2008 Kraft Fact Sheet

6
INVESTOR FACT SHEET

Transcript of 2008 Kraft Fact Sheet

Page 1: 2008 Kraft Fact Sheet

INVESTOR

FACT SHEET

Page 2: 2008 Kraft Fact Sheet

Kraft at a Glance — 2007 Consumer Sector Data

Net Revenues in Billions*

Revenue Change Versus Prior Year

Percentage of 2007 Net Revenues*

$ 37.2 + 8.4%*Does not add due to rounding

Total

Snacks $ 11.4 + 13.3%31%

Beverages $ 8.1 + 10.0%22 %

Cheese $ 6.9 + 8.0%19%

We are one of the largest food and beverage companies in the world. Hundreds of millions of times a day, we help people eat and live better.

Grocery $ 5.1 + 0.8 %14%

Convenient Meals $ 5.8 15% + 4.7%

*

Drive down costs without compromising quality

Rewiring the organization for growth

Reframe our categories

Exploit our sales capabilities

Our strategies for growth

Go. See.While we can tell you more, showing you is better.

Go to www.newkraft.com

Page 3: 2008 Kraft Fact Sheet

Name Shares % of KFT

Top Institutional Holders* (Shares in Millions)

132.4 8.6%62.0 4.0%46.5 3.0%46.4 3.0%34.3 2.2%31.9 2.1%27.0 1.8%25.6 1.7%25.2 1.6%

Berkshire Hathaway, Inc. State Street Global Advisors Barclays Global Investors NA Vanguard Group, Inc. Lord Abbett & Co. LLC Barrow, Hanley, Mewhinney & Strauss, Inc. Capital Research Global Investors Morgan Stanley & Co., Inc. Van Kampen Asset Management Capital World Investors 23.4 1.5%

*As of December 31, 2007 per 13F filings

n Our products are present in more than 99% of U.S. households.

n Kraft markets many of the world’s leading food brands. We have nine brands with revenues exceeding $1 billion and more than 50 additional brands with revenues greater than $100 million. More than 40 of our brands are more than 100 years old.

n Our billion dollar brands include: Kraft, Jacobs, LU, Maxwell House, Milka, Nabisco and its Oreo brand, Philadelphia, and Oscar Mayer.

n We have approximately 103,000 employees worldwide and more than 180 manufacturing and processing facilities worldwide.

n Millions of times a day, in more than 150 countries, consumers reach for their favorite Kraft brands.

n Meeting our responsibilities as a public company and global citizen is the right thing to do and right for our business.

n We are a member of the Dow Jones Sustainability Index.

With revenues of $37 billion, Kraft Foods Inc. is one of the world’s largest food and beverage companies.

We are turning the brands that consumers have lived with for years into brands they can’t live without.

Page 4: 2008 Kraft Fact Sheet

Financial Trends

05

10152025303540

20072006200520042003 20072006200520042003

0.0

0.2

0.4

0.6

0.8

1.0

1.2

2007200620052004200320072006200520042003

Page 5: 2008 Kraft Fact Sheet

(in millions, except per share data) 2007 % Change

Net revenues $37,241 8.4%Operating income 4,331 (4.2%)Net earnings 2,590 (15.4%)Diluted earnings per share 1.62 (12.4%)

Financial Highlights Consolidated Results

Reported Diluted EPS (GAAP) $ 1.62 $ 1.85 $ 1.55 $ 1.55 $ 2.01

Discontinued operations1 – – 0.17 – (0.06)

Continuing operations 1.62 1.85 1.72 1.55 1.95

Asset impairment, exit,implementation and other costs 0.23 0.44 0.20 0.27

Gain on United Biscuits redemption – (0.09) – – –

Gains on divestitures, net – (0.02) (0.04) – (0.01)

Interest on Altria tax reserve (0.03) – – – –

Favorable resolution of the Altria Group, Inc. 1996-1999IRS tax audit – (0.24) – – –

Diluted EPS, continuing operations,excluding items (Non-GAAP)* $ 1.82 $ 1.94 $ 1.88 $ 1.82 $ 1.94

2007 2006 2005 2004 2003

GAAP to Non-GAAP Bridge

1 In 2004, income from discontinued operations of $0.05/share was offset by $0.05/share of asset impairment and implementation costs associated with discontinued operations

