Mondelez International, Inc. · NASDAQ:MDLZ
Mondelez International — Citi Global Consumer Conference 2013
34 slides from Mondelez International's conference presentation, May 29, 2013
Slide 1: Citi Global Consumer Conference
Citi Global Consumer Conference May 29, 2013 Exhibit 99.2
Slide 2: Irene Rosenfeld Chairman & CEO
Irene Rosenfeld Chairman & CEO
Slide 3: Mondelez International is a unique investment vehicle…
Advantaged Geographic Footprint Fast- Growing Categories Favorite Snacks Brands Strong Routes-to- Market Proven Innovation Platforms World-Class Talent & Capabilities Mondelez International is a unique investment vehicle…
Slide 4: …with top-tier revenue and earnings potential
…with top-tier revenue and earnings potential Operating EPS Growth 5%-7% Double-Digit (constant FX) Organic Net Revenue Growth Long-Term Targets Operating Income Growth High Single-Digit (constant FX)
Slide 5: Top-tier revenue growth is clearly achievable
Developed Markets Emerging Markets Chocolate Biscuits Gum & Candy Beverages Ch./Groc. 5% - 7% Organic Growth Double Digit Growth Low-to-Mid Single Digit Growth $35B By Geography $35B Low-to-Mid Single Digit Growth Mid-to-High Single Digit Growth By Category Top-tier revenue growth is clearly achieva
Slide 6: Nearly 40% of portfolio in emerging markets
Latin America 15% EEMEA 11% Europe, excluding Central Europe 35% North America 20% Nearly 40% of portfolio in emerging markets Developed Markets ~60% Emerging Markets ~40% $35 Billion in 2012 Net Revenues
Slide 7: Emerging markets are highly attractive
Emerging markets are highly attractive GDP per Capita ($ in thousands) GDP per Capita ($ in thousands) Consumption vs. GDP per Capita Source: Euromonitor 2011 Snacks categories growing at high single digits / double digits Rising GDP fuels rapidly growing per capita snacks consumption Opportunity fo
Slide 8: Race is on to secure and expand positions in emerging markets
“We're placing a big bet in China and anticipate it will be Hershey's number two market, behind only the US in the coming five years” “Russia has the potential to be the number one consumer market in Europe by 2020… Adding in Pringles … provides a fantastic platform for us to capitalize on growth in
Slide 9: Steady improvement in OI margin with significant expansion opportunity
Steady improvement in OI margin with significant expansion opportunity Adjusted Operating Income Margin 11.5% 12.2% 11.1% Peer Average 14%-16% Note: Please see the GAAP to non-GAAP reconciliations provided at the end of this presentation.
Slide 10: Significant base margin expansion opportunity
+60 to +90 bps Annually Significant base margin expansion opportunity (1) Please see the GAAP to non-GAAP reconciliations provided at the end of this presentation. Adjusted Operating Income Margin Base Margin Expansion 12.2% (1)
Slide 11: Opportunity is largely in North America and Europe
Opportunity is largely in North America and Europe Adjusted Operating Income Margin 13.9% 18%-21% Peer Average North America Europe 13.0% 13%-16% Peer Average LA, AP, EEMEA Combined 14.3% 12%-14% Peer Average Note: Please see the GAAP to non-GAAP reconciliations provided at the end of this presentat
Slide 12: Gross margin is our biggest opportunity
Gross margin is our biggest opportunity Peer Average 40%+ 37.6% Adjusted Gross Profit Margin Note: Please see the GAAP to non-GAAP reconciliations provided at the end of this presentation.
