Europe. Tim Mobsby, President Kellogg Europe Kellogg Company 11/12/09. Forward-Looking Statements

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1 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. 1

2 Europe Sustainable Growth Net Sales 4-Year CAGR = 6% (a) Per Capita Consumption Core Developed Markets: U.K. Ireland > 5 Kilos Core Developing Markets: Italy Spain > 1 Kilo Emerging Markets: Russia Turkey > 250 grams (a) Excludes the impact of foreign exchange and includes Russia. 2

3 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 % 8% 18% 42% 19% 42% 14% 18% 15% 16% Kellogg Competitor A Competitor B Private Label All Others 3

4 Powerful Brand Portfolio 6 of the top 10 brands, 4 of top 5 Combined share 32.7% Basis Points ( ) 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 4

5 Kellogg U.K. Future Growth Opportunities Brand stretch and portability Leverage proven brands into U.K. 5

6 Continental Western Europe Sustainable Growth 4-Year Net Sales CAGR > 3% France Spain Italy Belgium Germany Switzerland Austria Luxemborg Sweden Denmark Greece 6

7 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 7

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9 Kellogg Russia United Bakers #1 or #2 position in 3 scale categories National manufacturing and distribution capabilities 6 plants 75% + distribution A Fantastic Platform Pskov Vyazma St. Petersburg Moscow Gorokhovets Crackers #1 35% sales RTEC #2 23% sales Voronezh Krasnodar Tyumen Cookies #2 42% sales Kellogg Russia United Bakers Attractive Fast Growing Categories RTEC Crackers Cookies Growing > 20%+ High level of breakfast consumption Opportunity to bridge from kasha Growing > 30% Emerging category Moving from bulk to packaged Large staple category, 97% penetration Moving from bulk to packaged 9

10 Kellogg Russia Driving Growth Evolving Portfolio Bulk Packaged Premium packaged Lyubyatovo brand (goodness of Russian grain) RTEC Cookies Crackers Kellogg RTEC Launch Lyubyatovo 10

11 Summary Kellogg Europe Building an even stronger Kellogg RTEC Cereal Snacks Growing on-trend categories Full of Opportunities Leadership position Powerful distinctive brands Strong financials Untapped markets 11