Mondelez International, Inc. · NASDAQ:MDLZ
Mondelez International — CAGNY Conference 2013
39 slides from Mondelez International's conference presentation, Feb 19, 2013
Slide 1: Mondelez International CAGNY Conference
Exhibit 99.2 Mondelez International CAGNY Conference February 19, 2013
Slide 2: Irene Rosenfeld Chairman & CEO
Irene Rosenfeld Chairman & CEO
Slide 3: Ingredients in place for sustainable, profitable growth
Advantaged Geographic Footprint Fast- Growing Categories Favorite Snacks Brands Strong Routes-to- Market Proven Innovation Platforms World-Class Talent & Capabilities Ingredients in place for sustainable, profitable growth
Slide 4: We are a global snacks powerhouse
Biscuits (1) 32% Chocolate 27% Gum & Candy 15% Beverages 17% Cheese & Grocery 9% We are a global snacks powerhouse… $35 Billion in 2012 Revenues (1) Biscuits includes salted/other snacks Nearly 75% of revenues in fast-growing snacks categories Beverages provide multi- region scale, attractive growth
Slide 5: …and a leader in our categories
North America Europe Global Market Share Latin America Asia Pacific Eastern Europe Middle East & Africa 18% … and a leader in our categories North America Europe Global Market Share Latin America Asia Pacific Eastern Europe Middle East & Africa 15% 30% 7% 11% 16% Source: Euromonitor market share Bis
Slide 6: We offer many of the world's favorite brands
We offer many of the world’s favorite brands
Slide 7: Advantaged geographic footprint
Europe 39% North America 20% Latin America 15% EEMEA 11% Asia Pacific 15% Advantaged geographic footprint Large, growing developing markets footprint Strong positions in North America and Europe $35 Billion in 2012 Revenues Based on 2013 Reporting Segments * * In December 2012, we announced a reorga
Slide 8: Track record of strong performance
Reinvest in Growth Focus on Power Brands Expand Gross Margin Leverage Overheads Track record of strong performance O/H % of NR (60) bps Power Brands +8% Organic NR +4.4% (1) +50 bps (2) A&C % of NR +60 bps Note: All figures based on FY 2012 results. 1) Reported net revenues decreased (2.2)% for FY 2
Slide 9: Led the peer group in margin performance
+110 bps +70 +40 Led the peer group in margin performance over the past two years Basis Points Increase in Operating Income Margin to (1) (3) (100) (400) (2) (200) MDLZ HSY ULVR NESN HNZ CL BN PG CPB GIS PEP K KO 1) Operating Income Margins exclude certain items as defined by the individual companie
Slide 10: Successfully integrated Cadbury
~105% of $750MM Target Successfully integrated Cadbury ($ in billions) ~$0.8 ~$0.6 ~$0.2 Cost Synergies (Cumulative P&L Impact) Revenue Synergies ~$0.1 ~$0.4 ~$0.7 ~$1.0
Slide 11: Growth accelerating in H2 2013
H2 2012 H1 2013 H2 2013 FY 2013 Organic Revenue growth at low end of 5%-7% range Growth accelerating in H2 2013 Growth tempered by: Lower coffee pricing Capacity constraints Missteps in Brazil, Russia and Canada Lower coffee pricing and capacity constraints continue Improvement in Brazil, Russia and
Slide 12: We have a long runway for growth
Leverage fast-growing categories Drive Power Brands and advantaged global innovation platforms Expand distribution Capitalize on numerous white space opportunities We have a long runway for growth
Slide 13: Category growth remains robust
Category MLDZ Market Position Global Category CAGR (2009-2012) Powdered Beverages Category growth remains robust… Source: Euromonitor 2009-2011 actual and 2012 estimates +6% +6% +5% +10% +7% Chocolate Biscuits Gum & Candy Coffee
Slide 14: …driven by income growth in developing markets
… driven by income growth in developing markets GDP per Capita GDP per Capita Consumption vs. GDP per Capita Source: Euromonitor 2011 Chocolate Biscuits $0 $20 $40 $60 $80 $100 $0 $20 $40 $60 $80 $100
Slide 15: Leverage Power Brands to drive top-tier growth
Capitalize on Strengths in Existing Markets Seize White Space Opportunities Leverage Power Brands to drive top-tier growth Drive growth in Europe Expanding into other developing markets in 2013 $1B in revenues in developing markets, up 20% in 2012 Leverage successful U.S. experience, up 6% in 2012
Slide 16: Roll-out innovation platforms globally
Roll-out innovation platforms globally Launch Early 2012 UK Ireland Germany France Sweden Norway Belgium Austria Brazil Argentina Russia S. Africa Canada Poland
Slide 17: Increase Hot Zone penetration in Modern Trade
Hot Zone Presence in MDLZ Covered Outlets 2013E Increase ’13E vs. ’11 % Outlets Covered ’13E Increase Hot Zone penetration in Modern Trade 1,800 +300 59% 6,200 +3,100 62% 56,700 +34,400 52%
Slide 18: Significant opportunity to expand Traditional Trade coverage
MDLZ Coverage of Traditional Trade Outlets 2013E Increase ’13E vs. ’11 % Outlets Covered ’13E Significant opportunity to expand Traditional Trade coverage 274,000 +18,000 32% 1,000,000 +298,000 14% 450,000 +348,000 20%
Slide 19: Initiated white space launches in India and China
Initiated white space launches in India and China Significant current market presence
Slide 20: Significant white space opportunities in Next Wave markets
Significant white space opportunities in Next Wave markets Significant current market presence
Slide 21: Long-term growth target is achievable