Slide 13: North America: Significant opportunity for margin expansion
NORTH AMERICA: Significant opportunity for margin expansion 13.8% 13.9% 18%-21% Peer Average Adjusted Segment Operating Income Margin 14.0% Drive Power Brands and product mix Cost Management and Overheads • Target 4%+ COGS productivity • Remove dis-synergies Reinvent Supply Chain • Install new techn
Slide 14: Europe: Continue steady margin progress
EUROPE: Continue steady margin progress 12.3% 13.0% 13%-16% Peer Average Adjusted Segment Operating Income Margin 11.8% Expand Gross Margin • Drive Power Brands and product mix • Target 4%+ COGS productivity • Streamline supply chain Reduce overheads • Integrate Central Europe into category model •
Slide 15: Europe: Significant supply chain optimization opportunity
EUROPE: Significant supply chain optimization opportunity Net Revenue Per Plant ($ millions) All Other Plants Average % of plants A Plants 15% 85% Peer Average $400 $200 $390 $150 $180
Slide 16: Europe: Continue to drive overhead efficiencies
EUROPE: Continue to drive overhead efficiencies Overhead reductions primary driver of margin improvement since 2009 Unlocked scale through category model Achieved synergies integrating LU and Cadbury Consolidated business on fully-harmonized SAP system Integrating Central European countries into cat
Slide 17: Stepping up investments in emerging markets to create value
+60 to +90 bps Annually (20) to (30) bps Annually Stepping up investments in emerging markets to create value (1) Please see the GAAP to non-GAAP reconciliations provided at the end of this presentation. Adjusted Operating Income Margin Base Margin Expansion Emerging Markets Investments 12.2% (1)
Slide 18: Focused emerging markets investments provide growth and attractive returns
Payback Focused emerging markets investments provide growth and attractive returns Opportunities: Disciplined approach with attractive returns IRR well in excess of cost of capital $200 $200- $300 2015+ $100 Boost Power Brand Support ~1 year RTM, Sales Expansion 1-2 years White Space Entries 3-5 yea
Slide 19: Funding ongoing restructuring to improve long-term cost structure
+60 to +90 bps Annually (20) to (30) bps Annually (20) to (30) bps Annually Funding ongoing restructuring to improve long-term cost structure (1) Please see the GAAP to non-GAAP reconciliations provided at the end of this presentation. Adjusted Operating Income Margin Base Margin Expansion Emerging
Slide 20: Ongoing restructuring will continue to drive long-term efficiency
Ongoing restructuring will continue to drive long-term efficiency $100 $200- $300 2015+ • Moving to “Pay as You Go” model once 2012–2014 program completed • Included in long-term growth algorithm and guidance ($ millions) Ongoing Restructuring Investments $100
Slide 21: Expect moderate margin expansion over the next three years
+60 to +90 bps Annually (20) to (30) bps Annually (20) to (30) bps Annually Expect moderate margin expansion over the next three years … (1) Please see the GAAP to non-GAAP reconciliations provided at the end of this presentation. Adjusted Operating Income Margin Base Margin Expansion Emerging Marke
Slide 22: …with more significant opportunities longer term
+60 to +90 bps Annually (20) to (30) bps Annually (20) to (30) bps Annually +40 to +60 bps Annually … with more significant opportunities longer term Adjusted Operating Income Margin Base Margin Expansion Emerging Markets Investments Ongoing Restructuring ~13% Target 14-16% Base Margin Expansion +20
Slide 23: Delivering significant shareholder value
Delivering significant shareholder value Operating EPS Growth 5%-7% Double-Digit (constant FX) Organic Net Revenue Growth Long-Term Targets Operating Income Growth High Single-Digit (constant FX) Targeting 14% – 16% Margins
Slide 24: Mondelez International
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Slide 25: Appendix: Total Company
Appendix: Operating Income Margin – Total Company Total Company Operating Income Margins (fiscal year 2012) (1) 1) Reflects trading operating profit ex asset impairments * Please see the GAAP to non-GAAP reconciliations provided at the end of this presentation. Source: Company Reports. 23.5% 23.4% 1
Slide 26: Appendix: North America
Appendix: Operating Income Margin – North America North America Operating Income Margins (fiscal year 2012) (1) (2) (3) (4) (5) (10) 1) Reflects PepsiCo NA Food. 2) Reflects North America, excluding CIS. Reflects deduction for partial corporate expense. 3) Reflects North America. 4) Reflects US. 5)
Slide 27: Appendix: Europe
Appendix: Operating Income Margin – Europe Europe Operating Income Margins (fiscal year 2012) (1) (2) (5) (4) (3) (6) 1) Reflects Europe, including Russia. 2) Reflects Europe, including Central Europe, Russia and Turkey, but excluding globally managed businesses (mainly Water, Nutrition, Nespresso,
Slide 28: Appendix: Latin America
Appendix: Operating Income Margin – Latin America Latin America Operating Income Margins (fiscal year 2012) (1) (2) (5) (3) (4) (6) 1) Reflects North America and Latin America, excluding globally managed businesses (mainly Water, Nutrition, Nespresso, Professional). Reflects trading operating profit
Slide 29: Appendix: Asia Pacific
Appendix: Operating Income Margin – Asia Pacific Asia Pacific Operating Income Margins (fiscal year 2012) 1) Reflects Asia. Reflects deduction for partial corporate expense. 2) Reflects Asia, Oceania, Africa, excluding globally managed businesses (mainly Water, Nutrition, Nespresso, Professional). R
Slide 30: Appendix: EEMEA
Appendix: Operating Income Margin – EEMEA EEMEA Operating Income Margins (fiscal year 2012) (1) (2) (5) (4) 1) Reflects Asia, Oceania, Africa, excluding globally managed businesses (mainly Water, Nutrition, Nespresso, Professional). Reflects trading operating profit ex asset impairments. 2) Reflects
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation
Slide 32: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation
Slide 34: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation
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