GlobeNewswire Inc | Jul 27, 2021 04:05PM EDT

July 27, 2021

Second Quarter Highlights

-- Net revenues increased +12.4% driven by Organic Net Revenue1 growth of +6.2%, favorable currency and acquisitions -- Diluted EPS was $0.76, up +100.0%; Adjusted EPS1 was $0.66, up +1.6% on a constant-currency basis -- Returned $2.4 billion of capital to shareholders in the first half -- Announced agreement to acquire Chipita, a leading cakes and pastries company in Europe -- Announcing +11% increase to quarterly dividend -- Year-to-date cash provided by operating activities was $1.8 billion, an increase of +$0.2 billion versus prior year; year-to-date Free Cash Flow1 was $1.4 billion, an increase of +$0.3 billion -- Raising Organic Net Revenue growth outlook for full year to 4%+

CHICAGO, July 27, 2021 (GLOBE NEWSWIRE) -- Mondelz International, Inc. (Nasdaq: MDLZ) today reported its second quarter 2021 results.

"We delivered another strong quarter of performance across all key metrics, including top-line, profitability and cash generation," said Dirk Van de Put, Chairman and Chief Executive Officer. "We continue to see strength across the vast majority of our geographies, categories and brands as we remain intensely focused on consistent execution and reinvestment to further strengthen our position. We are confident that our strategy, long runway of clear growth drivers and advantaged enablers will continue to drive consistent and attractive growth and value generation over the long term.

Net Revenue

$ in millions Reported OrganicNetRevenueGrowth NetRevenues Q2 2021 %Chg Q2 2021 Vol/ Pricing vs PY MixQuarter 2 Latin America $ 669 30.9 % 33.7 % 18.8 14.9 pp ppAsia, Middle East& Africa 1,452 17.4 % 7.0 % 5.1 pp 1.9 Europe 2,474 15.7 % 5.4 % 4.2 pp 1.2 North America 2,047 1.1 % (0.3) (0.5) 0.2 ppMondel?z International $ 6,642 12.4 % 6.2 % 4.0 pp 2.2 pp Emerging Markets $ 2,293 19.6 % 16.5 % 10.6 5.9 pp ppDeveloped Markets $ 4,349 8.9 % 1.3 % 0.9 pp 0.4 pp June Year-to-Date YTD 2021 YTD 2021 Latin America $ 1,338 8.2 % 18.1 % 6.0 pp 12.1 ppAsia, Middle East& Africa 3,197 16.7 % 9.1 % 6.7 pp 2.4 Europe 5,321 12.7 % 4.3 % 3.2 pp 1.1 North America 4,024 2.7 % (1.3) (1.7) 0.4 ppMondel?z International $ 13,880 10.0 % 5.0 % 2.8 pp 2.2 pp Emerging Markets $ 4,856 12.0 % 12.8 % 7.3 pp 5.5 ppDeveloped Markets $ 9,024 8.9 % 0.8 % 0.3 pp 0.5 pp

Operating Income and Diluted EPS

$ in millions,except per Reported Adjustedshare data Q2 2021 vs PY Q2 2021 vs PY vsPY (RptFx) (RptFx) (CstFx)Quarter 2 Gross Profit $ 2,631 12.9 % $ 2,649 12.9 % 7.2 %Gross Profit 39.6 % 0.2 pp 39.9 % 0.2 pp Margin Operating $ 872 22.3 % $ 1,077 14.3 % 7.2 %IncomeOperating 13.1 % 1.0 pp 16.2 % 0.3 pp Income Margin Net Earnings^2 $ 1,078 98.2 % $ 940 6.7 % (0.1) %Diluted EPS $ 0.76 100.0 % $ 0.66 8.2 % 1.6 % June YTD 2021 YTD 2021 Year-to-DateGross Profit $ 5,597 17.0 % $ 5,515 10.2 % 6.0 %Gross Profit 40.3 % 2.4 pp 39.7 % 0.1 pp Margin Operating $ 2,155 37.3 % $ 2,369 15.7 % 10.3 %IncomeOperating 15.5 % 3.1 pp 17.1 % 0.9 pp Income Margin Net Earnings^2 $ 2,039 59.3 % $ 2,077 12.9 % 7.0 %Diluted EPS $ 1.44 61.8 % $ 1.46 14.1 % 8.6 %

