EX-99.2 3 d37217dex992.htm EX-99.2

EX-99.2

Barclays Global Consumer

Staples Conference

September 10, 2015

Exhibit 99.2

Brian Gladden

EVP and Chief Financial Officer

Forward-looking statements

3

This

presentation

contains

a

number

of

forward-looking

statements.

Words,

and

variations

of

words,

such

as

“will,”

“expect,”

“intend,”

“believe,”

“estimate,”

“anticipate,”

“plan,”

“deliver,”

“drive,”

“prospect,”

“potential,”

“opportunity,”

“target,”

“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,

earnings

per

share,

operating

income,

margins

and

cash

flow;

our

supply

chain

transformation;

overheads

and

overhead

cost

reduction

initiatives;

productivity;

shared

services

capability;

our

investments

and

the

results

of

those

investments;

A&C

spending;

market

growth

and

changing

consumption

patterns;

innovation;

opportunities

for

growth

in

our

portfolio;

our

well-being

portfolio

and

goals;

growth

in

and

revenues

from

e-commerce;

execution

of

our

strategy;

prospects

for

the

coffee

transaction

and

acquisitions;

share

repurchases;

shareholder

returns;

and

our

Outlook,

including

2015

Organic

Net

Revenue

growth

and

2015

and

2016

Adjusted

Operating

Income

margin.

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,

controls

and

restrictions;

continued

volatility

of

commodity

and

other

input

costs;

weakness

in

economic

conditions;

weakness

in

consumer

spending

or

demand;

changes

in

consumer

preferences;

pricing

actions;

unanticipated

disruptions

to

our

business;

competition;

our

global

workforce;

the

restructuring

program

and

our

other

transformation

initiatives

not

yielding

the

anticipated

benefits;

changes

in

the

assumptions

on

which

the

restructuring

program

is

based;

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.

Mondel

z

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.

Strategies driving transformation agenda

4

Reduce Costs

Supply Chain Reinvention

Lower Overheads

Margin Expansion

& Investment Fuel

Invest for Growth

Step-Up A&C Investments

Fill In Consumer Spaces

Sustainable Growth

Over the Long Term

Focus Portfolio

Coffee Transaction

Bolt-On Acquisitions

~85% of Revenue

from Snacks

Driving sustainable top-

and bottom-line

growth to deliver top-tier shareholder returns

5

Gain / hold market share

Allocate resources to

highest

return

opportunities

Accelerate expansion of

Power Brands &

innovation platforms

across key markets

Expand

into

White

Spaces

Invest in Power Brands,

innovation platforms, sales

capabilities and routes to

market

Leverage

operating

model

to drive speed & scale

Leverage consumer and

customer insights

Deliver strong net

productivity

Produce Power Brands

on advantaged assets

Build best-in-class

manufacturing footprint

Leverage Zero-Based

Budgeting tools

Migrate toward shared

services

Simplify organization

model

Top-Tier

Shareholder

Returns

Drive

Revenue

Growth

Expand

Gross

Margin

Reduce

Overheads

Invest for

Growth

Long-term targets unchanged

6

Long-Term Targets

Adjusted EPS Growth: 

Double Digit

1

Organic Net Revenue Growth: 

At or Above Category Growth

Adjusted Operating Income Growth: 

High Single Digit

1

1. Constant currency.

Strong total shareholder returns

Source:  FactSet

1.

Effective date of the spin-off of the North America grocery business.

2.

S&P 500 Consumer Stapes Sector Index.

7

-2.1%

-0.8%

17.5%

S&P

500

MDLZ

S&P 500

Consumer

Staples

2

YTD August 31, 2015

46.4%

41.7%

59.5%

S&P

500

S&P 500

Consumer

Staples

2

MDLZ

Since

Oct.

1,

2012

1

Returned $9.7 billion since the spin

8

2.7

4.6

6.8

0.5

1.5

2.4

2.9

2012

2013

2014

YTD June 2015

$0.5

$4.2

$7.0

$9.7

Cumulative Cash Returned to Shareholders

($ billions)

1

1.

