KelloggCompany May4,2017

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KelloggCompany2017FIRSTQUARTERFINANCIALRESULTSMay4,2017

Q1KelloggCompanyEarnings May4,2017

ForwardLookingStatements

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Thispresentationcontains,orincorporatesbyreference,forwardlookingstatementswithprojectionsconcerning,amongotherthings,theCompanysglobalgrowthandefficiencyprogram(ProjectK),theintegrationofacquiredbusinesses,theCompanysstrategy,zerobasedbudgeting,andtheCompanyssales,earnings,margin,operatingprofit,costsandexpenditures,interestexpense,taxrate,capitalexpenditure, dividends,cashflow,debtreduction,sharerepurchases,costs,charges,ratesofreturn,brandbuilding,ROIC,workingcapital,growth,newproducts,innovation,costreductionprojects,workforcereductions,savings,andcompetitivepressures.Forwardlookingstatementsincludepredictionsoffutureresultsoractivitiesandmaycontainthewordsexpects,believes,should,will,anticipates,projects,estimates,implies,can,orwordsorphrasesofsimilarmeaning.

TheCompanysactualresultsoractivitiesmaydiffermateriallyfromthesepredictions.TheCompanysfutureresultscouldalsobeaffectedbyavarietyoffactors,includingtheabilitytoimplementProjectK(includingtheexitfromitsDirectStoryDeliverysystem)asplanned,whethertheexpectedamountofcostsassociatedwithProjectKwilldifferfromforecasts,whethertheCompanywillbeabletorealizetheanticipatedbenefitsfromProjectKintheamountsandtimesexpected,theabilitytorealizetheanticipatedbenefitsfromRevenueGrowthManagement,theabilitytorealizetheanticipatedbenefitsandsynergiesfromtheacquisitionsintheamountsandatthetimesexpected,theimpactofcompetitiveconditions;theeffectivenessofpricing,advertising,andpromotionalprograms;thesuccessofinnovation,renovationandnewproductintroductions;therecoverabilityofthecarryingvalueofgoodwillandotherintangibles;thesuccessofproductivityimprovementsandbusinesstransitions;commodityandenergyprices;laborcosts;disruptionsorinefficienciesinsupplychain;theavailabilityofandinterestratesonshorttermandlongtermfinancing;actualmarketperformanceofbenefitplantrustinvestments;thelevelsofspendingonsystemsinitiatives,properties,businessopportunities,integrationofacquired businesses,andothergeneralandadministrativecosts;changesinconsumerbehaviorandpreferences;theeffectofU.S.andforeigneconomicconditionson itemssuchasinterestrates,statutorytaxrates,currencyconversionandavailability;legalandregulatoryfactorsincludingchangesinfoodsafety, advertisingandlabelinglawsandregulations;theultimateimpactofproductrecalls;businessdisruptionorotherlossesfromwar,terroristactsorpoliticalunrest;andotheritems.

Forwardlookingstatementsspeakonlyasofthedatetheyweremade,andtheCompanyundertakesnoobligationtoupdatethempublicly.

ThispresentationincludesnonGAAPfinancialmeasures. PleaserefertotheAppendicesforareconciliationofthesenonGAAPfinancialmeasurestothemostdirectlycomparableGAAPfinancialmeasures.ManagementbelievesthattheuseofsuchnonGAAPmeasuresassistsinvestorsinunderstandingtheunderlyingoperatingperformanceofthecompanyanditssegments.

KelloggCompany May4,2017

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Q1KelloggCompanyEarnings May4,2017

Q1Overview

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Consumption IndustrywidesofteninginJanuaryandFebruaryinU.S.

Shipments AlsoaffectedbytradeinventoryfromQ4,pricepackchangesonPringles

Margins ContinuedexpansionthroughProjectK,ZeroBasedBudgeting,sequentialimprovementinprice/mix

Earnings ContinuedOperatingProfitgrowth,taxratetiming,ontrackforyear

CashFlow Increasedyearonyear,workingcapitalimprovement,ontrackforyear

*Allreferencedmetricsareonacurrencyneutralcomparablebasis;CashFlowisdefinedascashfromoperationslesscapitalexpenditure.

Q1KelloggCompanyEarnings May4,2017

2020GrowthPlan AddressingTheseTrends

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OnTrendFood&Packaging

ProgressmadeinQ1toward:

OmniChannelApproach&Capabilities

EmergingMarketsScale&Expansion

MarginExpansionforFuelandEarnings

KelloggCompany May4,2017

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Q1KelloggCompanyEarnings May4,2017

Reported (17.6)%

CurrencyNeutralComparable* 2.2%

FinancialResults Summary

5* PleaserefertoappendicesforreconciliationofnonGAAPmeasurestothemostdirectlycomparableGAAPmeasure.

ChangeVersusPriorYear

NetSales

OperatingProfit

EarningsPerShare

Reported 51.0%

CurrencyNeutralComparable* 13.5%

Reported (4.1)%

CurrencyNeutralComparable* (4.4)%

Q1

Q1KelloggCompanyEarnings May4,2017

NetSales ImpactedbyVolume

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FirstQuarter2017

$3,395M +1.3%

$3,254M(5.7)%

(1.0)%

CurrencyNeutralComparableGrowth

+1.3%

Yearoveryear,%change

*

*Theacquisition/divestiturefigureincludesthenegativeimpactofdeconsolidatingourVenezuelaresults,beginningJanuary1,2017.