* May not add due to rounding

2007 2006 2005 2004 2003Summary of Operations:

Selected Financial Data - Five Year Review (in millions of dollars, except per share and employee data)

Net revenues $ 37,241 $ 34,356 $ 34,113 $ 32,168 $ 30,498Cost of sales 24,651 21,940 21,845 20,281 18,531Operating income 4,331 4,521 4,749 4,609 5,856Interest and other debt expense, net 604 510 636 666 665Earnings from continuing operations, before income taxes 3,727 4,011 4,113 3,943 5,191Pre-tax profit margin from continuing operations 10.0 % 11.7 % 12.1 % 12.3% 17.0 %Provision for income taxes 1,137 951 1,209 1,274 1,812(Loss)/earnings from discontinued operations, netof income taxes – – (272) (4) 97Net earnings 2,590 3,060 2,632 2,665 3,476Basic EPS: Continuing operations 1.64 1.86 1.72 1.56 1.95 Discontinued operations – – (0.16) – 0.06 Net earnings 1.64 1.86 1.56 1.56 2.01Diluted EPS: Continuing operations 1.62 1.85 1.72 1.55 1.95 Discontinued operations – – (0.17) – 0.06 Net earnings 1.62 1.85 1.55 1.55 2.01Dividends declared per share 1.04 0.96 0.87 0.77 0.66Weighted average shares (millions) - Basic 1,575 1,643 1,684 1,709 1,727Weighted average shares (millions) - Diluted 1,594 1,655 1,693 1,714 1,728Capital expenditures 1,241 1,169 1,171 1,006 1,085Depreciation 873 884 869 868 804Property, plant and equipment, net 10,778 9,693 9,817 9,985 10,155Inventories 4,096 3,506 3,343 3,447 3,343Total assets 67,993 55,574 57,628 59,928 59,285Long-term debt 12,902 7,081 8,475 9,723 11,591Total debt 21,009 10,821 11,200 12,518 13,462Shareholders’ equity 27,295 28,555 29,593 29,911 28,530Common dividends declared as a % of Basic EPS 63.4 % 51.6 % 55.8 % 49.4 % 32.8 %Common dividends declared as a % of Diluted EPS 64.2 % 51.9 % 56.1 % 49.7 % 32.8 %Book value per common share outstanding 17.79 17.45 17.72 17.54 16.57Market price per common stock share - high/low 37.20-29.95 36.67-27.44 35.65-27.88 36.06-29.45 39.40-26.35Closing price of common stock at year end 32.63 35.70 28.17 35.61 32.22Price/earnings ratio at year end - Basic 20 19 18 23 16Price/earnings ratio at year end - Diluted 20 19 18 23 16Number of common shares outstanding at year end (millions) 1,534 1,636 1,670 1,705 1,722

Number of employees 103,000 90,000 94,000 98,000 106,000

Diluted EPS Bridge,Reported to Ex. Items Key Contacts

Corporate Offices3 Lakes DriveNorthfield, IL 60093www.kraft.com

Investor RelationsKraft Foods Inc.847-646-5494Email: [email protected]/investor

For more information on our corporate responsibility initiatives please visit the Responsibility section of our website at http://kraft.com/About/sustainability

Shareholder Account Assistance Investment Plan for Kraft Foods Wells Fargo Shareowner ServicesP.O. Box 64874St. Paul, MN 55164-0874By phone: 1-866-655-7238

Page 6: 2008 Kraft Fact Sheet

1700

1800

1900

1910

1920

1930

1940

1950

1960

1970

1980

1990

2000

1912

Nat

iona

l Bis

cuit

Com

pany

in

trod

uces

Ore

o co

okie

s.

Bayl

don

and

Berr

y be

gin

selli

ng c

andi

ed fr

uit p

eel

to th

e ci

tizen

s of

Yor

k,

Engl

and.

Jos

eph

Terr

y so

on jo

ins

and

the

busi

ness

gro

ws

to

beco

me

Terr

y’s

of Y

ork.

1767

Joha

nn J

acob

s in

Bre

men

, G

erm

any,

est

ablis

hes

Jaco

bs

Ka�e

e. It

will

ulti

mat

ely

beco

me

one

of E

urop

e’s

lead

ing

co�e

e co

mpa

nies

.