Since October 1, 2012, the effective date of the spin-off of North American grocery business.

Cash dividends

Share repurchases

$6.9B share

buyback

authorization

remaining

through 2018

Reaffirming 2015 growth outlook

9

1.

Global category growth based on available Nielsen Global Data through June 2015 for measured channels in key markets where the company competes.  The company has adjusted the global category

growth calculation to reflect current rather than average H1 2014 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, for H1 2015 global category growth would have been 4.8% for Total Snacks.  Snacks categories include the combined biscuits, chocolate, gum and

candy categories.

2.

Pro forma adjusted items include the coffee business transaction.  See Form 8-K dated July 30, 2015, and GAAP to Non-GAAP reconciliations at the end of this presentation.

PF 2014

2

PF 2015E

2

3%+

Organic Net Revenue Growth

$30.5B

Snacks

Categories

Growth

1

2014

H1 2015

3.9%

4.5%

Reaffirming margin targets

10

Adjusted Operating Income Margin

1.

Pro forma adjusted items include:  (a) coffee business transaction and (b) reclassification of joint venture equity earnings from operating income to equity method investment

earnings.  See Form 8-K dated July 30, 2015 and the GAAP to Non-GAAP reconciliations at the end of this presentation.

2.

Excludes stranded cost impact of (20) to (30) basis points.

12.0%

PF 2013

PF 2014

PF 2015E

2016E

11.0%

1

1

1

~14%

2

15%-16%

Beyond 2016,

opportunity to drive

continued margin

expansion and

fund growth

Delivering world-class productivity levels

1.8%

2.5%

2.8%

2012

2013

2014

2015E-2018E

11

Note:  Net productivity levels for 2011 through H1 2015 include results from the company’s global coffee business that was combined with D.E Master Blenders 1753 on

July

2,

2015,

to

create

Jacobs

Douwe

Egberts.

3%+

3.2% in

H1 2015

Net Productivity as Percent of Cost of Goods Sold

Building a best-in-class plant footprint

Closed

/

Sold

Streamlined

Greenfields /

Brownfields

Completed

19

31

1

JDE

12

-

-

In

Process

-

16

13

Total

31

47

14

12

Manufacturing Network Transformation Activities

January 2012 to August 2015

~40 “Lines of the Future” by year-end

13

Biscuits

Chocolate

Gum

Powdered

Beverages

17

5

2

2

~40 on-stream by year-end 2015

Lines

On-Stream

1

Locations

26

1.

As of August 31, 2015.

30%+ cost savings / ton

2x output of current

North American assets

20%+ cost savings / ton

Flexibility to produce wide

range of package sizes

20%+ cost savings / ton

Significantly reduced

manufacturing time

Lines of the Future driving savings

14

Significantly reducing overhead costs

Overheads as % of Net Revenue

PF 2013

2016E

Identify and capture sustainable cost

reductions with zero-based budgeting

approach (ZBB)

Three key initiatives:

Indirect costs

People costs and organizational model

Shared services

Further reductions targeted beyond

2016

Savings driving margin improvement

and

fueling growth investments

15

Indirect cost progress ahead of plans &

increasing/accelerating targets

Cost Package

2015

Status

Targeted

Reduction

Update

1.

Travel

+

50%+

Accelerate progress & reset targets

2.

Facilities

50%+

Expanded scope & reset targets

3.

Contractors & Consultants

+

70%+

Hit ‘18 target in ‘15 … reset target

4.

Perquisite Vehicles

40%

On track … reset policies

5.

Company Vehicles

+

40%

Consolidated program & 1 vendor

6.

Business Events

+

50%+

Accelerate progress & reset targets

7.

Legal Services

30%

On track … targeting best-in-class level

8.

Financial Services

30%

On track … targeting best-in-class level

9.

Information

Systems

+

40%

Exceeding ’15 targets … accelerate

10.

