2008 Kraft Fact Sheet
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Transcript of 2008 Kraft Fact Sheet
INVESTOR
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
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.
Financial Trends
05
10152025303540
20072006200520042003 20072006200520042003
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2007200620052004200320072006200520042003
(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
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
. ac
quire
s N
abis
co H
oldi
ngs
Cor
p. fo
r $19
.2 b
illio
n an
d in
tegr
ates
it in
to K
raft
Foo
ds,
giv
ing
Kraf
t ow
ners
hip
of
man
y po
wer
hous
e br
ands
.
1953
2000
Gen
eral
Foo
ds a
nd K
raft
mer
ge
to b
ecom
e Kr
aft G
ener
al F
oods
.19
89
1993
Kraf
t acq
uire
s Ba
ck to
Nat
ure
bran
d ce
real
and
gra
nola
bus
ines
s.
2003
2007
Sens
ible
Sol
utio
n, a
labe
ling
prog
ram
to
hel
p co
nsum
ers
easi
ly id
entif
y be
tter
-for
-you
cho
ices
, is
intr
oduc
ed.
Frei
a M
arab
ou,
the
lead
ing
conf
ectio
nery
co
mpa
ny in
Sca
ndin
avia
, is
acq
uire
d fo
r $1.
3 bi
llion
.
2005
1995
2003
2007
2004
Tim
elin
e