Mondelez International, Inc. · NASDAQ:MDLZ
Mondelez International — Kraft Foods — Investor Presentation (March 2009)
33 slides from Mondelez International's investor presentation, Mar 27, 2009
Slide 1: Review of Changes to Financial Reporting
Kraft Foods Review of Changes to Financial Reporting March 27, 2009 Exhibit 99.1
Slide 2: Forward-looking statements
Forward-looking statements This slide presentation contains forward-looking statements that there are two critical aspects of Kraft Foods' financial turnaround, including returning to sustainable growth and improving transparency, accountability and decision-making; the five ways we're improving tra
Slide 3: Agenda for today
Agenda for today Rationale Behind Changes to Financial Reporting Reportable Segments Review
Slide 4: Two critical aspects of Kraft Foods' financial turnaround
There are two critical aspects of Kraft Foods’ financial turnaround Return to sustainable growth Improve transparency, accountability and decision-making
Slide 5: Five ways we're improving transparency, accountability, decision-making
Five ways we’re improving transparency, accountability, decision-making Reorganizing European operations – For the EU, transitioning core categories to fully integrated business units Full ownership of operating results at category level Faster decision-making, better trade-offs – Combining Central
Slide 6: Five ways we're improving transparency, accountability, decision-making
Five ways we’re improving transparency, accountability, decision-making Reorganizing European operations Revising cost assignment methodology – Shifting towards activity-based costing versus driver-based allocations – Operations IT and administrative costs moved to Cost of Sales from Marketing, Admi
Slide 7: Five ways we're improving transparency, accountability, decision-making
Five ways we’re improving transparency, accountability, decision-making Reorganizing European operations Revising cost assignment methodology Moving from LIFO to Average Cost in U.S. – Aligns with way we manage business All of Kraft Foods now on Average Cost – Better reflects economics of the busine
Slide 8: Five ways we're improving transparency, accountability, decision-making
Five ways we’re improving transparency, accountability, decision-making Reorganizing European operations Revising cost assignment methodology Moving from LIFO to Average Cost in U.S. Reclassifying excise taxes to Cost of Sales – Provides better clarity to revenues and profit margins – Improves compa
Slide 9: Five ways we're improving transparency, accountability, decision-making
Five ways we’re improving transparency, accountability, decision-making Reorganizing European operations Revising cost assignment methodology Moving from LIFO to Average Cost in U.S. Reclassifying excise taxes to Cost of Sales Adopting new accounting principles – SFAS 160 (noncontrolling interests i
Slide 10: Five ways we're improving transparency, accountability, decision-making
Five ways we’re improving transparency, accountability, decision-making Reorganizing European operations Revising cost assignment methodology Moving from LIFO to Average Cost in U.S. Reclassifying excise taxes to Cost of Sales Adopting new accounting principles
Slide 11: Agenda for today
Agenda for today Rationale Behind Changes to Financial Reporting Reportable Segments Review
Slide 12: Total Kraft: Overview
Total Kraft: Overview North America Developing Markets Europe North America Developing Markets Europe North America 2008 Net Revenue Developing Markets Europe 2008 Segment Operating Income – ex. Items* North America Developing Markets Europe * Segment Operating Income – ex. Items excludes the impact
Slide 13: Our portfolio today
Our portfolio today More than 40% of revenue outside North America More than 50% from snacks and quick meals More than 80% from #1 share positions More than 50% from categories where market share is twice the size of nearest competitor
Slide 14: North America: Overview
North America: Overview U.S. Beverages Canada & N.A. Foodservice U.S. Snacks U.S. Cheese U.S. Convenient Meals U.S. Grocery U.S. Beverages Canada & N.A. Foodservice U.S. Snacks U.S. Cheese U.S. Convenient Meals U.S. Grocery U.S. Beverages 2008 Net Revenue Canada & N.A. Foodservice U.S. Snacks 2008 S
Slide 15: U.S. Beverages: Overview
U.S. Beverages: Overview Coffee Powdered RTD Coffee Coffee 29% 0.8 Folgers (Smucker) RTD Aseptics 3.2 Coke Foods Powdered Bev. 2.6 Retailer Brands 2008 Net Revenue % Relative Category Share* Share* Competitor Powdered RTD * Source: 4-Outlet data; The Nielsen Company. RTD: Coffee: Powdered: Primary B
Slide 16: U.S. Beverages: Key Initiatives
U.S. Beverages: Key Initiatives Invest in value-oriented marketing behind Kool-Aid, Country-Time powdered beverages Increase top-line momentum of powdered beverage stick and premium coffee platforms Improve profitability of ready-to-drink and mainstream coffee behind restaging of CapriSun and Maxwel
Slide 17: U.S. Cheese: Overview
