EX-99.2 3 d873683dex992.htm EX-99.2

EX-99.2

Mondelez International

CAGNY Conference

February 17, 2015

Exhibit 99.2

Irene Rosenfeld

Chairman and CEO 

3

Forward-looking statements

This presentation contains a number of forward-looking statements. Words, and variations of words, such as “will,” “expect,” “would,”

“plan,” “likely,” “estimate,” “believe,” “hope,” “anticipate,” “look to,” “drive,” “positioned,” “target,” “commitment,” “objective,” “outlook”

and similar expressions are intended to identify our forward-looking statements, including, but not limited to, statements about: our

future performance, including our future revenue growth, operating income growth, earnings per share, margins, interest expense,

taxes and cash flow; category growth; growth in emerging markets; focusing our portfolio; consumer demand and consumption; cost-

reduction actions; productivity and productivity savings and improvement; supply chain and overhead costs; our transformation

agenda; innovation; our investments and the results of those investments; our operating model; currency and the effect of foreign

exchange translation on our results of operations; the costs of, cost savings generated by, timing of expenditures under and

completion of our restructuring program; the cash proceeds and ownership interest to be received in and timeframe for completing

the coffee transactions; acquisitions; achievement of our strategic objectives; capital expenditures; share repurchases; dividends;

shareholder value and returns to shareholders; and our Outlook, including 2015 Organic Net Revenue growth, Adjusted Operating

Income margin, Adjusted EPS and Free Cash Flow. These forward-looking statements are subject to a number of risks and

uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those indicated in

our forward-looking statements. Such factors include, but are not limited to, risks from operating globally and in emerging markets,

changes in currency exchange rates, continued volatility of commodity and other input costs, pricing actions, weakness in economic

conditions, weakness in consumer spending, unanticipated disruptions to our business, competition, the restructuring program and

our other transformation initiatives not yielding the anticipated benefits, changes in the assumptions on which the restructuring

program is based, failing to successfully complete the coffee transactions or other acquisitions on the anticipated time frames and tax

law changes. Please also see our risk factors, as they may be amended from time to time, set forth in our filings with the SEC,

including our most recently filed Annual Report on Form 10-K. Mondelez International disclaims and does not undertake any

obligation to update or revise any forward-looking statement in this presentation, except as required by applicable law or regulation.

Well-positioned to deliver strong shareholder returns

Leveraging our unique assets

Delivering on cost-reduction

initiatives

Generating strong cash flow

4

A global snacks powerhouse …

5

Snacks

75%

Beverages

16%

$34B in net revenues in 2014

Cheese

&

Grocery

9%

Biscuits

#1

Chocolate

#1

Gum

#2

Candy

#1

Global Market Share Ranking

…

with leading brands in each snacks category…

6

7

Emerging markets

Organic Net Revenue

+7% in 2014

Significant white space

opportunities

$34B in net revenues in 2014

Emerging

Markets

38%

Developed

Markets

62%

…

and an advantaged global footprint

Why we like snacks

$1.2

trillion

global

snacking

market

1

Well-aligned with consumer trends

High margin

Expandable consumption

Grows with GDP in emerging

markets

8

1. Source: Euromonitor

Global snack category growth well-above

other food categories

Category

2011

2012

2013

2014

Biscuits

7.3%

7.4%

5.5%

5.1%

Chocolate

5.9%

6.0%

5.3%

3.7%

Gum

2.0%

0.1%

0.7%

0.4%

Candy

6.4%

6.2%

4.5%

2.9%

Total Snacks

6.1%

5.9%

4.7%

3.9%

Powdered Beverages

9.7%

11.5%

10.6%

13.1%

Coffee

12.3%

7.2%

(1.9)%

0.5%

6.8%

6.1%

3.8%

3.6%

9

Total Global Category Growth

1

1. Total Global Category Growth includes biscuits, chocolate, gum, candy, coffee, powdered beverages and cream cheese categories in key markets.  Global Category Growth based on available

Nielsen Global Data through December 2014 for measured channels in key markets where the company competes. The company has adjusted the 2014 Global Category Growth calculation to reflect

current rather than average 2013 currency rates for the hyperinflationary markets of Venezuela and Argentina in order to better represent underlying category growth for the Total Portfolio. Absent the

adjustment in the calculation, 2014 Global Category Growth would have been 4.7% for Total Snacks and 4.3% for the Total Portfolio.

