Mondelez International, Inc. · NASDAQ:MDLZ

Mondelez International — Q2 2023 Earnings Presentation

40 slides from Mondelez International's earnings presentation, Jul 27, 2023

  1. Slide 1: Q2 2023 Results

    Mondeléz, International SNACKING MADE RIGHT Q2 2023 RESULTS July 27, 2023

  2. Slide 2: Forward-Looking Statements and 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: Compounding Top- and Bottom-Line Growth in H1

    COMPOUNDING TOP- AND BOTTOM-LINE GROWTH IN H1 1. Broad-based top-line growth driven by effective pricing and strong volume/mix results despite expected disruption in Europe 2. European pricing complete, negotiations with customers closed in line with expectations 3. Continue to drive robust consumer

  5. Slide 5: Continued Momentum Across the Entire Business

    CONTINUED MOMENTUM ACROSS THE ENTIRE BUSINESS +$2.7B +$1.1B +$0.6B vs PY vs PY vs PY +26.3% +23.2% +19.7% +18.9% +18.1% +17.7% +16.9% +15.8% +12.3% +12.3% +12.5% +12.2% Price Price Vol/Mix Price Vol/Mix 2022 Q2'23 H1'23 2022 Q2'23 H1'23 2022 Q2'23 H1'23 2022 Q2'23 H1'23 Organic Net Adjusted Gross A&

  6. Slide 6: Significant Progress Against Strategy Strengthening Our Brands

    SIGNIFICANT PROGRESS AGAINST STRATEGY STRENGTHENING OUR BRANDS Lacta extending filled tablet range Clif Bar top- to broaden and bottom-line chocolate First Cadbury acceleration adult treat under leadership Oreo Airy Cake 100 calories launched in China 6

  7. Slide 7: Cakes & Pastries Strategy Progressing Well on Key Growth Drivers

    CAKES & PASTRIES STRATEGY PROGRESSING WELL ON OUR KEY GROWTH DRIVERS Drive our core brands Accelerate Give & Go Drive 7Days in EU into Cakes distribution and innovation & expand globally #1 +0.5pp Packaged YTD Share1 Croissant in Europe1 3.7% Share of Snack Cakes in the US1 7 1 Share data based on a

  8. Slide 8: Driving Digital Commerce and RGM Capabilities

    DRIVING DIGITAL COMMERCE AND RGM CAPABILITIES Digital Commerce remains a strong Elevated RGM to drive profitable growth long-term growth channel • #1 market share position in digital • RGM strategy & actions drive value realization commerce in top 5 markets1 • Dedicated RGM leadership and teams • Ov

  9. Slide 9: ESG Goals to Have a Bigger, Better Impact - Faster

    ESG GOALS1 TO HAVE A BIGGER, BETTER IMPACT - FASTER Ingredients Climate Packaging Social Impact 100% 10% 100% 100% By 2025, 100% of the cocoa By 2025, reduce end-to-end By 2025, 100% of packaging By 2025, Child Labor Monitoring volume for our chocolate CO2e emissions by 10%, reduce designed to be r

  10. Slide 10: Agenda

    AGENDA 1 Business & Strategy Update – Van de Put 2 Financial Outcomes – Zaramella 3 2023 Outlook – Zaramella 4 Q&A – Van de Put & Zaramella 10

  11. Slide 11: 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 +24.3% +23.3%2 +22.0% +17.7% +15.8% +13.6% +12.3% +11.2% +7.2% +7.0% +4.3% +2.7% FY19-21 FY22 Q2'23 H1'23 FY19-21 FY2

  12. Slide 12: Chocolate, Biscuit & Baked Snacks Top-Line Trends Remain Strong

    CHOCOLATE, BISCUIT & BAKED SNACKS TOP-LINE TRENDS REMAIN STRONG 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 +30.2% +32.6% +25.1% +15.3% +16.4% +13.9% +13.7% +11.7% +10.5% +

  13. Slide 13: Share Performance Improving

    SHARE PERFORMANCE IMPROVING Category Growth1 Snacks Revenue Gaining/Holding Share1 YTD’23 YTD’23 ~70% +25.8% ~40% +13.7% +13.7% +15.0% 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

  14. Slide 14: Strong Profit Dollar Increase and Brand Reinvestment

    STRONG PROFIT DOLLAR INCREASE AND BRAND REINVESTMENT Adjusted Gross Profit, Advertising & Consumer Promotions, Overheads and Operating Income Growth1 Q2 H1’23 +DD +DD +DD +DD +18.9% +19.7% +23.2% +26.3% 14 1 At cst fx

  15. Slide 15: Strong Quarter Across All Regions

    STRONG QUARTER ACROSS ALL REGIONS MDLZ EU NA AMEA LA 1 Q2 +15.8% +13.1% +12.4% +13.2% +37.7% Organic Net Vol/Mix flat -4.5pp +2.0pp +3.3pp +2.6pp Revenue Growth H1 +17.7% +16.2% +14.8% +13.5% +38.4% Vol/Mix +1.7pp -1.5pp +2.1pp +4.6pp +5.0pp Adjusted Q2 +26.3% +24.0% +29.5% +4.2% +64.6% Operating In

