The Kraft Heinz Company · NASDAQ:KHC
The Kraft Heinz — Q3 2021 Earnings Presentation
41 slides from The Kraft Heinz's earnings presentation, Oct 27, 2021
Slide 1: Q3 2021 Business Update
Q3 2021 BUSINESS UPDATE OCTOBER 27, 2021 Q3 2021 BUSINESS UPDATE
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Q3 2021 BUSINESS OCTOBER 27, 2021 UPDATE 2 This presentation contains a number of forward-looking statements. Words such as “plan,” "believe," "anticipate," "reflect," "invest," "see," "make," "expect," "deliver," "drive," “improve,” “intend,” "assess," "remain," "evaluate
Slide 3: Q3 2021 Business Update
Q3 2021 BUSINESS OCTOBER 27, 2021 UPDATE Q3 2021 BUSINESS UPDATE
Slide 4: Leaning into Scale + Agility
Q3 2021 BUSINESS UPDATE 4 Leaning into SCALE + Strong results through AGILITY 1 improved agility Advancing strategic 2 transformation for the long term Strengthening portfolio with 3 improved financial flexibility
Slide 5: Strong results through improved agility
TOTAL KRAFT HEINZ Q3 2021 BUSINESS UPDATE 5 YTD 2021 Strong YTD 2021 Constant Currency results Organic Net Sales1 Adjusted EBITDA1 through improved agility vs 7.1% 5.0% Divestitures3 N/A +2.5pp 20192 McCafé Exit +1.4pp +1.4pp vs 0.5% (3.6%) Divestitures3 N/A +1.1pp 2020 McCafé Exit +0.8pp +0.7pp 1|
Slide 6: HOW we are delivering
TOTAL KRAFT HEINZ Q3 2021 BUSINESS UPDATE 6 HOW we are People with Purpose delivering Continue strengthening our Diverse Talent and accelerate Sustainability and Nutrition initiatives is more important Consumer than Fuel Our Growth WHAT Platforms Reinvest in our brands, talent, we have and capabilit
Slide 7: Gross cost inflation and efficiency
TOTAL KRAFT HEINZ Q3 2021 BUSINESS UPDATE 7 Strong results Gross Cost Inflation Gross Efficiency through % COGS vs 2020 Plan improved $2B agility Mid-Single- Digit % High-Single- Digit % Mid-Single- Digit % 2021E 2020 $0 1H 2021 2H 2021E
Slide 8: Net pricing contribution
TOTAL KRAFT HEINZ Q3 2021 BUSINESS UPDATE 8 Strong results Net Pricing Contribution through % Organic Net Sales vs PY improved 2020 vs 2019 1 2021 vs 2020 agility + 1.5% 1 1.5% 1.5% 4.8% 3.7% 2.2% 1.6% Q1 Q2 Q3 Q4E 1| As previously reported in our SEC filings for these periods. Does not include the
Slide 9: Advancing strategic transformation: share gains and investment
TOTAL KRAFT HEINZ Q3 2021 BUSINESS UPDATE 9 Advancing YTD 2021 vs 2020 strategic transformation +9% Working Media +17% Research & Development for the long term U.S. Share Gains1 Taste Elevation Leveraging Heinz’s plant- vs 2020 gaining share across 80% based heritage of countries in International1 Q
Slide 10: Household penetration, repeat and capacity additions
TOTAL KRAFT HEINZ Q3 2021 BUSINESS UPDATE 10 Advancing strategic US Household Penetration and Accelerating Capacity Additions transformation Repeat Growing in Focus Platforms Behind Strategic Priorities for the long term Q3 2021 Weighted HHP Growth1 Q3 2021 Weighted Repeat Growth1 +70% single-serve
Slide 11: Emerging markets strategy delivering
TOTAL KRAFT HEINZ Q3 2021 BUSINESS UPDATE 11 Advancing strategic transformation for the EMERGING MARKETS STRINGING STRATEGY DELIVERING TOGETHER PEARLS long term Total Emerging Markets Strengthening +14% Heinz single-serve pack capacity: Eastern Europe, Middle +30% in Russia by end of 2021 Portfolio
Slide 12: Foodservice and retail growth
TOTAL KRAFT HEINZ Q3 2021 BUSINESS UPDATE 12 Strong results through improved Q3 Growth1 vs 2020 agility Foodservice 24% Retail (1%) 1| Based on internal sales data, which hold the impact of currency constant and exclude the impact of divestitures.