Long-term strategies and targets unchanged

Organic Net Revenue Growth: 

At or Above Category Growth

Adjusted Operating Income

Growth:  High Single Digit

Adjusted EPS Growth: 

Double Digit

Long-Term Targets

10

Focus portfolio on snacks

Reduce supply chain and

overhead costs

Invest in advantaged

brands, innovation

platforms and routes to

market

In 2014, delivered strong earnings growth, margin

expansion and cash flow

11

1.  See GAAP to Non-GAAP reconciliation at the end of this presentation.

2.  Constant currency.

Organic

Net Revenue

Growth

1

+2.4%

Adjusted

OI Margin

1

12.9%

+80 bps

Adjusted

EPS

Growth

1,2

+23.4%

2013-2014

Free Cash Flow

excluding items

1

+30% vs. target

Return of

Capital to

Shareholders

$2.9 billion

Long-term strategy drives 2015 transformation agenda

focus

our

portfolio

Complete coffee JV

transactions

Integrate bolt-on

acquisitions

Improve revenue mix

reduce

costs

Deliver strong net productivity

Move Power Brands to

advantaged assets

Drive down overheads

via ZBB

invest

for

growth

Invest in Power Brands,

innovation platforms and RTM

Leverage operating model to

drive speed and scale

12

Creating the world’s leading pure-play coffee company

13

focus

our

portfolio

$3.4B

in

2013

Net

Revenue

Jacobs Douwe Egberts

$3.8B in 2014 Net Revenue

~$7B Net Revenue

1.

As provided by D.E Master Blenders 1753

1

84% of revenue from snacks after JV formed

Optimizes capital allocation to core

snacks

JV structure enables MDLZ to participate

in future coffee growth

€4B expected cash proceeds

14

focus

our

portfolio

Snacks

Beverages

Cheese &

Grocery

75%

16%

9%

84%

6%

10%

Based on 2014 Revenue

Reported

Excluding

Coffee

Kinh Do strengthens portfolio in Vietnam

Advantaged Portfolio:

Biscuits

and mooncakes leader

Local Scale:

~$175MM in sales

Growing Market:

90MM people,

50%+ under 30 years old

Distribution Platform:

Network

covers 130,000 outlets

15

focus

our

portfolio

Capture rapid growth of “free-from,”

better-for-you

snacks with Enjoy Life

U.S. allergen-free segment

growing 30%+

1

~$40MM in revenue with good

expansion potential

To be operated on a stand-alone

basis

16

focus

our

portfolio

1. Based on AC Nielsen data

Strategic decisions to improve revenue mix in 2015

17

focus

our

portfolio

~1 pp headwind to Organic Net Revenue growth in 2015

Discontinue

low-margin,

customer-

specific

product lines

Exit

low-margin

products from

spin-off

Ongoing

SKU

simplification

Power Brands and innovation platforms driving growth

18

Grow ~2x company rate

Carry significantly higher

margins

~80% of A&C support

Accounts for nearly all

incremental A&C spending

in 2015

Power

Brands

62%

Other

Brands

38%

Power Brands

$34B in net revenues in 2014

Invest

for

Growth

Driving growth by expanding innovation platforms

Created new biscuit occasion

Sold in 54 countries

Organic Net Revenue CAGR

+35% since 2011

19

Drove category expansion and

growth of core tablets

Sold in 54 countries

Offered under multiple brands

$200MM

Platform

$650MM

Platform

~13% of net revenues from innovation

Invest

for

Growth

Expanding Marvellous Creations

platform globally

20

2014

2015

& beyond

2013

2012

$40MM

Revenue

$500MM

Platform

by 2018

Invest

for

Growth

Investing in routes to market, especially traditional

trade

21

MDLZ Coverage of Traditional Trade Outlets

2015E

Increase

’15E vs. ’13

% Outlets

Covered ’15E

Increase

’15E vs. ’13

347,000

+37,000

36%

+3 pp

1,250,000

+233,000

16%

+2 pp

507,000

+24,000

23%

+1 pp

Invest

for

Growth

Leverage operating model to drive focus,

scale and speed

Consistent region-based, category-led operating model

–

Improves ability to accelerate growth platforms and best practices

–

Simplifies and standardizes processes to drive speed/reduce costs

Chief Growth Officer at center of new operating model

22

Invest

for

Growth

Long-term strategies and targets unchanged

Organic Net Revenue Growth: 