Second Quarter Commentary

-- Net revenues increased 12.4 percent driven by Organic Net Revenue growth of 6.2 percent, favorable currency, and incremental sales from the company's acquisitions of Hu, Grenade and Gourmet Food. Volume and pricing drove Organic Net Revenue growth, partially offset by unfavorable mix. -- Gross profit increased $300 million, while gross profit margin increased 20 basis points to 39.6 percent primarily driven by the increase in Adjusted Gross Profit1 margin. Adjusted Gross Profit increased $168 million at constant currency, while Adjusted Gross Profit margin increased 20 basis points to 39.9 percent due to pricing and manufacturing productivity, partially offset by higher raw material costs and unfavorable product mix. -- Operating income increased $159 million and operating income margin was 13.1 percent, up 100 basis points primarily due to lower intangible asset impairment charges, lapping prior-year costs associated with the JDE Peet's transaction and higher Adjusted Operating Income1 margin, partially offset by higher restructuring costs and the impact of pension participation changes. Adjusted Operating Income increased $68 million at constant currency, and Adjusted Operating Income margin increased 30 basis points to 16.2 percent primarily driven by lower manufacturing costs, pricing and overhead leverage, partially offset by higher raw material costs, unfavorable product mix and higher advertising and consumer promotion spend. -- Diluted EPS was $0.76, up 100.0 percent, primarily due to lapping prior-year costs associated with the JDE Peet's transaction, a higher gain this quarter on equity method investment transactions, an increase in Adjusted EPS, lower intangible asset impairment charges and favorable year-over-year mark-to-market impacts from currency and commodity derivatives. These factors were partially offset by the unfavorable impact from enacted tax law changes, higher restructuring costs and the negative impact from pension participation changes. -- Adjusted EPS was $0.66, up 1.6 percent on a constant-currency basis driven by operating gains and fewer shares outstanding, partially offset by higher taxes primarily due to a lower net benefit from non-recurring discrete tax items. -- Capital Return: The company returned approximately $900 million to shareholders in cash dividends and share repurchases in the quarter. Today, the companys Board of Directors declared a quarterly cash dividend of $0.35 per share of Class A common stock, an increase of 11 percent. This dividend is payable on October 14, 2021, to shareholders recorded as of September 30, 2021.

2021 OutlookMondelz International provides its outlook on a non-GAAP basis, as the company cannot predict some elements that are included in reported GAAP results, including the impact of foreign exchange. Refer to the Outlook section in the discussion of non-GAAP financial measures below for more details.

Metric FY 2021 OutlookOrganic Net Revenue Growth 4%+Adjusted EPS Growth (at cst FX) High single-digitFree Cash Flow $3B+

The company estimates currency translation would increase 2021 net revenue growth by approximately 2 percent3 with a positive $0.09 impact to Adjusted EPS3. Outlook is provided in the context of greater than usual volatility as a result of COVID-19. The company strategy and long-term algorithm remain unchanged.

Conference CallMondelz International will host a conference call for investors with accompanying slides to review its results at 5 p.m. ET today. A listen-only webcast will be provided at www.mondelezinternational.com. An archive of the webcast will be available on the companys web site.

About Mondelz InternationalMondelz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2020 net revenues of approximately $27 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, belVita and LU biscuits; Cadbury Dairy Milk, Milka and Toblerone chocolate; Sour Patch Kids candy and Trident gum. Mondelz International is a proud member of the Standard and Poors 500, Nasdaq 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.comor follow the company on Twitter at www.twitter.com/MDLZ.

End Notes

-- Organic Net Revenue, Adjusted Gross Profit (and Adjusted Gross Profit margin), Adjusted Operating Income (and Adjusted Operating Income margin), Adjusted EPS, Free Cash Flow and presentation of amounts in constant currency are non-GAAP financial measures. Please see discussion of non-GAAP financial measures at the end of this press release for more information. -- Earnings attributable to Mondelz International. -- Currency estimate is based on published rates from XE.com on July 20, 2021.

Additional DefinitionsEmerging markets consist of the Latin America region in its entirety; the Asia, Middle East and Africa region excluding Australia, New Zealand and Japan; and the following countries from the Europe region: Russia, Ukraine, Turkey, Kazakhstan, Georgia, Poland, Czech Republic, Slovak Republic, Hungary, Bulgaria, Romania, the Baltics and the East Adriatic countries.

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, Middle East and Africa region.

