SlideShare a Scribd company logo
1 of 64
Download to read offline
Chief Executive Officer
CARLOS ABRAMS-RIVERA
This presentation contains a number of forward-looking statements as defined under U.S. federal securities laws, including, but not limited to, statements, estimates, and
projections relating to our business and long-term strategy; our ambitions, goals, targets, and commitments; our activities, efforts, initiatives, plans, and programs, and our
investments in such activities, efforts, initiatives, plans, and programs; and projected or expected timing, results, achievement, and impacts. Words such as “aim,” “anticipate,”
“aspire,” “believe,” “commit,” “could,” “estimate,” “expect,” “guidance,” “intend,” ”may,” “might,” “outlook,” “plan,” “predict,” “project,” “seek,” “will,” “would,” and variations of
such words and similar future or conditional expressions are intended to identify forward-looking statements. These statements are based on management’s beliefs, expectations,
estimates, and projections at the time they are made and are not guarantees of future performance. Such statements are subject to a number of risks and uncertainties, many of
which are difficult to predict and beyond our control, which could cause actual results to differ materially from those indicated in the forward-looking statements. For additional,
important information regarding such risks and uncertainties, please see the risk factors set forth in Kraft Heinz’s filings with the U.S. Securities and Exchange Commission,
including our most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. We disclaim and do not undertake any obligation to update, revise, or
withdraw any forward-looking statement in this presentation, except as required by applicable law or regulation.
NON-GAAP FINANCIAL MEASURES
This presentation contains certain non-GAAP financial measures, including Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income,
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Net Leverage, Free Cash Flow, and Free Cash Flow Conversion. These non-GAAP financial measures may differ from
similarly titled non-GAAP financial measures presented by other companies. These measures are not substitutes for their comparable financial measures prepared in accordance
with accounting principles generally accepted in the United States of America (“GAAP”) and should be viewed in addition to, and not as an alternative for, the GAAP results.
These non-GAAP financial measures assist management in comparing the Company’s performance on a consistent basis for purposes of business decision-making by removing the
impact of certain items that management believes do not directly reflect the Company’s underlying operations.
Please view this presentation together with our Annual Report on Form 10-K and the accompanying non-GAAP information, which includes a discussion of non-GAAP financial
measures and reconciliations of non-GAAP financial measures to the comparable GAAP financial measures, available on our website at ir.kraftheinzcompany.com under News &
Events > Events & Webcasts, or directly at ir.kraftheinzcompany.com/events-and-webcasts.
FORWARD-LOOKING STATEMENTS
FEBRUARY 21, 2024
2
2And are positioning Kraft Heinz to drive consistent
top-tier returns…
1We‘ve turned the corner in our transformation journey.
3…by being the Leader in Elevating and Creating Food
That Makes You Feel Good.
3
We’ve Made Tremendous Progress On Our Transformation Journey…
4
With Dramatically Better Results Seen Across The Business …
5
1| The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day.
2| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts.
Key Performance Metrics
YoY Organic Net Sales2 Growth YoY Adjusted EPS2 Growth
YoY Marketing + R&D + CapEx Spend Net Leverage2
-1.7%
3.4%
2019 2023
1
-18.8%
7.2%
2019 2023
1
~-110M
~270M
2019 2023
1
4.4x
3.0x
2019 2023
1
Above Algorithm Above Algorithm
Unlocking End-to-End Efficiencies and Powering KHC with agile@scale …
6
1| The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day.
Gross Efficiencies as a % of COGS # of Agile Pods
1.5%
4.1%
2019 2023
1
0
36
2019 2023
1
… And Championing Great People
7
1| The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day.
2| Kraft Heinz Employee Engagement Score improved from 71 in 2019 to 76 in 2023 and moved from below the industry median to above.
Employee Engagement
Score2
From Bottom Quartile to
Above the Median
76
71
Voluntary Turnover
Salaried
9%
16%
20191 2023
“Great Place to Work”
# of Countries
16
0
20191 2023
20191 2023
While Providing Shareholders With Higher Returns…
8
1| Peer set includes Beverage, Food, Personal Care, Household Products and Tobacco Companies from the S&P500. Dividend yield for consumer goods is calculated using a simple average for the one year ending Dec 31, 2023.
Average TSR for consumer goods is calculated using a weighted average for the three years ending Dec 31, 2023.
14%
20%
Consumer Goods Kraft Heinz
3-Year
Total Shareholder Return1
Consumer Goods
Dividend Yield1
2.7%
4.3%
Consumer Goods Kraft Heinz
Share Repurchase Program
$3 Billion
9
10
Portfolio Management
Share Repurchase
Debt Repayment
Dividends
Capital Allocation
Fundamentals
Organic Net Sales1
Growth
Gross Efficiencies
Adjusted Gross Profit
Margin1 Expansion
Targeting
Double-Digit TSR
through business fundamentals and capital allocation.
1| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts.
11
Elevating
Taste
Creating Meal
& Snack Solutions
in the Most Attractive Consumer Spaces
1| Source: KHC Demand/Occasion Research. 55% of food and beverage occasions are driven at least in part by the desire for comfort.
Satisfy those 55% of
F&B occasions that
include desire for
comfort1
Advance sustainable
packaging, net zero
initiatives, and
responsible sourcing
Provide superior
quality, loved &
trusted by consumers
Offer products worth
paying for & solutions
for every budget
Grow plant-based
offerings, reduce
sodium & sugar, add
functionality
12
13
1| Market attractiveness based upon estimated annual industry growth; Source: Euromonitor, IRI. Taste Elevation, Easy Ready Meals, and Substantial Snacking are global growth rates, all others are North America.
2| Right to win based on the following metrics: contribution to KHC net sales; adjusted gross profit margin potential; relative market share and market share trajectory.
Market
Attractiveness
1
Right to Win2
Taste
Elevation
Substantial Snacking
Easy Ready
Meals
Desserts
Hydration
Meats
Coffee
Cheese
ACCELERATE
BALANCE
PROTECT
Bubble Size = 2023
KHC Net Sales
We Defined Our Priorities Based On Market Attractiveness And Right To Win…
… to refine roles that guide investment decisions and market strategy.
ACCELERATE growth and
prioritize investments
STRATEGY
PROTECT profit margins
and invest at healthy levels
BALANCE performance
and invest to maintain
brand footprint
Taste Elevation
Easy Ready Meals
Substantial Snacking
PLATFORMS
Desserts
Hydration
Meats
Cheese
Coffee
BALANCE
ACCELERATE PROTECT
High
High High High
High Low
Medium
~4% ~2% Flat
High, with exposure to
commodity-driven volatility
Low
Adjusted Gross Profit Margin2:
Market Share:
Private Label Penetration:
Industry Growth1:
ATTRIBUTES
ROLES
1| Based upon estimated annual industry growth. Annual growth rates are global for Accelerate platforms and North America for Protect & Balance. Growth rates are weighted based on KHC Net Sales. Source: Euromonitor, IRI.
2| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts.
14
With Platforms And Categories Organized Accordingly.
15
2
3
4
1
Expanded Taste Elevation
to include spreads, more
sauces and spices
Grouped snacking brands
together
Grouped commodity-like
categories together
Fast Fresh Meals – Cheese
split in two
Taste Elevation
Easy Meals Made Better
Real Food Snacking
Easy Indulgent Desserts
Flavorful Hydration
Coffee
Fast Fresh Meals - Meats
Taste Elevation
Easy Ready Meals
Substantial Snacking
Stabilize
Grow
Energize
1 Fast Fresh Meals - Cheese
2
Accelerate
3
Desserts
Hydration
Protect
Cheese
Coffee
Meats
Balance 4
Slices,Recipe
28% 24%
11%
11%
61% 65%
75%+
2019 2023 Future
2,3 4
We estimate more than 75% of our future net sales to come from our Accelerate Platforms
1| Balance calculations also include Net Sales that are not otherwise categorized into another platform role presented.
2| The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day.
3| Excludes nets sales related to divested businesses.
4| Net sales growth estimates from the existing business. Does not contemplate any changes to portfolio.
% Net Sales
Accelerate
Protect
Balance1
16
We Are Prioritizing Growth And Investment In These Platforms
17
Substantial Snacking
Easy Ready Meals
Taste Elevation
Pursuing Growth Where We Have The Most Powerful Right To WIN.
18
1| Based upon estimated annual industry growth; Source: Euromonitor, IRI.
2| Source: Euromonitor, IRI.
Brands shown are illustrative and do not reflect all brands within each platform.
#1 Player
in Sauces Worldwide2
Heinz is our Global Anchor:
Sold in 70+ countries
~41% of Global KHC Portfolio
Mid-Single-Digit (~4%)
Industry Growth Estimated1
Taste Elevation
Opportunities To Accelerate Taste Elevation Growth
19
Evolving the Core
Clean Ingredients
1| Source: Nielsen.
Expanding in
Non-Core Host Foods
Growing Heinz
Beyond Ketchup
Gravy
Mayonnaise
Cooking Sauces
Market Share of Taste Elevation1
Heat / Flavor
Sustainability
100% recyclable cap
Non-Ketchup Heinz Net Sales as
% Total Heinz Net Sales
International
Developed
International
Emerging
55%
68%
36%
North
America
Burger
Fried
Potatoes
Cold
Sandwich
Burrito
Fajita
Taco
3%
Hot Dog
Chicken
Beef
41%
30%
19%
35%
