GIS Morgan Stanley Conference - November 2012 v18

8/13/2019 GIS Morgan Stanley Conference - November 2012 v18

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General MillsFiscal 2013 Update

Morgan StanleyConsumer Conference

November 14, 2012


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5307-22

This presentation contains forward-looking statements within the meaning of the Private SecuritiesLitigation Reform Act of 1995 that are based on managementscurrent expectations and assumptions.

These forward-looking statements are subject to certain risks and uncertainties that could cause actualresults to differ materially from the potential results discussed in the forward-looking statements. Inparticular, our predictions about future net sales and earnings could be affected by a variety of factors,including: competitive dynamics in the consumer foods industry and the markets for our products,including new product introductions, advertising activities, pricing actions and promotional activities of ourcompetitors; economic conditions, including changes in inflation rates, interest rates, tax rates, or theavailability of capital; product development and innovation; consumer acceptance of new products andproduct improvements; consumer reaction to pricing actions and changes in promotion levels; acquisitions

or dispositions of businesses or assets; changes in capital structure; changes in laws and regulations,including labeling and advertising regulations; impairments in the carrying value of goodwill, otherintangible assets, or other long-lived assets, or changes in the useful lives of other intangible assets;changes in accounting standards and the impact of significant accounting estimates; product quality andsafety issues, including recalls and product liability; changes in consumer demand for our products;effectiveness of advertising, marketing and promotional programs; changes in consumer behavior, trendsand preferences, including weight loss trends; consumer perception of health-related issues, includingobesity; consolidation in the retail environment; changes in purchasing and inventory levels of significantcustomers; fluctuations in the cost and availability of supply chain resources, including raw materials,packaging and energy; disruptions or inefficiencies in the supply chain; volatility in the market value ofderivatives used to manageprice risk for certain commodities; benefit plan expenses due to changes inplan asset values and discount rates used to determine plan liabilities; failure of our informationtechnology systems; foreign economic conditions, including currency rate fluctuations; and political unrestin foreign markets and economic uncertainty due to terrorism or war. The company undertakes noobligation to publicly revise any forward-looking statements to reflect any future events or circumstances.


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Fiscal 20131stQuarter Performance

Net Sales As Reported $4,051 +5%

Segment Operating Profit* $769 +6

International +56

Bakeries & Foodservice +10

Adjusted Diluted EPS* $.66 +3

* Non-GAAP Measure. See Appendix for Reconciliation.

($ in Millions, Except per Share)

$ % Change


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Fiscal 20132nd Quarter Update

Second Quarter Ends Nov. 25, Will ReportResults Dec. 19

Performance Consistent With Our Plans

Annual EPS Guidance Remains $2.65 Before ItemsAffecting Comparability*

* Non-GAAP Measure. Excludes Mark-to-market Effects, Tax Benefit, Restructuring Expense, and Integration Costs.


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U.S. Category Volume Trends ImprovingAs Pricing Moderates

-6%

-4% -5% -4%

-3%

-1%

+1%

-1%

Flat Flat

+8%

+6% +6% +6%+5%

+3%

+2% +1% +1% +1%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Unit Volume Pricing Source: Nielsen XAOC

Aggregate General Mills Categories

(Change vs. LY)

Calendar Year 2012


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U.S. Market Innovation


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The U.S. Yogurt Category TodaySegment Share

Source: Nielsen XAOC, Latest 52 Weeks Ended 10.27.12

Dollar Share by Segment

Greek32%

Light

17%

Regular

17%

Adult Bev.And Specialty

13%

Kid13%

Large-size8%

Adult Bev.And Specialty

15%

Light

20%

Regular19%Greek

19%

Kid19%

Large-size8%

Equivalent Units Share by Segment


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Yoplait GreekRecent Share Gains

Fiscal 2013

5.9 5.6 5.5

7.8

8.9

June July Aug Sep Oct

Yoplait Greek Dollar Share(Share of Greek Segment)

Source: Nielsen XAOC


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Improving Core Cup Trends

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Jun Jul Aug Sep Oct

Unit Turns Per National Distribution PointRolling 12-week Average - Change vs. LY


Fiscal 2013


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Seasonal Innovation from Yoplait

I usually don't write love letters to food

products but, I will trade my husband for

pumpkin pie light Yoplait!

