Mondelez International, Inc. · NASDAQ:MDLZ
Mondelez International — Barclays Global Consumer Staples Conference 2015
44 slides from Mondelez International's conference presentation, Sep 10, 2015
Slide 1: Barclays Global Consumer Staples Conference
Barclays Global Consumer Staples Conference September 10, 2015 Exhibit 99.2
Slide 2: Brian Gladden EVP and Chief Financial Officer
Brian Gladden EVP and Chief Financial Officer
Slide 3: Forward-looking statements
Forward-looking statements This presentation contains a number of forward-looking statements. Words, and variations of words, such as “will,” “expect,” “intend,” “believe,” “estimate,” “anticipate,” “plan,” “deliver,” “drive,” “prospect,” “potential,” “opportunity,” “target,” “outlook” and similar e
Slide 4: Strategies driving transformation agenda
Reduce Costs Supply Chain Reinvention Lower Overheads Margin Expansion & Investment Fuel Invest for Growth Step-Up A&C Investments Fill In Consumer Spaces Sustainable Growth Over the Long Term Focus Portfolio Coffee Transaction Bolt-On Acquisitions ~85% of Revenue from Snacks Strategies driving tran
Slide 5: Driving sustainable top- and bottom-line growth
Top-Tier Shareholder Returns Drive Revenue Growth Expand Gross Margin Reduce Overheads Invest for Growth Driving sustainable top- and bottom-line growth to deliver top-tier shareholder returns Gain / hold market share Allocate resources to highest return opportunities Accelerate expansion of Power B
Slide 6: Long-term targets unchanged
Adjusted EPS Growth: Double Digit 1 Organic Net Revenue Growth: At or Above Category Growth Adjusted Operating Income Growth: High Single Digit 1 Long-term targets unchanged Long-Term Targets 1. Constant currency.
Slide 7: Strong total shareholder returns
MDLZ S&P 500 S&P 500 Consumer Staples 2 MDLZ Strong total shareholder returns Source: FactSet 1. Effective date of the spin-off of the North America grocery business. 2. S&P 500 Consumer Stapes Sector Index. -2.1% -0.8% 17.5% S&P S&P 500 Consumer Staples YTD August 31, 2015 46.4% 41.7% 59.5% Since O
Slide 8: Returned $9.7 billion since the spin
2.7 4.6 6.8 $6.9B share buyback authorization remaining through 2018 Returned $9.7 billion since the spin 0.5 1.5 2.4 2.9 YTD June 2015 $0.5 $4.2 $7.0 $9.7 Cumulative Cash Returned to Shareholders ($ billions) 1. Since October 1, 2012, the effective date of the spin-off of North American grocery bus
Slide 9: Reaffirming 2015 growth outlook
Reaffirming 2015 growth outlook 1. Global category growth based on available Nielsen Global Data through June 2015 for measured channels in key markets where the company competes. The company has adjusted the global category growth calculation to reflect current rather than average H1 2014 currency
Slide 10: Reaffirming margin targets
Beyond 2016, opportunity to drive continued margin expansion and fund growth Reaffirming margin targets Adjusted Operating Income Margin 1. Pro forma adjusted items include: (a) coffee business transaction and (b) reclassification of joint venture equity earnings from operating income to equity meth
Slide 11: Delivering world-class productivity levels
Delivering world-class productivity levels 1.8% 2.5% 2.8% 2015E-2018E Note: Net productivity levels for 2011 through H1 2015 include results from the company’s global coffee business that was combined with D.E Master Blenders 1753 on July 2, 2015, to create Jacobs Douwe Egberts. 3%+ 3.2% in H1 2015
Slide 12: Building a best-in-class plant footprint
Closed / Sold Streamlined Greenfields / Brownfields Building a best-in-class plant footprint Completed JDE - - In Process - Total Manufacturing Network Transformation Activities January 2012 to August 2015
Slide 13: Lines of the Future by year-end
Biscuits Chocolate Gum Powdered Beverages Lines On-Stream 1 Locations ~40 “Lines of the Future” by year-end ~40 on-stream by year-end 2015 1. As of August 31, 2015.
