ACCELERATING PROFITABLE GROWTH CAGNY 2022
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ACCELERATING PROFITABLE GROWTH CAGNY 2022 02.22.2022
FORWARD LOOKING STATEMENTS CAGNY 2022 2
This presentation contains a number of forward- changes in the retail landscape or the loss of key retail failure to maintain an effective system of internal Non-GAAP Financial Measures
looking statements. Words such as “accelerate,” customers; changes in the Company's relationships controls; a downgrade in the Company's credit rating; This presentation contains certain non-GAAP financial
“believe,” “capture,” “create,” “deploy,” “develop,” with significant customers or suppliers, or in other the impact of future sales of the Company's common measures, including Organic Net Sales, Adjusted
“drive,” “enable,” “energize,” “equip,” “expand,” business relationships; the Company’s ability to stock in the public market; the Company’s ability to EBITDA, Adjusted EPS, and Free Cash Flow. These
“expect,” “extend,” “generate,” “grow,” “implement,” maintain, extend, and expand its reputation and brand continue to pay a regular dividend and the amounts of non-GAAP financial measures may differ from similarly
“improve,” “increase,” “invest,” “leverage,” “maintain,” image; the Company’s ability to leverage its brand any such dividends; unanticipated business titled non-GAAP financial measures presented by
“maximize,” “open,” “plan,” “prioritize,” “raise,” “reach,” value to compete against private label products; the disruptions and natural events in the locations in other companies. These measures are not substitutes
“reduce,” “strengthen,” “transform,” “will,” and Company’s ability to drive revenue growth in its key which the Company or its customers, suppliers, for their comparable financial measures prepared in
variations of such words and similar future or product categories or platforms, increase its market distributors, or regulators operate; economic and accordance with accounting principles generally
conditional expressions are intended to identify share, or add products that are in faster-growing and political conditions in the United States and in various accepted in the United States of America (“GAAP”)
forward-looking statements. Examples of forward- more profitable categories; product recalls or other other nations where the Company does business; and should be viewed in addition to, and not as an
looking statements include, but are not limited to, product liability claims; climate change and legal or changes in the Company's management team or alternative for, the GAAP results in this presentation.
statements regarding the Company's plans, impacts of regulatory responses; the Company’s ability to other key personnel and the Company's ability to hire
accounting standards and guidance, growth, legal identify, complete, or realize the benefits from or retain key personnel or a highly skilled and diverse These non-GAAP financial measures assist
matters, taxes, costs and cost savings, impairments, strategic acquisitions, alliances, divestitures, joint global workforce; risks associated with information management in comparing the Company’s
dividends, expectations, investments, innovations, ventures or other investments; the Company's ability technology and systems, including service performance on a consistent basis for purposes of
opportunities, capabilities, execution, initiatives, and to successfully execute its strategic initiatives; the interruptions, misappropriation of data, or breaches of business decision-making by removing the impact of
pipeline. These forward-looking statements reflect impacts of the Company's international operations; security; increased pension, labor, and people-related certain items that management believes do not
management's current expectations and are not the Company's ability to protect intellectual property expenses; changes in tax laws and interpretations; directly reflect the Company’s underlying operations.
guarantees of future performance and are subject to a rights; the Company's ownership structure; the volatility of capital markets and other macroeconomic
number of risks and uncertainties, many of which are Company’s ability to realize the anticipated benefits factors; and other factors. For additional information Please see our website at ir.kraftheinzcompany.com
difficult to predict and beyond the Company's control. from prior or future streamlining actions to reduce on these and other factors that could affect the under News & Events > Events & Webcasts, or
fixed costs, simplify or improve processes, and Company's forward-looking statements, see the ir.kraftheinzcompany.com/events-and-webcasts, and
Important factors that may affect the Company's improve its competitiveness; the Company's level of Company's risk factors, as they may be amended from our filings with the SEC for an Appendix to this
business and operations and that may cause actual indebtedness, as well as our ability to comply with time to time, set forth in its filings with the Securities presentation, which includes a discussion of non-
results to differ materially from those in the forward- covenants under our debt instruments; additional and Exchange Commission (“SEC”). The Company GAAP financial measures and reconciliations of non-
looking statements include, but are not limited to, the impairments of the carrying amounts of goodwill or disclaims and does not undertake any obligation to GAAP financial measures to the comparable GAAP
impacts of COVID-19 and government and consumer other indefinite-lived intangible assets; foreign update, revise, or withdraw any forward-looking financial measures.