Forward-Looking StatementsThis press release contains a number of forward-looking statements. Words, and variations of words, such as will, expect, may, would, could, estimate, outlook and similar expressions are intended to identify the companys forward-looking statements, including, but not limited to, statements about: the impact of and volatility resulting from the COVID-19 pandemic; the companys strategy and the prospects for the business; growth and value generation over the long term; strategic transactions; the companys future performance, including its future revenue growth, earnings per share and cash flow; currency and the effect of currency translation on the companys results of operations;and the companys outlook, including 2021 Organic Net Revenue growth, Adjusted EPS growth and Free Cash Flow. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the companys control, and many of these risks and uncertainties are currently amplified by and may continue to be amplified by the COVID-19 pandemic. Important factors that could cause the companys actual results to differ materially from those indicated in the companys forward-looking statements include, but are not limited to, uncertainty about the magnitude, duration, geographic reach, impact on the global economy and related current and potential travel restrictions of the COVID-19 pandemic; the current, and uncertain future, impact of the COVID-19 pandemic on the companys business, growth, reputation, prospects, financial condition, operating results (including components of the companys financial results), cash flows and liquidity; risks from operating globally including in emerging markets; changes in currency exchange rates, controls and restrictions; volatility of commodity and other input costs; weakness in economic conditions; weakness in consumer spending; pricing actions; tax matters including changes in tax laws and rates, disagreements with taxing authorities and imposition of new taxes; use of information technology and third party service providers; unanticipated disruptions to the companys business, such as the malware incident, cyberattacks or other security breaches; global or regional health pandemics or epidemics, including COVID-19; competition; protection of the companys reputation and brand image; changes in consumer preferences and demand and the companys ability to innovate and differentiate its products; the restructuring program and the companys other transformation initiatives not yielding the anticipated benefits; changes in the assumptions on which the restructuring program is based; management of the companys workforce; consolidation of retail customers and competition with retailer and other economy brands; changes in the companys relationships with customers, suppliers or distributors; legal, regulatory, tax or benefit law changes, claims or actions; the impact of climate change on the companys supply chain and operations; strategic transactions; significant changes in valuation factors that may adversely affect the companys impairment testing of goodwill and intangible assets; perceived or actual product quality issues or product recalls; failure to maintain effective internal control over financial reporting; volatility of and access to capital or other markets and the company's liquidity; pension costs; the expected discontinuance of London Interbank Offered Rates and transition to any other interest rate benchmark; and the companys ability to protect its intellectual property and intangible assets. Please also see the companys risk factors, as they may be amended from time to time, set forth in its filings with the SEC, including the companys most recently filed Annual Report on Form 10-K. Mondelz 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.

Schedule 1Mondel?z International, Inc. and SubsidiariesCondensed Consolidated Statements of Earnings(in millions of U.S. dollars and shares, except per share data)(Unaudited) For the Three Months For the Six Months Ended June 30, Ended June 30, 2021 2020 2021 2020Net revenues $ 6,642 $ 5,911 $ 13,880 $ 12,618 Cost of sales 4,011 3,580 8,283 7,836 Gross profit 2,631 2,331 5,597 4,782 Gross profit margin 39.6% 39.4% 40.3% 37.9% Selling, general and 1,593 1,453 3,157 2,990 administrative expensesAsset impairment and exit 134 115 224 130 costsGain on acquisition - - (9 ) - Amortization of intangible 32 50 70 93 assetsOperating income 872 713 2,155 1,569 Operating income margin 13.1% 12.1% 15.5% 12.4% Benefit plan non-service (54 ) (31 ) (98 ) (64 )incomeInterest and other expense, 58 85 276 275 netEarnings before income taxes 868 659 1,977 1,358 Income tax provision (398 ) (341 ) (610 ) (489 )Effective tax rate 45.9% 51.7% 30.9% 36.0% Gain on equity method 502 121 495 192 investment transactionsEquity method investment net 107 106 185 227 earningsNet earnings 1,079 545 2,047 1,288 Noncontrolling interest (1 ) (1 ) (8 ) (8 )earningsNet earnings attributable to $ 1,078 $ 544 $ 2,039 $ 1,280 Mondel?z International Per share data: Basic earnings per shareattributable to Mondel?z $ 0.77 $ 0.38 $ 1.45 $ 0.89 International Diluted earnings per shareattributable to Mondel?z $ 0.76 $ 0.38 $ 1.44 $ 0.89 International Average shares outstanding: Basic 1,407 1,431 1,410 1,432 Diluted 1,416 1,439 1,419 1,442

