Financial Schedules and GAAP to Non-GAAP Information
Earnings Release
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• Q3 net revenues increased 1.8%; Organic Net Revenues(1) increased 5.3%, driven entirely by volume/mix; Emerging markets(2) grew 10.7%
• YTD net revenues increased 1.1%; Organic Net Revenues grew 4.3%
• Q3 diluted EPS was $0.57; Adjusted EPS(1) increased to $0.41, up 16.7% on a constant currency basis
• YTD diluted EPS was $1.23; Adjusted EPS increased to $1.12, up 15.5% on a constant currency basis
• Company lowers 2013 Organic Net Revenue growth outlook to approximately 4%
• Company raises 2013 Adjusted EPS guidance to $1.57-$1.62(11)
• Company has repurchased approximately $0.8 billion of shares YTD

DEERFIELD, Ill., Nov. 6, 2013 /PRNewswire/ -- Mondelez International, Inc. (NASDAQ: MDLZ) today reported third quarter 2013 results. 

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"We delivered solid results in a difficult environment.  Both revenue and operating margin improved sequentially, fueled by volume/mix gains of more than 5 percent, double-digit growth in emerging markets and increased global market shares," said Chairman and CEO Irene Rosenfeld.  "Weak biscuit performance in China, continued headwinds from coffee pricing and slower global category growth, however, led to revenue growth below our expectations."

"Looking forward, we expect these factors will continue to pressure our top line for the remainder of the year," Rosenfeld continued.  "As a result, we're reducing our 2013 Organic Net Revenue growth outlook to approximately 4 percent.  In light of this more challenging environment, we're stepping up our efforts in productivity and overheads, and continue to expect Adjusted Operating Income margin of approximately 12 percent for the full year.  Additionally, we're raising our 2013 Adjusted EPS target to $1.57 to $1.62."

Rosenfeld concluded:  "We believe that the recent industrywide slowdown in key emerging markets, especially China, is temporary.  But this slowdown, along with lower coffee prices, will moderate our top-line growth in 2014 to be in the 4 to 5 percent range.  We will, however, continue to invest in Power Brands, sales capabilities and routes to market so that we're well-positioned when global category growth returns to previous levels.  As a result, we remain committed to delivering our long-term goals of 5 to 7 percent Organic Net Revenue growth and double-digit Adjusted EPS growth."

Third Quarter Results
Net revenues were $8.5 billion, up 1.8 percent.  Organic Net Revenues increased 5.3 percent, driven entirely by volume/mix, despite challenging macroeconomic conditions and slowing category growth in many key emerging markets.  The pass-through of lower coffee commodity costs tempered growth by 0.5 percentage points.   

Power Brands continued to grow faster than the company average, up 6.9 percent, led by Tuc, Club Social, belVita and Barni biscuits and Cadbury Dairy Milk, Milka and Lacta chocolate.

Revenues from emerging markets increased 10.7 percent, led by gains of mid-to-high teens in Russia, India and Brazil.  China, however, declined double digits reflecting softening macroeconomic conditions and weak biscuit performance.  The BRIC markets³, in aggregate, were up double digits despite China's weak performance.  Developed markets⁴ grew 1.8 percent as North America, Europe and Asia Pacific all posted low-single digit gains, in line with our long-term algorithm. 

Operating income increased to $1.3 billion, up 50.6 percent, and operating income margin was 14.9 percent.  This includes a $336 million favorable impact from the reversal of an indemnity accrual related to the 2010 acquisition of Cadbury⁵.

Adjusted Operating Income¹ increased 0.8 percent on a constant currency basis, including a negative 5.0 percentage point impact from prior year one-time items⁶.  Excluding these items, higher gross profit was partially offset by increased investments in advertising, consumer support, sales capabilities and route-to-market expansion.  

Adjusted Operating Income margin was 12.2 percent, a sequential improvement from the previous quarter, but down 0.8 percentage points versus prior year as last year's margin was unusually high due to the spin-off of Kraft Foods Group.  The decline also reflects increased growth investments and a negative 0.6 percentage point impact from prior year one-time items.  

Diluted EPS was $0.57, including a $0.21 benefit from the indemnity accrual reversal.  Adjusted EPS was $0.41, including a negative $0.01 impact from currency.  On a constant currency basis, Adjusted EPS increased 16.7 percent, reflecting a positive impact of $0.07 from lower taxes.