1895

Joel

Che

ek b

lend

s a

spec

ial

co�e

e fo

r the

Max

wel

l Hou

se

Hot

el in

Nas

hvill

e, T

enne

ssee

. It

bec

omes

kno

wn

as M

axw

ell

Hou

se c

o�ee

.

1892

The

Such

ard

com

pany

, es

tabl

ishe

d in

Sw

itzer

land

in

182

5 by

Phi

lippe

Suc

hard

, in

trod

uces

its

�rst

milk

ch

ocol

ate

bran

d, M

ilka.

1901

1908

Theo

dore

Tob

ler,

Swis

s ch

ocol

ate

mak

er, i

ntro

duce

s th

e To

bler

one

choc

olat

e ba

r.C.

W. P

ost s

tart

s hi

s re

ady-

to-e

at c

erea

l co

mpa

ny in

Bat

tle

Cree

k, M

ichi

gan,

w

ith th

e in

trod

uctio

n of

Pos

tum

cer

eal

beve

rage

. H

e in

trod

uces

G

rape

-Nut

s ce

real

tw

o ye

ars

late

r.

1895

The

Nat

iona

l Bis

cuit

Com

pany

is

cre

ated

thro

ugh

a m

erge

r of

doze

ns o

f loc

al a

nd re

gion

al

bake

ries

acro

ss th

e U

.S.

1898

1906

Osc

ar F

. May

er &

Bro

s.,

esta

blis

hed

in 1

883,

is

amon

g th

e �r

st m

eat

pack

ers

to o

btai

n th

e Fe

dera

l Mea

t Ins

pect

ion

stam

p of

app

rova

l.

Jam

es L

. Kra

ft b

egin

s a

who

lesa

le c

hees

e bu

sine

ss in

Chi

cago

, Ill

inoi

s. B

y 19

14 th

e co

mpa

ny o

pens

its

�rst

pla

nt a

nd b

egin

s m

anuf

actu

ring

its o

wn

chee

se.1903

Nam

ed fo

r th

e G

old

Coas

t of A

fric

a, th

e or

igin

of t

he e

xotic

bea

ns u

sed

in it

s su

mpt

uous

cho

cola

tes,

Côte

d’O

r is

born

.

1883

1937

Kraf

t Mac

aron

i & C

hees

e di

nner

ent

ers

natio

nal

mar

kets

with

the

phra

se

“A m

eal f

or 4

...in

9 m

inut

es”.

1916

J.L. K

raft

rece

ives

the

�rst

of m

any

pate

nts

for

his

met

hod

of p

rodu

cing

pro

cess

che

ese.

Plan

ters

intr

oduc

es

the

Mr.

Pean

ut

trad

emar

k �g

ure

afte

r it

was

sub

mitt

ed

by a

sch

oolb

oy

in a

com

pany

- sp

onso

red

cont

est.

1916

Edw

in P

erki

ns m

odi�

es a

sof

t-dr

ink

syru

p ca

lled

Frui

t Sm

ack.

He

conc

entr

ates

it

into

a p

owde

r, pa

ckag

es it

in e

nvel

opes

an

d ch

ange

s th

e na

me

to K

ool-A

id.

1927

Vege

mite

yea

st s

prea

d is

in

trod

uced

in A

ustr

alia

by

Fre

d W

alke

r & C

o.

of M

elbo

urne

. In

1926

Kr

aft C

hees

e Co

mpa

ny

acqu

ires

an in

tere

st in

th

e co

mpa

ny.

1923

J.L. K

raft

& B

ros.

Co.

ch

ange

s its

nam

e to

Kr

aft C

hees

e Co

mpa

ny,

goes

pub

lic a

nd h

as it

s �r

st s

hare

s tr

aded

.

1924

1928Kr

aft C

hees

e Co

mpa

ny

acqu

ires

the

Phen

ix C

hees

e Co

rpor

atio

n, m

aker

of

Phila

delp

hia

Bran

d cr

eam

ch

eese

(int

rodu

ced

in th

e U

.S. i

n 18

80),

and

chan

ges

its n

ame

to K

raft

-Phe

nix

Chee

se C

orpo

ratio

n.

1933 M

iracl

e W

hip

sala

d dr

essi

ng

is in

trod

uced

at t

he C

hica

go’s

Cent

ury

of P

rogr

ess

Wor

ld’s

Fair.

