The Kraft Heinz Company · NASDAQ:KHC
The Kraft Heinz — Q4 2021 Earnings Presentation
42 slides from The Kraft Heinz's earnings presentation, Feb 16, 2022
Slide 1: Q4 2021 Business Update
Q4 2021 BUSINESS UPDATE Q4 2021 BUSINESS FEBRUARY 16, 2022UPDATE Q4 2021 BUSINESS UPDATE
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Q4 2021 BUSINESS FEBRUARY 16, 2022UPDATE 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: Q4 2021 Business Update
Q4 2021 BUSINESS FEBRUARY 16, 2022UPDATE 3 Q4 2021 BUSINESS UPDATE
Slide 4: Transforming Kraft Heinz for long-term growth and advantage
Q4 2021 BUSINESS UPDATE 4 Transforming Kraft Heinz for long-term growth and advantage Better Results Greater Efficiency More Relevance
Slide 5: Better Results combining scale and agility
TOTAL KRAFT HEINZ Q4 2021 BUSINESS UPDATE 5 Better Results FY 2021 FY 2021 2021 Year-End Organic Net Sales1 combining Growth Adjusted EBITDA1 Net Leverage SCALE + AGILITY Results +1.8% $6.4B 2.9x3 vs 2020 Versus 2019 2 +8.1% +$0.3B (1.5x)3 despite $0.2B impact from divestitures 1| Non-GAAP financial
Slide 6: Greater Efficiency delivering better gross margins
TOTAL KRAFT HEINZ Q4 2021 BUSINESS UPDATE 6 Greater Efficiency Adjusted EBITDA2 delivering Gross Margin 2021 vs 20191 (in millions) better gross margins, enabling - reinvestment 33.3% for More +0.7pp + + 32.6% - - Relevance 1 1 2019 2021 3 1| The Company views comparison to the 2019 period to be mor
Slide 7: More Relevance investing in our people
TOTAL KRAFT HEINZ Q4 2021 BUSINESS UPDATE 7 More Relevance investing in our people Awarded Employer of 1st Time Inclusion Choice in 6 Key Markets Reduction in Voluntary Turnover 2021 vs 2019 4th Consecutive Year
Slide 8: More Relevance enabling our people to deliver with purpose
TOTAL KRAFT HEINZ Q4 2021 BUSINESS UPDATE 8 More Relevance enabling our people to Environmental Responsible Healthy Living & Community deliver with Stewardship Sourcing Support purpose • Committed to carbon • Launch of updated supplier • 2019-2021: more than 700M neutrality by 2050, halving guiding
Slide 9: More Relevance building a culture of creativity
TOTAL KRAFT HEINZ Q4 2021 BUSINESS UPDATE 9 More Connecting with Cutting-Edge Relevance Consumers at Scale Marketing Execution building a culture of 123 Marketing, product, and creativity innovation awards in 2021 Heinz on Marz (2.4Bn Impressions) Heinz Gaming (+10 Mkts) #1 Ad of the YEAR in North A
Slide 10: More Relevance improving our portfolio mix
TOTAL KRAFT HEINZ Q4 2021 BUSINESS UPDATE 10 More Divestitures Reducing …Taste Elevation Announced Deals Relevance improving our Private Label Exposure1… Improving Long-Term Trajectory portfolio mix 20% 20% 17% 11% 2021 Year-End Portfolio Roles 2 2019 2021 Stabilize Energize Total Food & Bev 1 Kraft
Slide 11: Better Results in the U.S.