At or Above Category Growth

Adjusted Operating Income

Growth:  High Single Digit

Adjusted EPS Growth: 

Double Digit

Long-Term Targets

23

Focus portfolio on snacks

Reduce supply chain and

overhead costs

Invest in advantaged

brands, innovation

platforms and routes to

market

Daniel Myers

EVP Integrated Supply Chain

Priorities

Three Year

Financial Goals

$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 global manufacturing

platforms

•

Redesign the supply chain

network

•

Drive productivity programs to

fuel growth

•

Improve cash management

25

Supply Chain Reinvention on track

reduce

costs

Acquisitions drove supply chain complexity

Significant number of SKUs, formats and formulas

Fragmented supplier base

Sub-scale plants with low efficiency assets

1990

2000

2010

26

reduce

costs

27

Upgraded talent in 45%

of critical roles

Changed 75% of senior

leadership team

Step changed leadership talent & capabilities

reduce

costs

Global platform transformation process

28

reduce

costs

30%+ cost savings

2x output of current

North American assets

20%+ cost savings

Flexibility to produce wide

range of package sizes

20%+ cost savings

Significantly reduced

manufacturing time

Lines of the Future driving savings

Development process results in reduced engineering, installation

and start-up costs

Drives conversion cost savings through increased throughput,

less waste and lower headcount per line

29

reduce

costs

New Brownfield &

Greenfield Sites

11

5

Power Brands on

Advantaged

Assets

~15%

~25%

~70% by ’18

Advantaged Lines

Installed

40+

35

Net Revenue

per Plant

~$200MM

~$230MM

> $300MM by ’18

2012

2013 –

2015E

2016E –

2018E

30

Redesigning supply chain to deliver world-class

efficiency

reduce

costs

Support growth volume in

the Americas

Repatriate co-man volume

2 LOF on-line Q4’14;

2 additional lines in Q1’15

31

Salinas, Mexico biscuit facility now on-stream

reduce

costs

North America

(includes Salinas)