-- Quote from a Yoplait consumer


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Regional Expansion -Libert

Expanding Now inSelect Markets

Coming in Januaryto ExistingCustomers


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Regional Expansion -Mountain High


Fiscal 2013 ACV by Market

June Oct

New York 0 61

Boston 0 54Philadelphia 0 52

Pittsburg h 0 51

Washington D.C. 0 40

Baltimore 0 39


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General Mills U.S. Cereal Share

29.7

30.831.2 31.3

31.531.0

F08 F09 F10 F11 F12 F13 YTD

Dollar Market Share

Sources: F08-F12 Nielsen All Outlet; F13 Nielsen XAOC


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2013 Year-to-date Merchandising Activity

-9%-MSD

-LSD

+LSD

+MSD

+DD

GeneralMills

PrivateLabel

Malt-o-Meal Kellogg Post Quaker

Jun-Oct Merchandised Unit Volume

(Change vs. LY)

Source: Nielsen XAOC, Period Ended 10.27.12


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Cheerios Can Help Reduce Cholesterol


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CheeriosThe Categorys #1 Franchise

Source: Nielsen XAOC, Fiscal YTD Period Ended 10.27.12

13% of U.S. Cereal Category Sales


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Monsters CerealsStrong Halloween Performance

Sept-Oct Retail Sales +10%Source: Nielsen XAOC


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ChexHoliday Time is Party Mix Time

F10 F11 F12 L12

Retail Sales Growth


CGR = +12%

($ in Millions)

Months

+13%


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Cascadian Farm Organic Cereals

F10 F11 F12 L12

Retail Sales Growth

Sources: Nielsen Period Ended 10.27.12 + SPINS Period Ended 9.29.12

CGR = +17%

($ in Millions)

Months

+14%


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ProgressoStrong Performance Over Time

Source: F08-F12 Nielsen All Outlet; L12 Months Nielsen XAOC, Period Ended 10.27.12

34.535.0 35.3

36.9

39.3 39.6

F08 F09 F10 F11 F12 L12

Progresso RTS Market Share

Months


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2.5%

8.5%

Oct FYTD

Category Progresso

Progresso2013 Innovation


RTS Soup

2013 Retail Sales Growth(Change vs. LY)

FYTD Market Share +2.1 Points

Cooking SaucesNew Light Varieties


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27.829.3 30.0

30.8

34.836.6

F08 F09 F10 F11 F12 L12Months

U.S. Grain Snacks Performance

Sources: F08-F12 Nielsen All Outlet; L12 Months Nielsen XAOC, Period Ended 10.27.12

General Mills Market Share


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U.S. Grain Snacks Innovation

B k i & F d i


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Bakeries & FoodserviceSnacks Innovation

F08 F09 F10 F11 F12

Net Sales Growth

CGR = +10%

($ in Millions)

F13 Q1 Net Sales +11%

S k I ti


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Snacks InnovationLarabar

Source: Nielsen, Period Ended 10.27.11 + SPINS, Period Ended 9.29.12

F10 F11 F12 L12Months

CGR = +43%

Retail Sales Growth($ in Millions) 12 Minis

6 6

Fiscal YTD Market Share +0.3 Points

+25%

S k I ti


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Snacks InnovationFood Should Taste Good Chips


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U.S. 2013 Plan Summary

The Operating Environment Is Improving

We Have a High Level of Innovation and Brand-buildingSupport in Market

Expect Improving Sales Trends For Balance of 2013

International Segment


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International SegmentStrong Performance Over Time

$2.5 $2.6 $2.7 $2.9

$4.2

2008 2009 2010 2011 2012

Net Sales, As Reported

($ in Billions)

Fiscal Years

$248 $239

$192

$291

$430

2008 2009 2010 2011 2012

Operating Profit, As Reported

($ in Millions)

