General Mills, Inc. · NYSE:GIS
General Mills — Deutsche Bank Global Consumer Conference 2016
39 slides from General Mills's conference presentation, Jun 14, 2016
Slide 1: General Mills Deutsche Bank Global Consumer Conference
General Mills Deutsche Bank Global Consumer Conference June 14, 2016
Slide 2: Don Mulligan, Executive Vice President; Chief Financial Officer
Don Mulligan Executive Vice President; Chief Financial Officer
Slide 3: A Reminder on Forward-looking Statements
A Reminder on Forward-looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks
Slide 4: Our Strategy
Our Stra Purpose _— ~~ Goal Strategy Priorities Drive More Fund Reshape Portfolio oe ao iieed ritie & Agile From Core Our Future for Growth frome Organization _ Do the Act boldly Play Values right thing; = : move all the time to WIN quickly
Slide 5: Our Five Global Platforms
Our Five Global Platforms (Fiscal 2015 Net Sales = $18.7 Billion)* RTE Cereal $3.7 Billion Baking Products, Dough, Vegetables, Other Snacks Super-premium $3.4 Billion Ice Cream $1.0 Billion Convenient Meals Yogurt $2.8 Billion $2.9 Billion “Non-GAAP measure. Includes $17.6 billion consolidated net s
Slide 6: Global Platforms Large and Expected to Grow
Global Platforms Large and Expected to Grow Projected Global Category 2015 Retail Sales 5-Yr. CGR RTE Cereal $25 Billion +2% lce Cream $68 Billion +5% Yogurt $84 Billion +6% Convenient Meals $92 Billion +3% Sweet & Savory Snacks $290 Billion +4% Source: Euromonitor 2015 DB Conference June 2018 - 6
Slide 7: Our Business by Segment
Our Business by Segment (Fiscal 2015 Net Sales = $18.7 Billion)* Joint Ventures* $1.1 Billion aT International $5.1 Billion \ U.S. Retail $10.5 Billion Convenience Sto! & Foodservice $2.0 Billion “Non-GAAP measure. includes $17.6 billion consolidated net sales plus $0.9 billion proportionate share o
Slide 8: U.S. Retail
U.S. Retail "(Fiscal 2015 Net Sales) e Vd Cheerios yopiait= Meals $2.7 Billion 2015 Net Sales: $10.5 Billion 2015 Segment Operating Profit: $2.2 Billion Natural & Organic: $675 Million* “Natural & Organic includes 12 months of Annie's and Net Sales in U.S. Retail and CS&F segments. DB Conference Jun
Slide 9: Convenience Stores & Foodservice
Convenience Stores & Foodservice Focus Six Platforms + Half of Segment Net Sales + 70% of Segment Operating Profit + FIO-FI5 Net Sales CAGR: +5% CS&F Segment Operating Profit ($in Millions) CGR= | $353 $306 $315 $178 FO9 Fl F13 F15 Profit Margin; 89% 16.6% 16.1% 17.7%
Slide 10: International
International (Fiscal 2015 Net Sales) Europe $2.1 Billion Canada $1.1 Billion 2015 Segment Net Sales = $5.1 Billion 2015 Segment Operating Profit: $523 Million
Slide 11: Shareholder Return Model
Shareholder Return Model (— Earnings Growth Model High Single Digit Mid Single Digit Low Single Digit Net Segment Earnings Sales Operating Per Share Profit (Shareholder Return Model Double Digit High 2-3% Single Digit a Yield Share Total Price Shareholder Return DB Conference June 2016 - 11
Slide 12: A Balanced Approach to Growth and Returns
A Balanced Approach to ___Growth and Returns cr Growth Cash Returns Shareholder Return Double - 2-3% Digit Share Dividend Yield Total Repurchase Shareholder Return NetSales Segment Operating Profit Target: Cash Return to Non-cash, JV's, Tax, Capex, Interest } Shareholders 2 90% of FCF* Free Cash Flo
Slide 13: Holistic Margin Management (HMM)
