UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 28, 2009
KRAFT FOODS INC.
(Exact name of registrant as specified in its charter)
| Virginia | 1-16483 | 52-2284372 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
| Three Lakes Drive, Northfield, Illinois | 60093-2753 | |
| (Address of Principal executive offices) | (Zip Code) |
Registrant’s Telephone number, including area code: (847) 646-2000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 7.01. | Regulation FD Disclosure. |
Members of management of Kraft Foods Inc. will meet with members of Sanford C. Bernstein on May 28, 2009. During the meeting, Kraft Foods’ management is expected to reaffirm previously issued guidance for fiscal 2009 including organic net revenue growth of approximately 3 percent and diluted earnings per share of $1.88. Management will also provide data showing that, by rebuilding brand equity, Kraft Foods has been able to narrow the gap between cumulative pricing and cumulative input cost increases since 2003. The slide presentation, including Regulation G reconciliations, used in the meeting is attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
This Form 8-K contains forward-looking statements regarding our 2009 guidance, in particular, that we are still targeting organic revenue growth of approximately 3 percent and that we remain confident in delivering EPS of $1.88. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those predicted in any such forward-looking statements. Such factors, include, but are not limited to, continued volatility in input costs, pricing actions, increased competition, our ability to differentiate our products from private label products, increased costs of sales, the shift in our product mix to lower margin offerings, risks from operating internationally, failure to grow in developing markets and tax law changes. For additional information on these and other factors that could affect our forward-looking statements, see our filings with the SEC, 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 or revise any forward-looking statement in this Form 8-K.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | The following exhibit is being furnished with this Current Report on Form 8-K. |
| Exhibit |
Description | |
| 99.1 | Kraft Foods Inc. Sanford C. Bernstein Strategic Decisions Conference Slide Presentation, dated May 28, 2009. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KRAFT FOODS INC. | ||||||
| Date: May 28, 2009 | /s/ Timothy R. McLevish | |||||
| Name: | Timothy R. McLevish | |||||
| Title: | Executive Vice President and Chief Financial Officer | |||||
 Kraft
Foods Sanford C. Bernstein Strategic Decisions Conference May 28, 2009 Exhibit 99.1 |
 2 Forward-looking statements This slide presentation contains forward-looking statements including our four strategies to return Kraft Foods to sustainable growth; that creating a high-performing organization will drive profitable growth in every region of
the world; that we are restoring the power of our portfolio; that we are revitalizing new product growth
through platform- based innovation; strengthening our category mix; investing where
it matters most; our fundamentals are strong and getting stronger; our wall-to-wall program is a source of sustainable competitive advantage; we are taking
wall-to-wall to the next level and it is driving additional revenue; expanding our reach to grow in growing channels and market share; investing to improve coverage in traditional trade in developing markets; well positioned to
grow our business around the world; that we are driving sustainable savings and continuous improvement programs; our strategies are working; that we are successfully navigating the abrupt shift from unprecedented cost spikes and
pricing to exceptional consumer weakness, in particular, by driving cost savings to
