Mondelez International, Inc. · NASDAQ:MDLZ

Mondelez International — Q3 2023 Earnings Presentation

42 slides from Mondelez International's earnings presentation, Nov 1, 2023

  1. Slide 1: Q3 2023 Results

    Q3 2023 RESULTS November 1, 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: Positioned for High-Quality, Sustainable Growth

    POSITIONED FOR HIGH-QUALITY, SUSTAINABLE GROWTH 1. Strong, profitable volume growth 2. Healthy share performance 3. Leveraging RGM capabilities to manage cost inflation and generate fuel for substantial reinvestment in multi-year growth 4. Continuing to re-shape portfolio with closure of the develop

  5. Slide 5: Top- and Bottom-Line Strength with Substantial Reinvestment

    TOP- AND BOTTOM-LINE STRENGTH WITH SUBSTANTIAL REINVESTMENT +$3.9B +$1.7B +$0.9B vs PY vs PY vs PY +28.5% +24.5%+23.6% +22.3% +21.5% +20.0% +17.0% +15.7% +12.3% +12.3% +12.5% +12.2% Price Price Price Vol/Mix Vol/Mix Vol/Mix 2022 Q3'23 YTD'23 2022 Q3'23 YTD'23 2022 Q3'23 YTD'23 2022 Q3'23 YTD'23 Orga

  6. Slide 6: Sustainable Multi-Year Vol/Mix Growth Despite Significant Pricing

    SUSTAINABLE MULTI-YEAR VOL/MIX GROWTH DESPITE SIGNIFICANT PRICING Organic Net Revenue Growth +19.4% +15.8% +15.7% +12.3% +5.1% Price +4.0% +3.7.% Vol/Mix Europe +1.6% customer +3.8pp +1.8pp +1.8pp +2.5pp +3.2pp +3.2pp disruption 2015-2018 2019 2020 2021 2022 Q1 Q2 Q3 2023 YTD: Vol/Mix +2.4pp / ONR +

  7. Slide 7: Consumer Continues to Prioritize Food/Snacking and Branded Products

    CONSUMER CONTINUES TO PRIORITIZE FOOD/SNACKING AND PREFERENCE FOR BRANDED PRODUCTS North America Europe Emerging Markets consumer confidence holding consumer confidence improving consumer confidence Strong Volume Volume Volume Change +DD% Change Change L3M MDLZ L3M L3M US Biscuits unmeasured -2.0% c

  8. Slide 8: Significant Progress Against Strategy, Strengthening Our Brands

    SIGNIFICANT PROGRESS AGAINST STRATEGY, STRENGTHENING OUR BRANDS M&A Geo Oreo Growth Channels Premium Expansion Ricolino Toblerone #1 Hispanic belVita +0.9YTD updated brand confectionery brand Continued share gains in US positioning and launched reinvestment club channels1 new premium in the US2 offe

  9. Slide 9: Snack Bar Business on Track to Exceed $1.2B Net Revenue in 2023

    SNACK BAR BUSINESS ON TRACK TO EXCEED $1.2B NET REVENUE IN 2023 Clif Kid growing at 2x the rate Grenade Oreo launch Perfect Snacks experiencing of the Total Bars Category1 exceeding expectations continued DD value growth3 +3.5pp YTD Share Gain Protein Bars in the UK2 #1 Refrigerated Protein Bar +19%

  10. Slide 10: Strong Progress Against 2050 Net Zero Emission Goal

    STRONG PROGRESS AGAINST 2050 NET ZERO EMISSION GOAL 2025 Goals 1 Progress since 2022 Climate Scaling regenerative agriculture practices and Sourcing agroforestry across signature sourcing programs 10% Advancing renewable energy at manufacturing By 2025, reduce end-to-end CO2e emissions by 10% acros

  11. Slide 11: Agenda

    AGENDA 1 Business & Strategy Update – Van de Put 2 Financial Outcomes – Zaramella 3 2023 Outlook – Zaramella 4 Q&A – Van de Put & Zaramella 11