15%
26%
1| Based upon estimated annual industry growth; Source: Euromonitor, IRI.
Brands shown are illustrative and do not reflect all brands within each platform.
Fragmented competition with
limited global players
~17% of Global KHC Portfolio
Mid-Single-Digit (~4%)
Industry Growth Estimated1
Easy Ready Meals
Pursuing Growth Where We Have The Most Powerful Right To WIN.
20
Opportunities To Accelerate Easy Ready Meals Growth
21
Expanding Partnerships
Evolving the Core
Sustainability
New Flavors
Convenience
Accelerate Against Global Trends
Overdelivered
FY Velocity in First Month
Top Performing
Plant-based M&C
Chef Daniela
Soto-Innes
Youngest named
World's Best Female
Chef by the World's
50 Best Restaurants
New Launch!
Pursuing Growth Where We Have The Most Powerful Right To WIN.
22
1| Based upon estimated annual industry growth; Source: Euromonitor, IRI.
Brands shown are illustrative and do not reflect all brands within each platform.
~4% Industry Growth Estimated1
Refrigerated or Frozen Snacks to
be enjoyed between or instead
of meals.
Substantial Snacking
~7% of Global KHC Portfolio
No clear market leader
in frozen snacks
Opportunities To Accelerate Substantial Snacking Growth
23
Evolving the Core Expanding Wholesome Snacking Providing Convenience
Through Proprietary Platforms
Authenticity
Convenience
Nutrition
New 360CRISPTM Launch
Our ACCELERATE Platforms Span Across All Our Growth Pillars…
24
Taste Elevation Easy Ready Meals
Substantial
Snacking
ACCELERATE Platforms
Growth
Pillars
Global
Away From
Home
Emerging
Markets
Hydration Desserts Meats Cheese Coffee
PROTECT Platforms BALANCE Platforms
North
America
Retail
driven by
Accelerate
Platforms
Brands shown are illustrative and do not reflect all brands within each platform.
Agile@Scale
Competitive
Advantages
Strategic Partnerships Ownership-Centric Culture
Sales
Excellence
Disruptive
Marketing
Brand
Growth
System
Enablers for Growth
Innovation
Emerging Markets
Global Away
From Home
North America Retail
Accelerate Platforms
driven by
Growth Pillars Sources of Funding
Centralized
Services
Supply
Chain
Working
Capital
Revenue
Management
We Have A Solid Path To Delivering Consistent Profitable Growth…
25
Growth Pillars
Emerging Markets
Global Away From
Home
1pp
Organic Net Sales1 Growth
1pp
Organic Net Sales1 Growth
1pp
Organic Net Sales1 Growth
N.A. Retail driven by
Accelerate Platforms
2%-3%
Long-Term
Algorithm
Organic Net
Sales1
1| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts.
…With Each Of The Growth Pillars Contributing 1pp To Organic Net Sales Growth1
26
Accelerate
Platforms
N.A. Retail
driven by
... driven by
innovation and brand
U.S. Household
Penetration
~94%1
~77%1
#1 or #2
Brand Position
~59%2
Gaining Share
1| Source: US Data from IRI 52 weeks through 12/31/23.
2| Source: US Data from IRI 13 weeks through 12/31/23.
North America Retail Growth Will Be Driven By Our ACCELERATE Platforms.
27
Away
From Home
We Have A Significant Opportunity To Capture Share In Away From Home…
28
Target
Current
NA Current/Targeted
Penetration1
100%
… In both North America … and our International Zones
+11pp
Emerging Markets
Away From
Home Share2
North America
Away From Home
Share1
KHC Taste Elevation Share
1| Source: NPD Supply Track.
2| Source: Euromonitor, Circana.
Away
From Home
A
t
H
o
m
e
/
R
e
t
a
i
l
210
400
2022 2023 2024
Innovation
Predict
Behavior
Shifts
Culinary
Expertise
& Trends
Consumer
Insights
Brand
Activation
A
w
a
y
f
r
o
m
H
o
m
e
Global Brand Activation Attractive Channels
14% Away From Home
Organic Net Sales1 Growth in 2023
Expanding Presence in
Restaurants
1| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts.
Creating memorable
brand experiences for
guests
Away From Home Growth Strategy Is Driving Strong Results.
Education
Healthcare
Workplace
Food Services
Travel
& Leisure
Entertainment
Restaurants
29
Emerging
Markets
1. Source: Euromonitor.
There Is Opportunity To Grow In Emerging Markets…
30
% of Net Sales in
Emerging Markets
2x
Emerging Market
Share %
Developed Market
Share %
MORE TO WIN Expectation
10%
6%
Projected
Industry
CAGR
2023 2033
Retail Taste Elevation Size
of Emerging Markets1
Retail Taste Elevation
Market Share1
Attractive category growth expected…
Emerging Markets expected to
contribute more to overall KHC net sales
With Room To Expand Penetration…
Emerging
Markets
We Have Three Levers Capturing Growth Across Emerging Markets
31
Go To Market Brand Equity Away From Home
GTM
Emerging Market Organic
Net Sales2 Growth in 2023
14% 150bps
Emerging Markets Adjusted
EBITDA Margin2 Expansion
1| Organic Net sales of markets with Go To Market Model implemented by year end 2023 as a % of total Emerging Markets organic net sales for FY 2023.
2| 2023 vs. 2022. Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts.
~90% Live1
Agile@Scale
Emerging Markets
North America Retail
Accelerate Platforms
driven by
Sales
Excellence
Disruptive
Marketing
Brand
Growth
System
Enablers for Growth Sources of Funding
Competitive
Advantages
Strategic Partnerships Ownership-Centric Culture
Innovation
Centralized
Services
Supply
Chain
Working
Capital
Revenue
Management
Growth Pillars
Global Away
From Home
We Have A Solid Path To Delivering Consistent Profitable Growth…
32
Our New Kraft Heinz Brand Growth System Underpins A Systematic Methodology
33
Offer value that uniquely meets
consumer and customer needs
Consumer pricing & promo
Customer value
Value Equation
Drive consistent availability
alongside meaningful execution
Distribution & Reach
Perfect Store & Screen
Omni Execution
Set the standard for performance,
taste, sustainability and nutrition
Perfect Product
Perfect Packaging
Product & Package Delivery
Brand Strength
Communication Effectiveness
Build an everlasting connection
with our consumers
Brand Resonance
• Industry standard methodology
with leading KPIs that provide
incremental value to Kraft Heinz,
globally.
• Prioritizing largest
opportunities and driving ROI
through new insights and
investments in capabilities.
• Systemically raising the bar to
deliver for our customers and
consumers
We Are Actively Deploying The Brand Growth System On Our Flagship Brands
34
Brand Strength
Communication Effectiveness
Build an everlasting connection
with our consumers
Brand Resonance Brand transcends a food category,
and drives deeper emotional
connection with consumers
Multi-Touch Campaign
to Build Brand Love
Building Brand Equity
at the Speed of Culture
Culturally relevant activation –
from “Monday Night Football”
to Walmart.com in 15 days
Systematic Brand Activation On Heinz Is Building Brand Love And Sales Growth
35
Sources: Kantar Brand Health Tracking, Q4, FY23, Ketchup category; Kantar In-Market Campaign Effectiveness study.
1| FY23 vs. FY22 sales, which holds the impact of currency constant and excludes the impact of 53rd week
TOP 4%
of brands (also includes
Apple, Google)
Kantar Appointment for
Meaningful growth in brand
affinity, favorability,
obsession metrics ~12% YoY
Global Heinz
“ICONIC”
BRAND STATUS
INCREASED
BRAND LOVE
SALES1 GROWTH
HALO
Agile@Scale
Emerging Markets
North America Retail
Accelerate Platforms
driven by
Sales
Excellence
Disruptive
Marketing
Brand
Growth
System
Enablers for Growth Sources of Funding
Competitive
Advantages
Strategic Partnerships Ownership-Centric Culture
Innovation
Centralized
Services
Supply
Chain
Working
Capital
Revenue
Management
Growth Pillars
Global Away
From Home
We Have A Solid Path To Delivering Consistent Profitable Growth…
36
Our Approach To Innovation Is Creating A Foundation For Growth
37
1| $2B incremental net innovation and renovation from 2023-2027, accounting for
cannibalization, on a 3-year rolling basis.
Innovation grew 70%+ YoY in 2023…
2022 2023 2024
70%+ YoY
Incremental Net Sales from Innovation
…and we’re just getting started
We are on target to deliver
of incremental Net Sales from
1
Innovation Strategy To Meet Demand In Our Accelerate Platforms
38
Easy Ready Meals
• Increased our R&D investments 15% YoY1
• Developed proprietary technology
platforms such as 360CRISPTM
• Leverage tech-enabled Agile@Scale
• Testing and learning in market before
scaling broadly
• Focusing on the highest incremental
opportunities
1| 2023 vs. 2022.
Substantial Snacking
Taste Elevation
Agile@Scale
Emerging Markets
North America Retail
Accelerate Platforms
driven by
Sales
Excellence
Disruptive
Marketing
Brand
Growth
System
Enablers for Growth Sources of Funding
Competitive
Advantages
Strategic Partnerships Ownership-Centric Culture
Innovation
Centralized
Services
Supply
Chain
Working
Capital
Revenue
Management
Growth Pillars
Global Away
From Home
We Have A Solid Path To Delivering Consistent Profitable Growth…
39
We Have Come A Long Way In Building A Foundation For Sales Excellence...
40
1| 5% CAGR Improvement 2022 vs. 2019. The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day.
2| 1.5pp YoY improvement 2023 vs. 2022. Share of Shelf is calculated as linear inch share and takes into consideration 14 categories that represent over 70% of total KHC U.S. unit sales
3| Net sales of markets with GTM implemented as a % of total Emerging Markets net sales for FY 2023.
Leveraged Insights and Capabilities
2 YoY Share of Shelf
Expansion2
1.5pp
CAGR Improvement in
Promotional ROI1
5%
4
TWO Consecutive Years of Record
Employee Engagement
Invested in Our Talent
1
Emerging Markets Covered3
~90%
Implemented Go To Market Model
3
Strengthened Customer Relationships
Improvement in 2023
Advantage Survey Rankings
+8
And Will Replicate Success Across The Company.
41
We are better positioned to scale best
practices, focusing on bringing speed and
visibility on a GLOBAL level.
Agile@Scale