build brands, leveraging our portfolio for competitive advantage at retail and focusing investment priority categories, brands and markets; that we are on track to deliver 2009 guidance; we are still targeting organic revenue growth of approximately 3 percent and carryover pricing will contribute more than half of growth; we remain confident in delivering EPS of $1.88 with
double-digit constant currency growth; that as 2009 unfolds, market share will improve, volume/mix will strengthen and profit margins will expand; that we are starting to deliver against our long-term growth model, where pricing and
productivity will cover input costs and volume growth, improved product mix and
overhead leverage will drive higher operating margins; our expectation with regard to organic revenue growth, manufacturing, overhead leverage, cash flow leverage and tax rate; our long- term EPS growth; and expectations regarding discretionary cash flow. These forward-looking statements involve risks
and uncertainties that could cause actual results to differ materially from those
predicted in any such forward-looking statements. Such factors, include, but are
not limited to, continued volatility in input costs, pricing actions, increased competition, our ability to differentiate our products from private label products, increased costs
of sales, the shift in our product mix to lower margin offerings, risks from operating
internationally, failure to grow in developing markets and tax law changes. For
additional information on these and other factors that could affect our forward-looking statements, see our filings with the SEC, 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 or revise any forward- looking statement in this
slide presentation. |
 3 Agenda • Company Overview • Strategic Turnaround • Financial Turnaround |
    4 Kraft has significant global scale $42 billion in revenue World’s #2 food company #1 in North America Sales in 150 countries Operations in 70+ countries Approximately 100,000 employees |
 5 Our portfolio today • Approximately 40% of revenue outside North America • More than 80% of revenue from #1 share positions • More than 50% of revenue from categories where market share is 2x the nearest competitor Europe Europe Developing Markets Developing Markets North America North America Net Revenue by Geography |
 6 We compete in five consumer sectors … • Snacks • Beverages • Cheese • Grocery • Convenient Meals 38% 38% 20% 20% Cheese 18% Cheese 18% Grocery 10% Grocery 10% Convenient Meals 15% Convenient Meals 15% Snacks Snacks Beverages Beverages May not add due to rounding |
 7 … with a strong portfolio of iconic brands • 9 brands over $1 billion • 50+ brands over $100 million |
 8 Entering 2007, several big opportunities • Create a high-performance culture • Restore the power of our portfolio • Leverage our scale in the marketplace • Drive sustainable savings • Return Kraft to sustainable earnings growth |
 9 Four strategies to return Kraft Foods to sustainable growth Balance Cost & Quality Exploit Sales Capabilities Reframe Categories Rewire for Growth |
 Rewire for
Growth Creating a high-performing organization |
 11 Creating a high-performing organization • Strengthened senior leadership team • Decentralized to create autonomous business units • Revised incentive systems with right metrics Drive profitable growth in every region of the world |
 12 North America: Both top-line and bottom-line growth 2.9% 04-06 CAGR 4.5% 2007 Organic Revenue Growth* 2008 4.8% (1.3)% (9.8)% Operating Income Growth (ex items)* 7.3% 04-06 CAGR 2007 2008 * Does not reflect restated reportable business segments and certain financial reporting changes for 2009, as described in the company’s Form 8-K dated March 25, 2009 and Form 10-Q for the three months ended March 31, 2009. See GAAP to Non- GAAP reconciliations at the end of this presentation. |