Holistic Margin Management (HMM) COGS HMM (Fiscal Years, $ in Millions) $4,000 coGs Mix Productivity Management $2,430 Admin Processes Pricing Consumer & Trade Programs 2010-2015 Cumulative 2010- Cumulative Savings 2020 Savings Goal DB Conference June 2016 - 13
Slide 14: Incremental Cost Savings Initiatives
Incremental Cost Savings Initiatives . Projects Catalyst Policies & Practices Project Century and Compass Update 7 » DD Streamline Global Supply Simplify Organization Design Further Administrative Chain Expense Reductions Cost Savings Targets ($ in Millions) $500 $450 $285-310 $75 FI5 F1é F17 F18 DB
Slide 15: Core Working Capital Trend
Core Working Capital Trend ~ ($ in Millions) F1l -29% Cum Decline F12 F13 F1l4 HB Core Working Capital — = Core Working Capital Days F1I5
Slide 16: Improving Free Cash Flow
Improving Free Cash F. low (3-Ye Year Rolling, $ in Millions) Target: Cash Conversion 2 95% CGR = +13% | $5,920 $6,020 FO9-F11 F10-F12 F11-F13 F12-F14 F13-F15 IB Free Cash Flow* —— Free Cash Flow Conversion* *Non-GAAP measure. See appendix forreconciliation materials DB Conference June 2016 - 16
Slide 17: Strong Cash Returns to Shareholders
Strong Cash Returns to Shareholders (3- Year Rolling, gin Billions) Target: Cash Return 2 907% Cash Return %: 109% 80% 67% 75% 93% $5.9 $6.0 FO9-F11 F10-F12 F11-F13 F12-F14 F13-F15 1) Free Cash Flow* HB Net Share Repurchases + Dividends Paid *Non-GAAP measure. See appendix forreconciliation material
Slide 18: A Track Record of Double-digit Returns to Shareholders
Source: Capl@ A Track Record of Double-digit __Returns to Shareholders Price Appreciation Plus Dividends Compound Annual Growth through F16 BGIs W S&P 500 20 Yr 15% 12% 12% 15 Yr 10 Yr 5Yr 3 Yr 1Yr
Slide 19: Jon Nudi, Senior Vice President; President — Europe
Jon Nudi Senior Vice President; President — Europe
Slide 20: Our Business by Segment
Our Business by Segment (Fiscal 2015 Net Sales = $18.7 Billion)* Joint Ventures* $1.1 Billion International $5.1 Billion U.S. Retail $10.5 Billion Convenience Sto! & Foodservice $2.0 Billion “Non-GAAP measure. includes $17.6 billion consolidated net sales plus $0.9 billion proportionate share of CPW
Slide 21: General Mills International Segment Performance
General Mills International Segment Performance International Segment International Segment Net Sales Operating Profit ($ in Billions) ($in Millions) GR= #1425 GR = +2 $5.1 $523 $2.7 | | : F10 FI5 F10 F15 Profit Margin: 7.7% 10.2%
Slide 22: International Segment Overview
International Segment Overview (Fiscal 2015 Net Sales) q —- yoplait= 43% Emerging Market Europe $2.1 Billion Canada $1.1 Billion 2015 Segment Net Sales = $5.1 Billion 2015 Segment Operating Profit: $523 Million
Slide 23: Europe Region at a Glance
Europe Region at a Glance * $2.1 Billion in Net Sales * Operating in 25 Countries *4,300+ Employees *4 of 5 Global Platforms Super Premium Ice Cream Convenient Meals Yogurt Haagen-Dazs DB Conference June 2016 - 23
Slide 24: Europe Contributing to International Growth and Margin Expansion
Europe Contributing to International Growth and ___Margin Expansion Europe Net Sales Europe Operating Profit Margin ($in Millions) (% of Net Sales) >—-CGR = +15%— $2,127 - al i F1I5
Slide 25: General Mills Europe is an Emerging Company in a Developed Market
General Mills Europe is an Emerging Company in a ___ Developed Market Three Core Markets Household Penetration Opportunity (F15 Net Sales) (HH Penetration %) 36 31 30 32 27 21 France, UK, Australia 12 12 va Old El Paso Haagen-Dazs Nature Valley [-] Best in Class Market ii France Gi uk Source: Nielse
