NEW HORIZONS Post Holdings, Inc. 2017 Annual Report Net Sales by Category Weetabix Active Nutrition 2% Post Consumer Brands 14% 35% Private Brands 8% pasta 5% branded potatoes and cheese 9% value-added egg products 27% Michael Foods Group Net Sales Adjusted EBITDA(1) Operating Cash Flow ($ in millions) ($ in millions) ($ in millions) $6,000 $1,200 $600 $4,000 $800 $400 502.4 989.1 5,225.8 5,026.8 933.9 451.6 4,648.2 386.7 $2,000 $400 $200 657.4 216.7 1,034.1 84.1 2,411.1 344.5 $0 $0 $0 163.0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Financial Highlights (in millions except per share data) 2013 2014 2015 2016 2017 Net Sales $ 1,034.1 $ 2,411.1 $ 4,648.2 $ 5,026.8 $ 5,225.8 Gross Profit 424.9 621.2 1,174.4 1,547.4 1,574.1 Operating Profit (Loss) 107.8 (207.7) 212.7 545.7 520.3 Net Earnings (Loss) Available to Common Stockholders 9.8 (358.6) (132.3) (28.4) 34.8 Diluted Net Earnings (Loss) per Common Share $ 0.30 $ (9.03) $ (2.33) $ (0.41) $ 0.50 Operating Cash Flow 84.1 163.0 451.6 502.4 386.7 Adjusted EBITDA(1) 216.7 344.5 657.4 933.9 989.1 Adjusted Net Earnings (Loss) Available to Common Stockholders(1) 31.1 (16.6) 35.7 205.8 211.0 Adjusted Diluted Net Earnings (Loss) per Common Share(1) $ 0.94 $ (0.42) $ 0.62 $ 2.59 $ 2.67 Post Holdings, Inc. 2017 Annual Report 1 To Our Shareholders Post had another strong year in 2017. Once again, we delivered record revenue and Adjusted EBITDA(1). We are particularly proud of this accomplishment despite challenging year-over-year comparisons. Moreover, our results were set against a backdrop of rapid change in both our consumers and our trade partners. In fact, 2017 may prove to be a demarcation point in the way we think about channel management and consumer behavior. 2 Post Holdings, Inc. 2017 Annual Report #1 provider of foodservice value-added eggs 19.1% dollar market share in the U.S. ready-to-eat cereal category Post Consumer Brands Michael Foods Group Perhaps the guiding principle behind Weetabix’s North America business Post Holdings is to be wary of guiding to Post Consumer Brands. We expect principles. This fosters a culture of this combination and our ongoing opportunism well suited to rapid Perhaps the guiding continuous improvement efforts to change and renewal. The environment drive meaningful cost reduction in we face is exciting — and we believe we principle behind Post this segment. are well positioned. Holdings is to be wary of In addition to growing our base business in 2017, we were active on guiding principles. Michael Foods Group the strategic front. Specifically, we Last year we told you that 2017 would acquired one attractive business, — be a challenging year for Michael Weetabix, and announced the acqui- Foods and it was. Michael Foods is a sition of a second, Bob Evans Farms. terrific business in a solid category. Both are of a scale that will add percentage point of the category However, it has certainly been a materially to our company. Meanwhile, decline is offset by a shift to unmea- volatile ride since we acquired this and despite committing over $3 billion sured channels. The most significant business in 2014. Recall, in 2015 an to operating assets, we also shrank our declines occurred in the adult segment avian influenza epidemic — generational equity by repurchasing 4 million shares where consumers are seeking greater in degree — caused the loss of approx- for a total of $318 million. protein consumption. A benefit of imately 25% of our egg laying hen our portfolio approach is that these supply. As of yet, we cannot make eggs consumers are driving growth in other without chickens. Without treading too Post Consumer Brands segments of our business. Meanwhile, much old ground, suffice to say that Our Post Consumer Brands business children’s cereals fared better with a the impact of losing and repopulating remains by market share the number decline of 1.2%(2). Our business tends flocks led to price volatility which led three participant in the U.S. ready- to skew to children’s cereals. to earnings volatility. That is not the to-eat (RTE) cereal category, with Post Consumer Brands was formed steady state for Michael Foods. Histor- category dollar share growing to from the 2015 combination of Post ically, it has had consistent earnings 19.1%(2). The RTE cereal category Foods and MOM Brands. We are in growth and we look for that to resume continued to struggle in 2017, with the final stages of the combination as we exit 2017. We are extremely dollar consumption declines of 3.1%(2). and we have exceeded each of our proud of how we managed