responses; operating in a highly competitive industry; exchange rate fluctuations; volatility in commodity, statement in this presentation except as required by
the Company’s ability to correctly predict, identify, and energy, and other input costs; volatility in the market applicable law or regulation.
interpret changes in consumer preferences and value of all or a portion of the commodity derivatives
demand, to offer new products to meet those we use; compliance with laws and regulations and
changes, and to respond to competitive innovation; related legal claims or regulatory enforcement actions;
WELCOME & OVERVIEW CAGNY 2022 3
MIGUEL
PATRICIO
CHIEF EXECUTIVE OFFICER
OVERVIEW CAGNY 2022 4
Kraft Heinz is a
$26B
global food
and beverage $26B $6.4B 78/22 ~36K 70+ ~4%
company net sales
(2021)
Adjusted EBITDA1
(2021)
78% of net sales
are in U.S. and
Employees
globally
Facilities
worldwide
Average
Dividend Yield3
Canada, 22% are
in International
Iconic brands that are #1 or #2 in their categories2
1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations.
2| Source: Brand market share position based on IRI and Nielsen data for U.S. brands and Nielsen data for Canada and International brands, as of December 2021.
3| Represents our 2021 annual dividend of $1.60/share divided by the average share price between 12/28/2020 and 12/23/2021.
OVERVIEW CAGNY 2022 5
Multi-year
Transformation:
From our size Reset Fully Deploy Accelerate
working against Foundation New Operating
Model
Profitable Growth
us… to our scale
working for us
Technology &
Better Results
w Da
Ne ta
g
SCALE +
An
in
loy
aly
Dep
tics
Greater Efficiency
Scale + Agility
AGILITY More Relevance
To
on
D i
ri v
eD at
m
igital Transfor
OVERVIEW CAGNY 2022 6
Strong
Results
Since deploying GROSS MARGIN % ADJUSTED EBITDA 2
2021 vs 20191
our new (in millions)
-
operating model
$6,371
+0.7 pp
33.3% $6,064 +
32.6% - + -
$5.0B
2019 1 2021 2019
1
Divestiture Vol/Mix Pricing Net Gross Business 2021
Impact of In ation Ef ciencies Investments/
3
Other
1| The Company views comparison to the 2019 period to be more meaningful than the comparable 2020 period given the exceptional, COVID-19-related consumer demand changes experienced in the 2020 period.
2| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations.
3| Business investments / Other includes incentive compensation.
fi
fl
OVERVIEW CAGNY 2022 7
Prioritization People
with Purpose
and Continue strengthening our
Investment Diverse Talent and accelerate
Sustainability initiatives
In each area of
our operating Fuel Our
Growth
Consumer
Platforms
model Reinvest in our brands,
g
New Technology &
Da
ta Disproportionately invest in
talent, and capabilities, and Grow Platforms and
An
in
proactively accelerate our Emerging Markets
loy
aly
plan through Agile Portfolio
Dep
tics
Management
Scale + Agility
To
on
D i
ri v
eD at
m
igital Transfor
Partner Ops
Program Center
Accelerate Omnichannel Extend Cost Efficiency
Leadership globally through Projects and expand
proven Go-To-Market Models Capacity in key categoriesOVERVIEW CAGNY 2022 8
Acting to
Mitigate Risk Private Label Exposure 1
Reducing our
exposure to 20% 20%
Private Label 17%
11%
2019 2 2021
Total Food & Bev1 Kraft Heinz
1| IRI, Multi Outlet (excluding Convenience). 2019 = 52 Weeks ending 12/29/2019, 2021 = 52 Weeks ending 12/26/2021. Total edible universe excludes categories
withOVERVIEW CAGNY 2022 9
Increasingly
% of Kraft Heinz 2021 Total Net Sales
1
attractive
portfolio GROW
~65%
Tremendous >Average margin2
scale in distinct STABILIZE
platforms that
generate ENERGIZE GROW ENERGIZE
industry-leading ~15%
< Average margin2
margins
STABILIZE
~20%
Average margin2
1| Represents platform roles as a percentage of 2021 total net sales.
