Homburg Invest : Q3 2020 Earnings Presentation

		Q3 2020		OCTOBER 29		A NEW MODEL
		EARNINGS CALL		2020		FOR GROWTH

FORWARD LOOKING
STATEMENTS	Q3 2020 EARNINGS CALL	2

This presentation contains a number of forward-looking statements. Words such as "plan," "believe," "anticipate," "reflect," "invest," "make," "expect," "drive," "improve," "intend," "assess," "evaluate," "establish," "focus," "build," "turn," "expand," "leverage," "grow," "will," and variations of such words and similar future or conditional expressions are intended to identify

forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding the Company's plans, impacts of accounting standards and guidance, costs and cost savings, legal matters, taxes, impairments, dividends, expectations, investments, innovations, opportunities, capabilities, execution, initiatives, pipeline, and growth. These forward-looking statements are not guarantees of future performance and are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond the Company's control.

Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the impact of COVID-19; operating in a highly competitive industry; the Company's ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation; changes in the retail landscape or the loss of key retail customers; changes in the Company's relationships with significant customers, suppliers and other business relationships; the

Company's ability to maintain, extend, and expand its reputation and brand image; the Company's ability to leverage its brand value to compete against private label products; the Company's ability to drive revenue growth in its key product categories, increase its market share, or add products that are in faster-growing and more profitable categories; product recalls or product liability claims; unanticipated business disruptions; the Company's ability to identify, complete or realize the benefits from strategic acquisitions, alliances, divestitures, joint ventures or other investments; the Company's ability to realize the anticipated benefits from prior or future streamlining

actions to reduce fixed costs, simplify or improve processes, and improve its

competitiveness; the Company's ability to successfully execute its strategic initiatives; the impacts of the Company's international operations; economic and political conditions in the United States and in various other nations where the Company does business; changes in the Company's management team or other key personnel and the Company's ability to hire

or retain key personnel or a highly skilled and diverse global workforce; risks associated with information technology and systems, including service interruptions, misappropriation of data or breaches of security; impacts of natural events in the locations in which we or the Company's customers, suppliers, distributors, or regulators operate; the Company's ownership structure; the Company's indebtedness and ability to pay such indebtedness, as well as the Company's ability to comply with covenants under its debt instruments; the Company's liquidity, capital resources and capital expenditures, as well as its ability to raise capital; additional impairments of the carrying amounts of goodwill or other indefinite-lived intangible assets; foreign exchange rate fluctuations; volatility in commodity, energy, and other input costs; volatility in the market value of all or a portion of the commodity derivatives we use; increased pension, labor and people-related expenses; compliance with laws, regulations, and related interpretations and related legal claims or other regulatory enforcement actions, including additional risks and uncertainties related to any potential actions resulting from the Securities and Exchange Commission's ("SEC") ongoing investigation, as well as potential additional subpoenas, litigation, and regulatory proceedings; potential future material

weaknesses in the Company's internal control over financial reporting or other deficiencies or the Company's failure to maintain an effective system of internal controls; the Company's failure to prepare and timely file its periodic reports; the Company's ability to protect intellectual property rights; tax law changes or interpretations; the impact of future sales of the Company's common stock in the public markets; the Company's ability to continue to pay a regular dividend and the amounts of any such dividends; volatility of capital markets and other macroeconomic factors; a downgrade

in the Company's credit rating; and other factors. For additional information

on these and other factors that could affect the Company's forward-looking statements, see the Company's risk factors, as they may be amended from time to time, set forth in its filings with the SEC. The Company disclaims and does not undertake any obligation to update, revise or withdraw any forward-looking statement in this presentation except as required by applicable law or regulation.

Non-GAAP Financial Measures

This presentation contains certain non-GAAP financial measures, including Organic Net Sales, Adjusted EBITDA, Constant Currency Adjusted EBITDA, Adjusted EPS, and Free Cash Flow. These non-GAAP financial measures may differ from similarly titled non-GAAP financial measured presented by other companies. These measures are not substitutes for their comparable financial measures prepared in accordance with accounting principles

generally accepted in the United States of America ("GAAP") and should be

viewed in addition to, and not as an alternative for, the GAAP results in this presentation.