 13 European Union: Solid returns from focus 0.3% 04-06 CAGR 3.8% 2007 Organic Revenue Growth* 4.3% (9.1)% 1.7% Operating Income Growth (ex items)* 4.2% 04-06 CAGR 2007 2008** 2008** * Does not reflect restated reportable business segments and certain financial reporting changes for 2009, as described in the company’s Form 8-K dated March 25, 2009 and Form 10-Q for the three months ended March 31, 2009. See GAAP to Non- GAAP reconciliations at the end of this presentation. ** Proforma growth with LU biscuit; see GAAP to Non-GAAP reconciliations at the end of this presentation |
 14 Developing Markets: Rapid acceleration 9.9% 04-06 CAGR 11.6% 2007 Organic Revenue Growth* 17.9% 4.0% Operating Income Growth (ex items)* 39.6% 2007 2008** 2008** 24.7% 04-06 CAGR * Does not reflect restated reportable business segments and certain financial reporting changes for 2009, as described in the company’s Form 8-K dated March 25, 2009 and Form 10-Q for the three months ended March 31, 2009. See GAAP to Non- GAAP reconciliations at the end of this presentation. ** Proforma growth with LU biscuit; see GAAP to Non-GAAP reconciliations at the end of this presentation |
 Reframe
Categories Restoring the power of our portfolio |
 16 Growth diamond guiding investments • New product growth from platform-based innovation Snacking Health & Wellness Premium Quick Meals |
 17 Growth diamond guiding investments • Increasing value-oriented marketing Convenient Meals DiGiornonomics Deli Shaved vs Leading Deli Brand Cheese “Goodness Squared” Value vs Naturals Customer Relationship Marketing Beverages Powdered Beverages vs Carbonated Soft Drinks Grocery "60 Under 60" Inherently Economical |
 18 Strengthening category mix • Reframing our portfolio $1.6B Net Revenue 0.2% growth Divestitures $300M Net Revenue 1.3% of global volume $(4) million OI Pruning $3.2B Net Revenue 5.1% growth (European rights) Acquisitions |
 19 Investing where it matters most • North America prioritizing investments Invest Incrementally Sustain Investment Fix Category Portfolio Roles |
 20 Investing where it matters most • Focused international investments Markets +8% Brands +13% Categories +10% Biscuits Biscuits Powdered Bev Powdered Bev Cheese Cheese Chocolate Chocolate Coffee Coffee * Proforma with LU biscuit, constant currency 2008 Like-for-like Revenue Growth * |
 21 Restoring the power of our portfolio • Growth diamond guiding investments • Strengthening our category mix • Investing where it matters most Fundamentals are strong... and getting stronger |
 Exploit
Sales Capabilities Leveraging our scale in the marketplace |
 23 Established Wall-to-Wall in the U.S. • Program to enhance in-store effectiveness – One sales rep handles entire Kraft portfolio • Source of sustainable competitive advantage – Drove ~1pp of incremental revenue 3% 2006 2007 2008 35% 63% Percent U.S. ACV (Distribution) |
 24 Taking Wall-to-Wall to the next level • High Visibility Wall-to-Wall – Fewer stores per rep – Additional merchandiser hours – Driving an additional ~1pp of revenue vs. base Wall-to-Wall stores 3% HVWTW Base WTW 2006 2007 2008 2009 2010 35% 63% 63% 63% 8% ~15% Percent U.S. ACV (Distribution) ~30% |
 25 Improving customer collaboration • Led to double digit growth with global customers |
 26 Expanding our reach to grow in growing channels 0.4pp 2008 0.2pp 2008 0.4pp 2008 3.3pp 2008 0.4pp Q4 0.4pp Q4 1.5pp Q4 7.0pp Q4 Kraft Foods U.S. Category Growth and Share Change Military +9% Convenience Stores +6% Club Stores +9% Dollar Stores +10% |
 27 Expanding our reach to grow market share • Investing to improve coverage in traditional trade in developing markets – Gaining distribution and improving in-store execution – Expanding power brands geographically – Leveraging the portfolio to cover multiple price points |
 28 Leveraging our scale in the marketplace • Taking Wall-To-Wall to the next level • Improving customer collaboration • Expanding our reach to grow market share Well positioned to grow our business around the world |
