¹ Please see discussion of Non-GAAP Financial Measures at the end of this press release.  

¹

Please see discussion of Non-GAAP Financial Measures at the end of this press release.

²

Adjusted Operating Income excludes the following items:

a.

Integration Program Costs: the costs associated with combining the Mondelez International and Cadbury businesses, and are separate from those costs associated with the acquisition;

b.

Restructuring Program Costs: non-recurring restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing-related non-recurring costs;

c.

Spin-Off Costs: non-recurring 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. In addition, Spin-Off Costs include financing and related costs to redistribute debt and secure investment grade credit ratings for both Mondelez International and Kraft Foods Group;

d.

Spin-Off Related Pension Adjustment: impacts from the transfer of certain North American benefit obligations to Kraft Foods Group;

e.

Divestitures: Operating income from divested businesses and gains & losses from divestitures, net;

f.

Acquisition-Related Costs: includes transaction advisory fees, stamp taxes and other fees.

³

Includes a trademark impairment charge and the unfavorable impact from prior year accounting calendar changes and the 53^rd week of shipments, which more than offset a gain on asset sale and the favorable impact of accrual reversals in Europe.

⁴

Includes a trademark impairment charge and the unfavorable impact from prior year accounting calendar changes and the 53^rd week of shipments which more than offset the favorable impact of accrual reversals in Europe

¹

Please see discussion of Non-GAAP Financial Measures at the end of this press release.

⁵

In December 2012, we announced a reorganization of our management and reporting structure following the Spin-Off of Kraft Foods Group. Beginning in 2013, our operations, management and operating segments will reflect: Asia Pacific; Eastern Europe, Middle East & Africa ("EEMEA"); Europe; Latin America and North America. Accordingly, we will begin reporting on our new segment structure during the first quarter of 2013, including all historical periods we present.

⁶

Includes the impact of accounting calendar changes and the 53rd week of shipments in 2011.  

¹  Please see discussion of Non-GAAP Financial Measures at the end of this press release.  

Mondelez International Inc. and Subsidiaries

Condensed Consolidated Statements of Earnings

For the Three Months Ended December 31, 

Schedule 1

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

As Reported (GAAP) 

2012

2011

% Change

Fav / (Unfav)

Net revenues

$9,495

$9,679

(1.9)%

Cost of sales

5,945

6,254

4.9%

Gross profit

3,550

3,425

3.6%

Gross profit margin

37.4%

35.4%

Selling, general and administrative expenses

2,575

2,549

(1.0)%

Asset impairment and exit costs

69

-

(100.0)%

(Gains) / losses on divestitures, net

(107)

-

100.0+%

Amortization of intangibles

54

53

(1.9)%

Operating income

959

823

16.5%

Operating income margin

10.1%

8.5%

Interest and other expense, net

295

504

41.5%

Earnings from continuing operations before income taxes

664

319

100.0+%

Provision for income taxes

103

(140)

(100.0+)%

Effective tax rate

15.5%

-43.9%

Earnings from continuing operations

$      561

$      459

22.2%

Earnings from discontinued operations, net of income taxes

(18)

383

(100.0+)%

Net earnings

$      543

$      842

(35.5)%

Noncontrolling interest

9

12

25.0%

Net earnings attributable to Mondelez International

$      534

$      830

(35.7)%

Per share data:

Basic earnings per share attributable to Mondelez International:

-  Continuing operations

$     0.31

$     0.25

24.0%

-  Discontinued operations

(0.01)

0.22

(100.0+)%

Basic earnings per share attributable to Mondelez International

$     0.30

$     0.47

(36.2)%

Diluted earnings per share attributable to Mondelez International:

-  Continuing operations

$     0.31

$     0.25

24.0%

-  Discontinued operations

(0.01)

0.22

(100.0+)%

Diluted earnings per share attributable to Mondelez International

$     0.30

$     0.47

(36.2)%

Average shares outstanding:

Basic

1,781

1,771

(0.6)%

Diluted

1,793

1,779

(0.8)%

Mondelez International Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Information

Net Revenues

For the Three Months Ended December 31, 

Schedule 2

($ in millions)  (Unaudited)

As Reported (GAAP)

Impact of Divestitures

Impact of Integration Program

Impact of Accounting Calendar Changes

Impact of Currency

Organic (Non-GAAP)

2012

Developing Markets

$   4,226

$            -

$          -

$            -

$    106

$       4,332

Europe

3,453

(10)

-

-

66

3,509

North America

1,816

(4)

-

-

(10)

1,802

Mondelez International

$   9,495

$         (14)

$          -

$            -

$    162

$       9,643

2011

Developing Markets

$   4,115

$            -

$          1

$        (90)

$         -

$       4,026

Europe

3,716

(38)