Learning

& Development

+

30%

Exceeding ‘15 targets … accelerate

11.

Sales Support

tbd

tbd

New package … set targets for ’16

12.

Marketing

Support

tbd

tbd

New package … set targets for ‘16

16

Global Shared Services –

driving process

effectiveness and scale benefits

Finance

40%+ of activities

in scope

~50% average cost

savings for in-scope

~150 separate process

migrations over 3 years

17

FP&A, accounting, overhead management

and supply chain finance

~50%

Function

% Activities

in Scope

Selected Key Activities

Human Resources

Payroll and HR administrative support

~40%

Order Management

Order-to-cash and collections

~40%

Sourcing

Indirect spend purchases and accounts

payable

~30%

Sales

Sales back office and operational support

~20%

Cost reduction programs driving margin

expansion and fueling growth

18

Delivering supply chain and overhead cost savings faster

than expected, while also finding new opportunities

Cost savings fueling both margin expansion and

increased growth investments

On track to deliver 2015 and 2016 Adjusted Operating

Income margin targets

Mark Clouse

EVP and Chief Growth Officer

Growth plan built on strong foundation of

world’s favorite snacks brands …

20

~70% of H1 2015 Revenue

1

1.

Excludes coffee.

… global category leadership

North

America

Europe

Global

Latin 

America

Asia

Pacific

Eastern

Europe

Middle East

& Africa

--

Source:  Euromonitor

2014

Biscuits

Chocolate

Gum

Candy

21

… and an advantaged geographic

footprint

Developed

Markets

61%

Emerging

Markets

39%

Pro Forma 2014 Revenue of $30.5B

(excluding coffee)

22

Executing two strategies to drive

long-term growth

23

Accelerate

Base

Business

Growth

Fill In Key

Consumer

Spaces

Stepping up investments in base

business in proven areas

24

Increase A&C investments to optimal levels

Shift A&C to high ROI digital and social

media outlets

Leverage Price Pack Architecture

Launch proven platforms into White Spaces

Accelerate

Base

Business

Growth

Increasing A&C behind Power Brands to drive

highest returns and improve share of voice

25

A&C as % Net Revenue

2014

2018E

Emerging

Markets

Developed

Markets

Emerging

Markets

Developed

Markets

8%+

10%+

SOV / SOM

1

in Key Markets

Increasing Total A&C Support

Especially in Emerging Markets

Improving Share of Voice

in Key Markets

2015E

2018E

Biscuits

Chocolate

Gum

Candy

1.

SOV / SOM = Share of Voice divided by Share of Market. 

Source:  SMG/Carat.

Power

Brands %

80%+

~90%

Shifting support to high ROI digital and

social media outlets

26

Digital as % Total Media Spend

2014

2018E

15%+

~30%

Digital and social media

ROI ~2x traditional media

Leveraging Price Pack Architecture to

increase penetration and expand reach

Maximize Platforms to

Expand Occasions

Grow Category and Share

with Family Packs

Increase Accessibility

with Small Formats at

Low Price Points

Traditional Trade

Single Serve (e.g., 6 piece)

