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P OST H OLDINGS, INC. 2013 A NNUAL R E P ORT BECOM NG POST HOLDINGS, P ST H OLDINGS I NC. 2013 ANNUAL RE P ORT POST HOLDINGS, I NC. 2503 S OUTH HANLEY ROAD S T. L OUIS, MO 63144 www.postholdings.com NET SALES ADJUSTED EBITDA OPERATING CASH FLOW FINANCIAL HIGHLIGHTS (in millions) (in millions) (in millions) (in millions except per share data) 2012 2013 NET SALES $ 958.9 $ 1,034.1 GROSS PROFIT 428.9 424.9 144.0 216.7 214.6 OPERATING INCOME 139.1 107.8 1,034.1 958.9 119.2 NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS 49.9 9.8 DILUTED EPS $ 1.45 $ 0.30 OPERATING CASH FLOW 144.0 119.2 ADJUSTED EBITDA 214.6 216.7 ADJUSTED NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS 52.7 31.1 2012 2013 2012 2013 2012 2013 ADJUSTED DILUTED EPS $ 1.53 $ 0.94 Our greatest asset is our VISION OF WHERE WE ARE GOING. Post Holdings continues to transform into a dynamic holding company of products strategically tied to mainstream consumer trends. When opportunity knocks, we know how to answer. We transformed our portfolio into three platforms: center-of-the-store, active nutrition and private label. And by balancing our opportunistic financial model with an adaptive operating model, Post stands ready to capitalize on the next opportunity. POST HOLDINGS, INC. 2013 ANNUAL REPORT PAGE 1 BECOMING POST HOLDINGS “ THERE IS A TIDE IN THE Premier AFFAIRS OF MEN, WHICH Nutrition Premier Protein® TAKEN AT THE FLOOD, offers premium protein shakes and bars that LEADS ON TO FORTUNE. appeal to a broad range of people pursuing OMITTED, ALL THE VOYAGE healthy lifestyles. OF THEIR LIFE IS BOUND IN SHALLOWS AND IN MISERIES. ON SUCH A FULL SEA ARE WE NOW AFLOAT. AND WE MUST TAKE THE CURRENT WHEN IT SERVES, OR LOSE OUR VENTURES.(1)” Post Sesame Street, including apple, banana and straw- berry flavors, plus Shreddies Granola Almond Crunch in Canada, as well as Honey Bunches of Oats Granola in three flavors. Innovation is the lifeblood of the category and Post has re-energized its new product To Our Shareholders: development efforts with levels of acceptance and In 2013, we attempted much and accomplished much. speed to shelf exceeding our expectations. The tide of opportunity was high and we responded • Completed our separation from Ralcorp Holdings, aggressively. This year we: Inc. in nearly all areas covered by the Transition • Maintained Post Foods dollar share of the U.S. ready- Services Agreement on time and within budget, with to-eat (RTE) cereal market at 10.4%(2). After decades the key milestone being a smooth separation of our of slow decline, Post’s share erosion has stabilized and information technology systems. we are positioned competitively. • Raised over $875 million, before issuance costs, • Introduced seven new products including Honey through high yield notes and convertible preferred Bunches of Oats Greek Yogurt, both Honey Crunch stock securities. and Mixed Berry, Honey Bunches of Oats Mango • Completed three acquisitions and announced a fourth Coconut, Great Grains Protein Blends, both Cinnamon (anticipated to close in January 2014) that began the Hazelnut and Honey, Oats & Seeds, Grape-Nuts Fit, process of transforming Post. POST HOLDINGS, INC. 2013 ANNUAL REPORT PAGE 2 Post Holdings Last year, we gave you an introduction to Post Foods – A GROWING TREND the story of an iconic brand buried within conglomerates, having new life breathed into it. With Post Foods standing firm and on its own, in 2013 we began the $ journey of becoming Post Holdings, Inc. So what is 26.7B Post Holdings? As our name implies, Post Holdings is a holding U.S. sales of organic food company for operating assets. For a holding company to and beverages have grown add value, it must demonstrate to its stakeholders that ownership of operating assets through the holding from $1 billion in 1990 corporation is a superior alternative to direct ownership to $26.7 billion in 2010. of these assets. We add value by: Source: Organic Trade Association’s • Identifying opportunities to invest in categories that 2011 Organic Industry Survey are growing relatively faster than our core, but may lack independent scale (e.g. private label and active nutrition). • Acquiring or recruiting management teams capable of Post Holdings competes for your capital alloca- driving consolidation. tion. To earn it we must deliver risk adjusted returns • Maintaining Centers of Excellence that allow for commensurate with your assessment of risk and your enterprise wide resource sharing while not inhibiting alternatives. Perhaps uniquely, we view Post as a hybrid the adaptive cultures that make each unit successful. of a traditional public company and a private equity Examples include: fund. We use many of the same tools as a private - Sales force concentration equity company – relatively higher leverage, investment - Market development, analytics and shared analysis and adaptive management. We also view our marketing services portfolio as dynamic, reacting