this crisis We estimate that approximately one announced goals. In 2017, we added and communicated the degree to Post Holdings, Inc. 2017 Annual Report 3 50% Premier Protein net sales growth in fiscal 2017 Active Nutrition which it would produce a hangover to mixed results. Meanwhile, legacy categories. After a slow start, we throughout 2017. We look forward to a core products suffered distribution course corrected and had a solid return to normal. losses from new entrants. We continue 2017. Our business is well positioned Michael Foods is the largest proces- to believe in the brand’s equity and we with respect to major trends around sor of value-added eggs in the United are more boldly innovating around it. health and private brand initiatives. States. As a result, the long term Our Dymatize business has stabilized — humane care of the layer flock is of albeit at a level that does not support critical importance to us. We are also the price we paid for it. Weakness in its Strategic Activities the largest provider of value-added core channels have made growing the In addition to these key operational eggs from layers housed on cage-free business a challenge. achievements, Post broadened its farms. In 2017, we broadened our portfolio through two highly strategic commitment to cage-free housing by transactions. First, in July we investing an initial $27 million to con- Private Brands acquired Weetabix Limited. Weetabix vert our Bloomfield, Nebraska facility Our Private Brands business includes is the second largest cereal manu- to a cage-free facility. We expect to North America’s leading manufacturer facturer in the United Kingdom and continue to invest in cage-free hen of private label peanut and tree nut its flagship and truly iconic Weetabix housing over the coming years. butters as well as a dried fruit and nut brand is Great Britain's largest single business. Each of these businesses cereal brand. is attractively positioned in on-trend While we have smaller international Active Nutrition business opportunities in the rest of Our Premier Protein brand, the center our business, Weetabix is our first of our Active Nutrition segment, con- major international expansion plat- tinued to deliver terrific results with — form. We believe it to have been the revenues and volumes growing rapidly. ideal first step. In considering interna- We continued to gain distribution in Weetabix is our first tional expansion our calculus was, 2017 and velocities remain strong. The major international and remains, that we are willing to risk brand continues to have great future the learning curve that comes with a growth opportunities. PowerBar was expansion platform. new category or a new market — but acquired in 2015 and we continue to not both. With Weetabix, we are a new work on renovating this brand. We entrant to the U.K. market, but in a introduced new products and flavors category we know well. We believe 4 Post Holdings, Inc. 2017 Annual Report 10% #1 volume growth of organic brand in the U.K. peanut butter and other nut ready-to-eat cereal butters in fiscal 2017 category Private Brands Weetabix Ultimately, our scorecard is determined by how you value our 2017 may prove to be a demarcation shares. From the beginning to the end of fiscal 2017 our share price rose point in the way we think about channel 14% with a high and low of $89.04 management and consumer behavior. and $68.76. While our use of leverage and orientation toward rapid change — introduces some volatility, our focus remains on long-term appreciation in our share price. In closing, we look back at 2017 we entered the U.K. at a time in which organization, and Bob Evans pure with pride, but more significantly political uncertainty afforded an retail. We believe this will enable we look forward to 2018 and beyond attractive entry point when considered each to manage in the most cost with excitement for the promise of in U.S. dollars. We fully expect to see effective and focused manner, while our business. some volatility as the path of Brexit simultaneously positioning each for emerges, but we have great confidence add-on acquisitions. As always, we thank you for your in “this blessed plot.” We continue to use leverage to support. In September, we announced the support acquisition activity. Since acquisition of Bob Evans Farms, a 2012 we have seen a reduction in leading manufacturer of refrigerated our cost of debt as the market interest side dishes and sausage products. We rate has remained low and our credit expect to complete this transaction quality has improved.