Emerging Markets
North America Retail
Accelerate Platforms
driven by
Sales
Excellence
Disruptive
Marketing
Brand
Growth
System
Enablers for Growth Sources of Funding
Competitive
Advantages
Strategic Partnerships Ownership-Centric Culture
Innovation Centralized
Services
Supply
Chain
Working
Capital
Revenue
Management
Growth Pillars
Global Away
From Home
Capital
Allocation
We Have A Solid Path To Delivering Consistent Profitable Growth…
42
Global Chief Financial Officer
Andre Maciel
We Are Maximizing Return On Trade Investment With Sizeable Opportunities Ahead
44
Leveraging Digital Tools
With Opportunities Ahead to Improve Lift and Profitability:
Capturing Mix Opportunities
Further Reduction of
Negative ROI Promotions
Scaling AI-Based Models for
Promotional Calendars
1| The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day.
2| Data is US Retail data only.
• Developed In-House Trade
Management System
• Resulting in more trade spend
shifting to positive ROI events
and an increase in the average
ROI
+5%
Average Net ROI on Promotions
2022 CAGR vs 20191
+5%
2023 vs 2022
0%
20%
40%
60%
2019 2022 2023
% of Promotional Spend with Net
Positive ROI
1
2
2
We Are Accelerating The Pace Of Improvement Across Our Supply Chain …
45
• Implemented cognitive decision intelligence
tools to forecast and avoid supply disruptions
• Started a multi-year optimization of our
network
• Accelerated factory investments
With further efficiencies to unlock by:
Extending digital tools to
build a self-driving supply
chain
Continuing to increase capabilities
through automation and further
network optimization
On Track to Hit Our $2.5B Gross Efficiencies Target1
1| 5 year $2.5bn target for gross efficiencies by 2027.
Maintaining disciplined
execution and continuous
improvement mindset
Gross Efficiencies
(% COGS)
0.0%
1.0%
2.0%
3.0%
4.0%
Average
'20-'22
Average
'23-'24
Best in Class
• New digital tools (Machine Learning
demand forecasting, Advanced
Analytics Inventory)
• New agile equipment (automated
lines for faster changeovers)
Improved Demand Forecasting
‘19 ‘23 Best
in Class
4th Quartile 3rd Quartile 2nd Quartile 1st Quartile
Demand Forecast
Accuracy % vs.
Benchmark1
1| North America Only. Source is Chainalytics.
2| North America Only. Excess inventory (pounds of inventory above policy) expressed as a percentage variance.
3| The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day.
Excess Inventory2 5.5%
20193
4.7%
2023 Best in Class
4.0%
With opportunities for further improvement by:
Improving forecast accuracy and reducing excess inventory
We Are Driving Working Capital Improvements
46
Consolidating and
Automating Warehouses
Increasing Use of Touchless
Demand Forecasting
Scaling Automated
Production Scheduling
• ~350 employees onboarded in new
facility
• Expanding teams, capabilities, and
scope
With opportunities for further improvement by:
Established New Center in India
Growing our Centralized Service Capabilities with Meaningful Value Creation to Come
$30M Realized
Annual Efficiencies
1
1| Realized annual efficiencies since reinvention of our Centralized Service function in 2022.
$50M+ Identified potential
incremental value per year
Implementing global SAP S4
Finance Module
Increasing Automation
and Generative AI
Expanding Captive Center
47
Outlook Reflects Continued Growth in 2024 Across Key Metrics; On Algo Pace by Year-End
• Expect Adjusted Gross Profit Margin1 to expand modestly,
+25 to 75 bps YoY
• SG&A re-established to healthy levels in 2023, as a result
we expect only a slight increase YoY
2024 FYE Outlook
Organic Net Sales1
Adjusted Operating
Income1
Adjusted EPS1
2024 Considerations
+0-2%
• Positive contribution from price throughout the year
• Volume inflection to positive growth expected in H2
• Expect performance in Q1 2024 to be a similar profile to Q4
2023, and gradually move towards our long-term
algorithm as we progress throughout 2024
+2-4%
+1-3%
• Effective tax rate on Adjusted EPS1: 20-22%
(~200bps or ~$0.07 YoY headwind)
• Interest and Other Expense/(Income): ~$45M unfavorable
impact YoY, driven by FX headwinds and debt refinancing
(~100bps or ~$0.03 YoY headwind)
• Does not include the possibility of additional share
buyback in the year
1| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts. 48
Long-Term Algorithm
49
Adjusted
Operating
Income1
Growth
Adjusted EPS1
Growth
Organic Net Sales1
Growth
Generate Free
Cash Flow Conversion1
4% to 6%
6% to 8%
2% to 3%
Approximately
100%
1| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts.
1| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts.
UNLOCK EFFICIENCIES
$2.5B by 2027
Gross Cost Efficiencies
Free Cash Flow1 $
and % Conversion
~100% conversion
INVEST IN SUPERIOR
BRANDS
R&D Spend
>1% net sales
~5% net sales
Marketing Spend
>3.5% net sales
Capital Expenditures
POWER BRAND HEALTH
Improving Marketing
ROI and Brand Health
Brand Superiority
Metrics
Innovation
$2B net sales by 2027
DRIVE TOP LINE
~1% to 2% Organic Net
Sales1 growth
North American Zone
driven by Accelerate
Platforms
Global Away From
Home
~7% Organic Net Sales1
growth
Emerging Markets
~13% Organic Net
Sales1 growth
We’ve Established Targets To Guide Progress On Our Long-Term Algorithm
50
Short Term
Top Line
Profitability
Free Cash Flow1
Top line
Total Shareholder
Return
Free Cash Flow1
Long Term
Built with common incentives across the organization to break down silos
Aligned with goal of delivering top-tier TSR
…With Incentives Aligned To Generating Top-tier Shareholder Returns.
51
1| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts.
Target Leverage Ratio of
Approximately 3.0x
Maintain
Investment Grade
Competitive
Annual Dividend
Capital Allocation Strategy
Invest in
Organic
Growth
Actively
Manage
Portfolio
Return
Incremental
Capital to
Stockholders
We’re Delivering An Attractive Dividend And Maintaining A Strong Balance Sheet…
52
Focus on Accelerate
Platforms
Increase our exposure to
Emerging Markets
Enhance critical capabilities
Aligned to portfolio strategy
Sufficient scale and
accretive to KHC top-line
growth
Bias towards bolt-on
TSR-accretive
Outside of portfolio
strategy
Lower “Ability to Win”
Fair valuation
BALANCE
DIVESTITURE CRITERIA
PORTFOLIO STRATEGY ACQUISITION CRITERIA
While Taking A Disciplined Approach To Portfolio Management…
53
Chief Executive Officer
CARLOS ABRAMS-RIVERA
Agile@Scale
Emerging Markets
North America Retail
Accelerate Platforms
driven by
Sales
Excellence
Disruptive
Marketing
Brand
Growth
System
Enablers for Growth Sources of Funding
Competitive
Advantages
Strategic Partnerships Ownership-Centric Culture
Innovation
Centralized
Services
Supply
Chain
Working
Capital
Revenue
Management
Growth Pillars
Global Away
From Home
We Have A Solid Path To Delivering Consistent Profitable Growth…
55
Agile@Scale Provides Us The Fuel To Outpace Competition
56
We’re as nimble as a start-up, but at the scale of a company in nearly every household,
enabled by a tech-first approach.
1| Reflects total annual gross efficiencies for which Agile@Scale has contributed.
Annual Gross Efficiencies1
Agile@Scale
Roadmap
~$400M ~$700M1
~$400M
We’re Developing, Best-in-class Partnerships…
57
…to co-create the future of food.
We Embrace the Red
1
2
3
4
We are Ambitious and Accountable
We are Close to the Business
We Think and Act like Owners
Our Ownership-Centric Culture Is Foundational To The Way We Operate
58
Global
Growth Office
Global
Omnichannel
North America
Asia Emerging Markets
(AEM)
Europe and Pacific Developed Markets
(EPDM)
West and East Emerging Markets
(WEEM)
Emerging Markets
Updated structure supports
our strategy
Global Growth and
Omnichannel teams provide
centralized expertise and
resources
Three international zones
provide necessary focus and
expertise
With A Structure That Supports our Strategy…
59
BRUNO KELLER
President,
Latin America and East
Diversified team of proven
leaders with over 200+
years combined
experience in CPG
Newly appointed leaders
all hired from within KHC
CORY ONELL
EVP & Chief Omnichannel Sales
& Asian Emerging Markets Officer
MELISSA WERNECK
EVP & Global Chief
People Officer
MARCOS ELOI LIMA
EVP & Global Chief Procurement
& Sustainability Officer
FLAVIO TORRES
EVP & Global Chief
Supply Chain Officer
RASHIDA LA LANDE
EVP & Chief Legal &
Corporate Affairs Officer
PEDRO NAVIO
EVP & President,
North America
DIANA FROST
Global Chief Growth Officer
CARLOS ABRAMS-RIVERA
CEO
WILLEM BRANDT
President, Europe & Pacific
Developed Markets
ANDRE MACIEL
EVP & Global CFO
And the right leaders in place to guide our strategy…
60
Supported By An Organization That Is Diverse And Engaged.
61
People of Color (US)
20191 2023
24% 29%
Diversity Engagement
From Bottom
Quartile to
Above the Median
Career Growth
Annual Engagement survey
responses in the top quartile
for career growth, inclusion,
and empowerment
Women in Management
20191 2023
37% 43%
Score
20191 2023
71 76
1| The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day.
62
Join Us At Lunch…
… and Create the CAGNY 2024
Sauce of the Year!
Explore 200 sauce combinations and
experience our REMIX machine in action.
Diana Frost
Global Chief
Growth Officer
Willem Brandt
President, Europe
and Pacific
Developed Markets
Bruno Keller
President, Latin
America and East
Cory Onell
Alan Kleinerman
VP of Disruptive
Innovation
Andre Maciel
CEO EVP & Global CFO EVP & Chief Omnichannel
Sales & Asian Emerging
Markets Officer
Carlos Abrams-Rivera
Anne-Marie Megela
VP Global Head of
Investor Relations
meet members of the KHC leadership team
Pedro Navio
EVP & President,
North America
Rashida La Lande
EVP & Chief Legal
& Corporate
Affairs Officer
63
Kraft Heinz Presentation at the 2024 CAGNY.pdf