to opportunities as they - Information Technology develop. However, unlike most private equity firms, we - Direct and indirect purchasing also provide Centers of Excellence to create competi- - Treasury, Tax and Risk Management tive advantages for our operating companies. And we - Legal and Human Resources do this in the public forum allowing our investors • Utilizing strategic portfolio management rather than greater transparency and, most importantly, the ability maximum synergistic efficiency. to act on their own accord. • Encouraging, enabling, and when warranted, rewarding Hopefully this helps you to better understand how appropriate risk taking. we view Post Holdings and our strategy for adding value. New Packaging Now available in Super Value sizes, Post Foods’ Honeycomb®, Cocoa and Fruity Pebbles™, and Golden Crisp® cereals in large bagged versions address the value conscious consumer. POST HOLDINGS, INC. 2013 ANNUAL REPORT PAGE 3 Now, with respect to our portfolio in 2013, we Attune Foods ended the fiscal year with three businesses. First, in December our initial business, Post Foods, LLC was A combination of two joined by Attune Foods, LLC, which we acquired for acquisitions, Attune Foods is a platform of natural, $9 million. In May, we acquired a group of branded and organic, and non-GMO private label cereal and granola assets for $160 million verified cereal, granola and combined this business under the Attune Foods and snacks, providing banner. In September we acquired Premier Nutrition both branded and private label products. Corporation, a leading marketer of ready-to-drink protein shakes and protein bars, for $186 million. Finally, shortly before the fiscal year end, we announced an agreement to acquire Dakota Growers Pasta Company, Inc., a leading pasta manufacturer in the private label and foodservice channels. Post Foods As you know, Post Foods competes in the mature RTE cereal category. In 2013, the category declined by 2.2% Temple, Peace Cereal, Sweet Home Farm and Willamette in both volume and sales dollars(2). The category decline Valley Granola Company, as well as a sizable private label can be largely attributed to a gradual migration towards business in bulk granola. more portable breakfast alternatives and is also in part In entering this business, Post gained exposure to driven by RTE manufacturers themselves. While under the organic, non-GMO RTE subcategories, predomi- prior ownership, Post Foods was arguably late to recog- nately in the high growth natural channel. RTE cereal nize and adapt to this change in consumer behavior. sales dollars are growing at 9.8% in the natural chan- However, Post Foods has become more competitive nel(3), with non-GMO verified cereal sales dollars through investments in product, brand building and growing at 17.2% in the natural channel(3). customer management. Post Foods net sales for the fiscal year were Premier Nutrition Corporation (PNC) $982.8 million, an increase of 2.5%. Fiscal year 2013 Acquired in September, PNC markets ready-to-drink represents the first time in several years that the Post protein shakes and protein bars under the Premier Protein Foods business has shown annual net sales growth. brand, representing Post’s first out-of-the-bowl eating Our sales growth has come at the expense of more experience. It also markets a glucosamine/chondroitin aggressive pricing. Having stabilized, we are now able supplement under the Joint Juice brand. In acquiring to turn to organic growth. In that regard, our efforts are PNC, Post is focused on two themes impacting the over- focused on demand generation through stronger mar- all food business, but that have a more profound impact keting and product enhancements, building a pipeline on RTE cereal: portability and protein. Consumers are of more incremental new product introductions, and increasingly interested in incorporating both themes into executing the fundamentals of shelving, assortment, their daily lifestyles. As consumers continue to seek pricing and merchandising. healthier lifestyles, protein is poised to play an important role in helping them achieve their goals. Attune Foods Premier Protein participates in the Sports Nutrition As mentioned above, in fiscal 2013 Post acquired two and Weight Loss category, which is growing at 13.2%(4). businesses that now comprise Attune Foods. The initial Through PNC, Post acquired a platform in active acquisition comprised of two brands: Erewhon and nutrition and protein, as well as access to a high growth Uncle Sam. The subsequent acquisition added Golden market segment primed for consolidation opportunities. POST HOLDINGS, INC. 2013 ANNUAL REPORT PAGE 4 Dakota Growers Pasta Company At September 30, 2013, we had $1,375.0 million On September 16, 2013, Post announced it had reached in aggregate principal of debt outstanding on our an agreement to acquire Dakota Growers Pasta Company, 7.375% Senior Notes due in 2022.

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