Gifting Tin

Bite-size bag

Multi-pack

Minis To-Go Cup

Minis Family Size

Regular Family Size

27

Opportunities to accelerate innovation

expansion globally

28

USA

Canada

UK

Germany

Australia

Brazil

Russia

India

China

Selected Biscuit Platform Opportunities

Chocobakery

Global roll out of chocolate tablet innovation is

a great example of proven platform expansion

29

$0.5B+ revenue platform today; targeting

$1.0B+ revenue platform by 2020

Already present in 57 countries

Margin accretive to chocolate portfolio

Aligned playbook and global menu cards

for all launches

Leveraging advantaged assets

Category model driving faster deployment

Opportunities to enter category White

Spaces

30

Biscuits

Gum & Candy

Chocolate

Selected Category White Space Opportunities

Brazil

Russia

India

China

Egypt

Indonesia

Mexico

Nigeria

Saudi

Arabia

South

Africa

Turkey

Vietnam

Macro trends shaping snacking global

behavior & creating growth opportunities

31

Fill In Key

Consumer

Spaces

Emphasis on

Well-Being

Time

Compression

Shift of Income

Distribution

32

Well-Being is the biggest opportunity to

accelerate growth

Drive Well-Being  focus through

existing portfolio and innovation

Simplify

and enhance

existing portfolio

Focus innovation

on consumer

Well-Being needs

Targeting 50%

of revenue in

Well-Being snacks

by 2020

Simplify and enhance existing portfolio

33

1.  Goals and results versus 2012 baseline.

Three ingredients:  whole

wheat, Canola oil and natural

flavors

No artificial colors

Sodium <170 mg/serving

today (11% reduction)

100% whole grains

Thinner, crispier formats

New simplified graphics

with front-of-pack labeling

2020 Goals

1

Reduce saturated fat 10%

Reduce sodium 10%

Increase whole grains 25%

Simplify ingredients

Remove artificial colors and

flavors

Execute front-of-pack calorie

labeling globally

Greater focus on Well-Being innovation

already impacting portfolio

~$40MM of revenue

1

Acquired in 2015, developing

global expansion plans

34

1.

2014 revenue.

2.

2014

revenue

for

childrens’

wholesome

platform,

which

includes

Barni,

Ourson

and

Teddy

Grahams.

~$300MM of revenue

2

Playful treat, made with only

wholesome, simple ingredients

$600MM+ of revenue

1

Combines convenience and taste

with proprietary energy bundle

35

E-commerce is changing the way

consumers are buying our brands

Develop and build an industry-leading

e-commerce snacks business

Optimize existing

platforms in

e-commerce

Build advantaged

next-generation

portfolio

$1B revenue

opportunity by 2020

Buy Now enabled media in 25

countries and with 130 retailers

Global e-commerce team

established

Forming strong partnerships with

global e-commerce retail leaders

Optimize existing platforms in e-commerce

36

Build advantaged next-generation

portfolio

Holiday Gifting

Specialty Brand Expansion

Custom Experiences /

Personalization

Licensed Products

37

38

Broadening portfolio to meet growing

consumer cohorts

Expand portfolio to include more

Aspirant and Premium offerings

Access to Power

Brands for Aspirants

Increase focus on

Premium segments

Strengthen Category

Growth and Shares

Expand portfolio to include more

Aspirant and Premium offerings

Aspirants

Middle Class

Upper Middle Class

Affluent

% of

2020

Households

1

~20%

25%+

~20%

~5%

Focus

1.

Reflects

percentage

of

global

households.

The

balance

of

remaining

households

typically

do

not

buy

branded

products

Source:

Euromonitor;

Company

Analysis

39

Affordable

Formats of Power

Brands

Strengthen

Premium and More

Special Brands

Already executing strategies to drive

strong Organic Net Revenue growth

40

2015E

Long-Term

Growth Target

Fill In Key

Consumer Spaces

3%+

At or above

category growth

Accelerate Base

Business Growth

Driving sustainable top-

and bottom-line

growth to deliver top-tier shareholder returns

41

Top-Tier

Shareholder

Returns

Drive

Revenue

Growth

Expand

Gross

Margin

Reduce

Overheads

Invest for

Growth

42

*

*

*

*

GAAP to Non-GAAP Reconciliations

43

Net

Revenues

Gross Profit

Gross Profit

Margin

Operating

Income

Operating

Income 

Margin

Reported (GAAP)

15,423

$  

6,007

$   

38.9%

1,652

$   

10.7%

2012-2014 Restructuring Program costs

-

-

(3)

2014-2018 Restructuring Program costs

-

12

406

Integration Program and other acquisition integration costs

-

-

1

Remeasurement of net monetary assets in Venezuela

-

-

11

Costs associated with the coffee business transaction

-

3

185

Operating income from divestiture

-

-

(5)

Gain on divestiture

-

-

(13)