More Related Content

What's hot

Building the Billion Dollar SaaS Unicorn: CEO Guide
Building the Billion Dollar SaaS Unicorn: CEO GuideBuilding the Billion Dollar SaaS Unicorn: CEO Guide
Building the Billion Dollar SaaS Unicorn: CEO GuideKelly Schwedland
 
Modern Go-To-Market Framework
Modern Go-To-Market FrameworkModern Go-To-Market Framework
Modern Go-To-Market FrameworkJesse Hopps
 
Q4 2022 DBX Investor Presentation.pdf
Q4 2022 DBX Investor Presentation.pdfQ4 2022 DBX Investor Presentation.pdf
Q4 2022 DBX Investor Presentation.pdfDropbox
 
Go-to-Market Best Practices for Startups
Go-to-Market Best Practices for StartupsGo-to-Market Best Practices for Startups
Go-to-Market Best Practices for Startupsa16z
 
Advertising tech winning pitch deck
Advertising tech winning pitch deckAdvertising tech winning pitch deck
Advertising tech winning pitch deckBryce North
 
The Playbook to Blending Product-Led Growth with Sales-Led Growth: Teams, Too...
The Playbook to Blending Product-Led Growth with Sales-Led Growth: Teams, Too...The Playbook to Blending Product-Led Growth with Sales-Led Growth: Teams, Too...
The Playbook to Blending Product-Led Growth with Sales-Led Growth: Teams, Too...saastr
 
Product Led Growth Strategy
Product Led Growth StrategyProduct Led Growth Strategy
Product Led Growth StrategyMickey Alon
 
MYCELIA - PITCH DECK.pdf
MYCELIA - PITCH DECK.pdfMYCELIA - PITCH DECK.pdf
MYCELIA - PITCH DECK.pdfMycelia1
 
Business Strategy + Brand Strategy
Business Strategy + Brand StrategyBusiness Strategy + Brand Strategy
Business Strategy + Brand StrategyVCU Brandcenter
 
FYRE festival pitch deck
FYRE festival pitch deckFYRE festival pitch deck
FYRE festival pitch deckKyle Andrews
 
Stratechi Sales Plan Presentation by McKinsey Alum.pdf
Stratechi Sales Plan Presentation by McKinsey Alum.pdfStratechi Sales Plan Presentation by McKinsey Alum.pdf
Stratechi Sales Plan Presentation by McKinsey Alum.pdfStratechi.com
 
Planning Hype - Engineering hype before a product launch
Planning Hype - Engineering hype before a product launchPlanning Hype - Engineering hype before a product launch
Planning Hype - Engineering hype before a product launchJulian Cole
 
Go-to-Market Strategy
Go-to-Market StrategyGo-to-Market Strategy
Go-to-Market StrategyJeremy Horn
 
The slide deck we used to raise half a million dollars
The slide deck we used to raise half a million dollarsThe slide deck we used to raise half a million dollars
The slide deck we used to raise half a million dollarsBuffer
 
Sales as a Science
Sales as a ScienceSales as a Science
Sales as a ScienceSaaStock
 
What is an insight?
What is an insight?What is an insight?
What is an insight?Umar Ghumman
 

What's hot (20)

Building the Billion Dollar SaaS Unicorn: CEO Guide
Building the Billion Dollar SaaS Unicorn: CEO GuideBuilding the Billion Dollar SaaS Unicorn: CEO Guide
Building the Billion Dollar SaaS Unicorn: CEO Guide
 
Modern Go-To-Market Framework
Modern Go-To-Market FrameworkModern Go-To-Market Framework
Modern Go-To-Market Framework
 
Q4 2022 DBX Investor Presentation.pdf
Q4 2022 DBX Investor Presentation.pdfQ4 2022 DBX Investor Presentation.pdf
Q4 2022 DBX Investor Presentation.pdf
 
Go-to-Market Best Practices for Startups
Go-to-Market Best Practices for StartupsGo-to-Market Best Practices for Startups
Go-to-Market Best Practices for Startups
 
Advertising tech winning pitch deck
Advertising tech winning pitch deckAdvertising tech winning pitch deck
Advertising tech winning pitch deck
 
The Playbook to Blending Product-Led Growth with Sales-Led Growth: Teams, Too...
The Playbook to Blending Product-Led Growth with Sales-Led Growth: Teams, Too...The Playbook to Blending Product-Led Growth with Sales-Led Growth: Teams, Too...
The Playbook to Blending Product-Led Growth with Sales-Led Growth: Teams, Too...
 
Product Led Growth Strategy
Product Led Growth StrategyProduct Led Growth Strategy
Product Led Growth Strategy
 
MYCELIA - PITCH DECK.pdf
MYCELIA - PITCH DECK.pdfMYCELIA - PITCH DECK.pdf
MYCELIA - PITCH DECK.pdf
 
Business Strategy + Brand Strategy
Business Strategy + Brand StrategyBusiness Strategy + Brand Strategy
Business Strategy + Brand Strategy
 
Product-led growth
Product-led growthProduct-led growth
Product-led growth
 
FYRE festival pitch deck
FYRE festival pitch deckFYRE festival pitch deck
FYRE festival pitch deck
 
Zoom Pitch Deck
Zoom Pitch DeckZoom Pitch Deck
Zoom Pitch Deck
 
Stratechi Sales Plan Presentation by McKinsey Alum.pdf
Stratechi Sales Plan Presentation by McKinsey Alum.pdfStratechi Sales Plan Presentation by McKinsey Alum.pdf
Stratechi Sales Plan Presentation by McKinsey Alum.pdf
 
GTM Masterclass Deck
GTM Masterclass DeckGTM Masterclass Deck
GTM Masterclass Deck
 
Planning Hype - Engineering hype before a product launch
Planning Hype - Engineering hype before a product launchPlanning Hype - Engineering hype before a product launch
Planning Hype - Engineering hype before a product launch
 
Go-to-Market Strategy
Go-to-Market StrategyGo-to-Market Strategy
Go-to-Market Strategy
 
The slide deck we used to raise half a million dollars
The slide deck we used to raise half a million dollarsThe slide deck we used to raise half a million dollars
The slide deck we used to raise half a million dollars
 
Sales as a Science
Sales as a ScienceSales as a Science
Sales as a Science
 
What is an insight?
What is an insight?What is an insight?
What is an insight?
 
Peter Fisk - Marketing Game-Changer
Peter Fisk - Marketing Game-ChangerPeter Fisk - Marketing Game-Changer
Peter Fisk - Marketing Game-Changer
 

Similar to Kraft Heinz Presentation at the 2024 CAGNY.pdf

Kraft Heinz CAGNY 2023 Presentation.pdf
Kraft Heinz CAGNY 2023 Presentation.pdfKraft Heinz CAGNY 2023 Presentation.pdf
Kraft Heinz CAGNY 2023 Presentation.pdfNeil Kimberley
 
Smart & Final Investor Relations Handout September 2017
Smart & Final Investor Relations Handout September 2017Smart & Final Investor Relations Handout September 2017
Smart & Final Investor Relations Handout September 2017SmartFinalIR
 
Smart and Final handout September 2017
Smart and Final handout September 2017Smart and Final handout September 2017
Smart and Final handout September 2017Vladimir Rizun
 
Sfs ir handout_september_2017
Sfs ir handout_september_2017Sfs ir handout_september_2017
Sfs ir handout_september_2017Sara Lenz, PMP
 
Shopify q1 2017 investor deck
Shopify q1 2017 investor deckShopify q1 2017 investor deck
Shopify q1 2017 investor deckshopifyInvestors
 
Shopify Investor Deck - August 2016
Shopify Investor Deck - August 2016Shopify Investor Deck - August 2016
Shopify Investor Deck - August 2016shopifyInvestors
 
Investor Presentation - July 2021
Investor Presentation - July 2021Investor Presentation - July 2021
Investor Presentation - July 2021Tejal Engman
 
Investor Presentation - July 2021v1
Investor Presentation - July 2021v1Investor Presentation - July 2021v1
Investor Presentation - July 2021v1Tejal Engman
 
LendingClub Stockholder Outreach 2019 Presentation
LendingClub Stockholder Outreach 2019 PresentationLendingClub Stockholder Outreach 2019 Presentation
LendingClub Stockholder Outreach 2019 PresentationTearsheet
 
Ye 2016 preliminary update final posted to site_updated_2.8.17
Ye 2016 preliminary update final posted to site_updated_2.8.17Ye 2016 preliminary update final posted to site_updated_2.8.17
Ye 2016 preliminary update final posted to site_updated_2.8.17Mcgrawir
 
Sleep country draft roadshow presentation
Sleep country   draft roadshow presentationSleep country   draft roadshow presentation
Sleep country draft roadshow presentationSleepCountry
 
Shopify investor deck 11022016
Shopify investor deck 11022016Shopify investor deck 11022016
Shopify investor deck 11022016shopifyInvestors
 
Sprouts Farmers Market Investor Deck - August 2019
Sprouts Farmers Market Investor Deck - August 2019Sprouts Farmers Market Investor Deck - August 2019
Sprouts Farmers Market Investor Deck - August 2019Diego Romero
 

Similar to Kraft Heinz Presentation at the 2024 CAGNY.pdf (20)

Kraft Heinz CAGNY 2023 Presentation.pdf
Kraft Heinz CAGNY 2023 Presentation.pdfKraft Heinz CAGNY 2023 Presentation.pdf
Kraft Heinz CAGNY 2023 Presentation.pdf
 
Q4 2016 investor deck
Q4 2016 investor deckQ4 2016 investor deck
Q4 2016 investor deck
 
Q4 2016 investor deck
Q4 2016 investor deckQ4 2016 investor deck
Q4 2016 investor deck
 
Q1 2017 investor deck
Q1 2017 investor deckQ1 2017 investor deck
Q1 2017 investor deck
 
Q1 2017 investor deck
Q1 2017 investor deck Q1 2017 investor deck
Q1 2017 investor deck
 
Q1 2017 investor deck
Q1 2017 investor deckQ1 2017 investor deck
Q1 2017 investor deck
 
Q4 2016 investor deck pdf
Q4 2016 investor deck pdfQ4 2016 investor deck pdf
Q4 2016 investor deck pdf
 
Smart & Final Investor Relations Handout September 2017
Smart & Final Investor Relations Handout September 2017Smart & Final Investor Relations Handout September 2017
Smart & Final Investor Relations Handout September 2017
 
Smart and Final handout September 2017
Smart and Final handout September 2017Smart and Final handout September 2017
Smart and Final handout September 2017
 
Sfs ir handout_september_2017
Sfs ir handout_september_2017Sfs ir handout_september_2017
Sfs ir handout_september_2017
 
Shopify q1 2017 investor deck
Shopify q1 2017 investor deckShopify q1 2017 investor deck
Shopify q1 2017 investor deck
 