Fiscal Years

+68%+73%

S k I ti


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Snacks InnovationCanada

New Products

Health News

Fiscal YTD Market Share +3.3 Points Source: Nielsen, Period Ending 9.29.12

-3.3%

+9.3%

Fiscal YTD

Category General Mills

Grain Snacks

Fiscal YTD Retail Sales Growth(Change vs. LY)


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Canada Yogurt Update

Libert

YTD Market Share +2.1 PointsSource: Nielsen, Period Ending 9.29.12

Yoplait

Smooth Sales and Systems Cutover

Improving Sales Trends

Significant Innovation and Brand-building Investment in 2013


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Western EuropeYogurt Update

Sources: IRI, Period Ending Sept 2012

Category Yoplait

France

Fiscal YTD Retail Sales( % Change vs. LY)

Category Yoplait

UK

Flat

+4%

+6%

+4%

Western E rope Inno ation


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Western Europe InnovationUK Nature Valley

Nature Valley

Olympic Sponsorship

AdvertisingSampling

Merchandising

New Product Line

Fiscal YTD Retail Sales +29%

Launched in Oct

Source: IRI, Period Ended 10.13.12

W t E I ti


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Secret SensationsNew Flavor, New Markets

Fiscal YTD retail sales +15%

Western Europe InnovationHaagen-Dazs

Sources: Nielsen and IRI, Latest FYTD Period Available


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Greater China Overview

$550

F08 F09 F10 F11 F12 F13Goal

Constant Currency Sales*

CGR = +19%

($ in Millions)

*Estimated Net Sales Converting Local Currency Data at a Fixed Exchange Rate.

+DD

Greater China Innovation


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Greater China InnovationHagen-Dazs Mooncake

Sold Over 2 Million Boxes in 2012

F09 F10 F11 F12 F13

Constant Currency Sales*

CGR = +19%

($ in Millions)

*Estimated Net Sales Converting Local Currency Data at a Fixed Exchange Rate.


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Greater China InnovationHaagen-Dazs Retail

2013 Fiscal YTD Net Sales +DD



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Greater China InnovationWanchai Ferry

Frozen Dim Sum

Frozen Noodles

Geographic Expansion

Product Expansion

Fiscal YTD Net Sales +HSD

2013 Business Highlights

Strong In-store Presence


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Yoki Alimentos in Brazil

2009-2011SalesKey Category CAGR

Popcorn +HSD

Snacks +DD

Basic Foods +DD

Seasonings +DD

Side Dishes +DD

Beverages +DD

84% Total Unaided Awareness 53%

87% Usage in past 6 months 72%

Source: Synovate Brand Equity Research, July 2011

G l Mill d Y ki


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Integration Activities Off to a Great Start!

Sharp Focus on Maintaining Business Momentum

Excellent Future Growth Prospects

General Mills and Yoki


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Fiscal 2013 International Summary

Innovation Driving Growth in Both Developed andEmerging Markets

Strong Performance on Base Business

Net Sales and Profit Contribution from Acquisitions


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Todays General Mills Update

First Quarter Results Modestly Ahead of Plans

Second Quarter Performance Meeting Our Expectations

Strong Innovation and Brand-building in Market

On Track to Deliver Full-Year 2013 Targets

Growth Prospects Consistent with Our Long-term Model

Beyond 2013

*Non-GAAP Measure

General Mills


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General MillsFiscal 2013 Update

Morgan StanleyConsumer Conference

November 14, 2012

Reconciliation of


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2012

U.S. Retail $575 $585

International 126 81

Bakeries & Foodservice 68 61

Segment Operating Profit $769 $727

Corporate Unallocated Expense(Income) (21) 88

Restructuring, Impairment andOther Exit Costs 9

Operating Profit $780 $639

2013

Reconciliation ofSegment Operating Profit

Q1

($ in Millions)

Reconciliation of


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Diluted EPS $0.82 $0.61

Mark-to-market Effects* (.07) .03

Restructuring .01

Tax Item (.10)

Diluted EPS Excluding $0.66 $0.64

Items Affecting Comparability**

Reconciliation ofNon-GAAP EPS to Diluted EPS

*Impact of Mark-to-market Valuation of Certain Commodity Positions.st

2013 2012

Q1

GIS Morgan Stanley Conference - November 2012 v18

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