Mondelez International, Inc. · NASDAQ:MDLZ
Mondelez International — Kraft Foods — Barclays Capital Back-to-School Conference 2011
32 slides from Mondelez International's conference presentation, Sep 7, 2011
Slide 1: Kraft Foods at Barclays Capital Back-to-School Conference
Kraft Foods Barclays Capital Back-to-School Conference September 7, 2011 Exhibit 99.2
Slide 2: Irene Rosenfeld, Chairman and CEO
Irene Rosenfeld Chairman and CEO
Slide 3: Forward-looking statements
Forward-looking statements This slide presentation contains a number of forward-looking statements. The words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “goals,” “may,” “aim,” “will” and similar expressions are intended to identify our forward-looking statements. Examples of
Slide 4: Why now?
Why now? • Well-Positioned for Sustainable Growth • Two Distinct Portfolios Poised for Peak Performance
Slide 5: Three key ingredients to sustainable growth
Three key ingredients to sustainable growth • Fix our base – Rewire the organization – Rejuvenate our brands Kraft Foods Base Business (1) % of Products Preferred to Competition (1) Excludes Cadbury. Source: Kraft Foods.
Slide 6: Three key ingredients to sustainable growth
Three key ingredients to sustainable growth • Fix our base • Transform the portfolio – Strengthen North American business – Build a global snacks powerhouse
Slide 7: Three key ingredients to sustainable growth
Three key ingredients to sustainable growth • Fix our base • Transform the portfolio • Make Virtuous Cycle work in each region – Sustainable, top-tier growth Focus on Power Brands, Categories, Markets Drive Top-Tier Growth Reduce Costs Leverage Overheads Reinvest in Growth
Slide 8: Top-line growth accelerating in each region
Top-line growth accelerating in each region Organic Net Revenue Growth* North America Developing Markets Europe * For 2010, reflects Combined Organic Net Revenue growth. Reported Net Revenue growth for 2010 were as follows: North America, 8.8%; Europe, 32.6%; Developing Markets, 71.1%. Reported Net
Slide 9: Strong H1 operating momentum in each geography
Strong H1 operating momentum in each geography • Executed necessary pricing – Quickly responded to higher input costs • Winning with consumers – Focused brand investments, innovation and improved marketing – Solid share performance while pricing earlier than competition • Grew profit dollars versus
Slide 10: Snacks portfolio up more than 6% in H1
Snacks portfolio up more than 6% in H1 * • Global Biscuits +7% through H1 * – Developing Markets up strong double-digits – Oreo +22%, Chips Ahoy! +18%, Club Social +35% • Global Chocolate +9% through H1 * – Developing Markets up low-to-mid teens – Cadbury Dairy Milk +13%, Lacta +18%, Cadbury Flake +
Slide 11: Increased 2011 guidance with Q2 results
Increased 2011 guidance with Q2 results • Organic Net Revenue growth of at least 5% – Taking additional pricing to address climbing input costs • Operating EPS of at least $2.25 – Delivering strong operating results – Reflecting year-to-date currency benefit
Slide 12: Delivering top-tier organic revenue growth
Delivering top-tier organic revenue growth 6 Kraft Foods 6.7% 6 Kraft Foods 3.5/3.7% 6 Kraft Foods 5%+ 12 Kraft Foods 1.5% ConAgra 9.5% General Mills 8.5% Danone 6.9% Danone 6%-8% Danone 8.4% ConAgra 7.7% Hershey 6.1% PepsiCo 6%-8% Nestlé 8.3% Heinz 5.5% Coca-Cola 6.0% Nestlé 6% General Mills 8.2% N
Slide 13: Poised to improve EPS growth versus peers
Poised to improve EPS growth versus peers 1 Kraft Foods 11.4%+ 4 Kraft Foods 8.0% 9 Kraft Foods 4.7% 10 Kraft Foods 3.3% ConAgra 32.9% Hershey 15.4% Hershey 17.5% Sara Lee 19.3% General Mills 13.1% General Mills 15.6% Coca-Cola 11.2% Coca-Cola 16.7% Heinz 10.3% ConAgra 14.5% Hershey 11.0% General Mi
Slide 14: Well-positioned to deliver top-tier growth
Well-positioned to deliver top-tier growth Focus on Power Brands, Categories, Markets Drive Top-Tier Growth Reduce Costs Leverage Overheads Reinvest in Growth
Slide 15: Why now?
