Q3 Net Revenues were 4.2% lower and Organic Net Revenues¹ were down 4.1% primarily due to comparisons with higher, spin-off related shipments in the prior year

Q3 EPS of $0.83 included an $0.18 gain from market-based impacts to post-employment benefit plans and a negative $0.05 impact from changes in unrealized gains/losses from hedging activities

2013 EPS guidance increased to approximately $3.58 from approximately $3.40 due to market-based impacts to post-employment benefit plans

Organic Net Revenues declined 4.1 percent from lower volume/mix of 3.1 percentage points and 1.0 percentage point due to lower pricing.

The decline in volume/mix reflected a negative impact of approximately 3 percentage points from comparisons with shipments of safety stock to customers ahead of last year’s spin-off from Mondelēz International, an approximately 1 percentage point reduction from product line pruning, and base business gains of approximately 1 percentage point.

Operating income included a $175 million benefit from market-based impacts to post-employment benefit plans driven by higher discount rates and higher asset returns. Implementation of a voluntary early retirement program in early 2013 triggered a third quarter remeasurement of select pension plans.

Excluding the market-based impacts to post-employment benefit plans, gains from overhead cost reductions and productivity were offset by unfavorable pricing net of commodity costs, lower volumes, an unfavorable year-over-year change in unrealized gains/losses from hedging activities and higher marketing investments versus the prior year.

EPS in this quarter included an $0.18 benefit from market-based impacts to post-employment benefit plans.

Excluding this benefit, EPS was lower than the prior year due to a $0.05 unfavorable year-over-year change in unrealized gains/losses from hedging activities, lower volumes, a higher year-over-year tax rate and higher interest expense.

Free Cash Flow generation reflected the negative impact of more than $600 million in pension plan contributions, partially offset by improved management of working capital.

Revenues declined due to lower prices from higher levels of merchandising activity for Capri Sun and Kool-Aid Jammers as well as the pass-through of lower green coffee costs versus the prior year.

Improved product mix from on-demand coffee, liquid water enhancer innovations and Gevalia premium coffee more than offset a negative volume impact from comparisons with spin-off related shipments in the prior year period.

Operating income declined due to unfavorable pricing net of commodity costs, unfavorable volume/mix versus the prior year and higher investments in marketing. These factors more than offset benefits from overhead savings and lower Restructuring Program³ costs.

Revenue performance reflected higher prices and steady growth in Kraft natural cheeses and Velveeta slices that more than offset the negative volume impact from comparisons with spin-off related shipments in the prior year period.

Operating income increased due to the timing of advertising expenditures versus the prior year, overhead cost savings and productivity gains. These gains more than offset a negative impact from pricing net of commodity costs versus a strong prior year period.

Continued revenue gains from Lunchables innovation, Oscar Mayer bacon and hot dog growth, as well as increased pricing to cover commodity costs were more than offset by the negative impact from comparisons with spin-off related shipments in the prior year period.

Operating income declined due to a negative impact from pricing net of commodity costs versus the prior year and higher investments in marketing.

Revenues declined due to a negative volume impact from comparisons with spin-off related shipments in the prior year period. Excluding this factor, ongoing growth of Velveeta dinners was largely offset by softness in JELL-O desserts.

Operating income declined due to lower volumes. Significant marketing investments to rebuild brand equity were largely offset by overhead cost savings.

Revenues declined significantly due to volume weakness in salad dressings and mayonnaise as well as lower prices driven by lower nut costs versus the prior year. These factors more than offset solid volume growth and improved product mix from Planters snack nuts.

Operating income was flat as overhead cost savings, productivity gains and improved product mix offset unfavorable pricing net of commodity costs, lower volumes and higher marketing investments versus the prior year.

Revenues declined from the combination of a negative volume impact of approximately 4 percentage points from comparisons with spin-off related shipments in the prior year period and lower prices on Kraft peanut butter. This more than offset strong double-digit growth in Tassimo coffee and volume gains in Kraft peanut butter.

Strong operating income growth primarily reflected the benefit of cost savings initiatives.

Revenues declined predominantly due to product line pruning in the Foodservice business.

Double-digit operating income growth reflected better alignment of prices and input costs versus the year-ago period and lower advertising spending.

Organic Net Revenue growth that, consistent with previous guidance, is expected to be in line with or slightly lower than the growth of the North American food and beverage market.

EPS of approximately $3.58 versus approximately $3.40 previously, reflecting the additional $0.18 benefit from market-based impacts to post-employment benefit plans.

Free Cash Flow⁴ of approximately $1.2 billion, consistent with previous guidance.

Tony Vernon, CEO

Tim McLevish, EVP and CFO

Chris Jakubik, VP, Investor Relations

Net revenues

Cost of sales^1,2

Gross profit

Selling, general and administrative expenses^1,2

Asset impairment and exit costs¹

Operating income

Interest and other expense, net

Royalty income from Mondelēz International

Earnings before income taxes

Provision for income taxes

Effective tax rate

Net earnings

Per share data³:

Basic earnings per share

Diluted earnings per share

Weighted-average common shares outstanding:

Basic

Diluted

In the third quarter of 2013, Kraft recorded $50 million of Restructuring Program costs. This was comprised of $15 million within asset impairment and exit costs; implementation costs of $30 million within cost of sales ($16 million) and selling, general and administrative expenses ($14 million); and spin-off transition costs of $5 million within selling, general and administrative expenses. In the third quarter of 2012, Kraft recorded $54 million of Restructuring Program costs. Kraft recorded restructuring costs of $26 million within asset impairment and exit costs, and implementation costs of $28 million within cost of sales ($3 million) and selling, general and administrative expenses ($25 million). No spin-off transition costs were incurred.