 Balance
Costs and Quality Driving sustainable savings |
 30 2006 2007 2008 2009E 44% 55% 64% 70% Using quality as an offensive weapon • Moving from parity to vastly preferred Percent of products preferred to competition |
 31 Restored our Pricing Power • Rebuilt brand equity to point where pricing and productivity can cover input cost inflation Cumulative Pricing versus Input Costs $0 ($1B) 2003 2004 2005 2006 2007 2008 Q1’09 |
 32 Utilizing tailwind of Restructuring Program $1.3 $1.1 2008 2009 2010+ $1.4 Cumulative Annualized Savings (Billions) • Streamlined manufacturing – 36 plants closed • Simplified organization – 19,000 positions being eliminated |
 33 Utilizing tailwind of Restructuring Program • Close price gaps • Upgrade product quality • Increase share of voice • Rebuild new product pipeline |
 34 Continuous improvement programs • End-to-End approach • Total network optimization • Implement SAP as core transactional system |
 35 Our strategies are working Balance Cost & Quality Exploit Sales Capabilities Reframe Categories Rewire for Growth |
 36 Very solid start to 2009 • Successfully navigating the abrupt shift from unprecedented cost spikes and pricing … to exceptional consumer weakness – Driving cost savings to build brands – Leveraging our portfolio for competitive advantage at retail – Focusing investment on priority categories, brands, markets • Q1 organic net revenues grew 2.3%* – (1.6)pp due to Easter shift and product line discontinuations • Q1 OI margin increased 290 bps to 13.5% – Margin expansion in nearly every business segment * See GAAP to Non-GAAP reconciliations at the end of this presentation
|
 37 On track to deliver 2009 guidance • Targeting organic revenue growth ~3% – Carryover pricing will contribute more than half of growth – Begin to lap most 2008 pricing in Q2; product line discontinuation actions in H2 – Expect vol/mix to improve as year progresses • Remain confident in delivering diluted EPS of $1.88 – Double-digit constant currency growth vs 2008 ex-items EPS |
 38 Steady progress in turnaround • 2007: Rejuvenated top-line growth • 2008: Grew both top and bottom lines • 2009: Build profit margins and market share Market share will improve Volume/mix will strengthen Profit margins will expand for the year As 2009 unfolds |
 39 Starting to deliver against our long-term growth model • Pricing + productivity cover input costs • Volume growth, improved product mix and overhead leverage drive higher operating margins Organic Revenue Growth 4%+ Manufacturing, Overhead Leverage 2-3pp Cash Flow Leverage & Tax Rate 1-2pp Long-Term EPS Growth 7-9% |
   40 Improving cash generation Discretionary Cash Flow* $ Billions 2007 2008 2009 2010 2011 $2.4 $2.1 +$1 billion opportunity * Excluding Post cereals and adjusted for the timing of payment of deferred interest; see GAAP to Non-GAAP reconciliation at the end of this presentation. |
 |
 42 GAAP to Non-GAAP Reconciliation As Reported (GAAP) Impact of Divestitures / Other Impact of Acquisitions Impact of Currency Organic (Non- GAAP) For the Years Ended: December 31, 2005 North America 5.5% 0.4pp 0.0pp (0.9)pp 5.0% European Union 3.2% 1.1pp 0.0pp (3.1)pp 1.2% Developing Markets 14.1% 0.6pp 0.0pp (4.6)pp 10.1% December 31, 2006 North America (0.8)% 2.3pp 0.0pp (0.7)pp 0.8% European Union (0.6)% (0.2)pp (1.1)pp 1.3pp (0.6)% Developing Markets 11.4% 0.5pp 0.0pp (2.1)pp 9.8% Compound Annual Growth Rate, 2004 - 2006: North America 2.9% European Union 0.3% Developing Markets 9.9% (Unaudited) Net Revenue Growth * Does not reflect restated reportable business segments and certain financial reporting changes for 2009, as described in the company’s Form 8-K dated March 25, 2009 and Form 10-Q for the three months ended March 31, 2009. * |
