Annual Report

1
Annual Report

• Kraft, Inc.
• Tommy Whitelaw
• ACG2021.080

2
Executive Summary

• Kraft is by far one of the best and well known
  food companys in this country and world. Kraft
  Foods Inc. is engaged in the manufacture and sale
  of branded foods and beverages in the United
  States, Canada, Europe, Latin America, Asia
  Pacific, the Middle East and Africa.
• KRAFT, INC.

3
Introduction to Kraft Foods, Inc.

• CEO Roger Deromedi
• Home office in Northfield, Illinois 
• Ending date of the last fiscal year was December
  31, 2003
• Kraft Foods, Inc., is the largest branded food
  and beverage company headquartered in the U.S.
  and the second largest in the world. Consumers of
  all ages around the world enjoy their brands
  across the entire spectrum of food and beverage
  occasions breakfast, lunch, dinner and snacks.
  Brands include Kraft, Nabisco, Oscar Mayer, Post,
  Maxwell House, Philadelphia, and Jacobs.

4
Stock Market Information

• Most recent price of the companys stock as of
  October 1, 2004 is 31.69
• Twelve months trading range of company stock.
• The 2003 rate is 0.18 dividends per stock.
• As we can see from the graph the stock seems to
  fluctuate but always seems to go back up.
• I would definitely hold on to this stock they are
  one of the leaders in the world in food and
  beverage and can only grow to be bigger.

5
Industry Situation and Company Plans

• The Company's brands span five consumer sectors
  Snacks, cookies, crackers, salted snacks and
  confectionery
• Beverages, primarily coffee, aseptic juice drinks
  and powdered beverages
• Cheese, largely natural, process and cream
  cheeses
• Grocery, mostly ready-to-eat cereals, enhancers
  and desserts.
• Convenient Meals, mainly frozen pizza, packaged
  dinners, lunch combinations and processed meats.
• Kraft conducts its global business through its
  subsidiaries, Kraft Foods North America, Inc. and
  Kraft Foods International, Inc. The Company has
  operations in 68 countries and sells its products
  in more than 150 countries
• Delivering more product benefits to consumers at
  the right price, compared to the competition is
  one of Krafts major goals.
• Increasing there business internationally,
  especially in the fastest-growing developing
  markets around the world will help increase
  profits.

6
Income Statement

• The format of the income statement is multi-step.
• The gross profit increased slightly from 2002 to
  2003.
• Income from operation decreased a little from the
  two years which means they spent less money on
  operations.
• Krafts net income also rose to some extent from
  the previous year.

7
Balance Sheet

• Total assets increased by 2,185,000 million
  dollars from 2002 to 2003.
• Liabilities decreased by 513,000 dollars from
  the two years.
• Stockholders Equity increased by 2,698,000
  million dollars from 2002 to 2003.

8
Statement of Cash Flow

• Cash flow from operations have increased by more
  than 400,000 dollars from 2002 to 2003.
• The company is growing through new products and
  expanding all over the world.
• Cash In and Cash Equivalents have increased from
  53,000 in 2002, to 300,000 in the end of 2003.

9
Accounting PoliciesTopics of the notes to the
financial statements.

• Summary of significant accounting policies
• Net earning per share
• Acquisitions and Divestitures
• Goodwill and Purchased Intangibles assets
• Balance sheet details
• Financial instruments
• Guarantees
• Taxes on Earnings
• Stockholder Equity
• Supplemental cash flow information
• Retirement and Post-retirement benefit plans
• Commitments
• Segment Information