2| Represents expected relative future margin performance.OVERVIEW CAGNY 2022 10
Taste Scale, Reach, Growing Emerging Markets -
Profitability Foodservice Go-to-Market Model
Elevation
A true jewel in TASTE
Chef Model 30% of business was
the industry with ELEVATION
covered at end of 2021
outstanding Expanding Channels
further potential % of 2021 Kraft Heinz Net Sales
Winning QSR
$7.3B platform 75% of business to be
~45% in International zone covered by end of 2022
Sustainable Solutions
Attractive margins
~14 pp ahead
of industry
(2021 vs 20191) in
international zone
1| The Company views comparison to the 2019 period to be more meaningful than the comparable 2020 period given the exceptional, COVID-19-related consumer demand changes
experienced in the 2020 period.OVERVIEW CAGNY 2022 11
Accelerate
Profitable Reset Fully Deploy Accelerate
Growth Foundation New Operating
Model
Profitable
Growth
Raising our Long
Term Algorithm
Organic Net Sales1 growth ……………………………….… 1%-2% 2 2%-3%
Adjusted EBITDA1 growth ………………………………..… 2%-3% 2 4%-6%
Adjusted EPS1 growth ……………………………….……… 4%-6% 2 6%-8%
Free Cash Flow1 conversion ………………………..……… ≥100% 2 ≥100%
1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations
2| As disclosed at Kraft Heinz Investor Day in September 2020.OVERVIEW CAGNY 2022 12
New Phase
Begins: 2020 2021 Accelerate
Agile@Scale Reset
Foundation
Fully Deploy
New Operating
Profitable
Growth
Model
nology &
w Tech Da
Ne ta
g
An
in
loy
aly
Dep
tics
Scale + Agility
To
on
D i
ri v
eD at
m
igital TransforOVERVIEW CAGNY 2022 13
Augmenting
expertise and 2020 2021 Accelerate
capabilities Reset
Foundation
Fully Deploy
New Operating
Profitable
Growth
ModelCAGNY 2022 14
Agile@Scale
Raising our Long-
Term Algorithm
Open New Growth Opportunities
Unlock Greater Efficiencies
Generate Meaningful Free Cash Flow 1
1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations.CAGNY 2022 15 CARLOS ABRAMS -RIVERA EVP & PRESIDENT, NORTH AMERICA
CAGNY 2022 16
Agile@Scale
will enable us
to accelerate
sustainable Transform
growth and the business
unlock greater
efficiencies
Run the
businessCAGNY 2022 17
Prioritizing Run the Business
the most
critical Cross-Functional Agile Pods Organization Re-Structure
initiatives
will unlock ‣ Embed solutions back to business ‣ Reduced organizational layers
end-to-end ‣ 1,300+ team members trained by 2022 ‣ Increased managers’ span of control
efficiencies ‣ 20% initiatives delivered by agile teams
across the entire
value chain Company- Wide Capabilities Digital Factory
‣ Develop fit-to-compete and fit-to-win ‣ Hired 100 tech talents
capabilities
‣ Tech ecosystem creating new to world,
Transform
‣ Integrate agile mindsets and principles proprietary solutions
the business
Run the
businessCAGNY 2022 18
Accelerating Transform the Business
the pace of
innovation Innovation Consumer Intimacy
and increasing
consumer ‣ Shorten innovation time to market ‣ Granular, real-time consumer data
intimacy will ‣ Develop sustainable innovation ‣ Customized messaging at scale
lead to an ‣ Drive brand relevancy
advantaged
portfolio
equipped to
drive growth
Advantaged Portfolio
Transform
the business
Run the
businessCAGNY 2022 19
Our agile
disciplines
create the Agile@Scale
structure Disciplines
Transform
required to the business