Third Quarter Revenue Results by Region
Latin America:  Net revenues increased 1.7 percent.  Organic Net Revenues grew 16.9 percent primarily driven by continued strong performance in Brazil as well as pricing in the inflationary economies of Venezuela and Argentina.  Brazil increased mid-teens behind strong volume/mix gains and pricing.  Power Brands grew 18.1 percent, led by Club Social, Oreo and belVita biscuits, Lacta chocolate and Halls candy.

Asia Pacific:  Net revenues decreased 7.5 percent.  Organic Net Revenues were essentially flat, as higher volume/mix offset lower pricing.  The region's emerging markets were down slightly, as double-digit declines in our $1.1 billionChina business, driven by weak biscuits performance, offset high-teens growth in India.  Developed markets in the region were up slightly.  Power Brands decreased 3.5 percent primarily due to Oreo biscuits in China.  

EEMEA:  Net revenues increased 7.0 percent.  Organic Net Revenues grew 13.0 percent, as strong volume/mix gains were partially offset by lower pricing, mostly from coffee in Eastern Europe.  Revenue growth was broad-based with double-digit gains in Russia, the GCC7 countries, Ukraine and West Africa.  Russia continued to build momentum with high-teens growth behind exceptional volume/mix performance, partially offset by lower pricing in coffee and chocolate.  Power Brands grew 18.9 percent, led by Cadbury Dairy Milk and Milka chocolate, Barni, Oreo, Tuc and belVita biscuits and Jacobs coffee.

Europe:  Net revenues increased 4.3 percent.  Organic Net Revenues increased 1.9 percent, as strong volume/mix gains, particularly in biscuits, chocolate and coffee were partially offset by lower pricing in coffee and soft performance in gum.  Lower coffee revenues negatively affected the region's growth by 1.4 percentage points.  Power Brands grew 4.7 percent, led by Oreo and chocobakery biscuits, Cadbury Dairy Milk and Milka chocolate and Tassimo coffee. 

North America:  Net revenues increased 1.0 percent.  Organic Net Revenues increased 2.4 percent, with strong biscuits and candy growth partially offset by lower gum revenues.  U.S. biscuits grew 5 percent or more for the ninth consecutive quarter.  Power Brands grew 2.9 percent fueled by strong growth of Oreo, Chips Ahoy! and belVita biscuits and Halls candy.

September Year-to-Date Results
Net revenues were $25.8 billion, up 1.1 percent.  Organic Net Revenues increased 4.3 percent, driven by strong volume/mix of 3.8 percentage points as well as favorable pricing of 0.5 percentage points.  Lower coffee revenues tempered growth by 0.8 percentage points. 

Power Brands grew 7.4 percent.  Oreo, Chips Ahoy!, Tuc, Club Social, belVita, and Barni biscuits, Cadbury Dairy Milk, Milka and Lacta chocolate and Halls candy each posted double-digit increases.  

Revenues from emerging markets were up 9.9 percent, led by double-digit gains in the BRIC markets.  Developed markets increased 0.7 percent as modest gains in North America and Europe were mostly offset by a low-single digit decline in Asia Pacific. 

Market share performance⁸ was strong, with more than 60 percent of revenues gaining or holding share.  Performance was particularly strong in biscuits, with more than 75 percent of revenues gaining or holding share.

Operating income increased to $3.0 billion, up 10.6 percent, and operating income margin was 11.5 percent.  This includes a $336 million favorable impact from the reversal of an indemnity accrual related to the 2010 acquisition of Cadbury.

Adjusted Operating Income decreased 4.3 percent on a constant currency basis, including a negative 4.3 percentage point impact from prior year one-time items⁹.  Excluding these items, higher gross profit was offset primarily by increased investments in advertising, consumer support, sales capabilities and route-to-market expansion.

Adjusted Operating Income margin was 11.3 percent, down 1.4 percentage points, including the negative impacts of 0.5 percentage points from prior year one-time items⁹ and 0.3 percentage points due to the devaluation of the Venezuelan bolivar.

Diluted EPS was $1.23, including a $0.21 benefit from the indemnity accrual reversal.  Adjusted EPS was $1.12, including a negative $0.07 impact from currency.  On a constant currency basis, Adjusted EPS increased 15.5 percent, reflecting a positive impact of $0.20 from lower taxes.

