Annual Report Kraft, Inc. Tommy Whitelaw ACG

Executive Summary Kraft is by far one of the best and well known food company’s in this country and world. Kraft Foods Inc. is engaged in the manufacture and sale of branded foods and beverages in the United States, Canada, Europe, Latin America, Asia Pacific, the Middle East and Africa. KRAFT, INC. KRAFT, INC.

Introduction to Kraft Foods, Inc. Introduction to Kraft Foods, Inc.  CEO Roger Deromedi  Home office in Northfield, Illinois  Home office in Northfield, Illinois  Ending date of the last fiscal year was December 31, 2003  Kraft Foods, Inc., is the largest branded food and beverage company headquartered in the U.S. and the second largest in the world. Consumers of all ages around the world enjoy their brands across the entire spectrum of food and beverage occasions: breakfast, lunch, dinner and snacks. Brands include Kraft, Nabisco, Oscar Mayer, Post, Maxwell House, Philadelphia, and Jacobs.

Stock Market Information  Most recent price of the company’s stock as of October 1, 2004 is: $31.69  Twelve months trading range of company stock.  The 2003 rate is $0.18 dividends per stock.  As we can see from the graph the stock seems to fluctuate but always seems to go back up.  I would definitely hold on to this stock they are one of the leaders in the world in food and beverage and can only grow to be bigger.

Industry Situation and Company Plans  The Company's brands span five consumer sectors: Snacks, cookies, crackers, salted snacks and confectionery;  Beverages, primarily coffee, aseptic juice drinks and powdered beverages;  Cheese, largely natural, process and cream cheeses;  Grocery, mostly ready-to-eat cereals, enhancers and desserts.  Convenient Meals, mainly frozen pizza, packaged dinners, lunch combinations and processed meats.  Kraft conducts its global business through its subsidiaries, Kraft Foods North America, Inc. and Kraft Foods International, Inc. The Company has operations in 68 countries and sells its products in more than 150 countries  Delivering more product benefits to consumers at the right price, compared to the competition is one of Kraft’s major goals.  Increasing there business internationally, especially in the fastest-growing developing markets around the world will help increase profits.

Income Statement  The format of the income statement is multi-step.  The gross profit increased slightly from 2002 to  Income from operation decreased a little from the two years which means they spent less money on operations.  Kraft’s net income also rose to some extent from the previous year. In Millions Gross Profit $12,003$12,182 Income from operation $6,114 $6,011 $6,011 Net Income $3,394$3,476

Balance Sheet  Total assets increased by $2,185,000 million dollars from 2002 to  Liabilities decreased by $513,000 dollars from the two years.  Stockholders Equity increased by $2,698,000 million dollars from 2002 to In Millions Total Assets = Total Liablities + Total Stockholders Equity 2002 $57,100 =$31,268+$25, $59,285=$30,755+$28,530

Statement of Cash Flow  Cash flow from operations have increased by more than $400,000 dollars from 2002 to  The company is growing through new products and expanding all over the world.  Cash In and Cash Equivalents have increased from $53,000 in 2002, to $300,000 in the end of 2003.

Accounting Policies Topics of the notes to the financial statements.  Summary of significant accounting policies  Net earning per share  Acquisitions and Divestitures  Goodwill and Purchased Intangibles assets  Balance sheet details  Financial instruments  Guarantees  Taxes on Earnings  Stockholder Equity  Supplemental cash flow information  Retirement and Post-retirement benefit plans  Commitments  Segment Information