Mondelez International, Inc. · NASDAQ:MDLZ

Mondelez International — Q1 2023 Earnings Presentation

37 slides from Mondelez International's earnings presentation, Apr 27, 2023

  1. Slide 1: Q1 2023 Results

    Q1 2023 RESULTS April 27, 2023

  2. Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures

    FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws. Words, and variations of words, such as “will,” “may,” “expect,” “would,” “cou

  3. Slide 3: Agenda

    AGENDA 1 Business & Strategy Update – Van de Put 2 Financial Outcomes – Zaramella 3 2023 Outlook – Zaramella 4 Q&A – Van de Put & Zaramella 3

  4. Slide 4: Excellent start to the year with compounding top- and bottom-line growth

    EXCELLENT START TO THE YEAR WITH COMPOUNDING TOP- AND BOTTOM-LINE GROWTH 1. Double-digit top-line increase driven by effective pricing execution and continued volume growth 2. Strength in both emerging and developed markets 3. Good progress on European pricing, majority landed but still some negotia

  5. Slide 5: Continued momentum across the entire business

    CONTINUED MOMENTUM ACROSS THE ENTIRE BUSINESS +$1.5B +$0.5B +$0.3B vs PY vs PY vs PY +19.4% +20.7% +19.1% +18.2% +12.3% +12.3% +12.5% +12.2% Price Price Vol/Mix Vol/Mix 2022 Q1'23 2022 Q1'23 2022 Q1'23 2022 Q1'23 Organic Net Adjusted Gross A&C Change Adjusted OI Revenue Growth Profit Growth1 in Spen

  6. Slide 6: Significant progress against strategy strengthening our brands

    SIGNIFICANT PROGRESS AGAINST STRATEGY STRENGTHENING OUR BRANDS Demand for GIVE&GO at all- OREO continued time high in U.S. momentum $1B+ brand across all regions CHIPS AHOY! MILKA celebrates its expansion 60th birthday in LA 6

  7. Slide 7: Chocolate strategy progressing well on key growth drivers

    CHOCOLATE STRATEGY PROGRESSING WELL ON OUR KEY GROWTH DRIVERS Strengthen Win in Seasonals, Step Change Tablets Leadership1 Gifting & Sharing Presence in Premium Record >15% +0.4pp Easter Volume growth in YTD Share Q1 2023 Total Tablets sell-in for 2023 for TOBLERONE 7 1 Share performance based on av

  8. Slide 8: Acquisitions creating value via top- & bottom-line synergies

    ACQUISITIONS CREATING VALUE VIA TOP- & BOTTOM-LINE SYNERGIES • Double-digit top-line growth1 • Strong momentum and share gains • +1,000bps of Y/Y OI margin growth1 • Delivering ongoing margin improvement • Solid price execution, service improvement, • Integration moving according to plan media effic

  9. Slide 9: Harmony 2030: accelerating our EU wheat sustainability program

    HARMONY 2030: ACCELERATING OUR EU WHEAT SUSTAINABILITY PROGRAM 1 2 3 ENVIRONMENT FARMERS CONSUMERS Support Help Mitigate Help Reverse farmers Deliver better CLIMATE biodiversity in transition Quality Change Losses to Regenerative Wheat1 Agriculture Our Goal GROW 100% OF WHEAT VOLUME FOR BISCUITS MAD

  10. Slide 10: Agenda

    AGENDA 1 Business & Strategy Update – Van de Put 2 Financial Outcomes – Zaramella 3 2023 Outlook – Zaramella 4 Q&A – Van de Put & Zaramella 10

  11. Slide 11: Strong top-line growth in both EM and DM

    STRONG TOP-LINE GROWTH IN BOTH EM AND DM DRIVEN BY STRONG PRICING EXECUTION AND SOLID VOLUME INCREASE MDLZ Organic Net Revenue Growth Emerging Markets Developed Markets 39% of Total MDLZ Revenue1 61% of Total MDLZ Revenue1 +25.2%2 +22.0% +19.4% +15.8% +12.3% +7.2% +7.0% +4.3% +2.7% FY19-21 FY22 Q1'2

  12. Slide 12: Continued chocolate, biscuit & baked snacks top-line momentum

    CONTINUED CHOCOLATE, BISCUIT & BAKED SNACKS TOP-LINE MOMENTUM Biscuits & Baked Snacks Revenue Growth Chocolate Revenue Growth Gum & Candy Revenue Growth 50% of Total MDLZ Revenue1 30% of Total MDLZ Revenue1 11% of Total MDLZ Revenue1 +35.0% +25.1% +18.4% +16.9% +11.7% +10.5% +5.4% +6.4% FY19-21 FY22