In the third quarter of 2013, Kraft recorded $175 million of income related to market-based impacts of certain post-employment benefit plans. This income was recorded in cost of sales ($101 million) and selling, general and administrative expenses ($74 milllion). In the third quarter of 2012, Kraft recorded $2 million of income related to market-based impacts of certain post-employment benefit plans. This income was recorded in cost of sales ($1 million) and selling, general and administrative expenses ($1 million).

Basic and diluted earnings per share and the average number of common shares outstanding were retrospectively restated for the three months ended September 30, 2012, for the number of Kraft Foods Group shares outstanding immediately following its spin-off from Mondelēz International, Inc. on October 1, 2012.

September 28, 2013

Beverages

Cheese

Refrigerated Meals

Meals & Desserts

Enhancers & Snack Nuts

Canada

Other Businesses

Kraft Foods Group, Inc.

September 30, 2012

Beverages

Cheese

Refrigerated Meals

Meals & Desserts

Enhancers & Snack Nuts

Canada

Other Businesses

Kraft Foods Group, Inc.

Operating Income:

Beverages

Cheese

Refrigerated Meals

Meals & Desserts

Enhancers & Snack Nuts

Canada

Other Businesses

Unrealized gains / (losses) on hedging activities

Certain post-employment benefit plan income / (costs)

General corporate expenses

Kraft Foods Group, Inc.

Net revenues

Cost of sales^1,2

Gross profit

Selling, general and administrative expenses^1,2

Asset impairment and exit costs¹

Operating income

Interest and other expense, net

Royalty income from Mondelēz International

Earnings before income taxes

Provision for income taxes

Effective tax rate

Net earnings

Per share data³:

Basic earnings per share

Diluted earnings per share

Average shares outstanding:

Basic

Diluted

In the nine months ended September 28, 2013, Kraft recorded $251 million of Restructuring Program costs. This was comprised of $99 million within asset impairment and exit costs; implementation costs of $124 million within cost of sales ($66 million) and selling, general and administrative expenses ($58 million); and spin-off transition costs of $28 million within selling, general and administrative expenses. In the nine months ended September 30, 2012, Kraft recorded $170 million of Restructuring Program costs. Kraft recorded restructuring costs of $102 million within asset impairment and exit costs, and implementation costs of $68 million within cost of sales ($39 million) and selling, general and administrative expenses ($29 million). No spin-off transition costs were incurred.

In the nine months ended September 28, 2013, Kraft recorded $779 million of income related to market-based impacts of certain post-employment benefit plans. This income was recorded in cost of sales ($451 million) and selling, general and administrative expenses ($328 million). In the nine months ended September 30, 2012, Kraft recorded $2 million of income related to market-based impacts of certain post-employment benefit plans. This income was recorded in cost of sales ($1 million) and selling, general and administrative expenses ($1 million).

Basic and diluted earnings per share and the average number of common shares outstanding were retrospectively restated for the nine months ended September 30, 2012, for the number of Kraft Foods Group shares outstanding immediately following its spin-off from Mondelēz International, Inc. on October 1, 2012.

September 28, 2013

Beverages

Cheese

Refrigerated Meals

Meals & Desserts

Enhancers & Snack Nuts

Canada

Other Businesses

Kraft Foods Group, Inc.

September 30, 2012

Beverages

Cheese

Refrigerated Meals

Meals & Desserts

Enhancers & Snack Nuts

Canada

Other Businesses

Kraft Foods Group, Inc.

Operating Income:

Beverages

Cheese

Refrigerated Meals

Meals & Desserts

Enhancers & Snack Nuts

Canada

Other Businesses

Unrealized gains / (losses) on hedging activities

Certain post-employment benefit plan income / (costs)

General corporate expenses

Kraft Foods Group, Inc.

ASSETS

Cash and cash equivalents

Receivables (net of allowances of $26 in 2013 and $28 in 2012)

Inventories, net

Deferred income taxes

Other current assets

Total current assets

Property, plant and equipment, net

Goodwill

Intangible assets, net

Other assets

TOTAL ASSETS

LIABILITIES

Current portion of long-term debt

Accounts payable

Accrued marketing

Accrued employment costs

Other current liabilities

Total current liabilities

Long-term debt

Deferred income taxes

Accrued pension costs

Accrued postretirement health care costs

Other liabilities

TOTAL LIABILITIES

EQUITY

Common Stock, no par value (5,000,000,000 shares authorized; 596,239,384 shares issued at September 28, 2013 and 592,783,696 at December 29, 2012)

Additional paid-in capital

Retained earnings / (deficit)

Accumulated other comprehensive losses

Treasury stock, at cost

TOTAL EQUITY

TOTAL LIABILITIES AND EQUITY

Net earnings

Depreciation

Receivables, net

Inventories, net

Accounts payable

Other

Operating cash flow

Capital expenditures

Free cash flow