WK KELLOGG CO KELLOGG COMPANY | 8/9/2023 |
Forward-Looking Statement
This presentation contains, or incorporates by reference, "forward-looking statements," which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, with projections concerning, among other things, the anticipated separation of WK Kellogg Co (together with Kellogg Company, the "Companies"); the Companies' restructuring programs; the integration of acquired businesses; the Companies' strategies, financial principles, projections and plans; and the Companies' sales, earnings, margins, operating profits, costs and expenditures, interest expenses, tax rates, capital expenditures, dividends, cash flow, debt reduction, share repurchases, costs, charges, rates of return, brand building, return on invested capital (ROIC), working capital, growth, new products, innovation, ESG performance, 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 or negatives of these words, although not all forward-looking statements contain these identifying words. The Companies' actual results or activities may differ materially from these predictions.
The Companies' future results could be affected by a variety of other factors, including the ability to effect the separation and to meet the conditions thereto; the ability of Kellanova and WK Kellogg Co to succeed as standalone publicly traded companies; potential uncertainty during the pendency of the separation that could affect the Companies' financial performance; the possibility that the separation will not be completed within the anticipated time period or at all; the possibility that the separation will not achieve its intended benefits; the possibility of disruption, including changes to existing business relationships, disputes, litigation or unanticipated costs in connection with the separation; uncertainty of the expected financial performance of the Companies following completion of the separation; negative effects of the announcement or pendency of the separation on the market price of the Companies' securities and/or on the financial performance of the Companies; evolving legal, regulatory and tax regimes; changes in general economic and/or industry specific conditions; actions by third parties, including government agencies; and other risk factors as detailed from time to time in the Companies' reports filed with the SEC, including Kellogg Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Forms 8-K and other documents filed with the SEC, and WK Kellogg Co's Registration Statement on Form 10, as amended, as filed with the SEC. The foregoing list of important factors is not exclusive.
Forward-looking statements speak only as of the date they were made, and the Companies undertake no obligation to update them publicly.
This presentation includes non-GAAP financial measures. Please refer to the Kellogg Company's earnings press releases, which are available on the Investor Relations page on the Company's website, www.Kelloggcompany.com, and the Appendix provided herein 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 companies and their segments. However, these non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as an alternative to GAAP measures.
Day@K Investor Day 2023 | 1
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Introducing
WK Kellogg Co
Gary Pilnick, Chief Executive Officer
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KELLOGG COMPANY | 8/9/2023 |
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Today Tomorrow
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KELLOGG COMPANY | 8/9/2023 |
Everything we do
will be in service of
cereal
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Agenda
Introducing WK Kellogg Co | Gary Pilnick, Chief Executive Officer | ||
Building on a Foundation of Iconic Brands | Doug VanDeVelde, Chief Growth Officer | ||
Integrating and Focusing Our Commercial Plan to Win | Doug VanDeVelde, Chief Growth Officer | ||
Bruce Brown, Chief Customer Officer | |||
Modernizing Our Supply Chain | Sherry Brice, Chief Supply Chain Officer | ||
Strong and Improving Financial Profile | David McKinstray, Chief Financial Officer | ||
Closing and Q&A | WK Kellogg Co Leadership Team | ||
Day@K Investor Day 2023 | 6 |
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KELLOGG COMPANY | 8/9/2023 |
Our Purpose
We exist to create joy
and connection to
inspire Gr-r-reat days
Day@K Investor Day 2023 | 7
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Strong foundation, compelling opportunity
Our foundation | Our opportunity | |
Today | Tomorrow | |
• 117-year heritage | + | • Focus on winning in cereal |
• A leading category position | • Integrate end-to-end to | |
• Powerful portfolio | drive better execution | |
• Highly experienced | • Invest in capabilities, | |
technology, and | ||
management team | infrastructure | |
• Gaining momentum |
Strong financial profile, attractive investment
- Stable top line and share growth
- Outsized margin growth
- Attractive dividend
Day@K Investor Day 2023 | 8
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KELLOGG COMPANY | 8/9/2023 |
Today: WK Kellogg Co at a glance
Adjusted Net Sales* | Manufacturing network |
(2022, $2.7 billion) | |
Belleville, ON |
Battle Creek,
MI
Omaha, NE
Lancaster, PA
Memphis, TN
Mexicali, MX
US Retail US AFH Canada Carribean
$2.7 billion | 3000+ | ~800 million1 | 170 |
revenue | employees | pounds of cereal | combined years of |
management experience | |||
produced per year | |||
at Kellogg | |||
*See Appendices for reconciliation to GAAP measures | Day@K Investor Day 2023 | 9 | ||
1) 2023 budgeted production pounds in 6 manufacturing plants referenced |
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Today: Iconic brands, beloved characters