Slide 14: Lines of the Future driving savings
30%+ cost savings / ton 2x output of current North American assets 20%+ cost savings / ton Flexibility to produce wide range of package sizes 20%+ cost savings / ton Significantly reduced manufacturing time Lines of the Future driving savings
Slide 15: Significantly reducing overhead costs
Significantly reducing overhead costs Overheads as % of Net Revenue PF 2013 2016E Identify and capture sustainable cost reductions with zero-based budgeting approach (ZBB) Three key initiatives: Indirect costs People costs and organizational model Shared services Further reductions targeted beyond S
Slide 16: Indirect cost progress ahead of plans
Cost Package 2015 Status Targeted Reduction Update Indirect cost progress ahead of plans & increasing/accelerating targets 1. Travel + 50%+ Accelerate progress & reset targets 2. Facilities 50%+ Expanded scope & reset targets 3. Contractors & Consultants + 70%+ Hit ‘18 target in ‘15 … reset target 4
Slide 17: Global Shared Services
Finance ~50% Human Resources ~40% Order Management ~40% Sourcing ~30% Sales ~20% Global Shared Services – driving process effectiveness and scale benefits 40%+ of activities in scope ~50% average cost savings for in-scope ~150 separate process migrations over 3 years FP&A, accounting, overhead manag
Slide 18: Cost reduction programs driving margin expansion
Cost reduction programs driving margin expansion and fueling growth Delivering supply chain and overhead cost savings faster than expected, while also finding new opportunities Cost savings fueling both margin expansion and increased growth investments On track to deliver 2015 and 2016 Adjusted Oper
Slide 19: Mark Clouse EVP and Chief Growth Officer
Mark Clouse EVP and Chief Growth Officer
Slide 20: Growth plan built on world's favorite snacks brands
~70% of H1 2015 Revenue 1 Growth plan built on strong foundation of world’s favorite snacks brands … 1. Excludes coffee.
Slide 21: Global category leadership
North America Europe Global Latin America Asia Pacific Eastern Europe Middle East & Africa … global category leadership -- Source: Euromonitor Biscuits Chocolate Gum Candy
Slide 22: Advantaged geographic footprint
Developed Markets 61% … and an advantaged geographic footprint Emerging Markets 39% Pro Forma 2014 Revenue of $30.5B (excluding coffee)
Slide 23: Executing two strategies to drive long-term growth
Accelerate Base Business Growth Fill In Key Consumer Spaces Executing two strategies to drive long-term growth
Slide 24: Accelerate Base Business Growth
Accelerate Base Business Growth Stepping up investments in base business in proven areas Increase A&C investments to optimal levels Shift A&C to high ROI digital and social media outlets Leverage Price Pack Architecture Launch proven platforms into White Spaces
Slide 25: Increasing A&C behind Power Brands
Developed Markets Developed Markets Increasing Total A&C Support Especially in Emerging Markets Improving Share of Voice in Key Markets Increasing A&C behind Power Brands to drive highest returns and improve share of voice A&C as % Net Revenue 2018E Emerging Markets Emerging Markets 8%+ 10%+ SOV / S
Slide 26: Shifting support to digital and social media
Digital and social media ROI ~2x traditional media Shifting support to high ROI digital and social media outlets Digital as % Total Media Spend 2018E 15%+ ~30%
Slide 27: Leveraging Price Pack Architecture
Maximize Platforms to Expand Occasions Grow Category and Share with Family Packs Increase Accessibility with Small Formats at Low Price Points Leveraging Price Pack Architecture to increase penetration and expand reach Traditional Trade Single Serve (e.g., 6 piece) Gifting Tin Bite-size bag Multi-pa
Slide 28: Selected Biscuit Platform Opportunities
Selected Biscuit Platform Opportunities Opportunities to accelerate innovation expansion globally USA Canada UK Germany Australia Brazil Russia India China Chocobakery
Slide 29: Global roll out of chocolate tablet innovation
Global roll out of chocolate tablet innovation is a great example of proven platform expansion $0.5B+ revenue platform today; targeting $1.0B+ revenue platform by 2020 Already present in 57 countries Margin accretive to chocolate portfolio Aligned playbook and global menu cards for all launches Leve
