Mondelez International, Inc. · NASDAQ:MDLZ
Mondelez International — Barclays Capital Back to School Conference 2013
31 slides from Mondelez International's conference presentation, Sep 3, 2013
Slide 1: Mondelēz International at Barclays Capital Back to School Conference
0 Mondel z International Barclays Capital Back to School Conference September 3, 2013 Exhibit 99.2
Slide 2: Irene Rosenfeld, Chairman and CEO
Irene Rosenfeld Chairman and CEO
Slide 3: Mondelēz International is well-positioned for success
Advantaged Geographic Footprint Fast- Growing Categories Favorite Snacks Brands Strong Routes-to- Market Proven Innovation Platforms World-Class Talent & Capabilities Mondel z International is well-positioned for success
Slide 4: Virtuous cycle driving long-term targets
Virtuous cycle driving long-term targets Adjusted EPS Growth 5%-7% Double-Digit (cst. FX) Organic Net Revenue Growth Long-Term Targets Expand Gross Margin Reinvest in Growth Leverage Overheads Focus on Power Brands & Priority Markets Operating Income Growth High Single- Digit (cst. FX)
Slide 5: Top-tier, long-term revenue growth target supported by advantaged portfolio
Developed Markets Emerging Markets Chocolate Biscuits Gum & Candy Beverages Cheese/Grocery 5% - 7% Organic Growth Top-tier, long-term revenue growth target supported by advantaged portfolio Double digit growth Low-to-mid single digit growth By Geography Low-to-mid single digit growth Mid-to-high sin
Slide 6: Significant operating income growth driven by margin expansion
Significant operating income growth driven by margin expansion Strong track record of margin gains 250 bps of opportunity from gross margin expansion (1) Please see the GAAP to non-GAAP reconciliations provided at the end of this presentation. Adjusted Operating Income Margin (1) 9.2% 9.6% 11.0% 11.
Slide 7: Opportunity is largely in North America and Europe
Opportunity is largely in North America and Europe Adjusted Operating Income Margin North America Europe LA, AP, EEMEA Combined (1) Please see the GAAP to non-GAAP reconciliations provided at the end of this presentation.
Slide 8: Delivering base margin expansion critical to delivering growth
+60 to +90 bps (10) to (20) bps +60 to +90 bps ~(10) bps (50) to (70) bps (10) to (20) bps Ex. Restructuring 14%-16% Delivering base margin expansion critical to delivering growth Double Digit EPS Growth* Base Margin Expansion Emerging Markets Investments Ongoing Restructuring 12.2% (1) Base Margin
Slide 9: Productivity is primary driver of base margin expansion
+60 to +90 bps +60 to +90 bps Ex. Restructuring 14%-16% Productivity is primary driver of base margin expansion Double Digit EPS Growth* * On a constant currency basis (1) Reported operating income margin was 10.4% for FY 2012. See GAAP to Non-GAAP reconciliation at the end of this presentation. Bas
Slide 10: Daniel Myers, EVP Integrated Supply Chain
Daniel Myers EVP Integrated Supply Chain
Slide 11: Focused plan to deliver world-class supply chain
Priorities 3 Year Financial Goals 1 2 3 4 5 Focused plan to deliver world-class supply chain $3B Gross Productivity Cost Savings (~$1B/per year; ~4.5% of COGS) $1.5B Net Productivity Cost Savings (~$0.5B/per year; ~2.3% of COGS) $1B Cash Flow Step change leadership talent & capabilities Transform gl
Slide 12: Acquisitions drove supply chain complexity
1990 2000 2010 Acquisitions drove supply chain complexity • Significant number of SKUs, formats and formulas • Fragmented supplier base • Sub-scale plants with low efficiency assets
Slide 13: Success begins with a step change in leadership talent and capabilities
Benchmark against best in class Right people in the right places Break down silos Multi-region, multi-business experience Success begins with a step change in leadership talent and capabilities
Slide 14: Transform Platforms
2 Transform Platforms Global platform transformation process
Slide 15: Oreo: Imagine if... became reality
Scale Speed Agility 2 Oreo : “ Imagine if …” became reality • 30% reduction in capital cost • $10MM in operating cost savings per line • +500 bps gross margin improvement • New capacity in 1/3 the time • Modular design for 7 days start-up • Global expansion in less than 6 months • Standard building
