09. Forward-Looking Statements

Tim Mobsby, President – Kellogg Europe Kellogg Company – 11/12/09 Europe Forward-Looking Statements This presentation contains, or incorporates by r...
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Tim Mobsby, President – Kellogg Europe Kellogg Company – 11/12/09

Europe

Forward-Looking Statements This presentation contains, or incorporates by reference, “forward-looking statements” with projections concerning, among other things, the Company’s strategy, 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, brand building, ROIC, working capital, growth, new products, innovation, cost reduction projects, and competitive pressures. Forward-looking statements include predictions of future results or activities and may contain the words “expects,” “believes,” “should,” “will,” “will deliver,” “anticipates,” “projects,” “estimates,” 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 other factors, including competitive conditions and their impact; the effectiveness of pricing, advertising, and promotional spending programs; the success of productivity improvements and business transitions; the success of innovation and new product introductions; the recoverability of carrying amounts of goodwill and other intangibles; the availability of and interest rates on short-term financing; changes in consumer behavior and preferences; commodity and energy prices and labor costs; 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; U.S. and foreign economic conditions including interest rates, taxes and tariffs, and currency rate translations or unavailability; legal and regulatory factors; the ultimate impact of product recalls; the underlying price and volatility of the Company’s common stock and the impact of equity-based employee awards; business disruption or other losses from 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 publicly update them.

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Tim Mobsby, President – Kellogg Europe Kellogg Company – 11/12/09

Europe – Sustainable Growth

Net Sales 4-Year CAGR = 6% (a)

Per Capita Consumption

Core Core Developed Developed Markets: Markets:

U.K. U.K.

Core Core Developing Developing Markets: Markets:

Italy Italy Spain Spain

Emerging Emerging Markets: Markets:

Ireland Ireland

Russia Russia Turkey Turkey

> 5 Kilos > 1 Kilo > 250 grams

(a) Excludes the impact of foreign exchange and includes Russia.

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Tim Mobsby, President – Kellogg Europe Kellogg Company – 11/12/09

Kellogg U.K. Net Sales 4-Year CAGR = 6% (a)

RTEC and Snacks both growth businesses RTEC Snacks

(a) Excludes the impact of foreign exchange.

Kellogg U.K. – RTEC • > 2 times larger than nearest competitor 2009 2009

2005 2005

8% 8%

8% 8% 18% 18%

19% 19%

42% 42%

14% 14%

15% 15% 18% 18%

Kellogg

42% 42%

Competitor A

16% 16%

Competitor B

Private Label

All Others

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Tim Mobsby, President – Kellogg Europe Kellogg Company – 11/12/09

Powerful Brand Portfolio

• 6 of the top 10 brands, 4 of top 5 • Combined share 32.7% + 290 Basis Points (2004 – 2009)

Source: IRI, All Outlets, 52-weeks-ending 8/9/09

Kellogg U.K. – Future Growth Opportunities

• Aging population – 45+ highest per capital consumers of RTEC

• Trend to premium

• Extend RTEC Occasions – Convenience – Nutrition – Value

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Tim Mobsby, President – Kellogg Europe Kellogg Company – 11/12/09

Kellogg U.K. – Future Growth Opportunities

• Brand stretch and portability

• Leverage proven brands into U.K.

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Tim Mobsby, President – Kellogg Europe Kellogg Company – 11/12/09

Continental Western Europe – Sustainable Growth 4-Year Net Sales CAGR > 3% France France

Spain Spain

Italy Italy

Belgium Belgium Germany Germany

Switzerland Switzerland Austria Austria Luxemborg Luxemborg Sweden Sweden

Denmark Denmark

Greece Greece

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Tim Mobsby, President – Kellogg Europe Kellogg Company – 11/12/09

Continental Western Europe

More than just a growth business

• Source of ideas

• Proving ground for food

• Source of talent

Source of Ideas (France)

• #3 brand in category 3 years after launch • Teen and young adult profile • Distinctive food form and positioning • Above average margins

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Tim Mobsby, President – Kellogg Europe Kellogg Company – 11/12/09

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Tim Mobsby, President – Kellogg Europe Kellogg Company – 11/12/09

Kellogg Russia – United Bakers •• #1 #1 or or #2 #2 position position in in 33 scale scale categories categories

A Fantas Platfo tic rm

•• National National manufacturing manufacturing and and distribution distribution capabilities capabilities –– 66 plants plants –– 75% 75% ++ distribution distribution

St. Petersburg Pskov Moscow Vyazma

Gorokhovets

Crackers #1 35% sales

RTEC #2 23% sales

Voronezh Krasnodar

Tyumen

Cookies #2 42% sales

Kellogg Russia – United Bakers

Attractive Fast Growing Categories C EC R RTTE

rrss cckkee a a r r C C ess okkiie C Cooo

•• Growing Growing >> 20%+ 20%+ •• High level of High level of breakfast breakfast consumption consumption •• Opportunity Opportunity to to bridge bridge from from kasha kasha •• Growing Growing >> 30% 30% •• Emerging Emerging category category •• Moving Moving from from bulk bulk to to packaged packaged •• Large Large staple staple category, category, 97% 97% penetration penetration •• Moving Moving from from bulk bulk to to packaged packaged

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Tim Mobsby, President – Kellogg Europe Kellogg Company – 11/12/09

Kellogg Russia – Driving Growth • Evolving Portfolio Bulk Bulk

Packaged Packaged

Premium Premium packaged packaged

• Lyubyatovo brand (goodness of Russian grain)

RTEC RTEC

Cookies Cookies

Crackers Crackers

• Kellogg RTEC Launch

Lyubyatovo

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Tim Mobsby, President – Kellogg Europe Kellogg Company – 11/12/09

Summary – Kellogg Europe Building an even stronger Kellogg

RTEC

Cereal Snacks

Growing Growing on-trend on-trend categories categories

Leadership Leadership position position Powerful Powerful distinctive distinctive brands brands

Full of Opportunities

€ £ Strong Strong financials financials

Untapped Untapped markets markets

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