These non-GAAP financial measures assist management in comparing the Company's performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect the Company's underlying operations.

Please see discussion of non-GAAP financial measures and the reconciliations at the end of this presentation for more information.

TODAY'S
AGENDA	Q3 2020 EARNINGS CALL	3

01

02

03

04

BUSINESS	US ZONE	FINANCIAL	Q&A
UPDATE	REVIEW	PERFORMANCE &
		OUTLOOK
Miguel Patricio	Carlos Abrams-Rivera	Paulo Basilio
Chief Executive Officer	US Zone President	Chief Financial Officer

	Q3 2020 EARNINGS CALL	4

MIGUEL

PATRICIO

CHIEF EXECUTIVE OFFICER

BUSINESS UPDATE	Q3 2020 EARNINGS CALL		5
PERFORMANCE TO
→ Results reflect greater agility
DATE IS MAKING US	→ Consumer priorities remain favorable
CONFIDENTLY
→ Strategy from planning to action
OPTIMISTIC

• 2020, 2021 ahead of Strategic Plan

BUSINESS UPDATE	Q3 2020 EARNINGS CALL	6

United States

Q1 Q2 Q3

Retail			+1.5pp
	15%	12%
Organic Net Sales1
8%
Growth

Foodservice
(3%)
Organic Net Sales1	(25%)
Growth		(46%)

Business Exit

Canada

Q1 Q2 Q3

+5.9pp

+5.6pp 13% +5.9pp

5%3%

(12%)

(21%)

(53%)

Business Exit

International

Q1 Q2 Q3

16%

8%9%

(5%)(16%)

(45%)

1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations.

BUSINESS UPDATE		Q3 2020 EARNINGS CALL			7
Improved	Organic Net Sales1	Constant Currency Adjusted
	Growth	EBITDA1 Growth
agility is	H1	Q3	H1		Q3
sustaining
+0.3pp
momentum
	+1.2pp
as we reset					+7.2pp
our base	6.9%
	6.3%	+5.7pp
					13.6%
			7.1%
	pp impact	Business Exit	Divestiture	Business Exit	Incentive
	from …	Compensation

1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations.

BUSINESS UPDATE	Q3 2020 EARNINGS CALL	8

Growth is tracking with our strategy

YTD Net Sales Growth

by Portfolio Role

7%	8%
		2%
↑ Grow	☀︎ Energize	⌅ Stabilize

Emerging Market

Organic Net Sales1 Growth

	9%
7%
YTD	Q3

		% of 2020	Net Sales Growth
Platform	Role	Net Sales	Q3 vs. PY	YTD vs PY
Taste Elevation	↑	28%	+6%	+5%
Taste Elevation (ex-foodservice)	22%	+20%	+19%
Easy Meals Made Better	↑ / ☀︎	19%	+10%	+17%
Real Food Snacking	↑	9%	+4%	+3%

1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations.

BUSINESS UPDATE	Q3 2020 EARNINGS CALL	9

Evolving consumer preferences indicate elevated demand will remain

In-Home Occasions and Commerce

Affordability

Availability and Velocity

Purpose as a Source of Change

• (Re)discovering cooking at home
• Redefining meal experiences
• Reassessing the shopping trip, baskets and bundles
• Value for money
• Pack-size
• Good-Better-Besttrading up/down
• Reassessing "assortment"
• (Re)focus on big brands
• Brand embodiment of values, causes
• Community, local sourcing

BUSINESS UPDATE	Q3 2020 EARNINGS CALL	10

Actions to date position Kraft Heinz to

sustain gains

PEOPLE WITH

PURPOSE

New training &

development

Flexible working

arrangements

CONSUMER OPS PLATFORMS CENTER

Adapting	Simplifying
innovation	portfolio & SKU
pipeline	range
Prioritization,	Eliminating
waste & driving
flexible budgets
productivity

PARTNER

PROGRAM

Flexible

merchandising

Joint Business

Planning

FUEL OUR GROWTH

Reinvesting in

brands, capacity,

& e-commerce

Applying Agile

Portfolio

Management

We remain excited for the future of Kraft Heinz

	Q3 2020 EARNINGS CALL	11

CARLOS

ABRAMS-

RIVERA

US ZONE PRESIDENT

U.S. ZONE REVIEW		Q3 2020 EARNINGS CALL			12
Agility is	Organic Net Sales1	Constant Currency Adjusted
	Growth	EBITDA1 Growth
driving	H1	Q3	H1		Q3
sustained
	+1.3pp
momentum					+6.4pp
			+2.6pp
	7.5%	7.4%
					17.5%
			12.2%
	pp impact	Business Exit	Divestiture	Business Exit	Incentive
	from …	Compensation

1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations.