1 greenfield

12 lines

Europe

1

3 brownfields

15 lines

EEMEA

2 brownfields

1 greenfield

4 lines

Latin

America

1 brownfield

5 lines

Asia Pacific

2 brownfields

1 greenfield

7 lines

1.  Excludes Coffee and Cheese & Grocery

32

Invested $1.5B in network transformation since 2012

reduce

costs

33

Changing our network around the world

reduce

costs

Curitiba, Brazil

34

Changing our network around the world

reduce

costs

Manama, Bahrain

35

Changing our network around the world

reduce

costs

Sri City, India

36

Changing our network around the world

reduce

costs

East Suzhou, China

37

Changing our network around the world

reduce

costs

Opava, Czech Republic

38

Changing our network around the world

reduce

costs

Skarbimierz, Poland

39

Changing our network around the world

reduce

costs

Ladkrabang, Thailand

40

Changing our network around the world

reduce

costs

Bournville, UK

Integrated

Lean Six Sigma

Procurement

Transformation

Simplicity

41

Stepping up productivity delivery

reduce

costs

42

Integrated

Lean Six Sigma

2014 Key Achievements

43 sites

$300MM+ productivity

75% reduction in safety incidents

12,000+ colleagues trained

Key Future Objectives

Expand to 50 more sites

$750MM+ productivity by 2018

Integrated Lean Six Sigma delivers best-in-class

reliability and efficiency

reduce

costs

43

Procurement

Transformation

2014 Key Achievements

Spend towers in place

4%+ gross productivity delivered

Key Future Objectives

Target 5% gross productivity

–

Leverage scale

–

Drive sustainable savings

Procurement transformation driving savings

reduce

costs

44

Simplicity

2014 Key Achievements

Streamlining EU Biscuits

–

On-track for 60% reduction in complexity by 2016

Key Future Objectives

Apply learnings to EU Chocolate

–

Creates high-scale platform

–

Target 10%+ total cost reduction

Applying simplicity initiatives across categories

reduce

costs

45

1.1%

1.8%

2.5%

2.8%

2.8%+

Net Productivity as Percentage of COGS

Delivering world-class productivity levels

reduce

costs

2011

2012

2013

2014

2015E-2018E

46

Receivables

Inventory

Payables

Target $1 billion in incremental cash over three years

Focusing on cash management to fund future

investments in capital and growth

reduce

costs

•

Payment terms

rationalization

•

Frequency extension

•

Supply chain financing

•

Raw and pack

•

Finished goods

•

Infrastructure

•

Processes & technology

•

Terms compliance

•

Sales phasing

•

Term negotiations

47

Cash Conversion Cycle (in days)

Generated ~$600MM incremental

cash in 2014

–

Reduced CCC 23 days in 2 years

Further working capital opportunity

Based on balances as of year-end

On track to generate $1B incremental cash

reduce

costs

33

20

10

2012

2013

2014

Successfully executing on SCR initiative

48

Upgraded talent and core

leadership

Delivered 2.8% net productivity

in 2014

Targeting 2.8%+ net productivity

with strong project pipeline

Productivity

Generated incremental

$600

million of cash in 2014

Further working capital opportunity

Cash Management

Manufacturing Platforms

Qualified biscuit, chocolate and

gum Lines of the Future

Installing lines to drive conversion

cost savings

Network Redesign

Opened Salinas, Mexico

greenfield facility in Q4’14

Greenfield and brownfield sites

under construction

reduce

costs

Talent & Capabilities

Brian Gladden

EVP and Chief Financial Officer

Overheads as % of Net Revenue

2013

2016E

Significantly reducing overhead costs

Identify and capture sustainable cost

reductions with zero-based approach (ZBB)

Three key initiatives:

–

Indirect Costs

–

People Costs & Org Model

–

Shared Services

Savings driving margin improvement

and

fueling growth investments

reduce

costs

50

Early success with ZBB approach to indirect costs

51

1.

Information Systems

2.

Travel

3.

Facilities

4.

Contractors & Consultants

5.

Perquisites

6.

Company Vehicles

7.

Events & Sponsorships

8.

Recruitment & Development

9.

Legal Services

10.

Financial Services

11.

Outsourced Business Support

12.

Sales Support

13.

Marketing Support

~50% of overhead savings opportunity

Benchmarking best-in-class spending levels / policies

All categories over benchmark spending levels

New policies introduced during 2014

Bottoms-up budgets locked for 2015

Executive ownership for each cost package

reduce

costs

Adopted new policies for indirect spending

Opportunity

Target

Savings

Select Drivers

Travel

~45%

Reduce travel consumption by ~35%

Implement industry standard travel policies

Globally negotiate provider contracts

Information

Systems

~35%

Reduce application portfolio by ~50%

Rationalize and virtualize IT infrastructure

Consolidate voice, data service & application vendors

Contractors &

Consultants

~25%

Centralize pre-approval to curb consumption of services

Eliminate/minimize temporary services

Lever global scale for recurring third-party providers

52

reduce

costs

Streamlining how we work

53

Organization

Shared Services

Eliminate redundancies by adopting

region-based, category-led model

–

Key driver +300bps  OI margin in Europe

–

Implemented in NA in 2014

Greater centralization of certain

functions (e.g., Procurement)

Simplify and standardize processes

Focus on scalable, transactional

processes in Finance, HR, Receivables

and Payables

Leverage outsourced partner and

captive models

~50% of overhead savings opportunity

reduce

costs

2014-2018 Restructuring Program enables

$1.5B of expected incremental savings

$3.5B total P&L cost

$2B capex included in

total short-term target of

~5% of revenue

Costs

Benefits

Drives margin

expansion

Provides fuel for

growth

Indirect

Costs

Supply

Chain

People Costs

& Org Model

$1.5B

~25%

~25%

~50%

2018 Exit Run-Rate

54

reduce

costs

–

$2.5B cash

–

$1B non-cash

Targeting 15%-16% Adjusted OI margin in 2016

55

Beyond 2016,

opportunity to drive

continued margin

expansion

and

fund growth

Adjusted Operating Income Margin

1.