Slide 16: Oreo: Double the capacity, with half the footprint and fewer people
Past Now 2 Making Packing Oreo : Double the capacity, with half the footprint and fewer people Transform Platforms Making Packing
Slide 17: Growing on advantaged assets at advantaged costs
3 Simplify, Standardize, Create Scale Grow Capacity • Growth platforms on advantaged assets in strategic locations Collaborate with Suppliers • Increased supplier collaboration & co-location Optimize Logistics • Minimize touches to improve service delivery and inventory levels Growing on advantaged
Slide 18: Redesigning supply chain to deliver world-class efficiency
2012 2013 - 2016 2017 - 2020 3 Capacity Increase +24% +28% New Greenfield Sites +8 +5 Power Brands on Advantaged Assets ~15% ~50% by ’16 ~80% by ’20 Net Revenue per Plant ~$210MM ~$300MM by ‘16 ~$500MM by ‘20 Redesigning supply chain to deliver world-class efficiency Redesign Network
Slide 19: Our new facility in Mexico will use an integrated supply chain approach
3 Our new facility in Mexico will use an integrated supply chain approach Redesign Network
Slide 20: Stepping up productivity delivery
Integrated Lean Six Sigma Procurement Transformation Simplicity Stepping up productivity delivery
Slide 21: Integrated Lean Six Sigma delivers best in class reliability and efficiency
4 Integrated Lean Six Sigma delivers best in class reliability and efficiency • 450 plant leaders trained • 300 black belts certified & 2,000 green belts trained • 14 plants commissioned as lead sites; 103 sites by 2015 Productivity
Slide 22: Procurement Transformation continues to drive productivity
4 Procurement Transformation continues to drive productivity 2009 – 2012 leveraged global scale Shifting resources from local to enterprise-wide “spend towers” Streamlining specifications Strengthening relationships with fewer, more strategic suppliers Productivity
Slide 23: Simplicity: Streamlining SKUs, packaging and recipes
Today 2016 4,000 2,500 55 40 39 26 89 72 45% 60% 4 Simplicity: Streamlining SKUs, packaging and recipes # SKUs Food formats Technologies Production lines Pan-EU brands as % Biscuits Targeting a 60% reduction in complexity to deliver ~$100MM European Biscuit Category Productivity
Slide 24: Focus on cash management to fund future investments in capital and growth
5 DSO • Terms compliance • Sales phasing • Term negotiations DIOH • Raw and pack • Finished goods • Infrastructure • Processes & technology DPO • Payment terms rationalization • Frequency extension • Supply chain financing Focus on cash management to fund future investments in capital and growth Cas
Slide 25: Focused plan to deliver world-class supply chain
Priorities 1 2 3 4 5 3 Year Financial Goals Focused plan to deliver world-class supply chain Step change leadership talent & capabilities Transform global platforms Redesign the supply chain network Drive productivity programs to fuel growth Improve cash management $3B Gross Productivity Cost Saving
Slide 26: Dave Brearton, EVP & CFO
Dave Brearton EVP & CFO
Slide 27: Productivity is primary driver of margin expansion
Productivity is primary driver of margin expansion Base Margin Expansion Components
Slide 28: Committed to delivering top-tier performance
Committed to delivering top-tier performance Well-positioned for success Virtuous growth cycle provides framework to deliver top-tier performance Integrated supply chain will drive base margin expansion and generate strong cash flow 2013 outlook: - Organic revenue growth at low-end of 5%-7% range -
Slide 29: Mondelēz International
Mondelez International aad
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation As Revised (GAAP) Integration Program Costs and other acquisition integration costs (1) Spin-Off Costs and Related Adjustments (2) Restructuring Program Costs (3) Acquisition- Related Costs (4) Impact of Divestitures (5) (Gain)/Loss on divestitures, net As Adjusted (N
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation As Revised (GAAP) Integration Program Costs (1) Spin-Off Costs and Related Adjustments (2) 2012-2014 Restructuring Program Costs (3) Impact of Divestitures (4) As Adjusted (Non-GAAP) Latin America Net Revenues 5,396 $ - $ - $ - $ - $ 5,396 $ Segment Operating Income $
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