Slide 30: Selected Category White Space Opportunities
Selected Category White Space Opportunities Opportunities to enter category White Spaces Biscuits Gum & Candy Chocolate Brazil Russia India China Egypt Indonesia Mexico Nigeria Saudi Arabia South Africa Turkey Vietnam
Slide 31: Macro trends shaping snacking global behavior
Fill In Key Consumer Spaces Emphasis on Well-Being Time Compression Shift of Income Distribution Macro trends shaping snacking global behavior & creating growth opportunities
Slide 32: Drive Well-Being focus through portfolio and innovation
Drive Well-Being focus through existing portfolio and innovation Targeting 50% of revenue in Well-Being snacks by 2020 Well-Being is the biggest opportunity to accelerate growth Simplify and enhance existing portfolio Focus innovation on consumer Well-Being needs
Slide 33: Simplify and enhance existing portfolio
2020 Goals 1 Reduce saturated fat 10% Reduce sodium 10% Increase whole grains 25% Simplify ingredients Remove artificial colors and flavors Execute front-of-pack calorie labeling globally Simplify and enhance existing portfolio 1. Goals and results versus 2012 baseline. Three ingredients: whole whea
Slide 34: Well-Being innovation already impacting portfolio
Greater focus on Well-Being innovation already impacting portfolio ~$40MM of revenue Acquired in 2015, developing global expansion plans 1. 2014 revenue. 2. revenue for childrens’ wholesome platform, which includes Barni , Ourson and Teddy Grahams . ~$300MM of revenue Playful treat, made with only w
Slide 35: Industry-leading e-commerce snacks business
Develop and build an industry-leading e-commerce snacks business $1B revenue opportunity by 2020 E-commerce is changing the way consumers are buying our brands Optimize existing platforms in e-commerce Build advantaged next-generation portfolio
Slide 36: Optimize existing platforms in e-commerce
Buy Now enabled media in 25 countries and with 130 retailers Global e-commerce team established Forming strong partnerships with global e-commerce retail leaders Optimize existing platforms in e-commerce
Slide 37: Build advantaged next-generation portfolio
Build advantaged next-generation portfolio Holiday Gifting Specialty Brand Expansion Custom Experiences / Personalization Licensed Products
Slide 38: Expand portfolio to Aspirant and Premium offerings
Expand portfolio to include more Aspirant and Premium offerings Strengthen Category Growth and Shares Broadening portfolio to meet growing consumer cohorts Access to Power Brands for Aspirants Increase focus on Premium segments
Slide 39: Expand portfolio to include more Aspirant and Premium offerings
Aspirants Middle Class Upper Middle Class Affluent % of 2020 Households 1 Focus Expand portfolio to include more Aspirant and Premium offerings ~20% 25%+ ~20% ~5% 1. Reflects percentage of global households. The balance of remaining households typically do not buy branded products Source: Euromonito
Slide 40: Executing strategies to drive Organic Net Revenue growth
Already executing strategies to drive strong Organic Net Revenue growth 2015E Long-Term Growth Target Fill In Key Consumer Spaces 3%+ At or above category growth Accelerate Base Business Growth
Slide 41: Driving sustainable growth to deliver top-tier returns
Top-Tier Shareholder Returns Drive Revenue Growth Expand Gross Margin Reduce Overheads Invest for Growth Driving sustainable top- and bottom-line growth to deliver top-tier shareholder returns
Slide 42: Mondelez International
Mondeléz International ad
Slide 43: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Net Revenues Gross Profit Gross Profit Margin Operating Income Operating Income Margin Reported (GAAP) 15,423 $ 6,007 $ 38.9% 1,652 $ 10.7% 2012-2014 Restructuring Program costs - - (3) 2014-2018 Restructuring Program costs - Integration Program and other acquisition
Slide 44: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Net Revenues Operating Income Operating Income Margin Reported (GAAP) 34,244 $ 3,242 $ 9.5% Spin-Off Costs - 2012-2014 Restructuring Program costs - 2014-2018 Restructuring Program costs - Integration Program and other acquisition integration costs - (4) Remeasuremen
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