-

(172)

-

3,506

North America

1,848

(16)

-

(68)

-

1,764

Mondelez International

$   9,679

$         (54)

$          1

$      (330)

$         -

$       9,296

Organic Growth Drivers

Vol / Mix

Price

% Change

Developing Markets

2.7%

         -   pp

        -   pp

2.4pp

2.5pp

7.6%

4.4pp

3.2pp

Europe

(7.1)%

0.7

-

4.7

1.8

0.1%

1.2

(1.1)

North America

(1.7)%

0.6

-

3.8

(0.5)

2.2%

(1.0)

3.2

Mondelez International

(1.9)%

0.4pp

       -   pp

3.5pp

1.7pp

3.7%

2.1pp

1.6pp

Mondelez International Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Information

Operating Income

For the Three Months Ended December 31, 

Schedule 3

($ in millions)  (Unaudited)

% Change

As Reported (GAAP)

Integration

 Program costs ⁽¹⁾

Acquisition-

Related costs

Spin-Off Costs

and Related

Adjustments ⁽²⁾

2012-2014

 Restructuring

Program costs ⁽³⁾

Operating Income from Divested Businesses

G/(L) on Divestitures, net

Adjusted

 (Non-GAAP)

Impact of Currency

Adjusted @

Constant FX

(Non-GAAP)

As Reported (GAAP)

Adjusted

(Non-GAAP)

Adjusted @

Constant FX

(Non-GAAP)

2012

Developing Markets

$      496

$                  36

$               -

$                 2

$                     -

$             -

$                   -

$          534

$      17

$         551

(7.1)%

(7.0)%

(4.0)%

Europe

418

36

-

1

6

(5)

-

456

4

460

19.8%

4.8%

5.7%

North America

228

2

-

9

37

1

-

277

-

277

(2.6)%

3.4%

3.4%

Unrealized G/(L) on Hedging Activities

(41)

-

-

-

-

-

-

(41)

-

(41)

10.9%

10.9%

10.9%

HQ Pension

(13)

-

-

-

-

-

-

(13)

-

(13)

38.1%

(44.4)%

(44.4)%

G/(L) on Divestitures, net

107

-

-

-

-

-

(107)

-

-

-

100.0%

-

-

Acquisition-Related costs

(1)

-

1

-

-

-

-

-

-

-

(100.0)%

-

-

General Corporate Expenses

(181)

2

-

67

(2)

1

-

(113)

2

(111)

(4.0)%

1.7%

3.5%

Amortization of Intangibles

(54)

-

-

-

-

-

-

(54)

(3)

(57)

(1.9)%

(1.9)%

(7.5)%

Mondelez International

$      959

$                  76

$               1

$               79

$                  41

$           (3)

$              (107)

$       1,046

$      20

$      1,066

16.5%

(0.8)%

1.1%

2011

Developing Markets

$      534

$                  40

$               -

$                  -

$                     -

$             -

$                   -

$          574

$         -

$         574

Europe

349

91

-

-

-

(5)

-

435

-

435

North America

234

25

-

11

-

(2)

-

268

-

268

Unrealized G/(L) on Hedging Activities

(46)

-

-

-

-

-

-

(46)

-

(46)

HQ Pension

(21)

-

-

12

-

-

-

(9)

-

(9)

G/(L) on Divestitures, net

-

-

-

-

-

-

-

-

-

-

Acquisition-Related costs

-

-

-

-

-

-

-

-

-

-

General Corporate Expenses

(174)

13

-

46

-

-

-

(115)

-

(115)

Amortization of Intangibles

(53)

-

-

-

-

-

-

(53)

-

(53)

Mondelez International

$      823

$                169

$               -

$               69

$                     -

$           (7)

$                   -

$       1,054

$         -

$      1,054

⁽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. In Q4 2012, $14 million was recorded in Cost of Sales and $62 million was recorded in Selling, General and Administrative expenses. In Q4 2011, $50 million was recorded in Cost of Sales and $119 million was recorded in Selling, General and Administrative expenses.

⁽²⁾

Spin-Off Costs represent non-recurring 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 refers to the pension adjustment defined as the estimated benefit plan expense based on market conditions and benefit plan assumptions as of January 1, 2012, associated with certain benefit plan obligations transferred to Kraft Foods Group in the Spin-Off.

