ILLUSTRATIVE MERGER CONSEQUENCES

($ and shares in millions, except for per share prices)

Companies
Acquirer Kraft
Target Kellog
Transaction Date 2/15/2013 Fiscal Year Ending December 31,

Shares Outstanding (fully diluted) Earnings Per Share LTM (1) 2013E 2014
Acquirer - Kraft 592 Acquirer - Kraft $2.70 $2.63 $2.93
Target - Kellog 362 Target - Kellog $3.30 $3.86 $4.12

Current Share Price Price / Earnings Ratio

Acquirer - Kraft $47.17 Acquirer - Kraft 17.5x 17.9x 16.1x
Target - Kellog $59.77 Share Price Target - Kellog 18.1x 15.5x 14.5x
Offer Share Price Target - Kellog 21.8x 18.7x 17.5x
Premium for Target Shares
Target Share Price Offer- Kellog $72.00

Revenue LTM (1) 2013E 2014

Target Value of Equity Offer - Kellog $26,042 Acquirer - Kraft $18,880 $19,239 $19,835
Target Implied Transaction Value - Kellog Target - Kellog $13,649 $15,316 $15,742
Total $32,529 $34,555 $35,577
Consideration for Target Equity - Kellog % Per Share Total
Cash Component 20% $14.40 $5,208 EBITDA
Acquirer Shares Issued - Kraft 80% $57.60 $20,834 Acquirer - Kraft $3,392 $3,285 $3,551
Total 100% $72.00 $26,042 Target - Kellog $2,323 $2,626 $2,761
Total $5,715 $5,911 $6,312
Sources for Cash Component
Cash on Balance Sheet $ - Net Income
Interest Rate earned on Cash 2.0% Acquirer - Kraft $1,598 $1,557 $1,735
New Debt $5,208 Target - Kellog $1,194 $1,396 $1,490
Interest Rate on New Debt 6.0% Total $2,792 $2,953 $3,225

Sources for Acquirer Share Issues Plus: Post-Tax Synergies na $0 $0

Exchange Ratio 1.22x Less: Amortization of Intangibles (2) na $0 $0
Acquirer Shares Issued - Kraft 442 Less: Additional Net Interest Expense na ($164) ($188)
Proforma Shares Outstanding 1,034
Proforma Net Income $2,792 $2,789 $3,037
Proforma Ownership Proforma Shares Outstanding 1,034 1,034 1,034
Acquirer Shareholders - Kraft 57.3% EPS if no acquisition - Kraft $2.70 $2.63 $2.93
Target Shareholders - Kellog 42.7% EPS post acquisition - Kraft $2.70 $2.70 $2.94
Total 100.0% EPS Accretion / (Dilution) 0.0% 2.6% 0.3%
Pretax Synergies required to breakeven
Pretax Annual Synergies $0 % of revenue
Effective Tax Rate 40% % of EBITDA
Post-Tax Annual Synergies $0 Book Value of Target Equity $2,436
Goodwill
2013E Pre-Tax Synergies Required to Breakeven $0 Additional Amortizable Intangibles $0
2013E Pre-Tax Synergies Required to Breakeven as % of Proforma Revenue 0.0% Amortize Intangibles? (yes or no) yes
2013E Pre-Tax Synergies Required to Breakeven as % of Proforma EBITDA 0.0% If yes, how many years? 20
(1) LTM ending September 30, 2012.

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ILLUSTRATIVE MERGER CONSEQUENCES
($ and shares in millions, except for per share prices)

MULTIPLE ANALYSIS
ACQUIRER Kellog Proforma
Kraft Current Offer Combined Companies
FD Shares Outstanding 592 362 362 1,034
Share Price $47.17 $59.77 $72.00 $47.17
Equity Value $27,925 $21,619 $26,042 $48,759

Plus: Debt $9,971 $7,937 $7,937 $23,116

Plus: Preferred Equity $0 $0 $0 $0
Plus: Minority Interest $0 $2 $2 $2
Less: Cash ($247) ($305) ($305) ($552)
Total Enterprise Value $37,649 $29,253 $33,676 $71,325

TEV / Revenue
LTM 2.0x 2.1x 2.5x 2.2x
2013E 2.0x 1.9x 2.2x 2.1x
2014E 1.9x 1.5x 2.1x 2.0x

TEV / EBITDA
LTM 11.1x 12.6x 14.5x 12.5x
2013E 11.5x 11.1x 12.8x 12.1x
2014E 10.6x 10.6x 12.2x 11.3x

Price / Earnings
LTM 17.5x 18.1x 21.8x 17.5x
2013E 17.9x 15.5x 18.7x 16.5x
2014E 16.1x 14.5x 17.5x 15.1x

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ILLUSTRATIVE MERGER CONSEQUENCES
($ and shares in millions, except for per share prices)