Schedule 2Mondel?z International, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(in millions of U.S. dollars)(Unaudited) June 30, December 31, 2021 2020 ASSETS Cash and cash equivalents $ 1,938 $ 3,619 Trade receivables 2,226 2,297 Other receivables 687 657 Inventories, net 2,925 2,647 Other current assets 878 759 Total current assets 8,654 9,979 Property, plant and equipment, net 8,857 9,026 Operating lease right of use assets 653 638 Goodwill 22,270 21,895 Intangible assets, net 18,691 18,482 Prepaid pension assets 802 672 Deferred income taxes 723 790 Equity method investments 5,586 6,036 Other assets 241 292 TOTAL ASSETS $ 66,477 $ 67,810 LIABILITIES Short-term borrowings $ 64 $ 29 Current portion of long-term debt 1,905 2,741 Accounts payable 6,375 6,209 Accrued marketing 1,966 2,130 Accrued employment costs 743 834 Other current liabilities 3,032 3,216 Total current liabilities 14,085 15,159 Long-term debt 17,046 17,276 Long-term operating lease liabilities 489 470 Deferred income taxes 3,436 3,346 Accrued pension costs 1,135 1,257 Accrued postretirement health care costs 346 346 Other liabilities 2,320 2,302 TOTAL LIABILITIES 38,857 40,156 EQUITY Common Stock - - Additional paid-in capital 32,042 32,070 Retained earnings 29,538 28,402 Accumulated other comprehensive losses (10,572 ) (10,690 ) Treasury stock (23,465 ) (22,204 ) Total Mondel?z International Shareholders' 27,543 27,578 EquityNoncontrolling interest 77 76 TOTAL EQUITY 27,620 27,654 TOTAL LIABILITIES AND EQUITY $ 66,477 $ 67,810 June 30, December 31, 2021 2020 Incr/ (Decr) Short-term borrowings $ 64 $ 29 $ 35 Current portion of long-term debt 1,905 2,741 (836 )Long-term debt 17,046 17,276 (230 )Total Debt 19,015 20,046 (1,031 )Cash and cash equivalents 1,938 3,619 (1,681 )Net Debt ^(1) $ 17,077 $ 16,427 $ 650 ^(1) 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 cashequivalents.

Schedule 3Mondel?z International, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(in millions of U.S. dollars)(Unaudited) For the Six Months Ended June 30, 2021 2020CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES Net earnings $ 2,047 $ 1,288 Adjustments to reconcile net earnings to operating cash flows:Depreciation and amortization 564 528 Stock-based compensation expense 63 63 Deferred income tax provision/(benefit) 92 (110 )Asset impairments and accelerated depreciation 152 99 Loss on early extinguishment of debt 110 - Gain on acquisition (9 ) - Gain on equity method investment transactions (495 ) (192 )Equity method investment net earnings (185 ) (227 )Distributions from equity method investments 94 193 Other non-cash items, net (5 ) 154 Change in assets and liabilities, net of acquisitions: Receivables, net 42 328 Inventories, net (289 ) (233 )Accounts payable 182 75 Other current assets (190 ) (62 )Other current liabilities (231 ) (224 )Change in pension and postretirement assets and (150 ) (122 )liabilities, netNet cash provided by/(used in) operating activities 1,792 1,558 CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES Capital expenditures (410 ) (445 )Acquisitions, net of cash received (833 ) (1,141 )Proceeds from divestitures including equity method 998 579 investmentsOther 25 (30 )Net cash provided by/(used in) investing activities (220 ) (1,037 ) CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES Issuances of commercial paper, maturities greater than - 677 90 daysRepayments of commercial paper, maturities greater than - (654 )90 daysNet issuances of other short-term borrowings 37 109 Long-term debt proceeds 2,378 2,533 Long-term debt repaid (3,376 ) (1,430 )Repurchase of Common Stock (1,498 ) (720 )Dividends paid (896 ) (819 )Other 127 123 Net cash provided by/(used in) financing activities (3,228 ) (181 ) Effect of exchange rate changes on cash, cash (25 ) (37 )equivalents and restricted cash Cash, Cash Equivalents and Restricted Cash (Decrease) / increase (1,681 ) 303 Balance at beginning of period 3,650 1,328 Balance at end of period $ 1,969 $ 1,631

Mondelz International, Inc. and SubsidiariesReconciliation of GAAP and Non-GAAP Financial Measures(Unaudited)

The company reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). However, management believes that also presenting certain non-GAAP financial measures provides additional information to facilitate the comparison of the companys historical operating results and trends in its underlying operating results, and provides additional transparency on how the company evaluates its business. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the companys performance. The company also believes that presenting these measures allows investors to view its performance using the same measures that the company uses in evaluating its financial and business performance and trends.

