Wm. Wrigley Jr. Company Investor Presentation First Quarter 2005 April 27-29, 2005 New York, Boston First Quarter Volume +17% Index 175 148 133 129 120 2001 2002 2003 2004 2005 First Quarter 2005 Highlights • Strong volume shipment growth around the globe –North America +6% – EMEAI +16% – Asia +42% – Latin America +69% First Quarter Sales +17% Millions of Dollars 950 812 672 599 556 2001 2002 2003 2004 2005 North America • North America sales up 7% – U.S. sales up 5% • Strong performance of Orbit, Orbit White and Extra • Despite lapping last year’s first quarter launch of Eclipse mints – Canada sales up 28% • Shipment volume growth • Currency Asia Region • Sales up 39% – China • Extra in new bottle packaging •Doublemint – Vietnam and Taiwan • Approximately a third of the sales gain from Joyco EMEAI Region • EMEAI sales up 16% – Strong double-digit growth in Eastern and Central Europe • Russia, Ukraine and Poland – Joyco contributed slightly over one third of sales gain – Currency also made favorable contribution First Quarter Earnings Per Share +18% Dollars .58 .49 .43 .38 .36 2001 2002 2003 2004 2005 First Quarter 2005 Highlights • Gross Margins increased to 56.6% – 20 basis point improvement – Positive contribution from lower product costs, offset by current margins on Joyco products Global Confectionery Overview • Gum and sugar confectionery represent approximately $55 billion of the estimated $118.8 billion global confectionery business Non-Chocolate, Sugar Confectionery 33% Gum 13% Chocolate 54% Source: National Confectioners Association: World Confectionery Report and Export Handbook Global Confectionery Overview • 2004 year over year dollar sales increased across all product segments Total Confectionery +10% Gum +11.2% Chocolate +10.4% Non-chocolate confectionery +8.8% Source: National Confectioners Association: World Confectionery Report and Export Handbook Global Confectionery Sales Growth Region Percent of Percent Change Global Sales 2004 vs. 2003 Western Europe 38.8% +15.0% Eastern Europe 8.3% +8.8% North America 24.1% +2.5% Latin America 8.2% +11.6% Asia Pacific 15.0% +8.4% Australasia 2.3% +26% Africa & ME 3.3% +8.9% Source: National Confectioners Association: World Confectionery Report and Export Handbook Top 10 Global Confectionery Geographies Geography Approximate Percent of Almost 3X bigger World Total than next leading geography USA 23.1% Germany 8.5% UK 7.7% Japan 7.1% Russia 4.6% France 4.3% China 3.9% Italy 3.8% Brazil 3.0% Mexico 2.5% Source: Euromonitor International – The World Market for Confectionery, 2004 U.S. Confectionery Business • Ex Convenience and Wal-Mart, IRI estimated total U.S. confectionery market at 10.4 billion • Confectionery sales through FDMX up 1.6% 2004 vs. 2003 • But these numbers are not complete: – Non-traditional and untracked retail outlets are responsible for an increasingly larger percentage of candy sales – Convenience stores represent a large portion of gum sales – Dollar stores are the fastest growing retail segment in the U.S. – Wal-Mart continues to outperform retailers in general • Confectionery business is stronger than reported numbers would indicate IRI data for 52 week s ended Dec. 26, 2004 How important is confections to Retailers? Confections is purchased by On average, consumers spend 98% $80 per year of all households on the Confections Category This is more than… This is more than… Milk 97% Fresh Produce $74 Fresh Bread 97% Cereal $74 Fresh Produce 96% Cheese $71 Soup 95% Dry Dog Food $66 Cereal 95% Regular Cola $61 Eggs 94% SS Juice $58 Source: AC Nielsen, Homescan Panel – A ll O utlets, C Y2003 Confections is a top 10 category in all major retail channels r ank Grocery Drug Mass SuperCenter Club Dollar Convenience CARBONA TED CARBONA TED 1 BEVERA GES CONFECTIONS CONFECTIONS BEVERAGES CONFECTIONS CONFECTIONS CIGARETTES HOUSEHOLD 2 MILK VITAMINS CIGARETTES CONFECTIONS CIGA RETTES CLEA NER FOODSERVICE FZ DINNE R S / CA RBONATED LAUNDRY LA UNDRY 3 ENTREES BEVERA GES PET SUPPLIES MILK DETERGENT DETERGENT PKG BEVERAGES HOME HEA LTH 4 COLD CEREA L CA RE/KITS DIA PERS DOG FOOD VITAMINS SA LTY SNA CKS BEER FRESH BREA D & CA RBONATED FOOD & TRASH GENERA L 5 ROLLS CIGARETTES VITAMINS SALTY SNACKS BEVERA GES BAGS MERCHANDISE INTERNAL FZ DINNERS/ 6 SALTY SNACKS A NA LGES ICS DOG FOOD ENTREES TOILET TISSUE COOKIES CONFECTIONS ICE LA UNDRY 7 CREA M/S HERBET SKIN CA RE DETERGENT COLD CEREAL FZ POULTRY SOAP SALTY SNACKS 8 NATURA L CHEESE HAIR COLORING TOILET TISSUE PET SUPPLIES SALTY SNACKS TOILET TISSUE OTHER TOBA CCO CA RBONA TED FRESH BREA D & SNACK BARS/ FLUID MILK 9 SOUP BA TTERIES BEVERAGES ROLLS GRA NOLA BA RS BATTERIES PRODUCTS GA STRO. - PKG SWEET 10 CONFECTIONS TABLETS TIGHTS/SOCKS VITA MINS DOG FOOD VITA MINS