Shopify Investor Deck - August 2016
Shopify Investor Deck - August 2016Shopify Investor Deck - August 2016
Shopify Investor Deck - August 2016
 
Investor Presentation - July 2021
Investor Presentation - July 2021Investor Presentation - July 2021
Investor Presentation - July 2021
 
Investor Presentation - July 2021v1
Investor Presentation - July 2021v1Investor Presentation - July 2021v1
Investor Presentation - July 2021v1
 
LendingClub Stockholder Outreach 2019 Presentation
LendingClub Stockholder Outreach 2019 PresentationLendingClub Stockholder Outreach 2019 Presentation
LendingClub Stockholder Outreach 2019 Presentation
 
Ye 2016 preliminary update final posted to site_updated_2.8.17
Ye 2016 preliminary update final posted to site_updated_2.8.17Ye 2016 preliminary update final posted to site_updated_2.8.17
Ye 2016 preliminary update final posted to site_updated_2.8.17
 
Sleep country draft roadshow presentation
Sleep country   draft roadshow presentationSleep country   draft roadshow presentation
Sleep country draft roadshow presentation
 
Shopify investor deck 11022016
Shopify investor deck 11022016Shopify investor deck 11022016
Shopify investor deck 11022016
 
Sprouts Farmers Market Investor Deck - August 2019
Sprouts Farmers Market Investor Deck - August 2019Sprouts Farmers Market Investor Deck - August 2019
Sprouts Farmers Market Investor Deck - August 2019
 
Investor deck q2 2017
Investor deck q2 2017Investor deck q2 2017
Investor deck q2 2017
 

More from Neil Kimberley

Trian White Paper on Creating Value at Disney April 2024
Trian White Paper on Creating Value at Disney April 2024Trian White Paper on Creating Value at Disney April 2024
Trian White Paper on Creating Value at Disney April 2024Neil Kimberley
 
Diageo Strategy Presentation made in February 2024 CAGNY
Diageo Strategy Presentation made in February 2024 CAGNYDiageo Strategy Presentation made in February 2024 CAGNY
Diageo Strategy Presentation made in February 2024 CAGNYNeil Kimberley
 
Miller Coors Presentation at CAGNY Feb 2024
Miller Coors Presentation at CAGNY Feb 2024Miller Coors Presentation at CAGNY Feb 2024
Miller Coors Presentation at CAGNY Feb 2024Neil Kimberley
 
Pernod Ricard presentation at CAGNY 2024
Pernod Ricard presentation at CAGNY 2024Pernod Ricard presentation at CAGNY 2024
Pernod Ricard presentation at CAGNY 2024Neil Kimberley
 
Hershey Presentation at 2024 CAGY Conference
Hershey Presentation at 2024 CAGY ConferenceHershey Presentation at 2024 CAGY Conference
Hershey Presentation at 2024 CAGY ConferenceNeil Kimberley
 
General Mills Presentation at CAGNY 2024
General Mills Presentation at CAGNY 2024General Mills Presentation at CAGNY 2024
General Mills Presentation at CAGNY 2024Neil Kimberley
 
The Coca-Cola Company Presentation at CAGNY 2024.pdf
The Coca-Cola Company Presentation at  CAGNY 2024.pdfThe Coca-Cola Company Presentation at  CAGNY 2024.pdf
The Coca-Cola Company Presentation at CAGNY 2024.pdfNeil Kimberley
 
2022 Beverage Forum Non-Alcoholic Workshop[87].pdf
2022 Beverage Forum Non-Alcoholic Workshop[87].pdf2022 Beverage Forum Non-Alcoholic Workshop[87].pdf
2022 Beverage Forum Non-Alcoholic Workshop[87].pdfNeil Kimberley
 
Nestle Purina 2023 CAGNY.pdf
Nestle Purina 2023 CAGNY.pdfNestle Purina 2023 CAGNY.pdf
Nestle Purina 2023 CAGNY.pdfNeil Kimberley
 
General Mills CAGNY 2023.pdf
General Mills CAGNY 2023.pdfGeneral Mills CAGNY 2023.pdf
General Mills CAGNY 2023.pdfNeil Kimberley
 
KO 2023 CAGNY Presentation.pdf
KO 2023 CAGNY Presentation.pdfKO 2023 CAGNY Presentation.pdf
KO 2023 CAGNY Presentation.pdfNeil Kimberley
 
NERA Instacart Analysis
NERA Instacart AnalysisNERA Instacart Analysis
NERA Instacart AnalysisNeil Kimberley
 
Flow water July 2021 Investor deck
Flow water July 2021 Investor deckFlow water July 2021 Investor deck
Flow water July 2021 Investor deckNeil Kimberley
 
Vita Coco S1 Filing in Advance of IPO
Vita Coco S1 Filing in Advance of IPOVita Coco S1 Filing in Advance of IPO
Vita Coco S1 Filing in Advance of IPONeil Kimberley
 
Global Nestle CAGNY 2021
Global Nestle CAGNY 2021Global Nestle CAGNY 2021
Global Nestle CAGNY 2021Neil Kimberley
 
Nestle Americas cagny 2021
Nestle Americas cagny 2021Nestle Americas cagny 2021
Nestle Americas cagny 2021Neil Kimberley
 
Monster Investor presentation 2021
Monster Investor presentation 2021Monster Investor presentation 2021
Monster Investor presentation 2021Neil Kimberley
 

More from Neil Kimberley (20)

Trian White Paper on Creating Value at Disney April 2024
Trian White Paper on Creating Value at Disney April 2024Trian White Paper on Creating Value at Disney April 2024
Trian White Paper on Creating Value at Disney April 2024
 
Diageo Strategy Presentation made in February 2024 CAGNY
Diageo Strategy Presentation made in February 2024 CAGNYDiageo Strategy Presentation made in February 2024 CAGNY
Diageo Strategy Presentation made in February 2024 CAGNY
 
Miller Coors Presentation at CAGNY Feb 2024
Miller Coors Presentation at CAGNY Feb 2024Miller Coors Presentation at CAGNY Feb 2024
Miller Coors Presentation at CAGNY Feb 2024
 
Pernod Ricard presentation at CAGNY 2024
Pernod Ricard presentation at CAGNY 2024Pernod Ricard presentation at CAGNY 2024
Pernod Ricard presentation at CAGNY 2024
 
Hershey Presentation at 2024 CAGY Conference
Hershey Presentation at 2024 CAGY ConferenceHershey Presentation at 2024 CAGY Conference
Hershey Presentation at 2024 CAGY Conference
 
General Mills Presentation at CAGNY 2024
General Mills Presentation at CAGNY 2024General Mills Presentation at CAGNY 2024
General Mills Presentation at CAGNY 2024
 
The Coca-Cola Company Presentation at CAGNY 2024.pdf
The Coca-Cola Company Presentation at  CAGNY 2024.pdfThe Coca-Cola Company Presentation at  CAGNY 2024.pdf
The Coca-Cola Company Presentation at CAGNY 2024.pdf
 
2022 Beverage Forum Non-Alcoholic Workshop[87].pdf
2022 Beverage Forum Non-Alcoholic Workshop[87].pdf2022 Beverage Forum Non-Alcoholic Workshop[87].pdf
2022 Beverage Forum Non-Alcoholic Workshop[87].pdf
 
Nestle Purina 2023 CAGNY.pdf
Nestle Purina 2023 CAGNY.pdfNestle Purina 2023 CAGNY.pdf
Nestle Purina 2023 CAGNY.pdf
 
PEP 2023 CAGNY.pdf
PEP 2023 CAGNY.pdfPEP 2023 CAGNY.pdf
PEP 2023 CAGNY.pdf
 
General Mills CAGNY 2023.pdf
General Mills CAGNY 2023.pdfGeneral Mills CAGNY 2023.pdf
General Mills CAGNY 2023.pdf
 
KO 2023 CAGNY Presentation.pdf
KO 2023 CAGNY Presentation.pdfKO 2023 CAGNY Presentation.pdf
KO 2023 CAGNY Presentation.pdf
 
NERA Instacart Analysis
NERA Instacart AnalysisNERA Instacart Analysis
NERA Instacart Analysis
 
Flow water July 2021 Investor deck
Flow water July 2021 Investor deckFlow water July 2021 Investor deck
Flow water July 2021 Investor deck
 
Vita Coco S1 Filing in Advance of IPO
Vita Coco S1 Filing in Advance of IPOVita Coco S1 Filing in Advance of IPO
Vita Coco S1 Filing in Advance of IPO
 
Unilever CAGNY 2021
Unilever CAGNY 2021Unilever CAGNY 2021
Unilever CAGNY 2021
 
Pepsico CAGNY 2021
Pepsico CAGNY 2021Pepsico CAGNY 2021
Pepsico CAGNY 2021
 
Global Nestle CAGNY 2021
Global Nestle CAGNY 2021Global Nestle CAGNY 2021
Global Nestle CAGNY 2021
 
Nestle Americas cagny 2021
Nestle Americas cagny 2021Nestle Americas cagny 2021
Nestle Americas cagny 2021
 
Monster Investor presentation 2021
Monster Investor presentation 2021Monster Investor presentation 2021
Monster Investor presentation 2021
 

Recently uploaded

Cyber Security Training in Office Environment
Cyber Security Training in Office EnvironmentCyber Security Training in Office Environment
Cyber Security Training in Office Environmentelijahj01012
 
Healthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterHealthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterJamesConcepcion7
 
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessOrganizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessSeta Wicaksana
 
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCRashishs7044
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyotictsugar
 
Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Peter Ward
 
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckPitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckHajeJanKamps
 
PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationAnamaria Contreras
 
Onemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring CapabilitiesOnemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring CapabilitiesOne Monitar
 
Technical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamTechnical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamArik Fletcher
 
MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?Olivia Kresic
 
Buy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy Verified Accounts
 
EUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exportersEUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exportersPeter Horsten
 
20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdfChris Skinner
 
Kenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith PereraKenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith Pereraictsugar
 
Darshan Hiranandani [News About Next CEO].pdf
Darshan Hiranandani [News About Next CEO].pdfDarshan Hiranandani [News About Next CEO].pdf
Darshan Hiranandani [News About Next CEO].pdfShashank Mehta
 
Memorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMMemorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMVoces Mineras
 
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Kirill Klimov
 
Send Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSendBig4
 

Recently uploaded (20)

Cyber Security Training in Office Environment
Cyber Security Training in Office EnvironmentCyber Security Training in Office Environment
Cyber Security Training in Office Environment
 
Healthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare NewsletterHealthcare Feb. & Mar. Healthcare Newsletter
Healthcare Feb. & Mar. Healthcare Newsletter
 
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessOrganizational Structure Running A Successful Business
Organizational Structure Running A Successful Business
 
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyot
 
Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...Fordham -How effective decision-making is within the IT department - Analysis...
Fordham -How effective decision-making is within the IT department - Analysis...
 