  13. Slide 13: Share performance improving

    SHARE PERFORMANCE IMPROVING Category Growth1 Snacks Revenue Gaining/Holding Share1 YTD’23 YTD’23 ~70% +28.3% ~-10pp ~60% +16.7% +16.8% +14.4% Biscuits Chocolate Gum & Candy Total Snacks Total EU customer Total & Baked Snacks Underlying disruption Key Markets 1 Share performance and category growth b

  14. Slide 14: Strong profit dollar increase and reinvestment for LT growth

    STRONG PROFIT DOLLAR INCREASE AND REINVESTMENT FOR LT GROWTH Adjusted Gross Profit, Advertising & Consumer Promotions, Overheads and Operating Income Growth1 Q1 +DD +18.2% +DD +20.7% 14 1 At cst fx

  15. Slide 15: Strong top- and bottom-line growth across all regions

    STRONG TOP- AND BOTTOM-LINE GROWTH ACROSS ALL REGIONS MDLZ EU NA AMEA LA Organic Net 1 Q1’23 +19.4% +18.9% +17.3% +13.8% +39.0% Revenue Growth Vol/Mix +3.2pp +1.0pp +2.3pp +5.8pp +7.4pp Adjusted Operating Q1’23 +20.7% +7.2% +40.6% +15.6% +47.2% Income Growth2 15 1 +27.4% ex-Argentina; 2 At cst fx

  16. Slide 16: Operating gains driving strong real dollar profit growth

    OPERATING GAINS DRIVING STRONG REAL DOLLAR PROFIT GROWTH Q1 2023 EPS vs PY Adjusted, Fav/(Unfav) +17.3% (Cst Fx) +9.9% (Rpt Fx) Q1’2022 Operating Shares Coffee JVs Interest/ Taxes Q1’2023 Forex Q1’2023 Adjusted Gains Other Adj. EPS Adjusted EPS @ Cst FX EPS 16

  17. Slide 17: Continuing to prioritize value enhancing capital deployment

    CONTINUING TO PRIORITIZE VALUE ENHANCING CAPITAL DEPLOYMENT Free  $0.9 billion; down -$0.1 billion with PY Cash Flow  CCC -31 days Share  $0.4 billion Repurchases  $65.93 average price Dividends  $0.5 billion 17

  18. Slide 18: Agenda

    AGENDA 1 Business & Strategy Update – Van de Put 2 Financial Outcomes – Zaramella 3 2023 Outlook – Zaramella 4 Q&A – Van de Put & Zaramella 18

  19. Slide 19: KDP sell down to accelerate portfolio transformation

    KDP SELL DOWN TO ACCELERATE PORTFOLIO TRANSFORMATION KDP Value Creation Rationale for Sell Down Accounting/EPS Implications ~3.3x Change from ROI generated over a 7-year period ~$1B equity method investment Proceeds from Q1’23 accounting share sale 3.2% $(0.03) Remaining Adj. EPS impact 2016 2023 st

  20. Slide 20: FY 2023 outlook – raising revenue & earnings outlook

    FY 2023 OUTLOOK – RAISING REVENUE & EARNINGS OUTLOOK Organic Net Adj. EPS Growth Free Cash Flow Outlook Revenue Growth (cst. Fx) (in $B) FY23 10%+ 10%+ HSD HSD $3.3 $3+ 5-7% 3-5% LT Algo 2023E 2023E LT Algo 2023E 2023E LT Algo 2023E original revised original revised - unchanged - FY23 Planning Infla

  21. Slide 21: Q&A

    Q&A Dirk Van de Put Luca Zaramella Chairman & CEO CFO 21

  22. Slide 22: Mondelez International – Snacking Made Right

    Mondelez, International SNACKING MADE RIGHT

  23. Slide 23: Spot rates versus 2022 average FX rates for key countries

    SPOT RATES VERSUS 2022 AVERAGE FX RATES FOR KEY COUNTRIES 1 Source: XE.com Full Year 2022 April 21st Rate Impact vs 2022 Argentine Peso 130.70 / $US 218.48 / $US Australian Dollar US$0.69 / AUD US$0.67 / AUD Brazilian Real 5.16 / $US 5.05/ $US Canadian Dollar US$0.77 / CAD US$0.74 / CAD Chinese Yuan

  24. Slide 24: Outlook

    OUTLOOK Our outlook for Organic Net Revenue growth, Adjusted EPS growth on a constant currency basis, Adjusted Interest Expense, Net, Adjusted Effective Tax Rate and Free Cash Flow for full-year 2023 are non-GAAP financial measures that exclude or otherwise adjust for items impacting comparability o

