Mondelez International Inc. and Subsidiaries

  Condensed Consolidated Statements of Earnings

For the Three Months Ended March 31, 

Schedule 1

(in millions of dollars, except per share data)  (Unaudited)

As Reported/Revised (GAAP) 

2013

2012

% Change
Fav / (Unfav)

Net revenues

$8,744

$8,667

0.9%

Cost of sales

5,502

5,472

(0.5)%

Gross profit

3,242

3,195

1.5%

Gross profit margin

37.1%

36.9%

Selling, general and administrative expenses

2,332

2,192

(6.4)%

Asset impairment and exit costs

44

44

-

Gain on acquisition

(22)

-

100.0+%

Amortization of intangibles

54

56

3.6%

Operating income

834

903

(7.6)%

Operating income margin

9.5%

10.4%

Interest and other expense, net

279

487

42.7%

Earnings from continuing operations before income taxes

555

416

33.4%

(Benefit)/Provision for income taxes

(19)

77

100.0+%

Effective tax rate

(3.4)%

18.5%

Earnings from continuing operations

$      574

$      339

69.3%

Earnings from discontinued operations, net of income taxes

-

480

(100.0)%

Net earnings

$      574

$      819

(29.9)%

Noncontrolling interest

6

6

-

Net earnings attributable to Mondelez International

$      568

$      813

(30.1)%

Per share data:

Basic earnings per share attributable to Mondelez International:

-  Continuing operations

$     0.32

$     0.19

68.4%

-  Discontinued operations

-

0.27

(100.0)%

Net earnings attributable to Mondelez International

$     0.32

$     0.46

(30.4)%

Diluted earnings per share attributable to Mondelez International:

-  Continuing operations

$     0.32

$     0.19

68.4%

-  Discontinued operations

-

0.27

(100.0)%

Net earnings attributable to Mondelez International

$     0.32

$     0.46

(30.4)%

Average shares outstanding:

Basic

1,784

1,773

(0.6)%

Diluted

1,798

1,783

(0.8)%

Mondelez International, Inc. and Subsidiaries

 Reconciliation of GAAP to Non-GAAP Measures

Schedule 2

Net Revenues

For the Three Months Ended March 31,

($ in millions)  (Unaudited)

As Reported/
Revised
(GAAP)

Impact of
Divestitures ⁽¹⁾

Impact of
Acquisitions ⁽²⁾

Impact of Currency

Organic
(Non-GAAP)

2013

Latin America

$    1,398

$                -

$             -

$    145

$       1,543

Asia Pacific

1,367

-

-

30

1,397

Eastern Europe, Middle East & Africa

863

(19)

(12)

28

860

Europe

3,458

-

-

(8)

3,450

North America

1,658

-

-

2

1,660

Mondelez International

$    8,744

$            (19)

$          (12)

$    197

$       8,910

2012

Latin America

$    1,370

$                -

$             -

$         -

$       1,370

Asia Pacific

1,320

-

-

-

1,320

Eastern Europe, Middle East & Africa

849

(22)

-

-

827

Europe

3,494

(49)

-

-

3,445

North America

1,634

(13)

-

-

1,621

Mondelez International

$    8,667

$            (84)

$             -

$         -

$       8,583

Organic Growth Drivers

Vol / Mix

Price

% Change

Latin America

2.0%

             -   pp

          -   pp

   10.6 pp

12.6%

3.2pp

9.4pp

Asia Pacific

3.6%

-

-

2.2

5.8%

4.1

1.7

Eastern Europe, Middle East & Africa

1.6%

0.5

(1.4)

3.3

4.0%

7.4

(3.4)

Europe

(1.0)%

1.4

-

(0.3)

0.1%

1.3

(1.2)

North America

1.5%

0.8

-

0.1

2.4%

0.9

1.5

Mondelez International

0.9%

           0.8 pp

       (0.1)pp

    2.2 pp

3.8%

2.5pp

1.3pp

⁽¹⁾

Includes divestitures and businesses for which Mondelez International has entered into a sales agreement.

⁽²⁾

On February 22, 2013, the company acquired the remaining interest in a biscuit operation in Morocco, which is now a wholly-owned subsidiary within the EEMEA segment.

  Mondelez International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Schedule 3

Operating Income

For the Three Months Ended March 31,

($ in millions)  (Unaudited)

% Change

As Reported/Revised (GAAP)

Integration Program costs ⁽¹⁾

Spin-Off Costs

and Related

Adjustments ⁽²⁾

2012-2014

Restructuring

Program costs ⁽³⁾

Operating

Income from

Divestitures ⁽⁴⁾

Gain on Acquisition ⁽⁵⁾

Acquisition-related costs

As Adjusted

 (Non-GAAP)

Impact of Currency

As

Adjusted

Constant

FX (Non-GAAP)

As Reported (GAAP)

As

Adjusted

(Non-GAAP)

As

 Adjusted 

Constant

FX (Non-GAAP)