  16. Slide 16: Operating Gains Driving Strong Real Dollar Profit Growth

    OPERATING GAINS DRIVING STRONG REAL DOLLAR PROFIT GROWTH 2023 H1 EPS vs PY Adjusted, Fav/(Unfav) +19.9% (Cst Fx) +13.0% (Rpt Fx) H1‘22 Operating Shares Coffee JVs Interest/ Taxes H1’23 Forex H1’23 Adjusted Gains Other Adj. EPS Adjusted EPS @ Cst FX EPS Q2 $0.65 $0.17 $0.01 $0.01 $(0.02) $(0.03) $0.7

  17. Slide 17: Continuing to Prioritize Value Enhancing Capital Deployment

    CONTINUING TO PRIORITIZE VALUE ENHANCING CAPITAL DEPLOYMENT Free  $1.5 billion H1; down -$0.1 billion vs PY Cash Flow  CCC -34 days Share  $0.6 billion H1, $0.2 billion Q2 Repurchases  $68.16 average price  $1.1 billion H1, $0.5 billion Q2 Dividends  Announcing +10% dividend per share increase

  18. Slide 18: Agenda

    AGENDA 1 Business & Strategy Update – Van de Put 2 Financial Outcomes – Zaramella 3 2023 Outlook – Zaramella 4 Q&A – Van de Put & Zaramella 18

  19. Slide 19: 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) FY23 12%+ 12%+ 10%+ 10%+ $3.3 incl. -$0.4B HSD HSD $3+ coffee tax 5-7% 3-5% LT Algo 2023E 2023E 2023E LT Algo 2023E 2023E 2023E LT Algo 2023E original Q1 ER revise

  20. Slide 20: Q&A

    Q&A Dirk Van de Put Luca Zaramella Chairman & CEO CFO 20

  21. Slide 21: Mondelez International

    Mondelez, International SNACKING MADE RIGHT

  22. Slide 22: 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 July 21st Rate Impact vs 2022 Argentine Peso 130.70 / $US 269.42 / $US Australian Dollar US$0.69 / AUD US$0.67 / AUD Brazilian Real 5.16 / $US 4.77/ $US Canadian Dollar US$0.77 / CAD US$0.76 / CAD Chinese Yuan 6

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: 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 June 30, 2023 Reported (GAAP) $ 1,228 $ 1,609 $ 2,926 $ 2,744 $ 8,507 Acquisitions (137) - - (240)

  26. Slide 26: 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

  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 Three Months Ended June 30, 2023 Gross Operating Net Gross Profit Operating Income Revenues Profit Margin Income Margin Reported (GAAP) $ 8,507 $

  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 Six Months Ended June 30, 2023 Gross Operating Net Gross Profit Operating Income Revenues Profit Margin Income Margin Reported (GAAP) $ 17,673 $

  29. Slide 29: 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 June 30, 2023 Reported (GAAP) $ 721 No items excluded - Adjusted (Non-GAAP) 721 Currency 18

  30. Slide 30: 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 3 Year For the Twelve Months Ended December 31, 2019 2020 2021 CAGR Reported (GAAP) $ 25,868 $ 26,581 $ 28,720 Divestitures (91) (32) (78) Acquisitions (88) (445) (25

  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) 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

  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) Emerging Developed Mondelēz Markets Markets International For the Three Months Ended June 30, 2023 Reported (GAAP) $ 3,306 $ 5,201 $ 8,507 Acquisitions (137) (240) (377) Currency 277 6 283

  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 Emerging Markets ex. Markets Argentina Argentina For the Three Months Ended June 30, 2023 Reported (GAAP) $ 3,306 $ 151 $ 3,155 Acquisition (137) - (137) Currency 277 145 132 Organ

  34. Slide 34: 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)

  35. Slide 35: 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 June 30, 2023 Reported (GAAP) $ 4,3

  36. Slide 36: GAAP to Non-GAAP Reconciliations

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

  37. Slide 37: GAAP to Non-GAAP Reconciliations

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

  38. Slide 38: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Diluted EPS to Adjusted EPS (Unaudited) For the Three Months Ended June 30, 2023 2022 $ Change % Change Diluted EPS attributable to Mondelēz International (GAAP) $ 0.69 $ 0.54 $ 0.15 27.8 % Simplify to Grow Program 0.01 0.01 - Mark-to-market (gains)/losses from deriv

  39. Slide 39: GAAP to Non-GAAP Reconciliations

    GAAP TO NON-GAAP RECONCILIATIONS Diluted EPS to Adjusted EPS (Unaudited) For the Six Months Ended June 30, 2023 2022 $ Change % Change Diluted EPS attributable to Mondelēz International (GAAP) $ 2.20 $ 1.15 $ 1.05 91.3 % Simplify to Grow Program 0.03 0.03 - Intangible asset impairment charges - 0.04

  40. Slide 40: 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 Six Months Ended June 30, 2023 2022 $ Change Net Cash Provided by Operating Activities (GAAP) $ 1,973 $ 1,967 $ 6 Capital Expenditures

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