⁽³⁾

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

Mondelez International Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Information

Operating Income

For the Three Months Ended December 31,

Schedule 4

($ in millions)  (Unaudited)

As Reported (GAAP)

Integration

Program costs ⁽¹⁾

Acquisition-Related costs 

Spin-Off Costs

and Related

Adjustments ⁽²⁾

2012-2014

Restructuring

Program costs ⁽³⁾

Operating Income from Divested Businesses

G/(L) on Divestitures, net

Adjusted

(Non-GAAP)

2012

Net Revenues

$9,495

$                  -

$            -

$               -

$                  -

$               (14)

$                -

$    9,481

Operating Income

$   959

$               76

$            1

$            79

$               41

$                (3)

$           (107)

$    1,046

Operating Income Margin

10.1%

11.0%

2011

Net Revenues

$9,679

$                 1

$            -

$               -

$                  -

$               (54)

$                -

$    9,626

Operating Income

$   823

$             169

$            -

$            69

$                  -

$                (7)

$                -

$    1,054

Operating Income Margin

8.5%

10.9%

⁽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 non-recurring 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 refers to the pension adjustment defined as the estimated benefit plan expense based on market conditions and benefit plan assumptions as of January 1, 2012, associated with certain benefit plan obligations transferred to Kraft Foods Group in the Spin-Off.

⁽³⁾

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

Mondelez International Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Information

Diluted EPS

Schedule 5

(Unaudited)

Diluted EPS

% Growth

Diluted EPS Attributable to Mondelez International for the Three Months Ended December 31, 2011 (GAAP)

$         0.47

Earnings and gain from discontinued operations, net of income taxes

0.22

Diluted EPS Attributable to Mondelez International from continuing operations for the Three Months Ended December 31, 2011 (GAAP)

0.25

Integration Program costs ⁽¹⁾

0.08

Spin-Off Costs ⁽²⁾

0.02

Spin-Off related adjustments ⁽³⁾

0.04

Operating EPS for the Three Months Ended December 31, 2011 (Non-GAAP)

0.39

Increases in operations

0.04

Asset Impairment charges

(0.01)

Accounting calendar changes

(0.02)

Unfavorable foreign currency ⁽⁴⁾

(0.01)

Lower interest and other expense, net ⁽⁵⁾

0.09

Changes in taxes

(0.12)

Operating EPS for the Three Months Ended December 31, 2012 (Non-GAAP)

0.36

(7.7)%

Gain on divestitures, net

0.03

Integration Program costs ⁽¹⁾

(0.03)

Spin-Off Costs ⁽²⁾

(0.03)

Spin-Off related adjustments ⁽³⁾

(0.01)

2012-2014 Restructuring Program costs ⁽⁶⁾

(0.01)

Diluted EPS Attributable to Mondelez International from continuing operations for the Three Months Ended December 31, 2012 (GAAP)

$         0.31

24.0%

Earnings and gain from discontinued operations, net of income taxes

(0.01)

Diluted EPS Attributable to Mondelez International for the Three Months Ended December 31, 2012 (GAAP)

$         0.30

(36.2)%

⁽¹⁾

Integration Program costs are defined as the costs associated with combining the Mondelez International and Cadburybusinesses, and are separate from those costs associated with the acquisition.  Integration Program costs were $76 million, or $66 million after-tax including certain tax costs associated with the integration of Cadbury, for the three months ended December 31, 2012, as compared to $169 million, or $152 million after-tax for the three months ended December 31, 2011.

⁽²⁾

Spin-Off Costs represent non-recurring 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 Costs for the three months ended December 31, 2012 were $69 million, or $52 million after-tax, as compared to $46 million or $33 million after-tax for the three months ended December 31, 2011.

⁽³⁾

Spin-Off related adjustments include; (a) pension adjustment defined as the estimated benefit plan expense based on market conditions and benefit plan assumptions as of January 1, 2012, associated with certain benefit plan obligations transferred to Kraft Foods Group in the Spin-Off; and (b) interest adjustment defined as the interest expense associated with the assumed reduction of the $6 billion of our debt on January 1, 2011, from the utilization of funds received from the $6 billion of notes Kraft Food Group issued directly and cash proceeds distributed to us in June 2012 in connection with our Spin-Off capitalization plan.

⁽⁴⁾

Includes the favorable foreign currency impact on Mondelez International foreign denominated debt and interest expense due to the strength of the U.S. dollar.

⁽⁵⁾

Excludes financing costs/other fees related to the Spin-Off.

⁽⁶⁾

Restructuring Program costs for the three months ended December 31, 2012, were $41 million, or $26 million after-tax and represent non-recurring restructuring and related implementation costs reflecting primarily severance, asset disposals and other manufacturing related non-recurring costs.

