

Implied Analyses
Valuation Sensitivity Analysis LTM EBITDA Multiple 13.1x
Forward EBITDA Multiple 12.1x

Terminal EBITDA Multiple

Terminal Multiple Method $43,027.90 11.0x 11.5x 12.0x 12.5x 13.0x
Discount Rate

7.6% 38,447 39,849 41,252 42,655 44,057

7.1% 39,258 40,693 42,128 43,563 44,998
6.6% 40,092 41,560 43,028 44,496 45,964
6.1% 40,948 42,450 43,952 45,454 46,956
5.6% 41,828 43,365 44,902 46,439 47,976
 Terminal FCF Growth Rate
Gordon Growth Method N/A 2.5% 3.0% 3.5% 4.0% 4.5%

Discount Rate
7.6% N/A N/A N/A N/A N/A
7.1% N/A N/A N/A N/A N/A
6.6% N/A N/A N/A N/A N/A
6.1% N/A N/A N/A N/A N/A
5.6% N/A N/A N/A N/A N/A

Source: Kraft Foods Group, Inc. 10K and 10-Q filings, and JP Morgan research report.

Instructions to fill sensitivity table

- Hard key in center of each X and Y axis the terminal multiple, terminal growth rate, and discount rate exactly as used in assumptions column
- Link increments for horizontal and vertical axes to increment boxes in assumptions column, = center value plus or minus the increment
Financial Projections
KRAFT FOODS, INC.

Fiscal Year Ending ($MMs) 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17

Revenue $19,239 $19,835 $20,430 $21,043 $21,675

EBIT 2,925 3,194 3,269 3,367 3,468
Depreciation and Amortization 360 357 511 526 542
EBITDA 3,285 3,551 3,780 3,893 4,010
Capital Expenditures (500) (516) (613) (631) (650)
Working Capital Requirements (58) (60) (60) (61) (63)

Discounted Cash Flow (DCF) Analysis

Fiscal Year Ending ($MMs) 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 Discount Rate and Tax Rate Assumptions

Revenue $16,873 $19,835 $20,430 $21,043 $21,675 Discount Rate 6.6%

Tax Rate 35.0%
EBIT $2,565 $3,194 $3,269 $3,367 $3,468
Less: Taxes 898 1,118 1,144 1,178 1,214 Terminal Value Assumptions
Debt-Free Earnings $1,667 $2,076 $2,125 $2,189 $2,254 Terminal Year EBITDA $4,010
Less: Capital Expenditures (439) (516) (613) (631) (650) Terminal EBITDA multiple 12.00
Less: Working Capital Requirements (51) (60) (60) (61) (63)
Add: Depreciation and Amortization 316 357 511 526 542 Terminal Value $48,118
Net Investment ($174) ($218) ($162) ($167) ($172) Discount Period 4.88
Unlevered Free Cash Flow: $1,493 $1,858 $1,963 $2,022 $2,083 Discount Factor @ 6.6% 0.73
Discount Period 0.88 1.88 2.88 3.88 4.88 PV of Terminal Value $35,232
Discount Factor @ 6.6% 0.95 0.89 0.83 0.78 0.73
PV of Net Debt-Free Cash Flows: $1,412 $1,648 $1,633 $1,578 $1,525 Distribution of Value

Total NPV Valuation: $43,028 1 Period Cash Flow 18.1%

Terminal Cash Flow 81.9%
Total 100.0%
Weighted Average Cost of Capital (WACC) Analysis
($ in millions)

Comparable Public Companies

Market Debt to Preferred to

Preferred Value of Total Debt to Total Total
Debt Stock Equity Capitalization Capitalization
Equity Capitalization Capitalization
Kraft Foods Group $9,971.0 $0.0 $27,995.7 $37,966.7 35.6% 26.3% 0.0%
ConAgra Foods, Inc. 3,618.5 0.0 13,705.2 17,323.7 26.4% 20.9% 0.0%
H.J. Heinz Co. 5,036.4 0.1 19,625.0 24,661.5 25.7% 20.4% 0.0%
General Mills, Inc. 8,332.6 0.0 28,173.0 36,505.6 29.6% 22.8% 0.0%
Kellogg Co. 7,937.0 0.0 21,383.7 29,320.7 37.1% 27.1% 0.0%
Median $7,937.0 $0.0
### $21,383.7
### $29,320.7 29.6%
### 22.8%
### 0.0%
###
Mean $6,979.1 $0.0
### $22,176.5
### $29,155.6 30.9%
### 23.5%
### 0.0%
###

Equity
Levered Unlevered Risk Cost of Cost of Cost of
Beta Beta Premium (1) Equity Debt Preferred
Kraft Foods Group 0.63 0.51 8.1% 8.0% 5.0% 0.0%
ConAgra Foods, Inc. 0.75 0.64 8.1% 9.0% 7.3% 0.0%
H.J. Heinz Co. 0.61 0.52 8.1% 7.8% 4.3% 5.9%
General Mills, Inc. 0.63 0.53 8.1% 8.0% 4.4% 0.0%
Kellogg Co. 0.50 0.40 8.1% 6.9% 4.5% 0.0%
Median 0.63 0.52 8.0% 4.5% 0.0%
Mean 0.62 0.52 8.0% 5.1% 1.2%

Footnotes:
Source: Company filings, equity analyst research and Zacks Investment Research.
Weighted Average Cost of Capital (WACC) = (Cost of Debt * (1-Tax Rate) * Debt to Enterprise Value) + (Cost of Equity * Equity to Enterprise Value)
+ (Cost of Preferred * Preferred to Enterprise Value).
Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium).
Risk-free rate as of February 14, 2013.
(1) Ibbotson Associates, "Stocks, Bonds, Bills and Inflation," 2008.

Weighted Average Cost of Capital (WACC) Analysis (cont.)

Project Frozen Food

Market Assumptions Beta Assumptions Capital Structure Assumptions

10-Year Treasury Bond Yield 2.89% Selected Adjusted Unlevered Beta 0.52 Preferred to Enterprise Value
Equity Risk Premium (1) 8.11% Levered Beta 0.62 Debt to Enterprise Value
Tax Rate 35.0% Equity to Enterprise Value
Company-Specific Risk Premium 0.0% Cost of Debt (Pre-tax)
Cost of Preferred
Cost of Equity

Concluded Weighted Average Cost of Capital 7.1%

Footnotes:
Source: Company filings, equity analyst research and Bloomberg.
Weighted Average Cost of Capital (WACC) = (Cost of Debt * (1-Tax Rate) * Debt to Enterprise Value) + (Cost of Equity * Equity to Enterprise Value)
+ (Cost of Preferred * Preferred to Enterprise Value).
Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium).
Risk-free rate as of November 20, 2006.
(1) Ibbotson Associates, Stocks Bonds Bills and Inflation 2005 Yearbook, pp. 138, 140, 169, and 179.
 Equity to
Total
Capitalization
73.7%
79.1%
79.6%
77.2%
72.9%
77.2%
76.5%

WACC
6.8%
8.1%
6.8%
6.8%
###
5.8%
6.8%
6.9%

ure Assumptions
 0.0%
22.8%
77.2%
6.8%
0.0%
7.9%