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckPitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
 
PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement Presentation
 
WAM Corporate Presentation April 12 2024.pdf
WAM Corporate Presentation April 12 2024.pdfWAM Corporate Presentation April 12 2024.pdf
WAM Corporate Presentation April 12 2024.pdf
 
Onemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring CapabilitiesOnemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
Onemonitar Android Spy App Features: Explore Advanced Monitoring Capabilities
 
Technical Leaders - Working with the Management Team
Technical Leaders - Working with the Management TeamTechnical Leaders - Working with the Management Team
Technical Leaders - Working with the Management Team
 
MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?
 
Buy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail AccountsBuy gmail accounts.pdf Buy Old Gmail Accounts
Buy gmail accounts.pdf Buy Old Gmail Accounts
 
EUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exportersEUDR Info Meeting Ethiopian coffee exporters
EUDR Info Meeting Ethiopian coffee exporters
 
20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf20200128 Ethical by Design - Whitepaper.pdf
20200128 Ethical by Design - Whitepaper.pdf
 
Kenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith PereraKenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith Perera
 
Darshan Hiranandani [News About Next CEO].pdf
Darshan Hiranandani [News About Next CEO].pdfDarshan Hiranandani [News About Next CEO].pdf
Darshan Hiranandani [News About Next CEO].pdf
 
Memorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMMemorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQM
 
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024
 
Send Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.comSend Files | Sendbig.com
Send Files | Sendbig.comSend Files | Sendbig.com
 