Net Debt and Share Repurchases
The company's Net Debt¹⁰ as of Sept. 30, 2013, was $16.2 billion, up $0.6 billion from June 30, 2013.  The increase was largely attributable to $0.7 billion of share repurchases in the quarter.  Through September 2013, the company has repurchased approximately $0.8 billion of its common stock at an average price of $31.13.

Outlook
The company lowered its 2013 Organic Net Revenue growth outlook to approximately 4 percent from its previous guidance of the low end of 5 to 7 percent to reflect the impact of weak biscuit sales in China, continued lower coffee prices and slower global category growth, especially in key emerging markets.  The company raised its 2013 Adjusted EPS target to $1.57 to $1.62¹¹ (at guidance currency rates) to flow through some tax favorability.  Based on currency translation impacts recorded to date and spot rates as of Oct. 31, the company's 2013 Adjusted EPS would be about 5 cents lower than the $1.57 to $1.62 guidance.

Conference Call
Mondelez International will host a conference call for investors with accompanying slides to review its results at 5 p.m. ET today.  Access to a live audio webcast with accompanying slides and a replay of the event will be available at www.mondelezinternational.com/Investor.

About Mondelez International
Mondelez International, Inc. (NASDAQ: MDLZ) is a global snacking powerhouse, with 2012 revenue of $35 billion.  Creating delicious moments of joy in 165 countries, Mondelez International is a world leader in chocolate, biscuits, gum, candy, coffee and powdered beverages, with billion-dollar brands such as Cadbury, Cadbury Dairy Milk and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang powdered beverages and Trident gum. Mondelez International is a proud member of the Standard and Poor's 500, NASDAQ 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.com and www.facebook.com/mondelezinternational.

End Notes

1. Please see discussion of Non-GAAP Financial Measures at the end of this press release.
2. Emerging markets consist of the Latin America and Eastern Europe, Middle East and Africa regions in their entirety; the Asia Pacific region, excluding Australia, New Zealand and Japan; and the following countries from the Europe region: Poland, Czech & Slovak Republics, Hungary, Bulgaria, Romania, the Baltics and the East Adriatic countries.
3. The BRIC markets are Brazil, Russia, India and China.
4. Developed markets include the entire North America region, the Europe region excluding the countries included in the emerging markets definition, and Australia, New Zealand and Japan from the Asia Pacific region.
5. As part of our 2010 Cadbury acquisition, we became the responsible party for tax matters under the Cadbury Schweppes Plc and Dr Pepper Snapple Group, Inc. ("DPSG") Tax Sharing and Indemnification Agreement dated May 1, 2008 ("Tax Indemnity") for certain 2007 and 2008 transactions relating to the demerger of Cadbury's Americas Beverage business.  A U.S. federal tax audit of DPSG for the 2006-2008 tax years was concluded with the IRS in August 2013. As a result, we recorded a favorable impact of $375 million due to the reversal of the accrued liability in excess of the amount we paid to DPSG under the Tax Indemnity.  We recorded $336 million in selling, general and administrative expenses and $49 million in interest and other expense, net, partially offset by $10 million of tax expense for an impact of $0.21 per diluted share, in the three and nine months ended September 30, 2013.
6. Prior year one-time items in the third quarter include the reversal of a Cadbury reserve accrual (Europe) and proceeds from insurance settlements (Asia Pacific).
7. The Gulf Cooperation Council (GCC) countries are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
8. Market share performance is defined as the percentage of revenues for the biscuits, chocolate, gum, candy, coffee, powdered beverage and cream cheese categories in key markets with share either increasing or flat versus the same prior year period.  Based on Global Nielsen data for measured channels for available periods through September 2013.
9. Prior year one-time items year to date include the gains on sales of properties in Russia and Turkey (EEMEA), an asset impairment charge related to a trademark in Japan (Asia Pacific), the reversal of a Cadbury reserve accrual (Europe) and proceeds from insurance settlements (Latin America and Asia Pacific).
10. "Net debt" is defined as total debt, which includes short-term borrowings, current portion of long-term debt and long-term debt, less cash and cash equivalents.  See schedule 15 for the GAAP to Non-GAAP reconciliation.
11. Adjusted EPS guidance of $1.57-$1.62 is based on 2012 average currency rates and includes the estimated impact of the write-down of the net monetary assets and the translation of operating income for the company's Venezuelan business stemming from that government's decision to devalue its currency to a fixed rate of 6.30/$US on February 8, 2013.