EU NA LA AP EEMEA Chocolate Biscuits Gum & Candy Beverages Ch./Groc. 5% - 7% Organic Growth Long-term growth target is achievable Double Digit Growth Low-to-Mid Single Digit Growth $35B By Geography $35B Low-to-Mid Single Digit Growth Mid-to-High Single Digit Growth By Category
Slide 22: Well-positioned for sustainable, profitable growth
Well-positioned for sustainable, profitable growth Advantaged geographic footprint Portfolio of iconic brands Virtuous cycle in full swing Long runway of future growth opportunities
Slide 23: Mondelez International
_Mondelez International
Slide 24: Generating cash to fund growth and drive solid returns
Generating cash to fund growth and drive solid returns Delivering solid Free Cash Flow Prioritizing uses of Free Cash Flow Focusing on Return on Invested Capital
Slide 25: Expect strong Free Cash Flow generation over next 2 years
Combined 2013 and 2014 Expect strong Free Cash Flow generation over next 2 years Cash from Operating Activities ~ $8.0 Capital Expenditure (excl. Restructuring Program) ~ 4.0 Free Cash Flow, Pre-Restructuring ~ 4.0 2012-2014 Restructuring Program, cash impact ~ 1.0 Dividends @ $0.52 per share ~ 2.0
Slide 26: Priorities for use of Free Cash Flow
2 1 3 4 Priorities for use of Free Cash Flow Disciplined Capital Deployment Reinvest in the business to drive top-tier growth Tack-on M&A, especially in Developing Markets Return of capital to shareholders – dividends and share repurchases Pay down debt to preserve balance sheet flexibility
Slide 27: Stepping-up capital investments to support growth
Stepping-up capital investments to support growth Capital Expenditures as Percentage of Net Revenue 5%+ 3.9% 3.8% 3.8% Long-Term Rate 4% - 5%
Slide 28: Expanding capacity in developing markets
New Plants Plant Expansions Expanding capacity in developing markets Multi-Category Multi-Category Multi-Category Multi-Category Multi-Category Biscuits Gum Biscuits Gum Biscuits Biscuits Chocolate Chocolate Chocolate
Slide 29: Returning capital to shareholders
Returning capital to shareholders Dividends Modest dividend increasing over time Minimum payout ratio of 30% of net earnings Share Repurchases Later this year will seek multi-year authorization to offset dilution
Slide 30: Preserve balance sheet flexibility
Net Debt ~$15 Preserve balance sheet flexibility $19.4 ~$17.5 Maintain investment-grade rating with A2/P2 CP access Use cash-on-hand to pay off $1.8B of notes due 1H 2013 Possible further debt pay down to build additional flexibility Dec. 2012 Mid-2013
Slide 31: ROIC improvement will be driven by earnings growth
ROIC improvement will be driven by earnings growth and disciplined capital deployment ROIC currently at 7% – Total invested capital of $47B at December 31, 2012 ROIC to improve 30-50 bps per annum – Double-digit EPS growth – Tight management of working capital and capex – Return of capital to shareh
Slide 32: Mondelez International
Mondelez International oad
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (1) Includes the impacts of accounting calendar changes and the rd week of shipments in 2011. As Restated (GAAP) Impact of Divestitures Impact of Integration Program Impact of Accounting Calendar Changes (1) Impact of Currency Organic (Non-GAAP) As Restated (GAAP) Org
Slide 34: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (1) Includes the impacts of accounting calendar changes and the rd week of shipments in 2011. As Restated (GAAP) Impact of Divestitures Impact of Integration Program Impact of Accounting Calendar Changes (1) Impact of Currency Organic (Non-GAAP) As Restated (GAAP) Org
Slide 35: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (1) costs associated with the acquisition. For the twelve months ended December 31, 2012, $28 million was recorded in Cost of Sales and $112 million was recorded in Selling, General and Administrative expenses. (2) Spin-Off Costs represent non-recurring transaction an
Slide 36: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation As Restated (GAAP) Integration Program costs (1) Spin-Off Costs and Related Adjustments (2) Operating Income from Divested Businesses (3) Adjusted (Non-GAAP) Mondelez International Gross Profit 13,100 $ $ $ (83) $ 13,170 $ Gross Profit Margin 36.6% 37.1% Operating Inc
Slide 37: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation As Restated (GAAP) Integration Program costs (1) Spin-Off Costs and Related Adjustments (2) Operating Income from Divested Businesses (3) Adjusted (Non-GAAP) Mondelez International Gross Profit 11,872 $ $ $ (109) $ 11,911 $ Gross Profit Margin 37.7% 38.3% Operating In
Slide 38: GAAP to Non-GAAP Reconciliation
As Reported Integration Program Costs (1) Spin-Off Costs (2) 2012-2014 Restructuring Program Costs (3) Acquisition- Related Costs Spin-Off Pension Adjustment (2) Spin-Off Interest Adjustment (2) Operating Income from Divested Businesses Gain on Divestitures, net As Adjusted Net revenues 35,015 $ - $
Slide 39: GAAP to Non-GAAP Reconciliation
Net earnings attributable to Mondele z International GAAP to Non-GAAP Reconciliation - As Reported Integration Program Costs (1) Spin-Off Costs (2) Spin-Off Pension Adjustment (2) Spin-Off Interest Adjustment (2) Operating Income from Divested Businesses As Adjusted Net revenues 35,810 $ $ - $ - $ -