Why now? • Well-Positioned for Sustainable Growth • Two Distinct Portfolios Poised for Peak Performance
Slide 16: Significant differences in operating models of NA Grocery and Global Snacks
Significant differences in operating models of NA Grocery and Global Snacks North American Grocery Global Snacks Categories/Brands Regional Global Products Everyday Staples Ubiquitous, Discretionary Store Presence Center of Store Snacking Aisle, End Caps, Hot Zone Sales & Distribution Warehouse DSD,
Slide 17: Two strong portfolios with unique drivers of success
Two strong portfolios with unique drivers of success North American Grocery Global Snacks
Slide 18: North American Grocery will be a major force in the industry
North American Grocery will be a major force in the industry U.S. Beverages 17% U.S. Cheese 22% U.S. Convenient Meals 19% U.S. Grocery 22% Canada & NA Foodservice 20% $16 Billion in Revenues * Significant scale across categories — #3 in size to Nestle and PepsiCo #1 in ~80% of categories — Four $1B+
Slide 19: Well-positioned within the new reality of the U.S. food industry
Well-positioned within the new reality of the U.S. food industry * Excludes Cookies, Crackers and Snack Nuts Source: Nielsen. ’07-’09 CAGR 5.3% 1.9% Kraft Foods Categories * ’07-’09 CAGR 5.0% 0.3% Total U.S. Food & Beverage
Slide 20: North American Grocery will deliver consistent growth, significant free cash flow
North American Grocery will deliver consistent growth, significant free cash flow • Moderate growth in line with categories – Innovation and marketing excellence – Disciplined portfolio management – Grocery channel scale • Strong margins with upside opportunity – Trade spend optimization – Lean Six
Slide 21: Global Snacks will be the pre-eminent player in snacking worldwide
Global Snacks will be the pre-eminent player in snacking worldwide Chocolate 26% Gum & Candy 16% Biscuits ** 33% Beverages 16% Cheese & Grocery 9% #1 player in global snacks — #1 in Biscuits — #1 in Chocolate — #2 in Gum Strong stable of global and local icons — Eight $1B+ brands … Cadbury , Jacobs
Slide 22: Global Snacks will rank among the leading CPG players in developing markets
Global Snacks will rank among the leading CPG players in developing markets (1) Avon Percentage of Revenues from Developing Markets Colgate P&G Danone Kimberly Clark Heinz PepsiCo Coca- Cola Campbell Soup Nestlé Clorox Sara Lee Unilever Kellogg General Mills 68% 53% 50% 49% 42% 39% 35% 34% 32% 31% 2
Slide 23: Global Snacks' geographic profile is unique within consumer products
Latin America CEEMA Asia Pacific Europe 36% North America 22% Developing Markets 42% Global Snacks’ geographic profile is unique within consumer products Developing Markets 42% $32 Billion in Revenues * Well-balanced Developing Markets presence — Scale and profitable growth in key developing markets
Slide 24: Global Snacks will deliver exceptional growth
Global Snacks will deliver exceptional growth • Industry-leading growth – Global product platforms – Developing Market presence – Instant Consumption Channels – Whitespace opportunities • Leverage cost structure to drive margin gains – Volume growth and improved product mix Reinvest to support futur
Slide 25: Several important benefits from creating two independent entities
Several important benefits from creating two independent entities • Enable focus on distinct strategic priorities – Customize operating models, cultures, organizational structures • Optimize resource allocation and capital deployment – North American Grocery resources dedicated to the Grocery busine
Slide 26: What's Next
What’s Next • Continue to report as one company • Tax Rulings by early Q2 • Initial Form 10 filing during Q2 • Complete transaction no later than Dec. 31, 2012
Slide 27: Summary
Summary • Strong business momentum • Virtuous cycle at work in every region • Taking next logical step in evolution of Kraft Foods
Slide 28: Kraft Foods: make today delicious
“kraft foods ¢ 4 ee make today delicious
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation As Reported (GAAP) Impact of Divestitures Impact of Acquisitions Impact of Integration Program Impact of Currency Base Kraft Foods Organic (Non-GAAP) Impact of Acquisitions - Cadbury (1) Divestitures - Cadbury's Poland and Romania Operations (1) Impact of Currency - C
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation As Reported (GAAP) Impact of Divestitures (1) Impact of Acquisitions (2) Impact of Accounting Calendar Changes Impact of Currency Organic (Non-GAAP) As Reported (GAAP) Organic (Non-GAAP) Kraft Foods North America 12,254 $ (91) $ (117) $ - $ (92) $ 11,954 $ 3.4% 3.1% K
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation As Reported (GAAP) Impact of Divestitures Impact of Acquisitions (2) Impact of Accounting Calendar Changes Impact of Currency Organic (Non-GAAP) As Reported (GAAP) Organic (Non-GAAP) Biscuits 5,776 $ - $ - $ (99) $ (128) $ 5,549 $ 10.0% 6.9% Confectionery Chocolate 4,
Slide 32: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation As Reported (GAAP) Integration Program Costs (1) Acquisition- Related Costs (2) and Financing Fees (3) U.S. Health Care Legislation Impact on Deferred Taxes Operating (Non-GAAP) As Reported EPS Growth from Continuing Operations (GAAP) Operating EPS Growth (Non-GAAP) D
Kraft Foods — Barclays Capital Back-to-School Conference 2011 on 6ix