Forward-Looking Statements 
This press release contains a number of forward-looking statements.  Words, and variations of words, such as "will," "expect," "continue," "growth," "believe," "deliver," "outlook," "guidance" and similar expressions are intended to identify our forward-looking statements, including, but not limited to, statements about: our future revenue growth and margin; the impacts of sales in emerging markets, coffee prices and category growth; and our Outlook, including 2013 Organic Net Revenue growth and 2013 Adjusted EPS.  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, continued consumer weakness, continued volatility of commodity and other input costs, pricing actions, continued weakness in economic conditions, increased competition 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 press release, except as required by applicable law or regulation.

Non-GAAP Financial Measures
The company reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP").  We use certain non-GAAP financial measures to budget, make operating and strategic decisions and evaluate our performance. We disclose non-GAAP financial measures so that you have the same financial data that we use to assist you in making comparisons to our historical operating results and analyzing our underlying performance. 

Our non-GAAP financial measures and corresponding metrics reflect how we evaluate our operating results currently and provide improved comparability of operating results.  As new events or circumstances arise, these definitions could change over time:

• "Organic Net Revenues" is defined as net revenues excluding the impacts of acquisitions, divestitures (including businesses under sales agreements), Integration Program costs, accounting calendar changes and foreign currency rate fluctuations.
• "Adjusted Gross Profit" is defined as gross profit excluding the impact 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).  We also evaluate growth in our 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 impact of Spin-Off Costs, pension costs related to the obligations transferred in the Spin-Off, the 2012-2014 Restructuring Program, the Integration Program and other acquisition integration costs, the benefit from the Cadbury acquisition-related indemnification resolution, gains / losses from divestitures or acquisitions, acquisition-related costs and the operating results of divestitures (including businesses under sales agreements).  We also evaluate growth in our Adjusted Operating Income and Adjusted Segment Operating Income on a constant currency basis.
• "Adjusted EPS"  (previously referred to as "Operating EPS") is defined as diluted EPS attributable to Mondelez International from continuing operations excluding the impact of Spin-Off Costs, pension costs related to the obligations transferred in the Spin-Off, the 2012-2014 Restructuring Program, the Integration Program and other acquisition integration costs, the benefit from the Cadbury acquisition-related indemnification resolution, gains / losses from divestitures or acquisitions, acquisition-related costs and net earnings from divestitures (including businesses under sales agreements), and including an interest expense adjustment related to the Spin-Off  transaction.  We also evaluate growth in our Adjusted EPS on a constant currency basis.

We believe that the presentation of these non-GAAP financial measures, when considered together with our U.S. GAAP financial measures and the reconciliations to the corresponding U.S. GAAP financial measures, provides you with a more complete understanding of the factors and trends affecting our business than could be obtained absent these disclosures.   In addition, the non-GAAP measures the company is using may differ from non-GAAP measures used by other companies.  Because GAAP financial measures on a forward-looking basis are neither accessible nor deemed to be significantly different from the non-GAAP financial measures, and reconciling information is not available without unreasonable effort, the company has not provided that information with regard to the non-GAAP financial measures in the company's Outlook. 

See the attached schedules for supplemental financial data and corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable GAAP financial measures for the three and nine months ended September 30, 2013 and 2012. 

Segment Operating Income
Management uses segment operating income to evaluate segment performance and allocate resources.  The company believes it is appropriate to disclose this measure to help investors analyze segment performance and trends.  Segment operating income excludes unrealized gains and losses on hedging activities (which are a component of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses), amortization of intangibles, the benefit from the Cadbury acquisition-related indemnification resolution (which is a component of selling, general and administrative expenses), gains and losses from divestitures and acquisitions, and acquisition-related costs (which are a component of selling, general and administrative expenses) for all periods presented.  The company excludes the unrealized gains and losses on hedging activities from segment operating income in order to provide better transparency of our segment operating results.  Once realized, the gains and losses on hedging activities are recorded within segment operating results.  We exclude general corporate expenses, amortization of intangibles, gains and losses on divestitures and acquisitions and acquisition-related costs from segment operating income in order to provide better transparency of our segment operating results.