The The Quaker Quaker

Oats Oats CompanyCompany

Presented by:Presented by:Maria Maria

CabarrusCabarrusScott HolmesScott HolmesRichard RamosRichard RamosDavid SeidDavid Seid

OverviewOverview

•History•Leadership•Products•Financial performance•Social responsibility•Outlook and future goals

HistoryHistory1856 : Akron, OH

FerdinandSchumacher

1877 : Ravenna, OHHenry Parsons Crowell

1901 : The Quaker Oats Co.

A Few HighlightsA Few Highlights•1983 – Gatorade acquired•1987 – Brookstone divested•1991 – Fisher-Price spun off•1994 – Snapple acquired•1997 – Snapple divested•2001 – merger with PepsiCo,

Inc.

LeadershipLeadership

Robert S. MorrisonChairman, President and CEO

Thirst QuencherThirst Quencher

•Gatorade•#1 sports beverage

worldwide

Athletes They FuelAthletes They Fuel

Hot CerealsHot Cereals

•Record high sales•124-year-old brand

Ready-to-eat Ready-to-eat CerealsCereals

On-the-go SnacksOn-the-go Snacks•Fastest growing•New flavors•Top-selling

Golden GrainGolden Grain

InternationalInternational• U.S. and Canada• Latin America• Europe and Asia/Pacific

Another Great YearAnother Great YearYear ended December 31$ in millions (except per share data)

2000 1999

Net sales $5,041.0 $4,725.2

Net income $360.6 $455.0

Number of employees 11,858 11,666

Per common share

Net income $2.71 $3.36

Dividends declared $1.14 $1.14

Average number of common shares outstanding

131,689 134,027

Source: The Quaker Oats Company 2000 Annual Report (page 18)

Financial Financial PerformancePerformanceAnnual Sales

Source: The Quaker Oats Company 2000 Annual Report (page 25)

15%

- 3%12%

- 5%6%

International SalesInternational Sales

Source: The Quaker Oats Company 2000 Annual Report (page 25)

1995 1996 1997 1998 1999 2000

Mega-brand SalesMega-brand Sales

$1.4 billion

$2.1 billion

Source: www.quakeroats.com

Top U.S. Food & Top U.S. Food & Beverage Companies in Beverage Companies in 20002000Company Total Sales in 2000

(In millions of dollars)

1. Kraft 34,679

2. ConAgra Foods Inc.

25,386

3. PepsiCo Inc. 20,144

4. Cargill Inc. 22,200

5. The Coca-Cola Co. 20,458

10. Sara Lee Corp. 7,915

12. Kellogg Co. 6,954

19. The Quaker Oats Co.

5,041

Source: Standard and Poor’s Industry Surveys (July 2001)

How They CompareHow They Compare

0

500

1000

1500

2000

2500

Net Income

KraftCoca-ColaSara LeeKelloggQuaker Oats

(In millions of dollars)

Source: Standard and Poor’s Industry Surveys (July 2001)

How They CompareHow They Compare

1.38

0.88

1.311.45

2.71

0

0.5

1

1.5

2

2.5

3

EPS (%)

KraftCoca-ColaSara LeeKelloggQuaker Oats

Source: Standard and Poor’s Industry Surveys (July 2001)

Social Social ResponsibilityResponsibility•Literacy and education•Nutrition•Hunger relief

Community Community InvolvementInvolvement

GoalGoal

•Simplicity•Innovation•Passion

A Winning Formula For A Winning Formula For ValueValue

Top-lineGrowth

Innovation

BrandBuilding

Cost Savings / Efficiency

ProfitableGrowth

ReferencesReferences• The Quaker Oats Company

Annual Report 2000• Standard and Poor’s

Industry Survey (July 2001)• www.quakeroats.com• www.kraft.com

Questions?Questions?