2013

Latin America

$        92

$          4

$                  -

$                     -

$                -

$               -

$            -

$           96

$      76

$          172

(43.6)%

(44.2)%

-

Asia Pacific

189

4

-

-

-

-

-

193

3

196

6.8%

3.2%

4.8%

Eastern Europe, Middle East & Africa

61

3

-

1

7

-

-

72

5

77

(55.8)%

(50.0)%

(46.5)%

Europe

406

9

-

21

-

-

-

436

(1)

435

(4.7)%

0.5%

0.2%

North America

170

-

-

22

-

-

-

192

1

193

14.9%

(1.0)%

(0.5)%

Unrealized G/(L) on Hedging Activities

19

-

-

-

-

-

-

19

-

19

5.6%

5.6%

5.6%

General corporate expenses

(69)

1

9

-

-

-

-

(59)

(1)

(60)

37.8%

19.2%

17.8%

Amortization of intangibles

(54)

-

-

-

-

-

-

(54)

1

(53)

3.6%

3.6%

5.4%

Gain on acquisition

22

-

-

-

-

(22)

-

-

-

-

100.0%

-

-

Acquisition-related costs

(2)

-

-

-

-

-

2

-

-

-

(100.0)%

-

-

Mondelez International

$       834

$        21

$                 9

$                  44

$               7

$            (22)

$            2

$          895

$      84

$          979

(7.6)%

(12.3)%

(4.0)%

2012

Latin America

$       163

$          9

$                  -

$                     -

$                -

$               -

$            -

$          172

$         -

$          172

Asia Pacific

177

10

-

-

-

-

-

187

-

187

Eastern Europe, Middle East & Africa

138

2

-

-

4

-

-

144

-

144

Europe

426

19

-

-

(11)

-

-

434

-

434

North America

148

3

23

23

(3)

-

-

194

-

194

Unrealized G/(L) on Hedging Activities

18

-

-

-

-

-

-

18

-

18

General corporate expenses

(111)

-

39

(1)

-

-

-

(73)

-

(73)

Amortization of intangibles

(56)

-

-

-

-

-

-

(56)

-

(56)

Gain on acquisition

-

-

-

-

-

-

-

-

-

-

Acquisition-related costs

-

-

-

-

-

-

-

-

-

-

Mondelez International

$       903

$        43

$               62

$                  22

$            (10)

$               -

$            -

$       1,020

$         -

$       1,020

⁽¹⁾

Integration Program costs are defined as the costs associated with combining the Mondelez International and Cadbury businesses, and are separate from those costs associated with the acquisition.

⁽²⁾

Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the Mondelez International business.  Spin-Off related adjustments include the pension adjustment defined as the estimated benefit plan expense associated with certain benefit plan obligations transferred to Kraft Foods Group in the Spin-Off. 

⁽³⁾

Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs.

⁽⁴⁾

Includes divestitures and businesses for which Mondelez International has entered into a sales agreement.

⁽⁵⁾

On February 22, 2013, the company acquired the remaining interest in a biscuit operation in Morocco, which is now a wholly-owned subsidiary within the EEMEA segment.  A pre-tax gain of $22 million was recorded in connection with the acquisition.

Mondelez International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Schedule 4

Condensed Consolidated Statements of Earnings - Continuing Operations

For the Three Months Ended March 31,

(in millions of dollars, except per share data)  (Unaudited)

As Reported/Revised (GAAP)

Integration Program costs ⁽¹⁾

Spin-Off

Costs ⁽²⁾

Spin-Off

Pension

Adjustment ⁽²⁾

Spin-Off

Interest

Adjustment ⁽²⁾

2012-2014

 Restructuring

Program costs ⁽³⁾

Operating

Income from

Divestitures ⁽⁴⁾

Gain on

Acquisition ⁽⁵⁾

Acquisition-related costs

As Adjusted

(Non-GAAP)

2013

Operating income

834

21

9

-

-

44

7

(22)

2

895

Operating income margin

9.5%

10.3%

Interest and other expense, net

279

-

-

-

-

-

-

-

(5)

274

Earnings from continuing operations before income taxes

555

21

9

-

-

44

7

(22)

7

621

(Benefit)/ Provision for income taxes

(19)

4

4

-

-

11

2

-

-

2

Effective tax rate

(3.4)%

0.3%

Earnings from continuing operations

$       574

$        17

$       5

$                -

$                -

$              33

$               5

$            (22)

$            7

$          619

Noncontrolling interest

6

-

-

-

-

-

-

-

-

6

Net earnings attributable to Mondelez International

$       568

$        17

$       5

$                -

$                -

$              33

$               5

$            (22)

$            7

$          613

Per share data:

Diluted earnings per share attributable to Mondelez International:

-  Continuing operations

$      0.32

$     0.01

$        -

$                -

$                -

$            0.02

$                -

$         (0.01)

$            -

$         0.34

Average shares outstanding:

Diluted

1,798

2012

Operating income

903

43

39

23

-

22

(10)

-

-

1,020

Operating income margin

10.4%

11.9%

Interest and other expense, net

487

-

(134)

-

(73)

-

-

-

-

280

Earnings from continuing operations before income taxes

416

43

173

23

73

22

(10)