UNITED STATES Q4 2021 BUSINESS UPDATE 11 Better Results FY 2021 FY 2021 In the U.S. Organic Net Sales1 Adjusted EBITDA1 Growth combining SCALE + AGILITY Results +1.6% $5.2B vs 2020 Versus 2019 2 +9.3% +$0.3B despite $0.1B impact from divestitures 1| Non-GAAP financial measure. See Appendix to this p
Slide 12: More Relevance by gaining households and addressing supply constraints
UNITED STATES Q4 2021 BUSINESS UPDATE 12 More Household Penetration and Market Share Relevance Repeat Momentum Opportunity by gaining households FY 2021 FY 2021 ➢ Q4 One-Time Supply Challenges: and addressing U.S. Weighted HHP Growth1 vs 20192 U.S. Weighted Repeat Growth1 vs 20192 plan to fix by end
Slide 13: More Relevance by modernizing our portfolio and winning with partners
UNITED STATES Q4 2021 BUSINESS UPDATE 13 More Brand Renovation Strategic Alignment Relevance Renovation Projects: +40% vs 2019 1 with Customers by modernizing our portfolio and winning with our partners Top 5 Sales Force1 1| The Company views comparison to the 2019 period to be more meaningful than
Slide 14: Better Results in International
INTERNATIONAL Q4 2021 BUSINESS UPDATE 14 Better Results FY 2021 FY 2021 in Organic Net Sales1 Adjusted EBITDA1 Growth International combining SCALE + Results +3.1% $1.1B AGILITY vs 2020 Versus 2019 2 +7.7% +$0.1B 1| Non-GAAP financial measure. See Appendix to this presentation for more information,
Slide 15: More Relevance by focusing on becoming #1 in Taste Elevation
INTERNATIONAL Q4 2021 BUSINESS UPDATE 15 More Taste Elevation Growth Foodservice Gains Relevance by FY 2021 Net Sales Growth FY 2021 Growth3 focusing on becoming #1 in +11% +9% Flat +23% vs 20191 vs 2020 vs 20191 vs 2020 Taste Elevation and driving ~14pp ahead of industry Foodservice +70% vs 20191 o
Slide 16: More Relevance by accelerating emerging markets and energizing portfolio
INTERNATIONAL Q4 2021 BUSINESS UPDATE 16 More Momentum in Emerging Markets Expansion Through Innovation Relevance Plant Based Organic Net Sales1 Growth by accelerating +17% Vegan Sauces FY vs 20192 Beanz Liberation Emerging Vegan Mac & Cheese Market Growth Repeatable Go-To-Market and energizing Mode
Slide 17: Financial Performance & Outlook
Q4 2021 BUSINESS UPDATE 17 FINANCIAL PERFORMANCE & OUTLOOK
Slide 18: Better Results through improved agility
TOTAL KRAFT HEINZ Q4 2021 BUSINESS UPDATE 18 Better 2021 Organic Net Sales1 Q4 vs 2020 | Highlights Results Q4 vs 2020 Q4 vs 20192 • Organic Net Sales growth driven by: through + 2021 pricing actions across geographies improved 3.9% 9.4% + Foodservice recovery McCafé Exit N/A +1.6pp agility - Retail
Slide 19: Better Results through improved agility
TOTAL KRAFT HEINZ Q4 2021 BUSINESS UPDATE 19 Better Organic Net Sales1 Gross Margin % Constant Currency (in millions) Adjusted EBITDA1 Results $23,851 (in millions) through $22,067 +8.1% +0.7pp 33.3% $6,051 +4.2% $6,308 improved 32.6% M&A (4.1)pp agility McCafe Exit (1.4)pp 2019 2 2021 2019 2 2021 2
Slide 20: Outlook consistent with Long-Term Algorithm
TOTAL KRAFT HEINZ Q4 2021 BUSINESS UPDATE 20 2022 Outlook Adjusted EBITDA 1 consistent 7.0 with Long-Term Long-Term Algorithm2 Algorithm 6.0 +3% CAGR $6.0B $5.8B +2% CAGR 5.0 4.0 2019 2022 Ongoing Business Divested Business Algorithm Range 1| Non-GAAP financial measure. See Appendix to this presenta
Slide 21: Outlook reflects scale and agility
TOTAL KRAFT HEINZ Q4 2021 BUSINESS UPDATE 21 2022 Net Sales Outlook • Low single-digit Organic Net Sales1 growth ▪ Foodservice channel share gains reflects ▪ Emerging Market expansion SCALE + ▪ Price elasticity impact on volume/mix ▪ H1 supply chain constraints AGILITY • 53rd Week benefit 1-1.5% ver
Slide 22: Transforming Kraft Heinz for long-term growth and advantage
Q4 2021 BUSINESS UPDATE 22 Transforming Kraft Heinz for long-term Better Results growth and Greater Efficiency advantage More Relevance Reset Foundation Fully Deploy New Operating Model Accelerate Profitable Growth
Slide 23: Appendix
APPENDIX Q4 2021 BUSINESS UPDATE 23
Slide 24: Non-GAAP Financial Measures
NON—GAAP FINANCIAL MEASURES Q4 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 Q4 2021 BUSINESS UPDATE
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