implement 1. Organize and Lead with
agility Agile Values
throughout the 2. Build Tech Eco-System
organization Run
and the End-to-End
Capabilities
business
3. Scale-Up Proven SolutionsCAGNY 2022 20
Perfect Success Story: Logistics
Shipment ORGANIZE: Manage 60-70% Reduce out-of-stock Improve working
will get more demand variability
in our shipments
risks by delivering
the right SKU mix
capital
product to our
consumers, in less
time, leading to
sales growth for BUILD:
Demand planning at sku level per store
50+ data sources internal & external
us and our AI powered tool
partners
85 Product 8% Expected $100MM
SCALE-UP: categories across improvement in Expected
US & Canada shipment SKU mix efficiencies
accuracyCAGNY 2022 21
Optimal Success Story: Revenue Management
promotional ORGANIZE: Optimize Rethink promotional Cover 100% of
calendars promotions across
+100K events and
cycle to predict and
maximize ROI
Kraft Heinz business
to maximize ROI, +50 categories
market share and Historical Results Optimal Promotion Mix Forward Looking
profits for us and ROI & Market
Share
our customers BUILD:
7 Countries $150MM
SCALE-UP: scaled-up Adjusted EBITDA1
benefits within next
3-5 years
1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations.CAGNY 2022 22
Kraft-O-Matic Success Story: Marketing
will help us ORGANIZE: De-average Reach consumers at Cover 97% of US
increase consumers adding
more granularity
the right time with
the right content
households
consumer
intimacy at
scale, by Data Insights Marketing
generating Generation Creation
insights that feeds BUILD:
into our content
factory The 25MM consumer records
Kitchen 400+ attributes
500+
SCALE-UP: Customizations of a
single creative assetCAGNY 2022 23
Kraft Heinz is
leveling up
our ambition to
ignite a new Transform
growth the business
trajectory
Run the
businessFINANCE CAGNY 2022 24
ANDRE
MACIEL
INCOMING EVP & GLOBAL CHIEF FINANCIAL OFFICER
(Current SVP, U.S. CFO and Head of Digital Transformation)FINANCE CAGNY 2022 25
2022 Outlook
Consistent with Reset
Foundation
Fully Deploy
New Operating
Accelerate
Profitable Growth
Initial Strategic Model
Plan 7.0
Adjusted EBITDA1
6.5 Long-Term Algorithm2
6.0 +3% CAGR $6.0B
$5.8B
5.5
+2% CAGR
5.0
4.5
4.0
2019 2022
Ongoing Business Algorithm Range Divested Business
1 Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations
2| As presented on Investor Day in September 2020.FINANCE CAGNY 2022 26
2022 Outlook
Consistent with Reset
Foundation
Fully Deploy
New Operating
Accelerate
Profitable Growth
Initial Strategic Model
Plan
Open New Growth Opportunities
Unlock Greater Efficiencies
Generate Meaningful Free Cash Flow 1
1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliationsFINANCE CAGNY 2022 27
Stronger
Trajectory as Open New Growth Opportunities
Agile@Scale Unlock Greater Efficiencies
takes hold
Generate Meaningful Free Cash Flow 1
Long-term algorithm:
Organic Net Sales1 growth ……………………………….… 1%-2% 2 2%-3%
Adjusted EBITDA1 growth ………………………………..… 2%-3% 2 4%-6%
Adjusted EPS1 growth ……………………………….……… 4%-6% 2 6%-8%
Free Cash Flow1 conversion ………………………..……… ≥100% 2 ≥100%
1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations
2| The Company views comparison to the 2019 period to be more meaningful than the comparable 2020 period given the exceptional, COVID-19-related consumer demand changes experienced in the 2020 periodFINANCE CAGNY 2022 28
Organic Net Sales1 growth ……………….……………… 1%-2% 2 2%-3%
Stronger Adjusted EBITDA1 growth ………………………………..… 2%-3% 2 4%-6%
Trajectory as Adjusted EPS1 growth ……………………………….……… 4%-6% 2 6%-8%
Agile@Scale Free Cash Flow1 conversion ………………………..……… ≥100% 2 ≥100%
takes hold
STABILIZE
GROW
ENERGIZE
% of 2021 Kraft Heinz Net Sales2
Better portfolio mix, weighted Improved consumption
towards Grow platforms, Emerging trends in the rest of the portfolio
Markets and Foodservice from Agile@Scale
1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations
2| Represents platform roles as a percentage of 2021 total net sales.FINANCE CAGNY 2022 29
Organic Net Sales1 growth ……………….………………1%-2% 2 2%-3%
Stronger Adjusted EBITDA1 growth ……………………………..…. 2%-3% 2 4%-6%
Trajectory as Adjusted EPS1 growth ……………………………….……… 4%-6% 2 6%-8%
Agile@Scale Free Cash Flow1 conversion ………………………..……… ≥100% 2 ≥100%
takes hold
% of 2021 Kraft Heinz Net Sales3
~
≥ $2B
STABILIZE
Marketing Expenses2
~
ENERGIZE
~
GROW as % of net sales
2021
$ 4.3 %
~ 5.0 %
2020
2019 Future
Higher Organic Net Sales1, Gross efficiencies of $2B, Holding Increasing marketing
with improved mix despite divesting ~15% overhead flat investments
of the addressable cost base
1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations.
2| Marketing expenses include advertising expenses plus market research costs. In 2019, advertising expenses as a percentage of net sales were 3.9%.
3| Represents platform roles as a percentage of 2021 total net sales.FINANCE CAGNY 2022 30
Organic Net Sales1 growth ……………….………………… 1%-2% 2 2%-3%
Stronger Adjusted EBITDA1 growth ………………………………..… 2%-3% 2 4%-6%
Trajectory as Adjusted EPS1 growth …………………………………….. 4%-6% 2 6%-8%
Agile@Scale Free Cash Flow1 conversion ……………………….…….. ≥100% 2 ≥100%
takes hold
Capital Expenditures
Net Debt Balance
% of net sales
$27.0B ~4 %
(~$8.6B) ~ 3.5 %
$18.4B
2
2019 2021 2022 - 2023 2024+
Average
Lower future interest expense Declining CAPEX with
from successful refinancing better ROI profile
1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations
2| The Company views comparison to the 2019 period to be more meaningful than the comparable 2020 period given the exceptional, COVID-19-related consumer demand changes experienced in the 2020 periodFINANCE CAGNY 2022 31
Capital
Allocation Maintain Industry-
Invest for Growth Leading Capital Return
Priorities
remain ‣ Focused investments to accelerate growth and
enhance long-term market position
‣ No plans to change current dividend
unchanged ‣ Capture efficiencies without sacrificing growth
‣ Strong payout
Reduce Net Leverage to
Increase Flexibility, Optionality Agile Portfolio Management
‣ Focus on natural cadence of leverage ‣ Proactively accelerate strategy and sharpen
reduction focus on areas of advantage
‣ Maintain net leverage consistently ‣ Maintain price discipline
below 4xCLOSING CAGNY 2022 32
MIGUEL
PATRICIO
CHIEF EXECUTIVE OFFICERCLOSING CAGNY 2022 33
Kraft Heinz:
People
A stronger, faster with Purpose
company
Fuel Our Consumer
Growth Platforms
Partner Ops
Program CenterCAGNY 2022 02.22.2022 THANK YOU
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