  25. Slide 25: GAAP to non-GAAP reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue (in millions of U.S. dollars) (Unaudited) Latin North Mondelēz America AMEA Europe America International For the Three Months Ended March 31, 2023 Reported (GAAP) $ 1,211 $ 1,939 $ 3,307 $ 2,709 $ 9,166 Acquisitions (156) - - (218)

  26. Slide 26: GAAP to non-GAAP reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Gross Profit/Operating Income to Adjusted Gross Profit/Operating Income (in millions of U.S. dollars) (Unaudited) For the Twelve Months Ended December 31, 2022 Gross Operating Net Gross Profit Operating Income Revenues Profit Margin Income Margin Reported (GAAP) $ 31

  27. Slide 27: GAAP to non-GAAP reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Gross Profit/Operating Income to Adjusted Gross Profit/Operating Income (in millions of U.S. dollars) (Unaudited) For the Three Months Ended March 31, 2023 Gross Operating Net Gross Profit Operating Income Revenues Profit Margin Income Margin Reported (GAAP) $ 9,166

  28. Slide 28: GAAP to non-GAAP reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Advertising and Consumer Promotions To Adjusted Advertising and Consumer Promotions (in millions of U.S. dollars) (Unaudited) Mondelēz International For the Three Months Ended March 31, 2023 Reported (GAAP) $ 782 No items excluded - Adjusted (Non-GAAP) 782 Currency 3

  29. Slide 29: GAAP to non-GAAP reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue (in millions of U.S. dollars) (Unaudited) Mondelēz International 3 Year For the Twelve Months Ended December 31, 2019 2020 2021 CAGR Reported (GAAP) $ 25,868 $ 26,581 $ 28,720 Divestitures (91) (32) (78) Acquisitions (88) (445) (25

  30. Slide 30: GAAP to non-GAAP reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue (in millions of U.S. dollars) (Unaudited) Emerging Markets Developed Markets 3 Year 3 Year For the Twelve Months Ended December 31, 2019 2020 2021 CAGR 2019 2020 2021 CAGR Reported (GAAP) $ 9,675 $ 9,097 $ 10,132 $ 16,193 $ 17,484

  31. Slide 31: GAAP to non-GAAP reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue (in millions of U.S. dollars) (Unaudited) Emerging Developed Mondelēz Markets Markets International For the Three Months Ended March 31, 2023 Reported (GAAP) $ 3,598 $ 5,568 $ 9,166 Acquisitions (156) (218) (374) Currency 258 207 4

  32. Slide 32: GAAP to non-GAAP reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue (in millions of U.S. dollars) (Unaudited) Emerging Emerging Markets ex. Markets Argentina Argentina For the Three Months Ended March 31, 2023 Reported (GAAP) $ 3,598 $ 141 $ 3,457 Acquisition (156) - (156) Currency 258 112 146 Orga

  33. Slide 33: GAAP to non-GAAP reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue by Consumer Sector (in millions of U.S. dollars) (Unaudited) Biscuits & Baked Gum & Total Cheese & Mondelēz Snacks Chocolate Candy Snacks Beverage Grocery International For the Twelve Months Ended December 31, 2021 Reported (GAAP)

  34. Slide 34: GAAP to non-GAAP reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue by Consumer Sector (in millions of U.S. dollars) (Unaudited) Biscuits & Baked Gum & Total Cheese & Mondelēz Snacks Chocolate Candy Snacks Beverage Grocery International For the Three Months Ended March 31, 2023 Reported (GAAP) $ 4,

  35. Slide 35: GAAP to non-GAAP reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Segment Data (in millions of U.S. dollars) (Unaudited) For the Three Months Ended March 31, 2023 Unrealized G/(L) on General Latin North Hedging Corporate Amortization Other Mondelēz America AMEA Europe America Activities Expenses of Intangibles Items International N

  36. Slide 36: GAAP to non-GAAP reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Diluted EPS to Adjusted EPS (Unaudited) For the Three Months Ended March 31, 2023 2022 $ Change % Change Diluted EPS attributable to Mondelēz International (GAAP) $ 1.52 $ 0.61 $ 0.91 149.2 % Simplify to Grow Program 0.02 0.02 - Intangible asset impairment charges -

  37. Slide 37: GAAP to non-GAAP reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Net Cash Provided by Operating Activities to Free Cash Flow (in millions of U.S. dollars) (Unaudited) Mondelēz International For the Three Months Ended March 31, 2023 2022 $ Change Net Cash Provided by Operating Activities (GAAP) $ 1,123 $ 1,131 $ (8) Capital Expendi

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