U.S. Cheese: Overview Sandwich, Recipe & Grated Cultured & Snacking Natural Cream Cheese Sandwich, Recipe & Grated Processed Slices 54% 1.8 Retailer Brands Grated / Hard Italian 1.4 Retailer Brands Natural Cooking 0.5 Retailer Brands Breakfast Spreads 2.1 Retailer Brands Snacking 1.5 Retailer Brands
Slide 18: U.S. Cheese: Key Initiatives
U.S. Cheese: Key Initiatives Apply adaptive pricing model for more consistent profit delivery Enhance product mix through incremental marketing behind advantaged categories, segments – Revitalize Kraft Singles – Expand Philadelphia usage Leverage Kraft Foods scale to create retail advantage
Slide 19: U.S. Convenient Meals: Overview
U.S. Convenient Meals: Overview Cold Cuts & Hot Dogs Bacon, Boca & Pickles Pizza Meal Combos Cold Cuts & Hot Dogs Cold Cuts 36% 2.4 Retailer Brands Hot Dogs 1.0 Sara Lee Bacon 1.2 Retailer Brands Lunch Combos 10.7 ConAgra Pizza 1.7 Schwan 2008 Net Revenue % Relative Category Share* Share* Competitor
Slide 20: U.S. Convenient Meals: Key Initiatives
U.S. Convenient Meals: Key Initiatives Focus quality, marketing, innovation around sandwiches – Fresher, less processed ingredients – Expand Deli Fresh, Deli Creations platforms Sustain top-line momentum of pizza – Build “For One” single-serve platform Grow margins through “end to end” productivity
Slide 21: U.S. Grocery: Overview
U.S. Grocery: Overview Dressings Mac & Cheese Desserts Other Grocery Dressings Salad Dressings 26% 1.5 Hidden Valley (Clorox) Spoonable Dressings 0.9 Best Foods (Unilever) Dry Desserts 7.5 Retailer Brands Refrigerated Desserts 3.1 Kozy Shack Dinners 4.9 Retailer Brands 2008 Net Revenue % Relative Ca
Slide 22: U.S. Grocery: Key Initiatives
U.S. Grocery: Key Initiatives Focus resources on fewer, bigger core platforms – Mac & Cheese, Dressings, Desserts – Improve volume through investments in quality, marketing and innovation Leverage in-store presence with better trade planning, execution tools Streamline overhead, manufacturing throug
Slide 23: U.S. Snacks: Overview
U.S. Snacks: Overview Biscuits Bars & Nuts Biscuits Cookies 45% 2.8 Kellogg Crackers 1.6 Kellogg Bars 0.3 General Mills Nuts 0.7 Retailer Brands 2008 Net Revenue % Relative Category Share* Share* Competitor Bars & Nuts Primary Brands Biscuits: Bars & Nuts: * Source: 4-Outlet data; The Nielsen Compan
Slide 24: U.S. Snacks: Key Initiatives
U.S. Snacks: Key Initiatives Continue to revitalize core cookie and cracker brands – Further investments in innovation and A&C – Build margin-accretive platforms that leverage core equities Grow share in nuts through quality upgrades, participation in growing segments Selectively invest in bars Inve
Slide 25: Canada and North America Foodservice: Overview
Canada and North America Foodservice: Overview Canada North American Foodservice Canada 2008 Net Revenue North American Foodservice Primary Brands Canada: Foodservice:
Slide 26: Canada and North America Foodservice: Key Initiatives
Canada and North America Foodservice: Key Initiatives Canada – Grow vol/mix through marketing, innovation linked to U.S. category initiatives – Leverage scale to win with customers – Optimize Canadian manufacturing network N.A. Foodservice – Improve product mix by focusing on Kraft brands, innovatio
Slide 27: Europe: Overview
Europe: Overview Biscuits Chocolate Coffee Cheese Local Categories Biscuits Biscuits 22.2 0.9 Private Label Chocolate 12.7 0.7 Ferrero Coffee 21.8 1.0 Private Label Cream Cheese 40.0 1.7 Private Label Process Cheese 38.3 2.3 Private Label 2008 Net Revenue % Relative Category Share* Share Competitor
Slide 28: Europe: Key Initiatives
Europe: Key Initiatives Focus where we make money – Invest behind the highest margin opportunities – Prune less profitable product lines Improve effectiveness at retail – Eliminate inefficient trade spending – Win in-store – Drive portfolio availability Reduce cost – Streamline overheads, manufactur
Slide 29: Developing Markets: Overview
Developing Markets: Overview CEEMA Latin America Asia- Pacific CEEMA 2008 Net Revenue Latin America Asia- Pacific Primary Brands
Slide 30: Developing Markets: 2008 Revenue
Developing Markets: 2008 Revenue Russia, Ukraine & Baltics Central Europe & Other Middle East & Africa Brazil Mexico Southern Cone Andean Caribbean & C. America Australia & New Zealand Southeast Asia China Japan & Korea Southeast Europe & Turkey Russia, Ukraine & Baltics CEEMA Latin America Central
Slide 31: Developing Markets: Key Initiatives
Developing Markets: Key Initiatives Grow through locally relevant business models – Competitive cost structures – Appropriate product formulations and price points – Grassroots marketing and sales Continue to focus investments behind priority categories, brands, markets – Further expansion in tradit
Slide 32: Summary
Summary Making steady progress toward sustainable growth – 2007: Rejuvenated top-line growth – 2008: Grew both top and bottom lines – 2009: Build profit margins and market share Improving our transparency, accountability and decision-making Organic Revenue Growth 4%+ Manufacturing, Overhead Leverage
Slide 33: Kraft Foods
kraft foods Make teday delicious