 43 GAAP to Non-GAAP Reconciliation * Does not reflect restated reportable business segments and certain financial reporting changes for 2009, as described in the company’s Form 8-K dated March 25, 2009 and Form 10-Q for the three months ended March 31, 2009. * As Reported (GAAP) Impact of Divestitures Impact of Acquisitions Impact of Currency Organic (Non- GAAP) LU Biscuit LU Biscuit - Impact of Currency Organic including LU Biscuit (Non- GAAP) As Reported (GAAP) Organic (Non-GAAP) Organic including LU Biscuit (Non- GAAP) 2008 Reconciliation North America 23,956 $ - $
(20) $ (56) $ 23,880 $ 20 $ - $
23,900 $ 4.7% 4.8% 4.9% European Union 11,259 (230) (2,624) (488) 7,917 2,624 (279) 10,262 41.6% 4.0% 4.3% Developing Markets 6,986 - (535) (181) 6,270 535 (23) 6,782 31.6% 18.1% 17.9% 2007 Reconciliation North America 22,876 $ (96) $ - $
- $
22,780 $ - $
- $
22,780 $ European Union 7,951 (338) - - 7,613 2,226 * - 9,839 Developing Markets 5,307 - - - 5,307 443 * - 5,750 2007 Reconciliation North America 22,876 $ (96) $ - $
(113) $ 22,667 $ 3.7% 4.5% European Union 7,951 (338) (226) (682) 6,705 19.2% 3.8% Developing Markets 5,307 - (7) (250) 5,050 17.2% 11.6% 2006 Reconciliation North America 22,060 $ (369) $ - $
- $
21,691 $ European Union 6,669 (209) - - 6,460 Developing Markets 4,527 - - - 4,527 % Change Net Revenues For the Twelve Months Ended December 31, ($ in millions) (Unaudited) * Proforma 2007 LU Biscuit Net Revenues |
 44 GAAP to Non-GAAP Reconciliation As Reported (GAAP) Asset Impairment, Exit and Implementati on Costs - Restructuring Asset Impairments / Other Expenses - Non- Restructuring (Gains) / Losses on Divestitures, net Excluding Items (Non- GAAP) For the Years Ended: December 31, 2005 North America (1.8)% (7.5)pp 6.6pp 0.0pp (2.7)% European Union 4.7% (5.7)pp 0.0pp (12.5)pp (13.5)% Developing Markets 66.5% (3.0)pp (31.0)pp (1.8)pp 30.7% December 31, 2006 North America (1.8)% 6.1pp (1.0)pp (3.1)pp 0.2% European Union (24.0)% 16.3pp 19.6pp (16.4)pp (4.5)% Developing Markets 5.2% 12.5pp 2.7pp (1.5)pp 18.9% Compound Annual Growth Rate, 2004 - 2006: North America (1.3)% European Union (9.1)% Developing Markets 24.7% Operating Income Growth (Unaudited) * * Does not reflect restated reportable business segments and certain financial reporting changes for 2009, as described in the company’s Form 8-K dated March 25, 2009 and Form 10-Q for the three months ended March 31, 2009. |
 45 GAAP to Non-GAAP Reconciliation * Does not reflect restated reportable business segments and certain financial reporting changes for 2009, as described in the company’s Form 8-K dated March 25, 2009 and Form 10-Q for the three months ended March 31, 2009. * As Reported (GAAP) Asset Impairment, Exit and Implementation Costs - Restructuring Asset Impairments / Other Expenses - Non-Restructuring (Gains) / Losses on Divestitures, net Excluding Items (Non- GAAP) Proforma 2007 LU Biscuit 2008 Integration Costs Excluding Items including Proforma 2007 LU Biscuit (Non- GAAP) As Reported (GAAP) Excluding Items (Non- GAAP) Excluding Items including Proforma 2007 LU Biscuit (Non- GAAP) 2008 Reconciliation North America 3,361 $ 375 $
- $
1 $
3,737 $ - $
- $
3,737 $ 7.5% 7.3% 7.3% European Union 412 474 100 91 1,077 - 64 1,141 (27.6)% 47.3% 4.2% Developing Markets 585 140 51 - 776 - 17 793 23.4% 50.4% 39.6% 2007 Reconciliation North America 3,126 $ 245 $
120 $
(7) $
3,484 $ - $
- $
3,484 $ European Union 569 152 10 - 731 362 2 1,095 Developing Markets 474 50 - (8) 516 51 1 568 2007 Reconciliation North America 3,126 $ 245 $
120 $
(7) $
3,484 $ (8.1)% (9.8)% European Union 569 152 10 - 731 4.0% 1.7% Developing Markets 474 50 - (8) 516 17.6% 4.0% 2006 Reconciliation North America 3,400 $ 335 $
243 $
(117) $
3,861 $ European Union 547 253 170 (251) 719 Developing Markets 403 82 11 - 496 % Change Operating Income For the Twelve Months Ended December 31, ($ in millions) (Unaudited) LU Biscuit |