  12. Slide 12: Strong Top-Line Growth in Both Emerging and Developed Markets

    STRONG TOP-LINE GROWTH IN BOTH EMERGING AND DEVELOPED MARKETS MDLZ Organic Net Revenue Growth Emerging Markets Developed Markets 39% of Total MDLZ Revenue1 61% of Total MDLZ Revenue1 +22.0% +22.5% +19.0%2 +17.0% +15.7% +13.4% +13.5% +12.3% +7.2% +7.0% +4.3% +2.7% FY19-21 FY22 Q3'23 YTD'23 FY19-21 FY

  13. Slide 13: Consistent Strong Growth for Chocolate, Biscuit & Baked Snacks

    CONSISTENT STRONG GROWTH FOR CHOCOLATE, BISCUIT & BAKED SNACKS 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 +33.2% +32.8% +25.1% +14.3% +14.9% +15.9% +11.7% +12.4% +10.5% +5

  14. Slide 14: Strong Share Performance

    STRONG SHARE PERFORMANCE Category Growth1 Snacks Revenue Gaining/Holding Share1 YTD’23 YTD’23 ~65% +20.7% +15.4% +14.2% ~40% +12.1% Biscuits Chocolate Gum & Candy Total Snacks 2022 YTD'23 & Baked Snacks 1 Share performance and category growth based on available scanner data from several external sou

  15. Slide 15: Profitable Vol/Mix Contribution Across All Regions in Q3

    PROFITABLE VOL/MIX CONTRIBUTION ACROSS ALL REGIONS IN Q3 MDLZ EU NA AMEA LA 1 Q3 +15.7% +15.4% +11.4% +11.9% +35.1% Organic Net Vol/Mix +3.8pp +3.3pp +4.6pp +3.3pp +3.6pp Revenue Growth YTD +17.0% +15.9% +13.6% +13.0% +37.2% Vol/Mix +2.4pp flat +3.0pp +4.2pp +4.5pp Adjusted Q3 +24.5% +29.8% +24.4% +

  16. Slide 16: Robust Volume, Pricing and Cost Efficiency Driving Strong Profitability

    ROBUST VOLUME, PRICING AND COST EFFICIENCY DRIVING STRONG PROFITABILITY AND ENABLING SUBSTANTIAL REINVESTMENT FOR GROWTH Adjusted Gross Profit, Advertising & Consumer Promotions, Overheads and Operating Income Growth1 Q3 YTD’23 +$1,737M +DD +DD +DD +20.0% +22.3% +DD +23.6% +24.5% 16 1 At cst fx

  17. Slide 17: Strong Double-Digit EPS Expansion at Reported Dollars

    STRONG DOUBLE-DIGIT EPS EXPANSION AT REPORTED DOLLARS 2023 YTD EPS vs PY Adjusted, Fav/(Unfav) +18.9% (Cst Fx) +13.4% (Rpt Fx) YTD‘22 Operating Shares Coffee JVs Interest/ Taxes YTD’23 Forex YTD’23 Adjusted Gains Other Adj. EPS Adjusted EPS @ Cst FX EPS Q3 $0.72 $0.17 $0.01 $(0.01) $0.03 $(0.08) $0.

  18. Slide 18: Prioritizing Value Enhancing Capital Deployment and Balance Sheet Strength

    PRIORITIZING VALUE ENHANCING CAPITAL DEPLOYMENT AND BALANCE SHEET STRENGTH Free  $2.4 billion YTD; up +$0.5 billion vs PY Cash Flow  CCC -26 days Share  $0.7 billion YTD, $0.1 billion Q3 Repurchases  $68.55 average price Dividends  $1.6 billion YTD, $0.5 billion Q3 18

  19. Slide 19: Agenda

    AGENDA 1 Business & Strategy Update – Van de Put 2 Financial Outcomes – Zaramella 3 2023 Outlook – Zaramella 4 Q&A – Van de Put & Zaramella 19

  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) 14- ~16% FY23 12%+ 15% 12%+ $3.3+ incl. -$0.4B 10%+ 10%+ $3+ coffee tax HSD HSD 5-7% 3-5% LT Algo 2023E 2023E 2023E 2023E LT Algo 2023E 2023E 2023E 2023E LT Algo 2