Slide 13: ESG Report
TOTAL KRAFT HEINZ Q3 2021 BUSINESS UPDATE 13 ESG Report: Advancing strategic Healthy Living Environmental Responsible & Community Stewardship transformation Support Sourcing for the long term • 200M+ free meals delivered1; • 83% of product packaging • 66% cage-free or better2 eggs1; on track for 1.5
Slide 14: Financial Performance & Outlook
Q3 2021 BUSINESS UPDATE FINANCIAL PERFORMANCE & OUTLOOK
Slide 15: Organic Net Sales and Adjusted EBITDA
TOTAL KRAFT HEINZ Q3 2021 BUSINESS UPDATE 15 Organic Net Sales1 Q3 vs 2020| Highlights Strong results Q3 vs 20192 Q3 vs 2020 • Organic Net Sales growth driven by: through 7.6% 1.3% + 2021 pricing actions across geographies improved McCafé Exit +1.4pp +0.1pp + Foodservice recovery - Retail consumptio
Slide 16: Adjusted EPS and Free Cash Flow
TOTAL KRAFT HEINZ Q3 2021 BUSINESS UPDATE 16 Strong results through Adjusted EPS1 Free Cash Flow1 improved (in millions) agility $2,929 $0.69 $0.70 $0.65 $1,793 $1,409 2 2 Q3 2019 Q3 2020 Q3 2021 YTD 2019 YTD 2020 YTD 2021 1| Non-GAAP financial measure. See Appendix to this presentation for more inf
Slide 17: Net leverage
TOTAL KRAFT HEINZ Q3 2021 BUSINESS UPDATE 17 Strengthening Portfolio KRAFT HEINZ NET LEVERAGE1 • Reducing net leverage with without sacrificing Improved 4.4x speed of turnaround Financial 3.7x + 0.1x Impact from LTM divested or potential long-term Flexibility 3.3x Adjusted EBITDA2 value creation • R
Slide 18: 2021 and 2022 outlook
TOTAL KRAFT HEINZ Q3 2021 BUSINESS UPDATE 18 Strong results through 2021 improved • 1 Organic Net Sales Flat vs 2020 agility • Adjusted EBITDA more than $6.2B 1 2022 • Sustain stronger consumption versus pre-pandemic levels • Continue executing business investments in strategic plan • Maintain indus
Slide 19: Leaning into Scale + Agility
Q3 2021 BUSINESS UPDATE 19 Leaning into SCALE + Strong results through AGILITY 1 improved agility 2 Advancing our strategic transformation for the long term 3 Strengthening portfolio with improved financial flexibility
Slide 20: Appendix
APPENDIX OCTOBER 27, 2021 Kraft Heinz:
Slide 21: United States: retaining strong gains versus 2019
UNITED STATES Q3 2021 BUSINESS UPDATE 21 Organic Net Sales1 Q3 vs 2020| Highlights Retaining • Organic Net Sales growth driven by: strong gains Q3 vs 20192 Q3 vs 2020 + 2021 inflation-justified pricing actions versus 2019 8.8% 1.3% across channels, on top of strong 2020 McCafé Exit +1.6pp +0.2pp pri
Slide 22: Canada: performance in line with expectations
CANADA Q3 2021 BUSINESS UPDATE 22 Organic Net Sales1 Q3 vs 2020| Highlights Delivering performance Q3 vs 20192 Q3 vs 2020 • Lower Organic Net Sales driven by: in line with (3.1%) (1.9%) + Foodservice rebound expectations McCafé Exit +4.6pp - + Pricing up slightly on top of strong prior year price ga
Slide 23: International: progressing while investing in long-term strategy
INTERNATIONAL Q3 2021 BUSINESS UPDATE 23 Organic Net Sales1 Q3 vs 2020| Highlights Progressing while investing Q3 vs 20192 Q3 vs 2020 • Organic Net Sales growth driven by: in long-term 6.9% 2.2% + Pricing growth across both developed and emerging markets strategy Price: 2.2pp + Foodservice rebound V
Slide 24: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Q3 2021 BUSINESS UPDATE 24 The non-GAAP financial measures provided in this presentation should be viewed in addition to, and not as an alternative for, results prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
Slide 25: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 25
Slide 26: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 26
Slide 27: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 27
Slide 28: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 28
Slide 29: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 29
Slide 30: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 30
Slide 31: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 31
Slide 32: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 32
Slide 33: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 33
Slide 34: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 34
Slide 35: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 35
Slide 36: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 36
Slide 37: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 37
Slide 38: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 38
Slide 39: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 39
Slide 40: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 40
Slide 41: Appendix
APPENDIX Q3 2021 BUSINESS UPDATE 41
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