ASIA PACIFIC, MIDDLE EAST & AFRICA

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1 ASIA PACIFIC, MIDDLE EAST & AFRICA Maurizio Brusadelli President, AMEA

2 Agenda AMEA The business today Consumer and market trends Growth priorities 2

3 AMEA Today (22% of Net Revenues) Key Facts Geographic Profile Countries served % of world s population 2017 net revenues Market share in our categories % $5.7B 22% 2017 Net Revenues Beverages Cheese & Grocery Gum & Candy 10% 11% 16% 35% Chocolate % of AMEA Net Revenues Emerging ~75% 28% Developed ~25% Biscuits Market share based on available Nielsen global data through June 2018 for measured channels in key markets where the company competes 3

4 AMEA Solid Performance Despite Market Volatility Organic Net Revenue Growth Adjusted OI Margin 1.9% +1.1% CAGR % 2.7% 2.7% +460 bps % 8.4% 9.1% 13.0% 11.6% 15.5% H % Note: In 2016, Organic Net Revenue growth adversely impacted by India demonetization impact of 70bps. In 2017, Organic Net Revenue growth benefited from lapping India demonetization. 4

5 Agenda AMEA The business today Consumer and market trends Growth priorities 5

6 Well-Positioned to Leverage Faster Growing Snacking GDP Growth Projection 2020 Estimate Cumulative Category Growth Projection ($B) % 4 $6 4 6% 3 $4 3 5% 2 $3 2 4% 1 1 3% IMF Database and company projections 6

7 Rapidly Evolving Consumer Trends and Region Dynamics Emerging Market Demographics Evolving Channels Digital Revolution Growth in Premium and Value Our growth priorities capitalize on these trends 7

8 Agenda AMEA The business today Consumer and market trends Growth priorities 8

9 AMEA Key Growth Initiatives Investing in global and local brands Innovate more locally, close to consumers Expand into fast-growing segments Leverage ecommerce capabilities RTM expansion in India/China/SEA Expanding presence in Africa 9

10 A CLOSER LOOK Continued Investment in Routes to Market Expansion Key Markets Trade Outlets 5MM+ ~4MM Incremental 1.3 million outlets 10

11 A CLOSER LOOK Growing in India Profile Packaged snacks market 2017 net revenues Chocolate share Milk food drinks share Biscuits share ~$20B ~$900M 67% (#1) 13% (#2) 2% (#8) Recent Accomplishments Growing leadership position in chocolate with double-digit growth Steady investment in infrastructure for RTM and manufacturing Open up new snacking growth avenues in Biscuits and Beverages Strong local capabilities in place Packaged snacks market size based on Euromonitor data. Market share based on available Nielsen global data through June 2018 for measured channels in key markets where the company competes. 11

12 A CLOSER LOOK India Building on Strong Leadership Position Invest Across Consumer Pyramids Innovation to Expand in Snacking RTM Expansion Rs Rs. 5, 10 12

13 A CLOSER LOOK Growing in Fast Changing China Profile Packaged snacks market 2017 net revenues Biscuits share Gum share Chocolate share ~$85B ~$1B 22% (#1) 16% (#2) 3% (#4) Recent Accomplishments Recent and successful entry into gum (2012) and chocolate (2016) Steady investment in infrastructure for RTM and manufacturing Distribution expansion in lower-tier cities Forging strong partnerships with ecommerce leaders Packaged snacks market size based on Euromonitor data. Market share based on available Nielsen global data through June 2018 for measured channels in key markets where the company competes. 13

14 A CLOSER LOOK China Establishing Stronger Multi-Category Position Chinese Bundles Well-Being Innovation to Expand in Snacking Digital and RTM Expansion 14

15 A CLOSER LOOK Growing in Southeast Asia Profile Packaged snacks market 2017 net revenues Biscuits share Chocolate share ~$20B $1B+ 16% (#1) 10% (#3) Recent Accomplishments Accelerating profitable growth Acquired Kinh Do (2015) becoming market leader in Vietnam biscuits Innovating locally in both value and premium segments Expanding coverage following attractive population and GDP growth trends Packaged snacks market size based on Euromonitor data. Market share based on available Nielsen global data through June 2018 for measured channels in key markets where the company competes. 15

16 A CLOSER LOOK Southeast Asia Capture Share of Rapidly Growing Market Invest Across Brands Local Innovation and Whitespace Expansion RTM Expansion 16

17 In Summary AMEA Has Significant Growth Potential Strong fundamentals Focusing on fast-growing emerging markets and snacking segments Innovating locally, closer to the consumer Investing in global and local brands Expanding our footprint Fostering a culture of growth, speed and flexibility 17