2. Forward-Looking Statements
This presentation contains, or incorporates by reference, “forward-looking statements” with
projections concerning, among other things, the Company’s strategy, and the Company’s sales,
earnings, margin, operating profit, costs and expenditures, interest expense, tax rate, capital
expenditure, dividends, cash flow, debt reduction, share repurchases, costs, brand building, ROIC,
working capital, growth, new products, innovation, cost reduction projects, and competitive pressures.
Forward-looking statements include predictions of future results or activities and may contain the words
“expects,” “believes,” “should,” “will,” “will deliver,” “anticipates,” “projects,” or words or phrases of similar
meaning.
The Company’s actual results or activities may differ materially from these predictions. The Company’s
future results could also be affected by a variety of other factors, including competitive conditions and
their impact; the effectiveness of pricing, advertising, and promotional spending programs; the success
of productivity improvements and business transitions; the success of innovation and new product
introductions; the recoverability of carrying amounts of goodwill and other intangibles; the availability of
and interest rates on short-term financing; changes in consumer behavior and preferences; commodity
and energy prices and labor costs; actual market performance of benefit plan trust investments; the
levels of spending on systems initiatives, properties, business opportunities, integration of acquired
businesses, and other general and administrative costs; U.S. and foreign economic conditions including
interest rates, taxes and tariffs, and currency rate translations or unavailability; legal and regulatory
factors; the underlying price and volatility of the Company’s common stock and the impact of equity-
based employee awards; business disruption or other losses from terrorist acts or political unrest; and
other items.
Forward-looking statements speak only as of the date they were made, and the Company undertakes no
obligation to publicly update them.
2
3. Third Quarter 2007 Highlights
• Solid Revenue Growth
• Increased Levels of Investment
• 9% Higher Earnings Per Share
• Raising 2007 Earnings Guidance
• 2008 Outlook
3
4. Summary of Financial Results
Millions, except EPS
Third Quarter Growth
2007 2006 Reported Internal
Net Sales (1) $ 3,004 $ 2,823 6% 4%
Operating Profit (1) $ 492 $ 487 1% -2%
Earnings Per Share $ 0.76 $ 0.70 9%
(2)
Cash Flow $ 961 $ 850 13%
1) Internal sales and operating profit growth exclude the impact of foreign currency translation and if applicable,
acquisitions, dispositions, and differences in the number of shipping days.
2) Year-to-date cash flow, defined as cash from operating activities less capital expenditures, is reconciled to the
comparable GAAP measure at the end of this presentation.
4
5. Third Quarter 2007: Net Sales Growth Components
Year-Over-Year % Change
6.4%
+3.8%
Internal*
3.1%
2.6%
0.7%
0.0%
Net Sales Tonnage Price/Mix Currency Acq./ Divest
YTD 7.9% 2.0% 3.6% 2.3% 0.0
* Internal net sales and operating profit growth exclude the impact of foreign currency translation
and if applicable, acquisitions, dispositions, and difference in the number of shipping days.
5
6. Reinvestment for the Future: Growth in Advertising
% Change, Net Sales and Advertising
Net Sales
Advertising + DD
+ DD
+8%
+6%
Net Sales Brand Building Net Sales
YTD 2007 Building
Brand
Third Quarter 2007
6
7. Gross Profit and Margin*
+ Operating leverage
- Energy and fuel
+ Productivity savings
- Commodities
+ Price/Mix
$ Millions
$1,342
$1,274
5%
$1,186
Growth
Q3 2005 Q3 2006 Q3 2007
YTD Margin* 45.2% 44.5% 44.3%
* % of net sales
7
8. Third Quarter 2007:
Internal Operating Profit Growth by Area
Year-Over-Year % Change, Internal Growth (1)
1%
(2)% (4)% (2)% (26)%
Total North Latin Asia
Pacific(2)
Company America Europe America
YTD 3% 3% 11% (7)% (15)%
1) Internal operating profit growth excludes the impact of foreign currency translation and if applicable,
acquisitions, dispositions, and shipping day differences.
2) Includes Australia, Asia, and South Africa.
8
9. 2007: Sixth Consecutive Year of Sustainable Growth
2007 Year-To-Date
Grow Gross Profit
• Decreased (20) basis pts
• Dollars up about $280 million
Increase Brand Building
High Single Digit Increases
Grow Internal
Net Sales
Sustainable
2007: +5.6%
Growth Drive Innovation
(V2V)
Increase Price / Mix
2007: +3.6%
9
10. Year-To-Date 2007: Higher Cash Flow*
$ Millions
$961
13%
$850
Growth
YTD 2006 YTD 2007
* Kellogg defines Cash Flow as cash from operating activities, less capital expenditure;
10 see reconciliation to GAAP cash flow at the end of this presentation.