Slide 26: Europe Growth Model
Europe Growth Model —S Convenient Meals Super-premium Ice Cream -—_ Better-for-you Snacks Yogurt = « Emerging Categories ¢ Low Household Penetration ¢ Leading Market Positions * Focus: Drive Awareness / Consumption * Large, Well-developed Category * Strong Household Penetration ° Focus: Build Share
Slide 27: Convenient Meals: Stand 'N' Stuff Driving Old El Paso Growth
Convenient Meals: Stand ‘N’ Stuff Driving Old El Paso Growth 2-year Retail Sales CGR: 9% Source: Nielsen, period ended March 2016 DB Conference June 2016 - 27
Slide 28: Convenient Meals in F17: Growth Through Innovation and Geographic Expansion
Convenient Meals in F17: Growth Through Innovation and Geographic Expansion Innovation Geographic Expansion Russia Poland Austria Netherlands DB Conference June 2016 - 28
Slide 29: Ice Cream: Driving More from the Core Through Messaging and Innovation
Ice Cream: Driving More from the Core Through Messaging and Innovation 2-year Retail Sales CGR: 11% Source: Nielsen, period ended March 2016
Slide 30: Häagen-Dazs Stick Bars a Hit in France in F16
Slide 31: Ice Cream in F17: Maintain Momentum Through Stick Bar Expansion
Ice Cream in F17; Maintain Momentum Through Stick - Bar Expansion : New Flavors New Geographies for Stick Bars —ZimN United Kingdom Spain Belgium Italy
Slide 32: Flowering the World in More Than 50 Markets
’ ; Os s% 58 pes tes S06 Sse one ~ SPs ener Be LS VT AE WON SS Sib Oo A N S “Flowering the World” in More Than 50 Markets
Slide 33: Yogurt: Performance in Greek and Kid Segments Driving Market Share Gains
Yogurt: Performance in Greek and Kid Segments Driving Market Share Gains Yoplait Market Share: Yoplait Market Share: pee UK France — 13.7 ee ag Fo? FI5 Source: IRI DB Conference June 2016 -
Slide 34: Yogurt in F17: Seed Future Growth Platforms and Drive New Occasions
Yogurt in F17: Seed Future Growth Platforms and Drive New Occasions LIBERTE NATURALLY THICK ‘YOGURT Adult Pouch Non-bovine Yogurt School Lunches Panier Extra 0% DB Conference June 2018
Slide 35: Snacks: Renovation and Innovation Driving Growth
Snacks: Renovation and Innovation Driving Growth 2-year Retail Sales CGR: 2% Source: Nielsen, period ended March 2016 DB Conference June 201
Slide 36: Snacks in F17: Capitalizing on Changing Trends
‘Snakes in F 1 io C -apitatiag on Lunaneang fi rends Renovation Innovation
Slide 37: Funding Our Future
Funding Our Future * Ongoing HMM target of 5% COGS * Project Compass: Integrating Yoplait and General Mills in Europe ¢ Project Century: Network Optimization DB Conference June 2018 - 37
Slide 38: International Summary
International Summary * General Mills Driving Good Sales and Profit Growth in Europe * Cost Savings Initiatives Enabling Reinvestment and Margin Expansion «Europe Remains a Growth Opportunity for GIS DB Conference June 2016 - 38
Slide 39: Reconciliation of Free Cash Flow and Free Cash Flow Conversion
Reconciliation of Free Cash Flow and Free Cash Flow Conversion _ . ‘(Fiscal Years, $in Millions) 2015 2014 2013 2012 2011 2010 2009 Net Eamings, Including Earnings Attributable to Redeemable and Noncontrolling Interests $1,259 $1,861 $1,893 $1,589 $1,804 $1,535 $1,314 Mark-to-market, Net of Tax 56.5
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