KelloggCompany May4,2017

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Q1KelloggCompanyEarnings May4,2017

ProductivityInitiatives OnTrack

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NetworkRestructuring

ZeroBasedBudgeting

GotoMarketModel

GlobalBusinessServices

OrganizationalDesign

Q1KelloggCompanyEarnings May4,2017

ProfitMargins ContinuedExpansion

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32.0%

34.0%

36.0%

38.0%

Q12016 Q12017

FirstQuarter2017%ofNetSales,CurrencyNeutralComparableBasis,ExcludingVenezuela

GrossProfitMargin

9.0%

11.0%

13.0%

15.0%

17.0%

Q12016 Q12017

OperatingProfitMargin

* PleaserefertoappendicesforreconciliationofnonGAAPmeasurestothemostdirectlycomparableGAAPmeasure.

+20basispoints

+110basispoints

KelloggCompany May4,2017

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Q1KelloggCompanyEarnings May4,2017

CashFlow OnTrack

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($160)

($120)

($80)

($40)

$0

$40

$80

$120

Q12016 Q12017

CashFlow*

FirstQuarter2017

*CashFlowdefinedascashfromoperatingactivities,lesscapitalexpenditure.PleaserefertoappendicesforreconciliationofnonGAAPmeasurestothemostdirectlycomparableGAAPmeasure.

ExcludingBondTenderof$(144)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Q12016 Q12017

CoreWorkingCapital**

**CoreWorkingCapitalisaninternalKelloggmetricdefinedaslast12monthsaveragetradereceivablesandinventory,less 12monthsaveragetradepayables,dividedbylast12monthsnetsales.

Q1KelloggCompanyEarnings May4,2017

2017 UpdatedGuidance

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NetSalesCurrencyNeutralComparableBasis

Updated Previous

~(3)% ~(2)% Q1decline BroaderU.S.consumptionsoftness+Sequentialimprovementincomingquarters

OperatingProfitCurrencyNeutralComparableBasis

+79% +79% +Nochange+ProductivitysavingsoffsetlowerNetSales

EarningsPerShareCurrencyNeutralComparableBasis

+810% +810% +Nochange

CashFlowCashFromOps.,LessCapitalExpenditure

$1.1$1.2bn +Nochange$1.1$1.2bn

KelloggCompany May4,2017

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Q1KelloggCompanyEarnings May4,2017

2017 PhasingFactorstoConsider

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Sequentialimprovementintopline

DSDtransitiontiming OverlapofWarehouseandDSDcostsduringQ2Q3transition OverheadsavingslargelystartinQ4

Q1KelloggCompanyEarnings May4,2017

KelloggNorthAmerica Overview

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Strongmarginexpansioncontinues

Slowstartonsales

DSDtransitionprogressingwell

Strongcommercialplansahead

KelloggCompany May4,2017

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Q1KelloggCompanyEarnings May4,2017

U.S.SpecialtyChannels Performance&Priorities

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Q1

NetSales* +5%

Op.Profit* +9%

OPMargin* +90bp

* PleaserefertoappendicesforreconciliationofnonGAAPmeasurestothemostdirectlycomparableGAAPmeasure.

Stronggrowth

Expansioninemergingchannels

Continuedoperatingprofitmarginexpansion

CurrencyNeutralComparableBasis

2017: Steadysalesand

operatingprofitgrowth Expandreach,improve

coremix

Q1Highlights:

Q1KelloggCompanyEarnings May4,2017

NorthAmericaOther Performance&Priorities

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CategoryslowdownsinJanuary/February

Eggo removalofartificialingredients

Kashisegmentgainedshareincereal

Strongoperatingprofitmarginimprovement

Q1

NetSales* (6)%

Op.Profit* +8%

OPMargin* +200bp

* PleaserefertoappendicesforreconciliationofnonGAAPmeasurestothemostdirectlycomparableGAAPmeasure.

CurrencyNeutralComparableBasis

2017: Improvementinsales

performance Growthinoperatingprofit

andoperatingprofitmargin

Canada

Q1Highlights:

KelloggCompany May4,2017

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Q1KelloggCompanyEarnings May4,2017

U.S.MorningFoods Performance&Priorities

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CategoryslowdownsinJanuary/February TradeinventoryreducedfromQ4 Growthinkidsbrands;timingofSpecialK

andMiniWheats innovation

OPmarginexpansionledbyZBBandProjectK

Q1

NetSales* (6)%

Op.Profit* +5%

OPMargin* +250bp

* PleaserefertoappendicesforreconciliationofnonGAAPmeasurestothemostdirectlycomparableGAAPmeasure.

2017: Gradualimprovementin

netsalesperformance Strongoperatingprofit

marginexpansion

CurrencyNeutralComparableBasis

Q1Highlights:

Q1KelloggCompanyEarnings May4,2017

U.S.Snacks Performance&Priorities

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CategoryslowdownsinJanuary/February

TradeinventoryreducedfromQ4 Announcedandcommencedexit

fromDSD

ContinuedsharegainsinCrackers,ledbyBig3collectiveincrease

Q1

NetSales* (6)%

Op.Profit* (27)%

OPMargin* (270)bp

* PleaserefertoappendicesforreconciliationofnonGAAPmeasurestothemostdirectlycomparableGAAPmeasure.

CurrencyNeutralComparableBasis

2017: TransitionfromDSD Increasebrandsupport Strongoperatingprofit

marginexpansionQ1Highlights:

KelloggCompany May4,2017

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Q1KelloggCompan