 46 GAAP to Non-GAAP Reconciliation As Reported (GAAP) Impact of Divestitures Impact of Currency Organic (Non- GAAP) As Reported (GAAP) Organic (Non- GAAP) 2009 Reconciliation Kraft Foods, Inc. 9,396 $ - $
786 $ 10,182 $ (6.5)% 2.3% 2008 Reconciliation Kraft Foods, Inc. 10,046 $ (89) $ - $
9,957 $ % Change Net Revenues For the Three Months Ended March 31, ($ in millions) (Unaudited) |
 47 GAAP to Non-GAAP Reconciliation ($ in millions, Unaudited) 2007 2008 Net Cash Provided by Operating Activities (GAAP) 3,571 $ 4,141 $ Capital Expenditures (1,241) (1,367) Discretionary Cash Flow 2,330 $ 2,774 $ Discretionary cash flow from the Post cereals business (200) (100) Discretionary Cash Flow excluding Post cereals 2,130 $ 2,674 $ Timing of Payment of Deferred Interest - (300) Discretionary Cash Flow excluding Post cereals and adjusting for the Payment of Deferred Interest 2,130 $ 2,374 $ Cash Flows For the Twelve Months Ended December 31, |
 48 Supplementary restated growth a) See Supplementary GAAP to Non-GAAP reconciliations b) The As Restated 2007 and 2008 growth percentages reflect the restated reportable business segments and certain financial reporting changes for 2009, as described in the company's Form 8-K dated March 25, 2009 and Form 10-Q for the three months
ended March 31, 2009. 2007 2008 2007 2008 North America Organic Revenue Growth 4.5% 4.8% 4.5% 4.8% Operating Income Growth (ex items) (9.8)% 7.3% (4.4)% 1.7% European Union / Europe Organic Revenue Growth 3.8% 4.0% 3.3% 3.4% Operating Income Growth (ex items) 1.7% 47.3% (2.7)% 37.3% Developing Markets Organic Revenue Growth 11.6% 18.1% 11.3% 17.7% Operating Income Growth (ex items) 4.0% 50.4% 8.4% 59.7% As Restated (a)(b) Previously Reported (a) % change |
 49 Supplementary GAAP to Non-GAAP Reconciliation As Restated (GAAP) Impact of Divestitures Impact of Acquisitions Imple- mentation Costs Impact of Currency Organic (Non- GAAP) As Reported (GAAP) Organic (Non-GAAP) 2008 Reconciliation Kraft Foods North America 23,956 $ - $
(20) $ - $
(56) $ 23,880 $ 4.7% 4.8% Kraft Foods Europe 9,728 (214) (2,216) - (387) 6,911 38.8% 3.4% Kraft Foods Developing Markets 8,248 (16) (943) - (272) 7,017 38.0% 17.7% 2007 Reconciliation Kraft Foods North America 22,876 $ (96) $ - $
- $
- $
22,780 $ Kraft Foods Europe 7,007 (323) - - - 6,684 Kraft Foods Developing Markets 5,975 (15) - - - 5,960 2007 Reconciliation Kraft Foods North America 22,876 $ (96) $ - $
- $
(113) $ 22,667 $ 3.7% 4.5% Kraft Foods Europe 7,007 (323) (226) - (571) 5,887 18.9% 3.3% Kraft Foods Developing Markets 5,975 (15) (7) - (330) 5,623 18.0% 11.3% 2006 Reconciliation Kraft Foods North America 22,060 $ (369) $ - $
- $
- $
21,691 $ Kraft Foods Europe 5,894 (196) - - - 5,698 Kraft Foods Developing Markets 5,064 (13) - - - 5,051 % Change Net Revenues For the Twelve Months Ended December 31, ($ in millions) (Unaudited) |
 50 Supplementary GAAP to Non-GAAP Reconciliation As Restated (GAAP) Asset Impairment, Exit and Implementation Costs - Restructuring Asset Impairments / Other Expenses - Non-Restructuring (Gains) / Losses on Divestitures, net Excluding Items (Non- GAAP) As Reported (GAAP) Excluding Items (Non- GAAP) 2008 Reconciliation Kraft Foods North America 3,378 $ 375 $
- $
1 $
3,754 $ 1.4% 1.7% Kraft Foods Europe 182 474 100 91 847 (60.0)% 37.3% Kraft Foods Developing Markets 815 140 51 - 1,006 38.6% 59.7% 2007 Reconciliation Kraft Foods North America 3,333 $ 245 $
120 $
(6) $
3,692 $ Kraft Foods Europe 455 152 10 - 617 Kraft Foods Developing Markets 588 50 - (8) 630 2007 Reconciliation Kraft Foods North America 3,333 $ 245 $
120 $
(6) $
3,692 $ (1.9)% (4.4)% Kraft Foods Europe 455 152 10 - 617 (1.5)% (2.7)% Kraft Foods Developing Markets 588 50 - (8) 630 20.5% 8.4% 2006 Reconciliation Kraft Foods North America 3,399 $ 335 $
243 $
(117) $ 3,860 $ Kraft Foods Europe 462 253 170 (251) 634 Kraft Foods Developing Markets 488 82 11 - 581 % Change Operating Income For the Twelve Months Ended December 31, ($ in millions) (Unaudited) |