U.S. ZONE REVIEW	Q3 2020 EARNINGS CALL	13

We are turning the corner from restructuring to execution

PEOPLE WITH

PURPOSE

New structure

fully operational,

fully staffed

Leveraging digital

as an enabler

CONSUMER OPS PARTNER PLATFORMS CENTER PROGRAM

Focus through	Delivering COGS	Accelerated
planning,
platform lens	efficiency
strategic agenda
Distorting	Supply	Innovation,
resources by	constraints	creativity driving
portfolio role	easing	Foodservice

FUEL OUR GROWTH

Reinvesting in

brands

Ramping up

capacity

investment

Unlocking agility to leverage our scale

U.S. ZONE REVIEW			Q3 2020 EARNINGS CALL			14
We have	Market Share Progression	% of Business Growing Share
market share		As of September 26, 2020
L52	L26	L4	H1	Q3	Sep.
momentum
				+38pp
to build upon
			(0.1pp)			58%
		(0.4pp)			41%
	(0.5pp)		20%
				36%	40%	49%
					% of Categories
					Gaining Share

Source: Nielsen xAOC Data for U.S. Zone

U.S. ZONE REVIEW	Q3 2020 EARNINGS CALL	15

We are now

Rate of New Buyers

Marketing Investment

ramping up brand support to retain and inspire new consumers

Source: Nielsen xAOC Data for U.S. Zone

Repurchasing 2+ Times

+40%	+70%

35%

18%

24 Weeks Ending	24 Weeks Ending	H2 2019	H1 2020	H2 2020
Aug 17, 2019	Aug 15, 2020
				Non-Working		Working

	Q3 2020 EARNINGS CALL	16

PAULO

BASILIO

CHIEF FINANCIAL OFFICER

FINANCIAL PERFORMANCE & OUTLOOK:

UNITED STATES

Q3 2020 EARNINGS CALL

17

Organic Net Sales1

Price:	2.9pp	Price:	4.0pp
Vol/Mix:	4.6pp	Vol/Mix:	3.4pp
7.5%		7.4%
YTD 2020	Q3 2020

Adjusted EBITDA1

	17.5%
13.9%
YTD 2020	Q3 2020

HIGHLIGHTS

• Volume/mix benefited from strong growth across retail, e-commerce, and club channels
• Higher price reflects reduction in certain promotional activities to safeguard customer service, select planned pricing actions, and commodity-driven pricing, particularly in dairy
• Adjusted EBITDA growth continued to reflect strong combination of pricing, volume, mix, and procurement savings
• • Gains more than offset incentive compensation normalization, key commodity2 inflation, stepped up marketing, and incremental COVID-19-related costs

1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations. 2| The Company's key commodities in the United States and Canada are dairy, meat, coffee and nuts.

FINANCIAL PERFORMANCE & OUTLOOK:

INTERNATIONAL

Q3 2020 EARNINGS CALL

18

Organic Net Sales1

Price: 2.2pp Price: 2.1pp

Vol/Mix: 3.5pp Vol/Mix: 2.5pp

5.7%	4.6%
YTD 2020	Q3 2020

Constant Currency

Adjusted EBITDA1

7.7%	6.8%
YTD 2020	Q3 2020

HIGHLIGHTS

• Balanced growth continued, led by Taste Elevation
• • Developed Markets: +1.6% Q3, +5.0% YTD
  • Emerging Markets: +9.1% Q3, +6.7% YTD
• Constant Currency Adjusted EBITDA gains continue to reflect Organic Net Sales growth more than offsetting higher operational costs, including COVID-19-related expenses, and normalized incentive compensation expense

1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations.