  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 Source: XE.com Full Year 20221 October 25th Rate Impact vs 2022 Argentine Peso 130.70 / $US 350.00 / $US Australian Dollar US$0.69 / AUD US$0.63 / AUD Brazilian Real 5.16 / $US 4.99/ $US Canadian Dollar US$0.77 / CAD US$0.73 / CAD Chinese Yua

  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: Additional Non-GAAP Financial Measures Definitions

    ADDITIONAL NON-GAAP FINANCIAL MEASURES DEFINITIONS “Adjusted A&C” is defined as advertising and consumer promotions (the most comparable U.S. GAAP financial measure) excluding divestitures and incremental costs incurred due to the war in Ukraine. We excluded the items which we believe may obscure tr

  26. Slide 26: 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 September 30, 2023 Reported (GAAP) $ 1,305 $ 1,791 $ 3,086 $ 2,847 $ 9,029 Acquisitions (153) - - (

  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 Twelve Months Ended December 31, 2022 Gross Operating Net Gross Profit Operating Income Revenues Profit Margin Income Margin Reported (GAAP) $ 31

  28. Slide 28: 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 September 30, 2023 Gross Operating Net Gross Profit Operating Income Revenues Profit Margin Income Margin Reported (GAAP) $ 9,

  29. Slide 29: 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 Nine Months Ended September 30, 2023 Gross Operating Net Gross Profit Operating Income Revenues Profit Margin Income Margin Reported (GAAP) $ 26,

  30. Slide 30: 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 September 30, 2023 Reported (GAAP) $ 821 No items excluded - Adjusted (Non-GAAP) 821 Curren

  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) Mondelēz International 2015 - 2018 2018 - 2021 For the Twelve Months Ended December 31, 20161 20171 2018 CAGR 2019 2020 2021 CAGR Reported (GAAP) $ 25,923 $ 25,896 $ 25,938 $ 25,868 $ 26,58

  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) Mondelēz International For the Three Months Ended March 31, 2023 Reported (GAAP) $ 9,166 Acquisitions (374) Currency 465 Organic (Non-GAAP) $ 9,257 For the Three Months Ended March 31, 2022

  33. Slide 33: 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

  34. Slide 34: 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 September 30, 2023 Reported (GAAP) $ 3,527 $ 5,502 $ 9,029 Acquisitions (153) (71) (224) Currency 308 (1

  35. Slide 35: 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 September 30, 2023 Reported (GAAP) $ 3,527 $ 146 $ 3,381 Acquisition (153) - (153) Currency 308 187 121

  36. Slide 36: 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)

  37. Slide 37: 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 September 30, 2023 Reported (GAAP)

  38. Slide 38: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Segment Data (in millions of U.S. dollars) (Unaudited) For the Three Months Ended September 30, 2023 Unrealized G/(L) on General Latin North Hedging Corporate Amortization Other Mondelēz America AMEA Europe America Activities Expenses of Intangibles Items Internation

  39. Slide 39: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Segment Data (in millions of U.S. dollars) (Unaudited) For the Nine Months Ended September 30, 2023 Unrealized G/(L) on General Latin North Hedging Corporate Amortization Other Mondelēz America AMEA Europe America Activities Expenses of Intangibles Items Internationa

  40. Slide 40: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Diluted EPS to Adjusted EPS (Unaudited) For the Three Months Ended September 30, 2023 2022 $ Change % Change Diluted EPS attributable to Mondelēz International (GAAP) $ 0.72 $ 0.39 $ 0.33 84.6 % Simplify to Grow Program 0.01 0.01 - Intangible asset impairment charges

  41. Slide 41: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Diluted EPS to Adjusted EPS (Unaudited) For the Nine Months Ended September 30, 2023 2022 $ Change % Change Diluted EPS attributable to Mondelēz International (GAAP) $ 2.92 $ 1.54 $ 1.38 89.6 % Simplify to Grow Program 0.04 0.04 - Intangible asset impairment charges

  42. Slide 42: 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 Nine Months Ended September 30, 2023 2022 $ Change Net Cash Provided by Operating Activities (GAAP) $ 3,150 $ 2,516 $ 634 Capital Expe

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