SNACKS Confections is a Routine, or Destination category in all major channels. Source: IRI Cross-Channel Differentiation Study, Dollar Sal es May 2003/C-Store: 2004 NACS State of the Industry Wrigley has grown through both new item innovation and strong base business Total US Gum/Mint/Strips sales in 2004 up approximately 3% vs YA $103 $56 $47 $21 $11 $16 $11 $10 $5 $6 -$38 -$54 Wrigley G/M/S Cadbury G/M/S Hershey G/M/S* Kraft G/M/S Total Business Base Business 2004 New Items Dollar Growth 2004 vs. YA ($MM) Source: IRI InfoScan, Total US FDMxC – YTD ending 11/ 21/ 04 * Includes Liquid Ice data for FDMx ), C-Store is not available Flavor variety is a key factor for consumers and critical to new product success 2 of the top 3 “Purchase Drivers” for Gum Consumers focus on FLAVOR 1. Longer Lasting Flavor 2. More Flavor Options 3. Better Packaging Source: Spencer Hall/ Wrigley Gum & Mint Exploratory Qualitative Research • Studies of successful new product launches stress that offering FLAVOR VARIETY for a brand is a critical success factor for a new item’s future! • “Variety stimulates and sustains consumer interest and broadens product appeal” • “Offering a full line of different flavors… is a critical success factor for many Food Pacesetters (i.e. Successful new products)” Source: IRI New Product Pacesetters 2002 Source: Gallup St udy, 2002 Meeting consumer needs •New Offerings from Wrigley in Second Half of the Year – Across 4 brands •Orbit • Juicy Fruit • Hubba Bubba • Eclipse – Addressing both adult and kid consumers Orbit has contributed nearly 7X the absolute dollar sales growth of any other Sugarfree brand FDMxC Dollar Share of Sugarfree Gum FDMxC Dollar Growth of Sugarfree Gum Source: IRI FDMxC - 52 weeks ending 11/ 21/ 04 Dollar Chg vs YAG -FDMxC YTD ending 11/21/04 Orbit has grown to the # 2 brand in Gum in less than 4 years and is still the fastest growing brand in the category Total Orbit Brand FDMxC Dollar Share of Total Gum $ $ Share Growth Rank Rank FDMxC #2 #1 Food #2 #1 Drug #2 #1 Mass-x #1(tie) #1 C-Store #2(tie) #1 Source: IRI FDMxC 12 Weeks endi ng 11/ 23/01, 12/ 22/ 02, 12/21/ 03, 11/21/ 04 Bubblemint & Cinnamint have provided incremental sales to the already growing Orbit brand FDMxC Trended Dollar Sales Source: IRI FDMxC 25 qua dweeks ending 11/21/ 04 Introducing… Orbit Sweet Mint & Orbit Citrusmint Single Serve Offerings • Unique Sweet Mint and Citrusmint flavors • 14 tab individual package • Suggested retail price of $0.99 3 Pack Multi-Pack Offerings • Suggested retail price of $2.29 New Orbit White represents a quarter of all dental gum Dollar Share of Dental Gum FDMxC Source: IRI FDMxC 12 Weeks endi ng 11/ 21/04 The sales from New Orbit White have been incremental to the Whitening Gum segment Orbit White Adds Incremental Sales to Whitening ACN FDMxC Dollar Sales 11 10 9 8 $M M 7 6 Whitening ex Orbit White ORBIT WHITE GM 5 4 4 W EEK S 4 W EEK S 4 W EEKS 4 WEEKS 4 W EEKS 4 WEEKS 4 W EEKS 4 WEEKS 4 W EEKS 4 WEEKS 4 WE EKS 4 WEEKS 4 WEEKS ENDING ENDING ENDING ENDING ENDING ENDING ENDING ENDING ENDING ENDING ENDING ENDING ENDING 03/20/04 04/17/04 05/15/0 4 06/12/04 07/10/04 08 /07/04 09 /04/04 10 /02/04 10 /30/04 11/27/04 12/25/04 01/22/05 02/19/05 Introducing… Orbit White Bubblemint Single Serve Offerings • Available in great tasting Bubblemint flavor – with appearance enhancing speckles, a key driver of purchase preference! • 12 pellet single serve blister pack at a Suggested Retail Price of $0.89 3 Pack Multi-Pack Offerings • 3 Pak will have a Suggested Retail Price of $1.99 Juicy Fruit is an iconic brand and leads the charge among fruit-flavored gum based on dollar sales Fruit-Flavored Gum accounts for more than $150 million in retail sales All Other Brands Juicy Fruit Juicy Fruit is the #1 contributor to Fruit-flavored gum growth Almost $50MM Total Fruit-Flavored Gum Growth in 2004 Juicy Fruit contributed 35% of Total Fruit-flavored Gum growth in 2004 All Other Fruit Gums Juicy Fruit Source: IRI FDMxC Year To Date ending 11/21/ 2004 Juicy Fruit is #1 in unaided brand awareness • #1 Fruit-flavored Gum (Dollar and Unit Sales) • #1 Un-Aided and Total Brand Awareness (all Gum brands) • #1 Past Week Usage among Tweens (all Gum brands) Source: IRI 52 weeks endi ng 11/21/04 and Brand Monitor Sept – Dec 2004 Juicy Fruit pellets were highly incremental to the brand and ignited overall growth $8 $7 $6 $5 $4 Millions $3 $2 $1 $0 July 2003 Nov 2004 Juicy F ruit Stick D ollar Sales ( $MM ) Juicy Fruit Pellet Dollar Sales ($MM) Source: IRI FDMxC 4 weeks ending 11/ 21/2004 Introducing… Juicy Fruit Tropikiwi Kick Mu lt i P ack • Suggested retail of $1.99 Single Serve • 12 pellets per unit • Suggested retail of $0.89 The Hubba Bubba brand has grown nearly 30% vs.