1. IRI CONFERENCE Alan Harris February 2005 Miami

2. 2

3. 3 Analyst / Investor Quotes of 2000 “The company continues to drive earnings growth by allowing cost savings to fall to the bottom line without enough re-investment for growth. We maintain our Neutral Rating.” Paul Webber “The positive EPS surprise was generated by a sharp reduction in marketing spending.” Morgan Stanley “Some of Kellogg’s execution problems recently have been primarily caused by poor planning... And its last significant acquisition (Lenders) was a disaster.” Credit Suisse “We believe investors should wait...” J. P. Morgan

4. 4 Kellogg Stock Price $26.25 2001200220032004 $26.25 $44.66 Annual Growth Rate Kellogg 18% Large-Cap. Food Index 8% S&P 500 Index (1)% $27 $22 $32 $37 $42

5. 5 Total Shareholder Return % 2004

6. 6 Analyst / Investor Quotes of 2004 “We remain convinced that Kellogg deserves to be our top pick in branded food.” Smith Barney “We view managements execution as the key driver for the stock.” A. G. Edwards “We find virtually nothing negative to highlight in fundamentals.” Lehman Brothers “We are reiterating our Buy Rating on Kellogg.” Merrill Lynch

7. 7 Carlos Gutierrez

8. 8 Decisive Factors Right people in right jobs Clear, disciplined strategic choices Focus on key metrics Organizational alignment Consistent and challenging values

9. 9 1. Right People / Right Jobs Context is key Having a clear idea as to what needs to be done and the different strengths/abilities of the executive pool.

10. 10 1. Right People / Right Jobs Context is key Having a clear idea as to what needs to be done and the different strengths/abilities of the executive pool. “The best executive is the one who has sense enough to pick good men to do what he wants done, and the self restraint to keep from meddling with them while they do it.” T. Roosevelt

11. 11 Have a Succession Plan!

12. 12 Grow Cereal Expand Snacks Pursue Selective Growth Opportunities 2. Clear, Disciplined Strategic Choices

13. 13 Expand Gross Profit Margin Increase Brand Building Drive Innovation Improve Mix Grow Net Sales Volume to Value 3. Key Metrics

14. 14 Grow Net Earnings Improve Financial Flexibility Manage for Cash Reduce Working Capital Prioritize Capital Expenditure Increase Return on Invested Capital 3. Key Metrics

15. 15 4. Organizational Alignment Commitment to Business Units Clear lines of P&L responsibility Metrics tied to compensation Simplification of compensation system Communication/ Communication/ Communication

16. 16 We Act With Integrity and Show Respect We Are All Accountable We Are Passionate About Our Business, Our Brands and Our Food We Have The Humility and Hunger To Learn We Strive For Simplicity We Love Success 5. Consistent & Challenging Values

17. 17 “The toughest thing about success is that you’ve got to keep on being a success.” Irving Berlin