Day@K Investor Day 2023 | 10
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KELLOGG COMPANY | 8/9/2023 |
Today: Leading position in large, strategically relevant category
Strong retailer relationships
- $10.4 billion category in North America1
- #3 center of store food category2
- ~50 million consumer purchase decisions every week
- WK Kellogg Co #2 largest seller of ready-to-eat cereal in the US; #1 in Canada and Caribbean
Deep connection to consumers
- Cereal is the #1 choice in breakfast food for children, #2 for adults3
- Important everyday offering across multiple eating occasions
- WK Kellogg Co >60% household penetration
- Responds to brand building and innovation
1) | According to data provided by Nielsen for the 52-week period ended April 1, 2023 | Day@K Investor Day 2023 | 11 |
2) | Numerator, 52-week period ended April1 2023 | |
3) | Circana, National Eating Trends, 12 months ending March 2023 |
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Today: Business recovering, building momentum
Adjusted Net Sales *
$ in billions | |||||
• | Topline recovering well from one-time events | $2.8 | |||
$2.7 | |||||
• Replenishing supply and driving better service | |||||
$2.4 | |||||
levels | |||||
• Building on recent momentum and strong | |||||
market position to regain share | |||||
• Plans to unlock future growth potential and | |||||
capture sizable margin opportunity | |||||
2020 | 2021 | 2022 | |||
* See Appendices for reconciliation to GAAP measures | Day@K Investor Day 2023 | 12 |
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KELLOGG COMPANY | 8/9/2023 |
Highly experienced leadership team
Gary Pilnick | Norma | Shannon Bible | Sherry Brice | Bruce Brown |
Chief Executive | Barnes-Euresti | Chief Transformation | Chief Supply | Chief Customer |
Officer | Chief Legal | Officer | Chain Officer | Officer |
Officer |
Mike Christensen | Stacy Flathau | Sarah Ludmer | David McKinstray | Bill Rex | Doug VanDeVelde |
Chief Human | Chief Corporate Affairs | Chief Wellbeing and | Chief Financial | Chief Information | Chief Growth |
Resources Officer | Officer | Sustainable Business | Officer | Officer | Officer |
Officer | |||||
Day@K Investor Day 2023 | 13 |
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Strong and experienced Board
Gary Pilnick | Wendy Arlin | Michael Corbo |
Director and CEO | Director | Director |
Zack Gund | Mindy Sherwood | Ramón Murguía | Julio Nemeth |
Director | Director | Director | Director |
Day@K Investor Day 2023 | 14
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KELLOGG COMPANY | 8/9/2023 |
Clear path to value creation
Value Creation
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Grow and Expand:
Mid-Term
Sustain profitable growth momentum, expand the portfolio
Build On Our Strong Foundation: | • | Top line growth | |
Near-Term | |||
• | Continued margin expansion | ||
• | Higher cash flow | ||
Focus, integrate, and invest in supply chain | • Increasing returns to shareowners | ||
• Stable top line and share growth | |||
• | Outsized margin growth | ||
• | Attractive dividend |
Time Horizon
Day@K Investor Day 2023 | 15
Focused strategy
Focus, integrate, and invest to drive adjusted EBITDA dollar growth and margin expansion
Our Priorities
Integrate and | Modernize our | Unleash an | • | Stable top line |
focus our | supply chain | energized and | and share | |
commercial | winning culture | growth | ||
• | Outsized | |||
plan to win | ||||
margin growth | ||||
• | Attractive | |||
dividend |
Day@K Investor Day 2023 | 16
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KELLOGG COMPANY | 8/9/2023 |
Integrate and focus our commercial plan to win
- Focus singularly on winning in cereal
- Unleash a cereal-dedicated sales organization
- Integrate all brand and channel strategies for the first time
- Build on our iconic portfolio of category-leading brands
- Launch a new marketing model and a robust innovation pipeline
Commercial | Supply | Culture | Financial |
Plan | Chain | ||
Profile |
- Grow share
- Expand margins
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Modernize our supply chain
- Invest in technology and automation
- Realign the manufacturing network
- Drive end-to-end operating efficiencies and high- performing teams
Commercial | Supply | Culture | Financial |
Plan | Chain | ||
Profile |
- Significantly improve gross margin
- Grow EBITDA
Day@K Investor Day 2023 | 18
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KELLOGG COMPANY | 8/9/2023 |
Unleash an energized and winning culture
Our Beliefs and Behaviors
- Bring Out the Best in Each Other
- Show Up as One Company
- Create and Act Boldly
- Have a 'Make it Better' Mindset
- Win with Purpose
Commercial | Supply | Culture | Financial |
Plan | Chain | ||
Profile |
A bold, entrepreneurial, connected community that is hungry and ready to win
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Our Purpose | |||
We exist to create joy and | |||
OUR STRATEGIC | connection to inspire | ||
Gr-r-reat days | |||
FRAMEWORK | What We Do | ||
We bring our best to | |||
everyone, every day through | |||
our trusted foods and brands | |||
Our Priorities | |||
Drive an Integrated | Invest to | Unleash a | |
Commercial Plan to | Modernize our | Purpose-Driven | |
Win in Cereal | Supply Chain | Culture | |
Our Beliefs and Behaviors | |||
Bring Out | Show Up | Create | |
the Best in | as One | and Act | |
Each Other | Company | Boldly |
Have a | Win With |
"Make it Better" | |
Purpose | |
Mindset | |
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Disclaimer
WK Kellogg Co. published this content on 08 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 November 2023 11:10:59 UTC.