Kraft Heinz Presentation at the 2024 CAGNY.pdf

  • 2. This presentation contains a number of forward-looking statements as defined under U.S. federal securities laws, including, but not limited to, statements, estimates, and projections relating to our business and long-term strategy; our ambitions, goals, targets, and commitments; our activities, efforts, initiatives, plans, and programs, and our investments in such activities, efforts, initiatives, plans, and programs; and projected or expected timing, results, achievement, and impacts. Words such as “aim,” “anticipate,” “aspire,” “believe,” “commit,” “could,” “estimate,” “expect,” “guidance,” “intend,” ”may,” “might,” “outlook,” “plan,” “predict,” “project,” “seek,” “will,” “would,” and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. These statements are based on management’s beliefs, expectations, estimates, and projections at the time they are made and are not guarantees of future performance. Such statements are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond our control, which could cause actual results to differ materially from those indicated in the forward-looking statements. For additional, important information regarding such risks and uncertainties, please see the risk factors set forth in Kraft Heinz’s filings with the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. We disclaim and do not undertake any obligation to update, revise, or withdraw any forward-looking statement in this presentation, except as required by applicable law or regulation. NON-GAAP FINANCIAL MEASURES This presentation contains certain non-GAAP financial measures, including Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Net Leverage, Free Cash Flow, and Free Cash Flow Conversion. These non-GAAP financial measures may differ from similarly titled non-GAAP financial measures presented by other companies. These measures are not substitutes for their comparable financial measures prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and should be viewed in addition to, and not as an alternative for, the GAAP results. These non-GAAP financial measures assist management in comparing the Company’s performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect the Company’s underlying operations. Please view this presentation together with our Annual Report on Form 10-K and the accompanying non-GAAP information, which includes a discussion of non-GAAP financial measures and reconciliations of non-GAAP financial measures to the comparable GAAP financial measures, available on our website at ir.kraftheinzcompany.com under News & Events > Events & Webcasts, or directly at ir.kraftheinzcompany.com/events-and-webcasts. FORWARD-LOOKING STATEMENTS FEBRUARY 21, 2024 2
  • 3. 2And are positioning Kraft Heinz to drive consistent top-tier returns… 1We‘ve turned the corner in our transformation journey. 3…by being the Leader in Elevating and Creating Food That Makes You Feel Good. 3
  • 4. We’ve Made Tremendous Progress On Our Transformation Journey… 4
  • 5. With Dramatically Better Results Seen Across The Business … 5 1| The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day. 2| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts. Key Performance Metrics YoY Organic Net Sales2 Growth YoY Adjusted EPS2 Growth YoY Marketing + R&D + CapEx Spend Net Leverage2 -1.7% 3.4% 2019 2023 1 -18.8% 7.2% 2019 2023 1 ~-110M ~270M 2019 2023 1 4.4x 3.0x 2019 2023 1 Above Algorithm Above Algorithm
  • 6. Unlocking End-to-End Efficiencies and Powering KHC with agile@scale … 6 1| The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day. Gross Efficiencies as a % of COGS # of Agile Pods 1.5% 4.1% 2019 2023 1 0 36 2019 2023 1
  • 7. … And Championing Great People 7 1| The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day. 2| Kraft Heinz Employee Engagement Score improved from 71 in 2019 to 76 in 2023 and moved from below the industry median to above. Employee Engagement Score2 From Bottom Quartile to Above the Median 76 71 Voluntary Turnover Salaried 9% 16% 20191 2023 “Great Place to Work” # of Countries 16 0 20191 2023 20191 2023
  • 8. While Providing Shareholders With Higher Returns… 8 1| Peer set includes Beverage, Food, Personal Care, Household Products and Tobacco Companies from the S&P500. Dividend yield for consumer goods is calculated using a simple average for the one year ending Dec 31, 2023. Average TSR for consumer goods is calculated using a weighted average for the three years ending Dec 31, 2023. 14% 20% Consumer Goods Kraft Heinz 3-Year Total Shareholder Return1 Consumer Goods Dividend Yield1 2.7% 4.3% Consumer Goods Kraft Heinz Share Repurchase Program $3 Billion
  • 9. 9
  • 10. 10 Portfolio Management Share Repurchase Debt Repayment Dividends Capital Allocation Fundamentals Organic Net Sales1 Growth Gross Efficiencies Adjusted Gross Profit Margin1 Expansion Targeting Double-Digit TSR through business fundamentals and capital allocation. 1| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts.
  • 11. 11 Elevating Taste Creating Meal & Snack Solutions in the Most Attractive Consumer Spaces
  • 12. 1| Source: KHC Demand/Occasion Research. 55% of food and beverage occasions are driven at least in part by the desire for comfort. Satisfy those 55% of F&B occasions that include desire for comfort1 Advance sustainable packaging, net zero initiatives, and responsible sourcing Provide superior quality, loved & trusted by consumers Offer products worth paying for & solutions for every budget Grow plant-based offerings, reduce sodium & sugar, add functionality 12
  • 13. 13 1| Market attractiveness based upon estimated annual industry growth; Source: Euromonitor, IRI. Taste Elevation, Easy Ready Meals, and Substantial Snacking are global growth rates, all others are North America. 2| Right to win based on the following metrics: contribution to KHC net sales; adjusted gross profit margin potential; relative market share and market share trajectory. Market Attractiveness 1 Right to Win2 Taste Elevation Substantial Snacking Easy Ready Meals Desserts Hydration Meats Coffee Cheese ACCELERATE BALANCE PROTECT Bubble Size = 2023 KHC Net Sales We Defined Our Priorities Based On Market Attractiveness And Right To Win…
  • 14. … to refine roles that guide investment decisions and market strategy. ACCELERATE growth and prioritize investments STRATEGY PROTECT profit margins and invest at healthy levels BALANCE performance and invest to maintain brand footprint Taste Elevation Easy Ready Meals Substantial Snacking PLATFORMS Desserts Hydration Meats Cheese Coffee BALANCE ACCELERATE PROTECT High High High High High Low Medium ~4% ~2% Flat High, with exposure to commodity-driven volatility Low Adjusted Gross Profit Margin2: Market Share: Private Label Penetration: Industry Growth1: ATTRIBUTES ROLES 1| Based upon estimated annual industry growth. Annual growth rates are global for Accelerate platforms and North America for Protect & Balance. Growth rates are weighted based on KHC Net Sales. Source: Euromonitor, IRI. 2| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts. 14
  • 15. With Platforms And Categories Organized Accordingly. 15 2 3 4 1 Expanded Taste Elevation to include spreads, more sauces and spices Grouped snacking brands together Grouped commodity-like categories together Fast Fresh Meals – Cheese split in two Taste Elevation Easy Meals Made Better Real Food Snacking Easy Indulgent Desserts Flavorful Hydration Coffee Fast Fresh Meals - Meats Taste Elevation Easy Ready Meals Substantial Snacking Stabilize Grow Energize 1 Fast Fresh Meals - Cheese 2 Accelerate 3 Desserts Hydration Protect Cheese Coffee Meats Balance 4 Slices,Recipe
  • 16. 28% 24% 11% 11% 61% 65% 75%+ 2019 2023 Future 2,3 4 We estimate more than 75% of our future net sales to come from our Accelerate Platforms 1| Balance calculations also include Net Sales that are not otherwise categorized into another platform role presented. 2| The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day. 3| Excludes nets sales related to divested businesses. 4| Net sales growth estimates from the existing business. Does not contemplate any changes to portfolio. % Net Sales Accelerate Protect Balance1 16
  • 17. We Are Prioritizing Growth And Investment In These Platforms 17 Substantial Snacking Easy Ready Meals Taste Elevation
  • 18. Pursuing Growth Where We Have The Most Powerful Right To WIN. 18 1| Based upon estimated annual industry growth; Source: Euromonitor, IRI. 2| Source: Euromonitor, IRI. Brands shown are illustrative and do not reflect all brands within each platform. #1 Player in Sauces Worldwide2 Heinz is our Global Anchor: Sold in 70+ countries ~41% of Global KHC Portfolio Mid-Single-Digit (~4%) Industry Growth Estimated1 Taste Elevation
  • 19. Opportunities To Accelerate Taste Elevation Growth 19 Evolving the Core Clean Ingredients 1| Source: Nielsen. Expanding in Non-Core Host Foods Growing Heinz Beyond Ketchup Gravy Mayonnaise Cooking Sauces Market Share of Taste Elevation1 Heat / Flavor Sustainability 100% recyclable cap Non-Ketchup Heinz Net Sales as % Total Heinz Net Sales International Developed International Emerging 55% 68% 36% North America Burger Fried Potatoes Cold Sandwich Burrito Fajita Taco 3% Hot Dog Chicken Beef 41% 30% 19% 35% 15% 26%
  • 20. 1| Based upon estimated annual industry growth; Source: Euromonitor, IRI. Brands shown are illustrative and do not reflect all brands within each platform. Fragmented competition with limited global players ~17% of Global KHC Portfolio Mid-Single-Digit (~4%) Industry Growth Estimated1 Easy Ready Meals Pursuing Growth Where We Have The Most Powerful Right To WIN. 20
  • 21. Opportunities To Accelerate Easy Ready Meals Growth 21 Expanding Partnerships Evolving the Core Sustainability New Flavors Convenience Accelerate Against Global Trends Overdelivered FY Velocity in First Month Top Performing Plant-based M&C Chef Daniela Soto-Innes Youngest named World's Best Female Chef by the World's 50 Best Restaurants New Launch!
  • 22. Pursuing Growth Where We Have The Most Powerful Right To WIN. 22 1| Based upon estimated annual industry growth; Source: Euromonitor, IRI. Brands shown are illustrative and do not reflect all brands within each platform. ~4% Industry Growth Estimated1 Refrigerated or Frozen Snacks to be enjoyed between or instead of meals. Substantial Snacking ~7% of Global KHC Portfolio No clear market leader in frozen snacks
  • 23. Opportunities To Accelerate Substantial Snacking Growth 23 Evolving the Core Expanding Wholesome Snacking Providing Convenience Through Proprietary Platforms Authenticity Convenience Nutrition New 360CRISPTM Launch
  • 24. Our ACCELERATE Platforms Span Across All Our Growth Pillars… 24 Taste Elevation Easy Ready Meals Substantial Snacking ACCELERATE Platforms Growth Pillars Global Away From Home Emerging Markets Hydration Desserts Meats Cheese Coffee PROTECT Platforms BALANCE Platforms North America Retail driven by Accelerate Platforms Brands shown are illustrative and do not reflect all brands within each platform.
  • 25. Agile@Scale Competitive Advantages Strategic Partnerships Ownership-Centric Culture Sales Excellence Disruptive Marketing Brand Growth System Enablers for Growth Innovation Emerging Markets Global Away From Home North America Retail Accelerate Platforms driven by Growth Pillars Sources of Funding Centralized Services Supply Chain Working Capital Revenue Management We Have A Solid Path To Delivering Consistent Profitable Growth… 25
  • 26. Growth Pillars Emerging Markets Global Away From Home 1pp Organic Net Sales1 Growth 1pp Organic Net Sales1 Growth 1pp Organic Net Sales1 Growth N.A. Retail driven by Accelerate Platforms 2%-3% Long-Term Algorithm Organic Net Sales1 1| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts. …With Each Of The Growth Pillars Contributing 1pp To Organic Net Sales Growth1 26
  • 27. Accelerate Platforms N.A. Retail driven by ... driven by innovation and brand U.S. Household Penetration ~94%1 ~77%1 #1 or #2 Brand Position ~59%2 Gaining Share 1| Source: US Data from IRI 52 weeks through 12/31/23. 2| Source: US Data from IRI 13 weeks through 12/31/23. North America Retail Growth Will Be Driven By Our ACCELERATE Platforms. 27
  • 28. Away From Home We Have A Significant Opportunity To Capture Share In Away From Home… 28 Target Current NA Current/Targeted Penetration1 100% … In both North America … and our International Zones +11pp Emerging Markets Away From Home Share2 North America Away From Home Share1 KHC Taste Elevation Share 1| Source: NPD Supply Track. 2| Source: Euromonitor, Circana.
  • 29. Away From Home A t H o m e / R e t a i l 210 400 2022 2023 2024 Innovation Predict Behavior Shifts Culinary Expertise & Trends Consumer Insights Brand Activation A w a y f r o m H o m e Global Brand Activation Attractive Channels 14% Away From Home Organic Net Sales1 Growth in 2023 Expanding Presence in Restaurants 1| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts. Creating memorable brand experiences for guests Away From Home Growth Strategy Is Driving Strong Results. Education Healthcare Workplace Food Services Travel & Leisure Entertainment Restaurants 29
  • 30. Emerging Markets 1. Source: Euromonitor. There Is Opportunity To Grow In Emerging Markets… 30 % of Net Sales in Emerging Markets 2x Emerging Market Share % Developed Market Share % MORE TO WIN Expectation 10% 6% Projected Industry CAGR 2023 2033 Retail Taste Elevation Size of Emerging Markets1 Retail Taste Elevation Market Share1 Attractive category growth expected… Emerging Markets expected to contribute more to overall KHC net sales With Room To Expand Penetration…
  • 31. Emerging Markets We Have Three Levers Capturing Growth Across Emerging Markets 31 Go To Market Brand Equity Away From Home GTM Emerging Market Organic Net Sales2 Growth in 2023 14% 150bps Emerging Markets Adjusted EBITDA Margin2 Expansion 1| Organic Net sales of markets with Go To Market Model implemented by year end 2023 as a % of total Emerging Markets organic net sales for FY 2023. 2| 2023 vs. 2022. Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts. ~90% Live1
  • 32. Agile@Scale Emerging Markets North America Retail Accelerate Platforms driven by Sales Excellence Disruptive Marketing Brand Growth System Enablers for Growth Sources of Funding Competitive Advantages Strategic Partnerships Ownership-Centric Culture Innovation Centralized Services Supply Chain Working Capital Revenue Management Growth Pillars Global Away From Home We Have A Solid Path To Delivering Consistent Profitable Growth… 32