See GAAP to Non-GAAP reconciliation at the end of this presentation.

reduce

costs

12.1%

1

12.9%

1

~14%

15%-16%

2013

2014

2015E

2016E

2015

Outlook

–

Income

Statement

56

Target

Organic Net Revenue Growth

2%+

Estimated FX Impact on Net Revenue Growth

1

~(11)pp

Adjusted Operating Income Margin

~14%

Interest Expense

~$825MM

Effective Tax Rate

High Teens

Adjusted Earnings Per Share Growth (constant FX)

Double-Digit %

Estimated FX Impact on EPS

1

~$(0.30)

1.

Based on January 30, 2015 spot rates.

Strong cash flow generation

57

($ in billions)

Net Cash Provided by Operating Activities

excluding items and Restructuring Program

1 

$4.1

$4.3            $4.0

Capital Expenditures (including Restructuring)

(1.6)

(1.6)           (1.8)

2012-14 and 2014-18 Restructuring Programs

(0.2)

(0.2)           (1.0)

Free Cash Flow excluding items

1

$2.3

$2.5           $1.2

FY 13

FY 14

FY 15E

Free Cash Flow

Includes

~$0.5B

FX headwind

1.

See GAAP to Non-GAAP reconciliation at the end of this presentation.

Disciplined capital deployment based on returns

58

Reinvest to Drive

Top-Tier Growth

M&A

Return Capital

to Shareholders

Debt

Reduction

Focus on chocolate, biscuits, gum and candy categories

Predominantly in emerging markets

Brand support and route-to-market expansion

Supply Chain Reinvention

Overhead reductions

$7.7B share repurchase authorization through 2016

($3.1B remaining; $1B–$2B per year)

Modest dividend, increasing over time; 30% minimum payout ratio

Maintain investment grade rating with access to tier 2 CP

Preserve balance sheet flexibility

Long-term strategies and targets unchanged

Organic Net Revenue Growth: 

At or Above Category Growth

Adjusted Operating Income

Growth:  High Single Digit

Adjusted EPS Growth: 

Double Digit

Long-Term Targets

59

Focus portfolio on snacks

Reduce supply chain and

overhead costs

Invest in advantaged

brands, innovation

platforms and routes to

market

DEFINITIONS OF THE COMPANY’S NON-GAAP FINANCIAL MEASURES

The company’s non-GAAP financial measures and corresponding metrics reflect how the company evaluates its operating results currently and provide improved

comparability of operating results.  As new events or circumstances arise, these definitions could change over time:

“Organic Net Revenue” is defined as net revenues excluding the impact of acquisitions, divestitures (including businesses under sales agreements and

exits of major product lines under a sale or licensing agreement), Integration Program costs, accounting calendar changes and currency rate fluctuations.

“Adjusted Gross Profit” is defined as gross profit excluding the impacts of pension costs related to obligations transferred in the Spin-Off, the 2012-2014

Restructuring Program, the Integration Program and other acquisition integration costs and the operating results of divestitures (including businesses

under sales agreements and exits of major product lines under a sale or licensing agreement).  The company also evaluates growth in the company’s

Adjusted Gross Profit on a constant currency basis.

“Adjusted Operating Income” and “Adjusted Segment Operating Income” are defined as operating income (or segment operating income) excluding the

impacts of Spin-Off Costs, pension costs related to the obligations transferred in the Spin-Off, the 2012-2014 Restructuring Program, the 2014-2018

Restructuring Program, the Integration Program and other acquisition integration costs, the remeasurement of net monetary assets in Venezuela, the

benefit from the Cadbury acquisition-related indemnification resolution, incremental costs associated with the JDE coffee transactions, impairment

charges related to goodwill and intangible assets, gains / losses from divestitures or acquisitions, acquisition-related costs and the operating results of

divestitures (including businesses under sales agreements and exits of major product lines under a sale or licensing agreement).  The company also

evaluates growth in the company’s Adjusted Operating Income and Adjusted Segment Operating Income on a constant currency basis.