Acquisition-related costs

-

-

2

Rounding

-

-

1

Adjusted (Non-GAAP)

15,423

$  

6,022

$   

39.0%

2,237

$   

14.5%

Reclassification of coffee business

(1,627)

(673)

(342)

Reclassification of equity method investment earnings

-

-

(51)

Pro Forma Adjusted (Non-GAAP)

13,796

$  

5,349

$   

38.8%

1,844

$   

13.4%

Currency

715

271

Pro Forma Adjusted @ Constant FX (Non-GAAP)

6,064

$   

2,115

$   

Net

Revenues

Gross Profit

Gross Profit

Margin

Operating

Income

Operating

Income 

Margin

Reported (GAAP)

17,077

$  

6,309

$   

36.9%

1,800

$   

10.5%

Spin-Off Costs

-

-

19

2012-2014 Restructuring Program costs

-

6

139

2014-2018 Restructuring Program costs

-

-

10

Integration Program and other acquisition integration costs

-

-

(2)

Remeasurement of net monetary assets in Venezuela

-

-

142

Costs associated with the coffee business transaction

-

-

5

Operating income from divestiture

-

-

(3)

Adjusted (Non-GAAP)

17,077

$  

6,315

$   

37.0%

2,110

$   

12.4%

Reclassification of coffee business

(1,858)

(750)

(310)

Reclassification of equity method investment earnings

-

-

(57)

Pro Forma Adjusted (Non-GAAP)

15,219

$  

5,565

$   

36.6%

1,743

$   

11.5%

Gross Profit

Operating

Income

% Change -

Reported (GAAP)

(4.8)%

(8.2)%

% Change -

Adjusted (Non-GAAP)

(4.6)%

6.0 %

% Change -

Pro Forma Adjusted (Non-GAAP)

(3.9)%

5.8 %

% Change -

Pro Forma Adjusted @ Constant FX (Non-GAAP)

9.0 %

21.3 %

For the Six Months Ended June 30, 2014

Gross Profit/Operating Income to

Pro Forma Adjusted Gross Profit/Operating Income

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

For the Six Months Ended June 30, 2015

GAAP to Non-GAAP Reconciliations

44

Net Revenues

Operating

Income

Operating

Income  Margin

Reported (GAAP)

34,244

$      

3,242

$        

9.5%

Spin-Off Costs

-

35

2012-2014 Restructuring Program costs

-

459

2014-2018 Restructuring Program costs

-

381

Integration Program and other acquisition integration costs

-

(4)

Remeasurement of net monetary assets in Venezuela

-

167

Costs associated with the coffee business transaction

-

77

Operating income from divestiture

-

(8)

Acquisition-related costs

-

2

Intangible asset impairment charges

-

57

Adjusted (Non-GAAP)

34,244

$      

4,408

$        

12.9%

Reclassification of coffee business

(3,776)

(646)

Reclassification of equity method investment earnings

-

(104)

Pro Forma Adjusted (Non-GAAP)

30,468

$      

3,658

$        

12.0%

Net Revenues

Operating

Income

Operating

Income  Margin

Reported (GAAP)

35,299

$      

3,971

$        

11.2%

Spin-Off Costs

-

62

2012-2014 Restructuring Program costs

-

330

Integration Program and other acquisition integration costs

-

220

Benefit from indemnification resolution

-

(336)

Remeasurement of net monetary assets in Venezuela

-

54

Gains on acquisition and divestitures, net

-

(30)

Impact from divestitures

(70)

(12)

Acquisition-related costs

-

2

Adjusted (Non-GAAP)

35,229

$      

4,261

$        

12.1%

Reclassification of coffee business

(3,904)

(700)

Reclassification of equity method investment earnings

-

(101)

Pro Forma Adjusted (Non-GAAP)

31,325

$      

3,460

$        

11.0%

For the Twelve Months Ended December 31, 2013

For the Twelve Months Ended December 31, 2014

Pro Forma Adjusted Net Revenue / Operating Income

Net Revenue / Operating Income to

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