11. 2007 Outlook:
Greater Confidence In Another Strong Year
Full Year 2007
Internal Net Sales* +Mid SD Growth
Greater than our long-term target of low single-digit growth
19¢ of
Internal Operating Profit* +Low SD
Up-front
Includes significant investment in innovation, Costs
increased advertising, additional investment in
up-front costs as well as higher commodity inflation
Earnings Per Share
Raising Guidance to $2.72 to $2.75
Increased up-front costs offset by lower tax rate
* Internal sales and operating profit growth exclude the impact of foreign currency translation
and if applicable, acquisitions, dispositions, and differences in the number of shipping days.
11
12. 2008 Outlook:
Another Year of Long-Term, Sustainable Growth
Full Year 2008
Internal Net Sales* +Mid SD
Greater than our long-term target
Internal Operating Profit* +Mid SD
Significant investment in innovation
Increased advertising
Additional inflation headwinds
Continued up-front cost investment
Earnings Per Share
Guidance Range of $2.92 to $2.97
Higher tax rate of 31%
* Internal sales and operating profit growth exclude the impact of foreign currency translation
and if applicable, acquisitions, dispositions, and differences in the number of shipping days.
12
13. Third Quarter 2007:North America Growth
Year-Over-Year %, Internal Net Sales Growth (1)
6%
5%
3%
0%
(2)
Retail Snacks (3)
Total North Retail Cereal Frozen and
Specialty Channels(4)
America
YTD 6% 2% 8% 6%
1) Internal sales growth excludes the impact of foreign currency translation and if applicable,
acquisitions, dispositions, and differences in the number of shipping days.
2) Includes U.S. and Canada retail cereal.
3) Includes biscuits, wholesome snacks, Pop-Tarts, and fruit snacks.
13 4) Includes frozen foods, Food Away From Home, and custom manufacturing.
14. North America Retail Cereal: Internal Net Sales Growth*
Year-Over-Year % Change
6%
4% 4%
3% 3%
0%
-2%
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2006 2007
* Internal sales and operating profit growth exclude the impact of foreign currency translation
and if applicable, acquisitions, dispositions, and differences in the number of shipping days.
14
15. North America Retail Snacks: Internal Net Sales Growth*
Year-Over-Year % Change
12% 12% 11%
11% 11%
9%
5%
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2006 2007
*Internal sales growth excludes the impact of foreign currency translation and if
applicable, acquisitions, dispositions, and differences in the number of shipping days.
15
16. Third Quarter 2007: North America Retail Snacks
Year-Over-Year Change, Net Sales
Sales
Toaster Pastries
Crackers
Cookies
Wholesome Snacks
Portfolio +5%
16
17. North America Frozen & Specialty Channels(1):
Internal Net Sales Growth(2)
Year-Over-Year % Change
9%
8% 8%
8%
6%
5% 5%
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2007
2006
1) Includes Frozen Foods, Food Away From Home, and custom manufacturing.
2) Internal sales growth excludes the impact of foreign currency translation and if applicable,
acquisitions, dispositions and differences in the number of shipping days.
17
18. Kellogg International: Internal Net Sales Growth*
Year-Over-Year % Change
6% 6%
5%
5% 5%
5% 5%
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2006 2007
* Internal sales growth excludes the impact of foreign currency translation and if applicable,
acquisitions, dispositions, and differences in the number of shipping days.
18
19. Third Quarter International 2007: Internal Sales Growth
Year-Over-Year % Change, Internal Sales Growth (1)
12%
5%
3%
-1%
Total Asia (2)
Latin
Europe
International Pacific
America
YTD 5% 6% 10% (1)%
1) Internal sales growth excludes the impact of foreign currency translation and if applicable,
acquisitions, dispositions, and differences in the number of shipping days.
2) Includes Australia, Asia, and South Africa.
19
20. Outlook for 2008
• Commodity inflation and
volatility
• Drive initiatives to help offset
inflation
• Strong innovation and
advertising support
• Investment in geographic
expansion
• Continued efficiency gains
Confidence and visibility for another year of
sustainable, dependable growth
20
21. Appendix 1
Reconciliation of Kellogg-Defined Cash Flow to GAAP Cash Flow
Year-to-date period ended
September 29, September 30,
2007 2006
(unaudited)
Operating activities
Net earnings $822
$927
Adjustments to reconcile net earnings to
operating cash flows:
Depreciation and amortization 258
275
Deferred income taxes 2
(114)
Other 140
138
Postretirement benefit plan contributions (38)
(42)
Changes in operating assets and liabilities (72)
69
1,112
Net cash provided by operating activities 1,253
Less:
Additions to properties (262)
(292)
$850
Cash flow $961
We use this non-GAAP measure of cash flow to focus management and investors on the amount of cash available
for debt reduction, dividend distributions, acquisition opportunities, and share repurchases.
21