“Adjusted EPS”  is defined as diluted EPS attributable to Mondelez International from continuing operations excluding the impacts of Spin-Off Costs,

pension costs related to the obligations transferred in the Spin-Off, the 2012-2014 Restructuring Program, the 2014-2018 Restructuring Program, the

Integration Program and other acquisition integration costs, the remeasurement of net monetary assets in Venezuela, the net benefit from the Cadbury

acquisition-related indemnification resolution, the loss on debt extinguishment and related expenses, the residual tax benefit impact from the resolution

of the Starbucks arbitration, hedging gains / losses and incremental costs associated with the JDE coffee transactions, impairment charges related to

goodwill and intangible assets, gains / losses from divestitures or acquisitions, acquisition-related costs and net earnings from divestitures (including

businesses under sales agreements and exits of major product lines under a sale or licensing agreement), and including an interest expense adjustment

related to the Spin-Off  transaction.  The company also evaluates growth in the company’s Adjusted EPS on a constant currency basis. 

“Free Cash Flow excluding items” is defined as Free Cash Flow (net cash provided by operating activities less capital expenditures) excluding taxes paid

on the Starbucks arbitration award and cash payments associated with accrued interest and other related fees due to the company’s completion of a

$1.6 billion cash tender offer  on February 6, 2014 and a $3.4 billion cash tender offer on December 18, 2013 for some of its outstanding high-coupon

long-term debt.

GAAP to Non-GAAP Reconciliation

Net Revenues to Organic Net Revenues

International

For the Twelve Months Ended December 31, 2014

Reported (GAAP)

34,244

$      

Divestitures

-

Acquisitions

(14)

Currency

1,806

Organic (Non-GAAP)

36,036

$      

For the Twelve Months Ended December 31, 2013

Reported (GAAP)

35,299

$      

Divestitures

(70)

Accounting calendar change

(38)

Organic (Non-GAAP)

35,191

$      

% Change

Reported (GAAP)

(3.0)%

Divestitures

0.2 pp

Acquisitions

-

Accounting calendar change

0.1

Currency

5.1

Organic (Non-GAAP)

2.4

%

(in millions of U.S. dollars)  (Unaudited)

Mondelez

GAAP to Non-GAAP Reconciliation

63

Net

Revenues

Operating

Income

Operating

Income 

margin

Net

Revenues

Operating

Income

Operating

Income 

margin

Reported (GAAP)

34,244

$    

3,242

$      

9.5%

35,299

$    

3,971

$      

11.2%

Integration Program and other acquisition integration costs

-

(4)

-

220

Spin-Off Costs

-

35

-

62

2012-2014 Restructuring Program

-

459

-

330

Acquisition-related costs

-

2

-

2

Net Benefit from Indemnification Resolution

-

-

-

(336)

Remeasurement of net monetary assets in Venezuela

-

167

-

54

Gains on acquisition and divestitures, net

-

-

-

(30)

Divestitures

-

-

(70)

(6)

2014-2018 Restructuring Program

-

381

-

-

Costs associated with the JDE coffee transactions

-

77

-

-

Intangible asset impairment

-

57

-

-

Adjusted (Non-GAAP)

34,244

$    

4,416

$      

12.9%

35,229

$    

4,267

$      

12.1%

For the Twelve Months Ended

December 31, 2014

For the Twelve Months Ended

December 31, 2013

Operating Income To Adjusted Operating Income

(in millions of U.S. dollars) (Unaudited)

Diluted EPS

% Growth

2013 Diluted EPS Attributable to Mondelez International (GAAP)

2.19

$          

Discontinued Operations

0.90

2013 Diluted EPS Attributable to Mondelez International from

Continuing Operations

1.29

Integration Program and other acquisition integration costs

0.10

Spin-Off Costs

0.02

2012-2014 Restructuring Program costs

0.14

Net benefit from indemnification resolution

(0.20)

Loss on debt extinguishment and related expenses

0.22

Residual tax impact associated with starbucks arbitration resolution

(0.02)

Remeasurement of net monetary assets in Venezuela

0.03

Gains on acquisition and divestitures, net

(0.04)

2013 Adjusted EPS (Non-GAAP)

1.54

Increase in operations

0.25

Gain on sale of property in 2013

(0.03)

VAT related benefits

0.04

Unrealized gains/(losses) on hedging activities

(0.07)

