Kraft Heinz : First Quarter 2023 Pre-Recorded Management Discussion

First Quarter 2023 Earnings Pre-Recorded Management Discussion | May 3, 2023

First Quarter 2023 Earnings Pre-Recorded Management Discussion

May 3, 2023

Please view the following prepared management remarks together with our Quarterly Report on Form 10-Q, the earnings release that accompanies these remarks, the related presentation slides, and the non-GAAP information that accompanies these remarks, which includes a discussion of non-GAAP financial measures and reconciliations of non- GAAP financial measures to the comparable GAAP financial measures. The related earnings release and presentation slides and accompanying non-GAAP information are available on our website at ir.kraftheinzcompany.comunder News & Events > Events & Webcasts, or directly at ir.kraftheinzcompany.com/events-and-webcasts.

We also invite you to listen to our live question-and-answer webcast with Kraft Heinz management which will begin today at 9:00 a.m. Eastern Time and will be available on our website at ir.kraftheinzcompany.comunder News & Events > Events & Webcasts, or directly at ir.kraftheinzcompany.com/events-and-webcasts.

First Quarter 2023 Earnings Pre-Recorded Management Discussion | May 3, 2023

Forward-Looking Statements

The following remarks include a number of forward-looking statements as defined under U.S. federal securities laws, including, but not limited to, statements, estimates, and projections relating to our business and long-term strategy; our ambitions, goals, targets, and commitments; our activities, efforts, initiatives, plans, and programs, and our investments in such activities, efforts, initiatives, plans, and programs; and projected or expected timing, results, achievement, and impacts. Words such as "aim," "anticipate," "aspire," "believe," "could," "estimate," "expect," "guidance," "intend," "may," "might," "outlook," "plan," "predict," "project," "seek," "will," "would," and variations of such words and similar future or conditional expressions are intended to identify forward- looking statements. These statements are based on management's beliefs, expectations, estimates, and projections at the time they are made and are not guarantees of future performance. Such statements are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond our control, which could cause actual results to differ materially from those indicated in the forward-looking statements. For additional, important information regarding such risks and uncertainties, please see our related earnings release, which accompanies this presentation, and the risk factors set forth in Kraft Heinz's filings with the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. We disclaim and do not undertake any obligation to update, revise, or withdraw any forward-looking statement in this presentation, except as required by applicable law or regulation.

First Quarter 2023 Earnings Pre-Recorded Management Discussion | May 3, 2023

Non-GAAP Financial Measures

These remarks contain non-GAAP financial measures, including Organic Net Sales, Adjusted EBITDA, Constant Currency Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted EPS, Free Cash Flow, Free Cash Flow Conversion, and Net Leverage. These non-GAAP financial measures may differ from similarly titled non-GAAP financial measures 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 these remarks.

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.

First Quarter 2023 Earnings Pre-Recorded Management Discussion | May 3, 2023

Q1 2023 Earnings Pre-Recorded Management Discussion

Slide 1

ANNE-MARIE MEGELA, HEAD OF GLOBAL INVESTOR RELATIONS

Hello. This is Anne-Marie Megela, Head of Global Investor Relations at The Kraft Heinz Company. I'd like to welcome you to our first quarter 2023 business update.

Slide 2

During the following remarks, we will make forward-looking statements regarding our expectations for the future, including related to our business plans and expectations, strategy, efforts and investments, and related timing and expected impacts. These statements are based on how we see things today, and actual results may differ materially due to risks and uncertainties. Please see the cautionary statements and risk factors contained in today's earnings release, which accompanies these remarks, as well as our most recent 10-K,10-Q, and 8-K filings for more information regarding these risks and uncertainties.

Additionally, we will refer to non-GAAP financial measures, which exclude certain items from our financial results reported in accordance with GAAP. Please refer to today's earning's release and the non-GAAP information available on our website at ir.kraftheinzcompany.comunder News & Events for a discussion of our non-GAAP financial measures and reconciliations to the comparable GAAP financial measures.

Slide 3

Today, our Chief Executive Officer and Board Chair, Miguel Patricio, will provide an update on our overall business performance. And Andre Maciel, our Global Chief Financial Officer, will provide a financial review of the first quarter and will discuss our 2023 outlook.

We have also scheduled a separate, live question-and-answer session with analysts.

You can access our earnings release, supplemental materials, and audio of our question- and-answer session at ir.kraftheinzcompany.com. A replay of the question-and-answer session will be available following the event through the same website.

With that, I will turn it over to Miguel.

First Quarter 2023 Earnings Pre-Recorded Management Discussion | May 3, 2023

MIGUEL PATRICIO, CHIEF EXECUTIVE OFFICER AND BOARD CHAIR

Thank you, Anne-Marie.

And thank you all for joining us today. I am very pleased to share with you that 2023 is off to a great start for Kraft Heinz.

Slide 4

We saw strong growth on both the top and bottom line, and this growth is coming from all three pillars: Foodservice, Emerging Markets, and US Retail GROW Platforms. We are also unlocking efficiencies in our variable costs and continuing reinvestment in our brands to improve profits… and profitability.

We're building product solutions that offer value and accessibility for our consumers. At the same time, we are increasing investments in transformational drivers across marketing, R&D and technology.

We now believe 2023 will be even better than originally thought and we are raising both our Adjusted EBITDA and Adjusted EPS expectations.

As you can see, our strategy is working as we continue advancing our transformation. While we are still on our journey, we are beginning to see signs of greatness emerge. It's not yet time to declare victory, but we are becoming the type of company we know we can be.

Slide 5

Organic Net Sales grew 9.4% versus Q1 2022, with strength from both our North America and International Zones.

This top line growth, along with gross margin expansion, partially offset by continued reinvestment in the business, drove Constant Currency Adjusted EBITDA growth of 11.9% versus the prior year. This includes a 40 basis point negative net impact from divestitures and acquisitions.

Adjusted EPS grew at an even faster pace of 13.3% primarily driven by our Adjusted EBITDA performance.