  • 33. Our New Kraft Heinz Brand Growth System Underpins A Systematic Methodology 33 Offer value that uniquely meets consumer and customer needs Consumer pricing & promo Customer value Value Equation Drive consistent availability alongside meaningful execution Distribution & Reach Perfect Store & Screen Omni Execution Set the standard for performance, taste, sustainability and nutrition Perfect Product Perfect Packaging Product & Package Delivery Brand Strength Communication Effectiveness Build an everlasting connection with our consumers Brand Resonance • Industry standard methodology with leading KPIs that provide incremental value to Kraft Heinz, globally. • Prioritizing largest opportunities and driving ROI through new insights and investments in capabilities. • Systemically raising the bar to deliver for our customers and consumers
  • 34. We Are Actively Deploying The Brand Growth System On Our Flagship Brands 34 Brand Strength Communication Effectiveness Build an everlasting connection with our consumers Brand Resonance Brand transcends a food category, and drives deeper emotional connection with consumers Multi-Touch Campaign to Build Brand Love Building Brand Equity at the Speed of Culture Culturally relevant activation – from “Monday Night Football” to Walmart.com in 15 days
  • 35. Systematic Brand Activation On Heinz Is Building Brand Love And Sales Growth 35 Sources: Kantar Brand Health Tracking, Q4, FY23, Ketchup category; Kantar In-Market Campaign Effectiveness study. 1| FY23 vs. FY22 sales, which holds the impact of currency constant and excludes the impact of 53rd week TOP 4% of brands (also includes Apple, Google) Kantar Appointment for Meaningful growth in brand affinity, favorability, obsession metrics ~12% YoY Global Heinz “ICONIC” BRAND STATUS INCREASED BRAND LOVE SALES1 GROWTH HALO
  • 36. Agile@Scale Emerging Markets North America Retail Accelerate Platforms driven by Sales Excellence Disruptive Marketing Brand Growth System Enablers for Growth Sources of Funding Competitive Advantages Strategic Partnerships Ownership-Centric Culture Innovation Centralized Services Supply Chain Working Capital Revenue Management Growth Pillars Global Away From Home We Have A Solid Path To Delivering Consistent Profitable Growth… 36
  • 37. Our Approach To Innovation Is Creating A Foundation For Growth 37 1| $2B incremental net innovation and renovation from 2023-2027, accounting for cannibalization, on a 3-year rolling basis. Innovation grew 70%+ YoY in 2023… 2022 2023 2024 70%+ YoY Incremental Net Sales from Innovation …and we’re just getting started We are on target to deliver of incremental Net Sales from 1
  • 38. Innovation Strategy To Meet Demand In Our Accelerate Platforms 38 Easy Ready Meals • Increased our R&D investments 15% YoY1 • Developed proprietary technology platforms such as 360CRISPTM • Leverage tech-enabled Agile@Scale • Testing and learning in market before scaling broadly • Focusing on the highest incremental opportunities 1| 2023 vs. 2022. Substantial Snacking Taste Elevation
  • 39. Agile@Scale Emerging Markets North America Retail Accelerate Platforms driven by Sales Excellence Disruptive Marketing Brand Growth System Enablers for Growth Sources of Funding Competitive Advantages Strategic Partnerships Ownership-Centric Culture Innovation Centralized Services Supply Chain Working Capital Revenue Management Growth Pillars Global Away From Home We Have A Solid Path To Delivering Consistent Profitable Growth… 39
  • 40. We Have Come A Long Way In Building A Foundation For Sales Excellence... 40 1| 5% CAGR Improvement 2022 vs. 2019. The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day. 2| 1.5pp YoY improvement 2023 vs. 2022. Share of Shelf is calculated as linear inch share and takes into consideration 14 categories that represent over 70% of total KHC U.S. unit sales 3| Net sales of markets with GTM implemented as a % of total Emerging Markets net sales for FY 2023. Leveraged Insights and Capabilities 2 YoY Share of Shelf Expansion2 1.5pp CAGR Improvement in Promotional ROI1 5% 4 TWO Consecutive Years of Record Employee Engagement Invested in Our Talent 1 Emerging Markets Covered3 ~90% Implemented Go To Market Model 3 Strengthened Customer Relationships Improvement in 2023 Advantage Survey Rankings +8
  • 41. And Will Replicate Success Across The Company. 41 We are better positioned to scale best practices, focusing on bringing speed and visibility on a GLOBAL level.
  • 42. Agile@Scale Emerging Markets North America Retail Accelerate Platforms driven by Sales Excellence Disruptive Marketing Brand Growth System Enablers for Growth Sources of Funding Competitive Advantages Strategic Partnerships Ownership-Centric Culture Innovation Centralized Services Supply Chain Working Capital Revenue Management Growth Pillars Global Away From Home Capital Allocation We Have A Solid Path To Delivering Consistent Profitable Growth… 42
  • 43. Global Chief Financial Officer Andre Maciel
  • 44. We Are Maximizing Return On Trade Investment With Sizeable Opportunities Ahead 44 Leveraging Digital Tools With Opportunities Ahead to Improve Lift and Profitability: Capturing Mix Opportunities Further Reduction of Negative ROI Promotions Scaling AI-Based Models for Promotional Calendars 1| The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day. 2| Data is US Retail data only. • Developed In-House Trade Management System • Resulting in more trade spend shifting to positive ROI events and an increase in the average ROI +5% Average Net ROI on Promotions 2022 CAGR vs 20191 +5% 2023 vs 2022 0% 20% 40% 60% 2019 2022 2023 % of Promotional Spend with Net Positive ROI 1 2 2
  • 45. We Are Accelerating The Pace Of Improvement Across Our Supply Chain … 45 • Implemented cognitive decision intelligence tools to forecast and avoid supply disruptions • Started a multi-year optimization of our network • Accelerated factory investments With further efficiencies to unlock by: Extending digital tools to build a self-driving supply chain Continuing to increase capabilities through automation and further network optimization On Track to Hit Our $2.5B Gross Efficiencies Target1 1| 5 year $2.5bn target for gross efficiencies by 2027. Maintaining disciplined execution and continuous improvement mindset Gross Efficiencies (% COGS) 0.0% 1.0% 2.0% 3.0% 4.0% Average '20-'22 Average '23-'24 Best in Class
  • 46. • New digital tools (Machine Learning demand forecasting, Advanced Analytics Inventory) • New agile equipment (automated lines for faster changeovers) Improved Demand Forecasting ‘19 ‘23 Best in Class 4th Quartile 3rd Quartile 2nd Quartile 1st Quartile Demand Forecast Accuracy % vs. Benchmark1 1| North America Only. Source is Chainalytics. 2| North America Only. Excess inventory (pounds of inventory above policy) expressed as a percentage variance. 3| The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day. Excess Inventory2 5.5% 20193 4.7% 2023 Best in Class 4.0% With opportunities for further improvement by: Improving forecast accuracy and reducing excess inventory We Are Driving Working Capital Improvements 46 Consolidating and Automating Warehouses Increasing Use of Touchless Demand Forecasting Scaling Automated Production Scheduling
  • 47. • ~350 employees onboarded in new facility • Expanding teams, capabilities, and scope With opportunities for further improvement by: Established New Center in India Growing our Centralized Service Capabilities with Meaningful Value Creation to Come $30M Realized Annual Efficiencies 1 1| Realized annual efficiencies since reinvention of our Centralized Service function in 2022. $50M+ Identified potential incremental value per year Implementing global SAP S4 Finance Module Increasing Automation and Generative AI Expanding Captive Center 47
  • 48. Outlook Reflects Continued Growth in 2024 Across Key Metrics; On Algo Pace by Year-End • Expect Adjusted Gross Profit Margin1 to expand modestly, +25 to 75 bps YoY • SG&A re-established to healthy levels in 2023, as a result we expect only a slight increase YoY 2024 FYE Outlook Organic Net Sales1 Adjusted Operating Income1 Adjusted EPS1 2024 Considerations +0-2% • Positive contribution from price throughout the year • Volume inflection to positive growth expected in H2 • Expect performance in Q1 2024 to be a similar profile to Q4 2023, and gradually move towards our long-term algorithm as we progress throughout 2024 +2-4% +1-3% • Effective tax rate on Adjusted EPS1: 20-22% (~200bps or ~$0.07 YoY headwind) • Interest and Other Expense/(Income): ~$45M unfavorable impact YoY, driven by FX headwinds and debt refinancing (~100bps or ~$0.03 YoY headwind) • Does not include the possibility of additional share buyback in the year 1| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts. 48
  • 49. Long-Term Algorithm 49 Adjusted Operating Income1 Growth Adjusted EPS1 Growth Organic Net Sales1 Growth Generate Free Cash Flow Conversion1 4% to 6% 6% to 8% 2% to 3% Approximately 100% 1| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts.
  • 50. 1| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts. UNLOCK EFFICIENCIES $2.5B by 2027 Gross Cost Efficiencies Free Cash Flow1 $ and % Conversion ~100% conversion INVEST IN SUPERIOR BRANDS R&D Spend >1% net sales ~5% net sales Marketing Spend >3.5% net sales Capital Expenditures POWER BRAND HEALTH Improving Marketing ROI and Brand Health Brand Superiority Metrics Innovation $2B net sales by 2027 DRIVE TOP LINE ~1% to 2% Organic Net Sales1 growth North American Zone driven by Accelerate Platforms Global Away From Home ~7% Organic Net Sales1 growth Emerging Markets ~13% Organic Net Sales1 growth We’ve Established Targets To Guide Progress On Our Long-Term Algorithm 50
  • 51. Short Term Top Line Profitability Free Cash Flow1 Top line Total Shareholder Return Free Cash Flow1 Long Term Built with common incentives across the organization to break down silos Aligned with goal of delivering top-tier TSR …With Incentives Aligned To Generating Top-tier Shareholder Returns. 51 1| Non-GAAP financial measure. See the accompanying Non-GAAP Information and Reconciliations at ir.kraftheinzcompany.com/events-and-webcasts.
  • 52. Target Leverage Ratio of Approximately 3.0x Maintain Investment Grade Competitive Annual Dividend Capital Allocation Strategy Invest in Organic Growth Actively Manage Portfolio Return Incremental Capital to Stockholders We’re Delivering An Attractive Dividend And Maintaining A Strong Balance Sheet… 52
  • 53. Focus on Accelerate Platforms Increase our exposure to Emerging Markets Enhance critical capabilities Aligned to portfolio strategy Sufficient scale and accretive to KHC top-line growth Bias towards bolt-on TSR-accretive Outside of portfolio strategy Lower “Ability to Win” Fair valuation BALANCE DIVESTITURE CRITERIA PORTFOLIO STRATEGY ACQUISITION CRITERIA While Taking A Disciplined Approach To Portfolio Management… 53
  • 55. Agile@Scale Emerging Markets North America Retail Accelerate Platforms driven by Sales Excellence Disruptive Marketing Brand Growth System Enablers for Growth Sources of Funding Competitive Advantages Strategic Partnerships Ownership-Centric Culture Innovation Centralized Services Supply Chain Working Capital Revenue Management Growth Pillars Global Away From Home We Have A Solid Path To Delivering Consistent Profitable Growth… 55
  • 56. Agile@Scale Provides Us The Fuel To Outpace Competition 56 We’re as nimble as a start-up, but at the scale of a company in nearly every household, enabled by a tech-first approach. 1| Reflects total annual gross efficiencies for which Agile@Scale has contributed. Annual Gross Efficiencies1 Agile@Scale Roadmap ~$400M ~$700M1 ~$400M
  • 57. We’re Developing, Best-in-class Partnerships… 57 …to co-create the future of food.
  • 58. We Embrace the Red 1 2 3 4 We are Ambitious and Accountable We are Close to the Business We Think and Act like Owners Our Ownership-Centric Culture Is Foundational To The Way We Operate 58
  • 59. Global Growth Office Global Omnichannel North America Asia Emerging Markets (AEM) Europe and Pacific Developed Markets (EPDM) West and East Emerging Markets (WEEM) Emerging Markets Updated structure supports our strategy Global Growth and Omnichannel teams provide centralized expertise and resources Three international zones provide necessary focus and expertise With A Structure That Supports our Strategy… 59
  • 60. BRUNO KELLER President, Latin America and East Diversified team of proven leaders with over 200+ years combined experience in CPG Newly appointed leaders all hired from within KHC CORY ONELL EVP & Chief Omnichannel Sales & Asian Emerging Markets Officer MELISSA WERNECK EVP & Global Chief People Officer MARCOS ELOI LIMA EVP & Global Chief Procurement & Sustainability Officer FLAVIO TORRES EVP & Global Chief Supply Chain Officer RASHIDA LA LANDE EVP & Chief Legal & Corporate Affairs Officer PEDRO NAVIO EVP & President, North America DIANA FROST Global Chief Growth Officer CARLOS ABRAMS-RIVERA CEO WILLEM BRANDT President, Europe & Pacific Developed Markets ANDRE MACIEL EVP & Global CFO And the right leaders in place to guide our strategy… 60
  • 61. Supported By An Organization That Is Diverse And Engaged. 61 People of Color (US) 20191 2023 24% 29% Diversity Engagement From Bottom Quartile to Above the Median Career Growth Annual Engagement survey responses in the top quartile for career growth, inclusion, and empowerment Women in Management 20191 2023 37% 43% Score 20191 2023 71 76 1| The Company views comparison to 2019 to be meaningful, as it was the base year for the Company's strategic plan announced at the Company’s September 2020 Investor Day.
  • 62. 62
  • 63. Join Us At Lunch… … and Create the CAGNY 2024 Sauce of the Year! Explore 200 sauce combinations and experience our REMIX machine in action. Diana Frost Global Chief Growth Officer Willem Brandt President, Europe and Pacific Developed Markets Bruno Keller President, Latin America and East Cory Onell Alan Kleinerman VP of Disruptive Innovation Andre Maciel CEO EVP & Global CFO EVP & Chief Omnichannel Sales & Asian Emerging Markets Officer Carlos Abrams-Rivera Anne-Marie Megela VP Global Head of Investor Relations meet members of the KHC leadership team Pedro Navio EVP & President, North America Rashida La Lande EVP & Chief Legal & Corporate Affairs Officer 63