Lower interest and other expense, net

0.08

Changes in shares outstanding

0.08

Changes in income taxes

0.01

2014 Adjusted EPS (Constant Currency) (Non-GAAP)

1.90

23.4%

Unfavorable foreign currency - translation

(0.14)

2014 Adjusted EPS (Non-GAAP)

1.76

14.3%

Spin-Off Costs

(0.01)

2012-2014 Restructuring Program costs

(0.21)

Remeasurement of net monetary assets in Venezuela

(0.09)

Loss on debt extinguishment and related expenses

(0.18)

Intangible asset impairment charges

(0.02)

2014-2018 Restructuring Program costs

(0.16)

Income / (costs) associated with the JDE coffee transactions

0.19

2014 Diluted EPS Attributable to Mondelez International (GAAP)

1.28

$          

(41.6)%

Diluted EPS to Adjusted EPS

(Unaudited)

For the Twelve Months

Ended December 31,

GAAP to Non-GAAP Reconciliation

GAAP to Non-GAAP Reconciliation

2013

2014

Net Cash Provided by Operating Activities (GAAP)

6,410

$   

3,562

$  

Capital Expenditures

(1,622)

(1,642)

Free Cash Flow (Non-GAAP)

4,788

$   

1,920

$  

Items

Cash

impact

of

the

resolution

of

the

Starbucks

arbitration

(1)

(2,616)

498

Cash

payments

for

accrued

interest

and

other

related

fees

associated

with

debt

tendered

as

of

December

18,

2013

(2)

81

-

Cash

payments

for

accrued

interest

and

other

related

fees

associated

with

debt

tendered

as

of

February

6,

2014

(3)

-

47

Free Cash Flow excluding items (Non-GAAP)

2,253

$   

2,465

$  

(1)

(2)

(3)

On December 18, 2013, the company completed a $3.4 billion cash tender offer for some of its outstanding high coupon long-term debt.  The amount

above reflects the cash payments associated with accrued interest and other related fees.

On February 6, 2014, the company completed a $1.6 billion cash tender offer for some of its outstanding high coupon long-term debt.  The amount

above reflects the cash payments associated with accrued interest and other related fees.

Net Cash Provided by Operating Activities

to Free Cash Flow excluding items

(in millions of U.S. dollars)  (Unaudited)

For the year ended

December 31,

During the fourth quarter of 2013, the dispute with Starbucks Coffee Company was resolved.  The amount for 2013 noted above reflects the cash

received

from

Starbucks

of

$2,764

million

net

of

$148

million

attorney's

fees

paid.

The

amount

noted

above

for

2014

reflects

the

taxes

paid

associated

with the net cash received and additional attorney's fees paid in 2014.

66

GAAP to Non-GAAP Reconciliation

2013

2014

Net Cash Provided by Operating Activities (GAAP)

6,410

$   

3,562

$  

Items

Cash impact of the resolution of the Starbucks arbitration

(1)

(2,616)

498

Cash payments for accrued interest  and other related fees associated with debt tendered as of December 18, 2013

(2)

81

-

Cash payments for accrued interest  and other related fees associated with debt tendered as of February 6, 2014

(3)

-

47

Restructuring Programs

Cash payments for the 2012-2014 and 2014-2018 Restructuring Programs related to expenses

221

191

Net Cash Provided by Operating Activities excluding items and Restructuring Programs (Non-GAAP)

4,096

$   

4,298

$  

(1)

(2)

(3)

On December 18, 2013, the company completed a $3.4 billion cash tender offer for some of its outstanding high coupon long-term debt.  The amount above reflects the

On February 6, 2014, the company completed a $1.6 billion cash tender offer for some of its outstanding high coupon long-term debt.  The amount above reflects the

Net Cash Provided by Operating Activities

(in millions of U.S. dollars)  (Unaudited)

For the year ended

December 31,

During the fourth quarter of 2013, the dispute with Starbucks Coffee Company was resolved.  The amount for 2013 noted above reflects the cash received from

Starbucks of $2,764 million net of $148 million attorney's fees paid. The taxes associated with net cash received was paid in 2014.

cash payments associated with accrued interest and other related fees.

cash payments associated with accrued interest and other related fees.