-

-

740

Provision for income taxes

77

3

60

9

27

8

(2)

-

-

182

Effective tax rate

18.5%

24.6%

Earnings from continuing operations

$       339

$        40

$   113

$             14

$             46

$              14

$              (8)

$               -

$            -

$          558

Noncontrolling interest

6

-

-

-

-

-

-

-

-

6

Net earnings attributable to Mondelez International

$       333

$        40

$   113

$             14

$             46

$              14

$              (8)

$               -

$            -

$          552

Per share data:

Diluted earnings per share attributable to Mondelez International:

-  Continuing operations

$      0.19

$     0.02

$  0.06

$          0.01

$          0.03

$            0.01

$          (0.01)

$             -

$            -

$         0.31

Average shares outstanding:

Diluted

1,783

⁽¹⁾

Integration Program costs are defined as the costs associated with combining the Mondelez International and Cadbury businesses, and are separate from those costs associated with the acquisition. 

⁽²⁾

Spin-Off Costs represent transaction and transition costs associated with preparing the businesses for independent operations consisting primarily of financial advisory fees, legal fees, accounting fees, tax services and information systems infrastructure duplication, and financing and related costs to redistribute debt and secure investment grade ratings for both the Kraft Foods Group business and the Mondelez International business.  Spin-Off related adjustments include: (a) a pension adjustment defined as the estimated benefit plan expense associated with certain benefit plan obligations transferred to Kraft Foods Group in the Spin-Off; and (b) an interest adjustment defined as the interest expense associated with the assumed reduction of the $6 billion of our debt on January 1, 2012, from the utilization of funds received from Kraft Foods Group in 2012 in connection with our Spin-Off capitalization plan.  Note during the year ended December 31, 2012, a portion of the $6 billion of debt was retired.  As such, we adjusted interest expense during this period as if this debt had been paid on January 1, 2012 to ensure consistency of our assumption and related results.

⁽³⁾

Restructuring Program costs represent restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related costs.

⁽⁴⁾

Includes divestitures and businesses for which Mondelez International has entered into a sales agreement.

⁽⁵⁾

On February 22, 2013, the company acquired the remaining interest in a biscuit operation in Morocco, which is now a wholly-owned subsidiary within the EEMEA segment.  A pre-tax gain of $22 million was recorded in connection with the acquisition.

Mondelez International Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Schedule 5

Operating Income

For the Three Months Ended March 31,

($ in millions, except percentages) (Unaudited)

2013

2012

As Reported (GAAP)

Integration Program costs ⁽¹⁾

Spin-Off Costs

and Related

Adjustments ⁽²⁾

2012-2014

Restructuring

Program costs ⁽³⁾

Operating

 Income from

Divestitures ⁽⁴⁾

Gain on

Acquisition ⁽⁵⁾

Acquisition-related costs

As Adjusted

 (Non-GAAP)

As Revised (GAAP)

Integration

 Program costs ⁽¹⁾

Spin-Off Costs

and Related

Adjustments ⁽²⁾

2012-2014

Restructuring

Program costs ⁽³⁾

Operating

Income from

Divestitures ⁽⁴⁾

As Adjusted 

(Non-GAAP)

Mondelez International

Operating Income

$          834

$     21

$              9

$               44

$            7

$         (22)

$         2

$          895

$        903

$     43

$            62

$               22

$         (10)

$       1,020

Growth vs. Prior Year

(7.6)%

(12.3)%

Operating Income Margin

9.5%

10.3%

10.4%

11.9%

Latin America

Segment Operating Income

$            92

$       4

$               -

$                  -

$             -

$            -

$         -

$           96

$        163

$          9

$                  -

$                     -

$                -

$          172

Growth vs. Prior Year

(43.6)%

(44.2)%

Segment Operating Income Margin

6.6%

6.9%

11.9%

12.6%

Asia Pacific

Segment Operating Income

$          189

$          4

$                  -

$                     -

$                -

$               -

$            -

$          193

$        177

$        10

$                  -

$                     -

$                -

$          187

Growth vs. Prior Year

6.8%

3.2%

Segment Operating Income Margin

13.8%

14.1%

13.4%

14.2%

Eastern Europe, Middle East & Africa

Segment Operating Income

$            61

$          3

$                  -

$                    1

$               7

$               -

$            -

$           72

$        138

$          2

$                  -

$                     -

$               4

$          144

Growth vs. Prior Year

(55.8)%

(50.0)%

Segment Operating Income Margin

7.1%

8.5%

16.3%

17.4%

Europe

Segment Operating Income

$          406

$          9

$                  -

$                  21

$                -

$               -

$            -

$          436

$        426

$        19

$                  -

$                     -

$            (11)

$          434

Growth vs. Prior Year

(4.7)%

0.5%

Segment Operating Income Margin

11.7%

12.6%

12.2%

12.6%

North America

Segment Operating Income

$          170

$          -

$                  -

$                  22

$                -

$               -

$            -

$          192

$        148

$          3

$               23

$                  23

$              (3)

$          194

Growth vs. Prior Year

14.9%

(1.0)%