Kellogg Company September 6, 2017 Kellogg Company Barclays Global Consumer Staples Conference Boston September 6, 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. Barclays Global Consumer Staples Conference September 6, 2017 2 Page 1 of 18 Kellogg Company September 6, 2017 Agenda Transforming Kellogg Company Transforming U.S. Snacks Improving Financial Performance Barclays Global Consumer Staples Conference September 6, 2017 3 Opportunities Within Industry Trends On-Trend Changing Emerging Return to low Food & Snacking Retail Markets single-digit Packaging Landscape growth * Barclays Global Consumer Staples Conference September 6, 2017 4 Page 2 of 18 Kellogg Company September 6, 2017 On-Trend Food & Packaging – Special K Special K Repositioning and Renovating: Net Sales Change, All Categories, From Weight Loss… …To Inner Strength Currency-Neutral Comparable Basis, Excluding Venezuela Rest of Portfolio Total Company Primary Source of Decline 2016 Barclays Global Consumer Staples Conference September 6, 2017 5 On-Trend Food & Packaging – Kashi Company Kashi Company, RTE Cereal Consumption Sales, Change Vs. Prior Year 5 • 2014 2015 2016 Renovated food and packaging 0 YTD 2017* • Growing in Natural channel -5 • Growing consumption and -10 gaining share in mainstream -15 channels -20 -25 Source: Nielsen, xAOC * YTD 2017 is through Aug. 19 Barclays Global Consumer Staples Conference September 6, 2017 6 Page 3 of 18 Kellogg Company September 6, 2017 Snacking – Building a Global Snacks Powerhouse Net Sales, Reported Basis $13 Billion Going Forward: Cereal • Leverage Pringles global brand & Other • Sustain momentum in U.S. $6 Billion power brands • Redeploy DSD resources to Cereal support more U.S. brands & Other Snacks • Continue global expansion Snacks 2000 2016 Barclays Global Consumer Staples Conference September 6, 2017 7 Retail Landscape – Win Where the Shopper Shops Changing Retail Landscape Snacking Anywhere Anytime • Expanding in E-Commerce • Expanding in high- • Transitioning out of DSD frequency stores • Building new capabilities • Increase share of single-serve • New pack formats for entry price-points Barclays Global Consumer Staples Conference September 6, 2017 8 Page 4 of 18 Kellogg Company September 6, 2017 Emerging Markets – Building Scale and Growing Kellogg Emerging Markets, Volume in Tons Parati, 2017 Joint Ventures 4.5% CAGR 2013-2016 x-JVs and Parati 2012 2016 Barclays Global Consumer Staples Conference September 6, 2017 9 Transformation – 2020 Growth Plan Barclays Global Consumer Staples Conference September 6, 2017 10 Page 5 of 18 Kellogg Company September 6, 2017 Agenda Transforming Kellogg Company Transforming U.S. Snacks Improving Financial Performance Barclays Global Consumer Staples Conference September 6, 2017 11 U.S. Snacks – Right to Grow • Consumer Trends Toward Snacking • Big, Differentiated Brands • Track Record of Innovation • Advanced Data & Analytics Barclays Global Consumer Staples Conference September 6, 2017 12 Page 6 of 18 Kellogg Company September 6, 2017 U.S. Snacks Roadmap Refocus Transform Accelerate 2016 2017-1H 2018 2018/2019 • Restructure Network • Exit DSD • Expand Across Channels • Launch ZBB • Build New Warehouse Sales Org • Drive Joint Value Creation • Establish RGM Capability • Launch Agile Marketing • Increase Brand Investment • Distort Resources • Define New Playbook • End to End Focus Barclays Global Consumer Staples Conference September 6, 2017 13 Refocus – Strong Progress Made Improved Marketing ROI Leading with Innovation Focused Investment Marketing ROI Total Kellogg Snacks Snacks Core 4 Brands Growth Indexed to Industry Benchmark Innovation Share indexed to Category Share 2016 vs. 2015 234 3.8% 148 156 100 2.2% 204 Industry Kellogg Snacks Kellogg Snacks 2015 2016 Benchmark 2015 2016 Total US Snacks Categories Core 4 Kellogg Snacks Brands Source: Marketing Mix Analytics, Internal Data Source: Nielsen, xAOC, 52 weeks Source: Nielsen, xAOC, 52 weeks; Core 4 brands include Cheez-It, Club, Rice Krispies Treats, and Pringles Barclays Global Consumer Staples Conference September 6, 2017 14 Page 7 of 18 Kellogg Company September 6, 2017 Transform – DSD Transition On Track Customer Alignment Agreed on list-price adjustment, transition timing, joint business planning Core Assortment Aligned on-shelf assortment, culled tail SKUs, agreed shelf space Now 100% Conversion to Warehouse Shipping only to customers’ warehouses, Warehouse halted DSD deliveries Completion of Transition Close distribution centers, execute operational “hypercare” Pivot to “pull-model” commercial activities, increase brand investment Barclays Global Consumer Staples Conference September 6, 2017 15 DSD Transition – What To Expect Next 2017 1H 2018 2H 2018 On • SKU Rationalization • Reduced “tail” SKUs • Less complex portfolio Focused • Transitional pull-back on • Decline in secondary • Scaled & focused merchandising & tertiary displays primary displays • List-price adjustment • List-price adjustment • Increased Brand Investment • Increase Brand Investment • Higher velocity SKUs Stronger • Higher retailer margins • Bigger in-store events and • Growth in consumption, primary displays share, and net sales * • Scaled One Route to Market • Scaled One Route to Market • Initial overhead reductions • Full overhead reductions • Operating profit More Profitable margin in line with • Improving operating profit • Improving operating KNA average * margin * profit margin * * Refers to currency-neutral comparable basis Barclays Global Consumer Staples Conference September 6, 2017 16 Page 8 of 18 Kellogg Company September 6, 2017 Transform – Improved Margin Structure U.S. Snacks, Operating Profit Margin, in Percent, Comparable Basis * 19 DSD Transition 17 +450 bp from 2015 Zero-Based Budgeting 15 2H Improvement Project K 13 12.5% 11 11.4% 9 7 5 2015 2016 2017 2018 * Please refer to appendices for reconciliation of non-GAAP measures to the most directly comparable GAAP measure. Barclays Global Consumer Staples Conference September 6, 2017 17 Accelerate – Redeploy Resources For Growth 1. 2. 3. 4. 5. Increase New Ways Customer Channel End to End Brand of Joint Value Expansion Focus Investment Marketing Creation • More support for • Agile ROI • Higher retailer margins • Pack-formats • Reduced more brands • Occasion-based • Increased in-store •