1936

The

Wie

nerm

obile

mak

es it

s �r

st

appe

aran

ce fo

r Osc

ar M

ayer

& C

o.1929

Osc

ar M

ayer

beg

ins

bran

ding

its

wie

ners

w

ith a

yel

low

pap

er b

and

bear

ing

the

com

pany

nam

e, a

n in

dust

ry �

rst.

Gev

alia

co�

ee is

in

trod

uced

in S

wed

en.

1920

The

Keny

an C

o�ee

Com

pany

in

Lond

on b

egin

s pr

oduc

ing

fres

h gr

ound

co�

ee th

at w

ill b

ecom

e kn

own

as K

enco

.19

23

1928 Kr

aft-

Phen

ix

Chee

se C

ompa

ny

intr

oduc

es V

elve

eta

proc

ess

chee

se

food

in th

e U

.S.

and

Cana

da

sim

ulta

neou

sly.19

34

Ritz

cra

cker

s ar

e in

trod

uced

by

the

Nat

iona

l Bis

cuit

Com

pany

.

1929

Post

um C

ompa

ny, m

aker

of

Pos

t cer

eals

, cha

nges

its

nam

e to

Gen

eral

Foo

ds

Corp

orat

ion

afte

r acq

uirin

g se

vera

l bra

nds,

incl

udin

g Ba

ker’s

, Max

wel

l Hou

se,

Min

ute

tapi

oca

and

Jell-

O.

1965 M

arab

ou, a

sis

ter c

ompa

ny o

f Fre

ia,

foun

ded

in 1

916,

acq

uire

s Sw

edis

h sn

ack

food

pro

duce

r Est

rella

.

Cool

Whi

p no

n-da

iry

topp

ing

is in

trod

uced

in th

e U

.S.1966

1942

Max

wel

l Hou

se in

stan

t co�

ee

is s

uppl

ied

to U

.S. t

roop

s ov

erse

as a

nd la

ter (

1945

) so

ld to

con

sum

ers.

1950

Kraf

t Del

uxe

proc

ess

chee

se s

lices

are

the

�rst

com

mer

cial

ly

pack

aged

slic

ed

chee

se.

1950

Osc

ar M

ayer

in

trod

uces

“slic

e-pa

k”

the

indu

stry

’s �r

st

vacu

um-s

eale

d pa

ckag

e fo

r mea

t pro

duct

s.

1950

Jell-

O in

stan

t pud

ding

is

intr

oduc

ed b

y G

ener

al F

oods

.

The

Osc

ar M

ayer

wie

ner j

ingl

e is

in

trod

uced

in T

V ad

vert

isin

g. “O

h, I

wis

h I w

ere

an O

scar

May

er w

iene

r...”

1963

Gen

eral

Foo

ds a

cqui

res

Perk

ins

Prod

ucts

Com

pany

, m

aker

of K

ool-A

id p

owde

red

soft

drin

ks.

1952

Nat

iona

l Bis

cuit

Com

pany

see

s th

e ne

ed fo

r a u

nify

ing

sym

bol

to a

ttra

ct c

onsu

mer

s’ at

tent

ion

and

intr

oduc

es th

e no

w-f

amili

ar

red

grap

hic

Nab

isco

tria

ngle

in

the

uppe

r lef

t-ha

nd c

orne

r of a

ll its

pac

kagi

ng.

Chee

z W

hiz

is in

trod

uced

in

test

mar

kets

an

d is

ava

ilabl

e na

tiona

lly th

e ne

xt y

ear.

1952

1957

Gen

eral

Foo

ds in

trod

uces

Tan

g br

eakf

ast b

ever

age

crys

tals

.

Chip

s Aho

y! c

hoco

late

chi

p co

okie

s m

ake

thei

r �rs

t app

eara

nce.

The

y ar

e pa

ckag

ed in

a m

odi�

ed c

o�ee

bag

th

at c

ould

be

re-r

olle

d an

d se

aled

af

ter i

t’s �

rst o

pene

d.

1963

Nei

l Arm

stro

ng

beco

mes

the

�rst

m

an to

wal

k on

the

moo

n. T

ang

pow

dere

d be

vera

ge a

nd O

scar

M

ayer

wie

ners

are

use

d on

boa

rd A

pollo

11.