SENSITIVITY TABLES
2013E EPS ACCRETION / DILUTION
P/E of Share Price Paid 17.9x 18.1x 18.4x 18.7x 18.9x 19.2x 19.4x
Share Price Paid 2.6% $69.00 $70.00 $71.00 $72.00 $73.00 $74.00 $75.00
0% 8.6% 8.6% 8.6% 8.6% 8.6% 8.6% 8.6%
10% 5.7% 5.7% 5.6% 5.6% 5.5% 5.5% 5.5%
% Cash Consideration

20% 2.8% 2.7% 2.7% 2.6% 2.5% 2.4% 2.3%

30% -0.1% -0.2% -0.3% -0.4% -0.6% -0.7% -0.8%
40% -3.0% -3.1% -3.3% -3.5% -3.6% -3.8% -4.0%
50% -5.8% -6.1% -6.3% -6.5% -6.7% -6.9% -7.1%
60% -8.7% -9.0% -9.2% -9.5% -9.7% -10.0% -10.2%
70% -11.6% -11.9% -12.2% -12.5% -12.8% -13.1% -13.4%
80% -14.5% -14.8% -15.2% -15.5% -15.8% -16.2% -16.5%
90% -17.4% -17.8% -18.1% -18.5% -18.9% -19.3% -19.7%
100% -20.3% -20.7% -21.1% -21.5% -22.0% -22.4% -22.8%

ACQUIRER PROFORMA OWNERSHIP

Share Price Paid
57.27% $69.00 $70.00 $71.00 $72.00 $73.00 $74.00 $75.00
0% 52.8% 52.4% 52.1% 51.7% 51.4% 51.1% 50.7%
10% 55.4% 55.1% 54.7% 54.4% 54.0% 53.7% 53.4%
% Cash Consideration

20% 58.3% 58.0% 57.6% 57.3% 56.9% 56.6% 56.3%

30% 61.5% 61.2% 60.8% 60.5% 60.2% 59.8% 59.5%
40% 65.1% 64.8% 64.4% 64.1% 63.8% 63.5% 63.2%
50% 69.1% 68.8% 68.5% 68.2% 67.9% 67.6% 67.3%
60% 73.7% 73.4% 73.1% 72.8% 72.6% 72.3% 72.0%
70% 78.9% 78.6% 78.4% 78.1% 77.9% 77.7% 77.4%
80% 84.8% 84.6% 84.5% 84.3% 84.1% 83.9% 83.7%
90% 91.8% 91.7% 91.6% 91.5% 91.4% 91.3% 91.1%
100% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

PRE-TAX SYNERGIES REQUIRED TO BREAKEVEN

Share Price Paid
$0.0 $69.00 $70.00 $71.00 $72.00 $73.00 $74.00 $75.00
0% 0 0 0 0 0 0 0
10% 0 0 0 0 0 0 0
% Cash Consideration

20% 0 0 0 0 0 0 0
30% 2.896962567 8.238537188 13.63918752 19.09891357 24.617715320871 30.1955927883 35.8325459674
40% 117.8462532 125.1491381 132.5195382 139.9574533 147.462883517551 155.035828841 162.676289264
50% 219.4022361 228.2754064 237.2189049 246.2327316 255.316886604961 264.471369803 273.69618123
60% 307.5649112 317.6173419 327.7372877 337.9247486 348.179724583102 358.502215675 368.892221865
70% 382.3342786 393.1749447 404.0746866 415.0335042 426.051397451973 437.128366455 448.264411171
80% 443.7103381 454.9482148 466.2311015 477.5589983 488.931905211574 500.349822146 511.812749145
90% 491.69309 502.9371522 514.2065326 525.5012311 536.821247861904 548.166582745 559.53723579
100% 526.282534 537.1417569 548.0009797 558.8602026 569.719425402966 580.578648253 591.437871104

PRE-TAX SYNERGIES REQUIRED TO BREAKEVEN AS % OF 2008E PROFORMA EBITDA

Share Price Paid
0.0% $69.00 $70.00 $71.00 $72.00 $73.00 $74.00 $75.00
0% 0 0 0 0 0 0 0
10% 0 0 0 0 0 0 0
% Cash Consideration

20% 0 0 0 0 0 0 0
30% 0.001103185 0.003137295 0.005193902 0.007273006 0.00937460598662263 0.01149870251 0.01364529549
40% 0.044876715 0.047657707 0.050464409 0.053296822 0.0561549442184124 0.05903877717 0.06194832036
50% 0.083549976 0.086928944 0.090334693 0.093767225 0.0972265371686829 0.1007126313 0.10422550694
60% 0.117122967 0.120951006 0.124804755 0.128684215 0.132589384837434 0.13652026492 0.14047685524
70% 0.145595689 0.149723894 0.153874595 0.158047793 0.162243487224666 0.16646167801 0.17070236526
80% 0.168968141 0.173247607 0.177544212 0.181857958 0.186188844330378 0.19053687058 0.19490203699
90% 0.187240324 0.191522145 0.195813607 0.200114711 0.204425456154571 0.20874584263 0.21307587045
100% 0.200412237 0.204547508 0.20868278 0.212818051 0.216953322697245 0.22108859416 0.22522386561

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