FINANCIAL PERFORMANCE & OUTLOOK:

CANADA

Q3 2020 EARNINGS CALL

19

Organic Net Sales1

Price: 0.1pp Price: 4.6pp

Vol/Mix:

0.9pp

Vol/Mix: (5.6)pp

1.0%

(1.0%)

YTD 2020

Q3 2020

Constant Currency

Adjusted EBITDA1

	(3.0%)
(25.9%)
YTD 2020	Q3 2020

HIGHLIGHTS

• Strong retail growth in Easy Meals Made Better and Taste Elevation more than offset by the impact of McCafé exit and lower foodservice sales
• Pricing gains driven by a combination of higher list price in select categories and reduced promotional intensity versus the comparable prior year period
• Constant Currency Adjusted EBITDA performance improving but still negatively impacted by supply chain cost inflation, the McCafé exit, and higher incentive compensation versus the year-ago period

1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations.

FINANCIAL PERFORMANCE & OUTLOOK:

CONSOLIDATED SUMMARY

Q3 2020 EARNINGS CALL

20

Net Sales	→ Strong vol/mix and

Adjusted EPS1

→ Q3 2020 included

	$6,441
$6,076	→
3Q 2019	3Q 2020

favorable pricing offset business exit

Pricing tailwind to fade from Q4

$0.69 $0.13 $0.70

3Q 2019

3Q 2020

$(0.12) impact

below EBITDA

→ Continue to

expect ~$(0.38)

impact below

$0.70

Adjusted EBITDA in 2020

Adjusted EBITDA1

→ Organic growth,

Free Cash Flow1

→ Strong FCF

	$1,667
	$199
$1,469
3Q 2019	3Q 2020

COGS containment offsetting business

exit and normalizing

$1,667

incentive compensation

conversion aided

	$2,929	by working capital
		and capex timing
$1,409		→ Expect working
		capital rebuild,
		accelerating
YTD 2019	YTD 2020	capex to hold
back Q4 FCF

1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations.

FINANCIAL PERFORMANCE & OUTLOOK:

2020 EXPECTATIONS

Q3 2020 EARNINGS CALL

21

RAISING 2020 OUTLOOK

Organic Net Sales1

Adjusted EBITDA1

Free Cash Flow1

Q4 2020	Q4 2020 high-single-digit	Expect ~100% Free Cash
mid-single-digit growth	Constant Currency growth	Flow conversion
FY 2020	FY 2020 high-single-digit	~4x net leverage
mid-single-digit growth	Constant Currency growth	by year-end

1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations.

FINANCIAL PERFORMANCE & OUTLOOK:

2021 EXPECTATIONS

Q3 2020 EARNINGS CALL

22

2021 OBJECTIVES

Organic Net Sales1

Adjusted EBITDA1

Free Cash Flow1

Retain DM Household Gains	Accelerate Growth	Maintain Strong Return of
& Accelerate EM Growth	Investments	Cash to Shareholders
Improve Trajectory from	Deliver Adjusted EBITDA1	Continue to Reduce Gross
Agile Portfolio Management	above Strategic Plan	Debt Outstanding

1| Non-GAAP financial measure. See Appendix to this presentation for more information, including GAAP to non-GAAP reconciliations.

	Q3 2020 EARNINGS CALL
Q&A	MIGUEL PATRICIO
CHIEF EXECUTIVE OFFICER
PAULO BASILIO
CHIEF FINANCIAL OFFICER
	CARLOS ABRAMS-RIVERA
	US ZONE PRESIDENT

Q3 2020 EARNINGS CALL

APPENDIX

Appendix	Q3 2020 EARNINGS CALL	25

Non-GAAP Financial Measures

The non-GAAP financial measures provided 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") that are presented in this press release.

To supplement the financial information provided, the Company has presented Organic Net Sales, Adjusted EBITDA, Constant Currency Adjusted EBITDA, Adjusted EPS, and Free Cash Flow which are considered non-GAAP financial measures. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable GAAP financial measures, such as net sales, net income/(loss), diluted earnings per share, or other measures prescribed by GAAP, and there are limitations to using non-GAAP financial measures.