1969

The

Lunc

habl

es li

ne o

f con

veni

ent

light

mea

ls is

intr

oduc

ed in

the

U

.S. –

late

r in

Cana

da a

nd th

e U

.K.

(199

0) a

nd G

erm

any

(199

8).

1988

Kraf

t Gen

eral

Foo

ds (K

GF)

In

tern

atio

nal a

cqui

res

Jaco

bs

Such

ard

AG

for $

4.2

billi

on.

This

incl

udes

Tob

lero

ne, M

ilka

and

Côte

d’O

r cho

cola

tes

and

Jaco

bs

co�e

e, a

mon

g ot

her b

rand

s.

1990

KGF

acqu

ires

the

right

s to

Cap

ri Su

n, a

ll-na

tura

l si

ngle

-ser

ve fr

uit d

rinks

, fr

om th

e W

ild C

ompa

ny

in G

erm

any.

1991

Gen

eral

Foo

ds

acqu

ires

Osc

ar

May

er &

Co.

, Inc

.

1981

Ajin

omot

o G

ener

al F

oods

(A

GF)

, joi

nt v

entu

re w

ith

Ajin

omot

o, c

reat

ed

in J

apan

.

1973

Shar

es o

f Kra

ft F

oods

Inc.

st

ock

begi

n tr

adin

g on

the

New

Yor

k St

ock

Exch

ange

.

Kraf

t Foo

ds p

artn

ers

with

Ra

info

rest

Alli

ance

on

sust

aina

ble

co�e

e in

itiat

ive.

Tass

imo

hot b

ever

age

syst

em

laun

ches

in F

ranc

e; o

ther

co

untr

ies

soon

follo

w.

Kraf

t Foo

ds a

cqui

res

the

glob

al b

iscu

it bu

sine

ss o

f Gro

upe

Dan

one.

Kraf

t Foo

ds is

spu

n o�

from

pa

rent

com

pany

Altr

ia G

roup

Inc.

an

d be

com

es fu

lly in

depe

nden

t.

2001

1982

Gen

eral

Foo

ds

intr

oduc

es C

ryst

al L

ight

po

wde

red

drin

k m

ix.

1972

Gen

eral

Foo

ds in

trod

uces

Sto

ve T

op

stu�

ng m

ix in

to te

st m

arke

ts. I

t is

avai

labl

e na

tiona

lly in

197

3.

Kraf

t mak

es k

ey a

cqui

sitio

ns

in b

oth

Asi

a Pa

ci�c

, and

Ce

ntra

l and

Eas

tern

Eur

ope,

in

clud

ing

Aus

tral

ia, R

ussi

a an

d Tu

rkey

.

2002

1979

HA

G A

G o

f Bre

men

, Ger

man

y,

foun

ded

by D

r. Lu

dwig

Ros

eliu

s in

190

6, is

acq

uire

d by

Gen

eral

Fo

ods

Corp

.

1970

Don

g Su

h Fo

ods

join

t ven

ture

is

form

ed in

Kor

ea

with

Gen

eral

Foo

ds.

1988 Kr

aft,

Inc.

bec

omes

a p

art

of P

hilip

Mor

ris C

os. w

hich

pu

rcha

ses

Kraf

t for

$12

.9 b

illio

n.

Tom

bsto

ne P

izza

Cor

p.,

man

ufac

ture

r of

froz

en p

izza

si

nce

1962

, be

com

es p

art

of th

e Kr

aft

bran

d po

rtfo

lio.

1986

Phili

p M

orris

Cos

. pur

chas

es

Gen

eral

Foo

ds fo

r $5.

6 bi

llion

.

1985

Mov

ing

swift

ly in

to th

e ne

wly

op

ened

Cen

tral

and

Eas

tern

Eu

rope

an m

arke

t, Kr

aft G

ener

al

Food

s In

tern

atio

nal a

cqui

res

�ve

loca

l con

fect

ione

ry c

ompa

nies

.

1992

Di G

iorn

o, th

e �r

st fr

ozen

, sel

f-ris

ing

crus

t piz

za, i

s in

trod

uced

in th

e U

.S.

Kraf

t acq

uire

s Boc

a Bu

rger

, Inc

., m

anuf

actu

rer o

f soy

-bas

ed

mea

t alte

rnat

ives

.

2000

Phili

p M

orris

Cos

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