Mondelez International Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Information

Diluted Earnings Per Share

Constant Currency Growth

For the Three Months Ended December 31, 

Schedule 6

(Unaudited)

% Growth

As Reported (GAAP)

Integration

Program costs ⁽¹⁾

Spin-Off Costs

and Related

Adjustments ⁽²⁾

2012 - 2014

Restructuring

Program costs ⁽³⁾

G/(L) on

Divestitures, net

Operating (Non-GAAP)

Currency ⁽⁴⁾

Operating Constant FX (Non-GAAP)

As Reported EPS Growth (GAAP)

Operating EPS

Growth

(Non-GAAP)

Operating

Constant

FX EPS Growth

(Non-GAAP)

2012

Diluted EPS - Continuing Operations

$         0.31

$     0.03

$            0.04

$               0.01

$             (0.03)

$           0.36

$       0.01

$           0.37

24.0%

(7.7)%

(5.1)%

2011

Diluted EPS - Continuing Operations

$         0.25

$     0.08

$            0.06

$                   -

$                 -

$           0.39

$          -

$           0.39

⁽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 non-recurring 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) pension adjustment defined as the estimated benefit plan expense based on market conditions and benefit plan assumptions as of January 1, 2012, associated with certain benefit plan obligations transferred to Kraft Foods Group in the Spin-Off; and (b) interest adjustment defined as the interest expense associated with the assumed reduction of the $6 billion of our debt on January 1, 2011, from the utilization of funds received from the $6 billion of notes Kraft Food Group issued directly and cash proceeds distributed to us in June 2012 in connection with our Spin-Off capitalization plan.

⁽³⁾

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

⁽⁴⁾

Includes the favorable foreign currency impact on Mondelez International foreign denominated debt and interest expense due to the strength of the U.S. dollar.

Mondelez International Inc. and Subsidiaries

Condensed Consolidated Statements of Earnings

For the Twelve Months Ended December 31,

Schedule 7

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

As Reported (GAAP)

2012

2011

% Change

Fav / (Unfav)

Net revenues

$35,015

$35,810

(2.2)%

Cost of sales

21,939

22,710

3.4%

Gross profit

13,076

13,100

(0.2)%

Gross profit margin

37.3%

36.6%

Selling, general and administrative expenses

9,176

9,382

2.2%

Asset impairment and exit costs

153

(5)

(100.0+)%

(Gains) / losses on divestitures, net

(107)

-

100.0+%

Amortization of intangibles

217

225

3.6%

Operating income

3,637

3,498

4.0%

Operating income margin

10.4%

9.8%

Interest and other expense, net

1,863

1,618

(15.1)%

Earnings from continuing operations before income taxes

1,774

1,880

(5.6)%

Provision for income taxes

207

143

(44.8)%

Effective tax rate

11.7%

7.6%

Earnings from continuing operations

$     1,567

$     1,737

(9.8)%

Earnings from discontinued operations, net of income taxes

1,488

1,810

(17.8)%

Net earnings

$     3,055

$     3,547

(13.9)%

Noncontrolling interest

27

20

(35.0)%

Net earnings attributable to Mondelez International

$     3,028

$     3,527

(14.1)%

Per share data:

Basic earnings per share attributable to Mondelez International:

-  Continuing operations

$       0.87

$       0.97

(10.3)%

-  Discontinued operations

0.83

1.03

(19.4)%

Basic earnings per share attributable to Mondelez International

$       1.70

$       2.00

(15.0)%

Diluted earnings per share attributable to Mondelez International:

-  Continuing operations

$       0.86

$       0.97

(11.3)%

-  Discontinued operations

0.83

1.02

(18.6)%

Diluted earnings per share attributable to Mondelez International

$       1.69

$       1.99

(15.1)%

Average shares outstanding:

Basic

1,777

1,765

(0.7)%

Diluted

1,789

1,772

(1.0)%

Mondelez International Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Information

Net Revenues

For the Twelve Months Ended December 31,

Schedule 8

($ in millions)  (Unaudited)

As Reported (GAAP)

Impact of Divestitures

Impact of Integration Program

Impact of Accounting Calendar Changes

Impact of Currency

Organic

(Non-GAAP)

2012

Developing Markets

$ 15,655

$            -

$          -

$            -

$    866

$     16,521

Europe

12,457

(197)

-

-

700

12,960

North America

6,903

(47)

-

-

10

6,866

Mondelez International

$ 35,015

$       (244)

$          -

$            -

$  1,576

$     36,347

2011

Developing Markets

$ 15,621

$            -

$          1

$      (182)

$         -

$     15,440

Europe

13,356

(255)

-

(429)

-

12,672

North America

6,833

(61)

-

(68)

-

6,704

Mondelez International

$ 35,810

$       (316)

$          1

$      (679)

$         -

$     34,816

Organic Growth Drivers

Vol / Mix

Price

% Change

Developing Markets

0.2%

         -   pp

        -   pp

1.2pp

5.6pp

7.0%

1.9

5.1

Europe

(6.7)%

0.3

-

3.4

5.3

2.3%

1.5

0.8

North America

1.0%

0.2

-

1.0

0.2

2.4%

(1.2)

3.6