Management uses these non-GAAP financial measures to assist in comparing the Company's performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes do not directly reflect the Company's underlying operations. Management believes that presenting the Company's non-GAAP financial measures (i.e., Organic Net Sales, Adjusted EBITDA, Constant Currency Adjusted EBITDA, Adjusted EPS, and Free Cash Flow) is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating the Company's results. The Company believes that the presentation of these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provides investors with additional understanding of the factors and trends affecting the Company's business than could be obtained absent these disclosures.

Organic Net Sales is defined as net sales excluding, when they occur, the impact of currency, acquisitions and divestitures, and a 53rd week of shipments. The Company calculates the impact of currency on net sales by holding exchange rates constant at the previous year's exchange rate, with the exception of highly inflationary subsidiaries, for which the Company calculates the previous year's results using the current year's exchange rate. Organic Net Sales is a tool that can assist management and investors in comparing the Company's performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect the Company's underlying operations.

Adjusted EBITDA is defined as net income/(loss) from continuing operations before interest expense, other expense/(income), provision for/(benefit from) income taxes, and depreciation and amortization (excluding integration and restructuring expenses); in addition to these adjustments, the Company excludes, when they occur, the impacts of integration and restructuring expenses, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, and equity award compensation expense (excluding integration and restructuring expenses). The Company also presents Adjusted EBITDA on a constant currency basis. The Company calculates the impact of currency on Adjusted EBITDA by holding exchange rates constant at the previous year's exchange rate, with the exception of highly inflationary subsidiaries, for which it calculates the previous year's results using the current year's exchange rate. Adjusted EBITDA and Constant Currency Adjusted EBITDA are tools that can assist management and investors in comparing the Company's performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect the Company's underlying operations.

Adjusted EPS is defined as diluted earnings per share excluding, when they occur, the impacts of integration and restructuring expenses, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, losses/(gains) on the sale of a business, other losses/(gains) related to acquisitions and divestitures (e.g., tax and hedging impacts), nonmonetary currency devaluation (e.g., remeasurement gains and losses), debt prepayment and extinguishment costs, and U.S. Tax Reform discrete income tax expense/(benefit), and including when they occur, adjustments to reflect preferred stock dividend payments on an accrual basis. The Company believes Adjusted EPS provides important comparability of underlying operating results, allowing investors and management to assess operating performance on a consistent basis.

Free Cash Flow is defined as net cash provided by/(used for) operating activities less capital expenditures. The Company believes Free Cash Flow provides a measure of the Company's core operating performance, the cash-generating capabilities of the Company's business operations, and is one factor used in determining the amount of cash available for debt repayments, dividends, acquisitions, share repurchases, and other corporate purposes. The use of this non-GAAP measure does not imply or represent the residual cash flow for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure.

Fourth quarter and 2020 full year guidance for Organic Net Sales, Adjusted EBITDA, Constant Currency Adjusted EBITDA, Adjusted EPS, and Free Cash Flow are provided on a non-GAAP basis only because certain information necessary to calculate the most comparable GAAP measure is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of such items impacting comparability, including, but not limited to, the impact of currency, acquisitions and divestitures, integration and restructuring expenses, deal costs, unrealized losses/(gains) on commodity hedges, impairment losses, equity award compensation expense, cash flows from operating activities, and capital expenditures, among other items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, the Company is unable to provide a reconciliation of these measures without unreasonable effort.

See the attached schedules for supplemental financial data, which includes the financial information, the non-GAAP financial measures and corresponding reconciliations to the comparable GAAP financial measures for the relevant periods.

Appendix		Q3 2020 EARNINGS CALL				26
						% of 2020	Net Sales Growth
	Platform	Zone	Role	Net Sales1	Q3 vs. PY	YTD vs PY
	Taste Elevation			↑		28%	+6%	+5%
	Taste Elevation (ex-foodservice)				22%	+20%	+19%
	Easy Meals Made Better			↑ / ☀︎	19%	+10%	+17%
	Real Food Snacking	/	↑	9%	+4%	+3%
	Fast Fresh Meals	/	☀︎	24%	+8%	+8%
	Easy Indulgent Desserts	/	⌅	4%	+11%	+12%
	Flavorful Hydration	/	⌅	7%	+10%	+8%
	All Other					10%	(7)%	(6)%

Key

↑ Growth  Energize ⌅ Stabilize

1| May not foot due to rounding

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