The company considers quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of its ongoing financial and business performance and trends. The adjustments generally fall within the following categories: acquisition& divestiture activities, gains and losses on intangible asset sales and non-cash impairments, major program restructuring activities, constant currency and related adjustments, major program financing and hedging activities and other major items affecting comparability of operating results. See below for a description of adjustments to the companys U.S. GAAP financial measures included herein.

Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with U.S. GAAP. In addition, the companys non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

DEFINITIONS OF THE COMPANYS NON-GAAP FINANCIAL MEASURESThe companys 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. When these definitions change, the company provides the updated definitions and presents the related non-GAAP historical results on a comparable basis. When items no longer impact the companys current or future presentation of non-GAAP operating results, the company removes these items from its non-GAAP definitions. In the second quarter of 2021, we added to the non-GAAP definitions the exclusion of initial impacts from enacted tax law changes.

-- Organic Net Revenue is defined as net revenues excluding the impacts of acquisitions, divestitures and currency rate fluctuations. The company also evaluates Organic Net Revenue growth from emerging markets and developed markets. -- Adjusted Gross Profit is defined as gross profit excluding the impacts of the Simplify to Grow Program; acquisition integration costs; the operating results of divestitures; and mark-to-market impacts from commodity and forecasted currency transaction derivative contracts. The company also presents Adjusted Gross Profit margin, which is subject to the same adjustments as Adjusted Gross Profit. The company also evaluates growth in the companys 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 the items listed in the Adjusted Gross Profit definition as well as gains or losses (including non-cash impairment charges) on goodwill and intangible assets; divestiture or acquisition gains or losses and related divestiture, acquisition and integration costs; costs associated with the JDE Peet's transaction; remeasurement of net monetary position; impacts from resolution of tax matters; CEO transition remuneration; initial impacts from enacted tax law changes; and impact from pension participation changes. The company also presents Adjusted Operating Income margin and Adjusted Segment Operating Income margin, which are subject to the same adjustments as Adjusted Operating Income and Adjusted Segment Operating Income. The company also evaluates growth in the companys Adjusted Operating Income and Adjusted Segment Operating Income on a constant currency basis. -- Adjusted EPS is defined as diluted EPS attributable to Mondelz International from continuing operations excluding the impacts of the items listed in the Adjusted Operating Income definition, as well as losses on debt extinguishment and related expenses; gains or losses on equity method investment transactions; net earnings from divestitures; and gains or losses on interest rate swaps no longer designated as accounting cash flow hedges due to changed financing and hedging plans. Similarly, within Adjusted EPS, the companys equity method investment net earnings exclude its proportionate share of its investees significant operating and non-operating items. The tax impact of each of the items excluded from the companys GAAP results was computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS. The company also evaluates growth in the companys Adjusted EPS on a constant currency basis. -- Free Cash Flow is defined as net cash provided by operating activities less capital expenditures. Free Cash Flow is the companys primary measure used to monitor its cash flow performance.

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 months and six months ended June 30, 2021 and June 30, 2020. See Items Impacting Comparability of Operating Results below for more information about the items referenced in these definitions that specifically impacted the companys results.

SEGMENT OPERATING INCOMEThe company 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, gains and losses on divestitures and acquisition-related costs (which are a component of selling, general and administrative expenses) in all periods presented. The company excludes these items from segment operating income in order to provide better transparency of its segment operating results. Furthermore, the company centrally manages benefit plan non-service income and interest and other expense, net. Accordingly, the company does not present these items by segment because they are excluded from the segment profitability measure that management reviews.

ITEMS IMPACTING COMPARABILITY OF OPERATING RESULTSThe following information is provided to give qualitative and quantitative information related to items impacting comparability of operating results. The company identifies these based on how management views the companys business; makes financial, operating and planning decisions; and evaluates the companys ongoing performance. In addition, the company discloses the impact of changes in currency exchange rates on the companys financial results in order to reflect results on a constant currency basis.

Divestitures, Divestiture-related costs and Gains/(losses) on divestituresDivestitures include completed sales of businesses (including the partial or full sale of an equity method investment - discussed separately below under the gains and losses on equity method investment transactions section) and exits of major product lines upon completion of a sale or licensing agreement. As the company records its share of KDP and JDE Peets ongoing earnings on a one-quarter lag basis, any KDP or JDE Peets ownership reductions are reflected as divestitures within the company's non-GAAP results the following quarter.

-- The company's non-GAAP results include the impacts from last-year's partial sales of its equity method investments in KDP and JDE Peets as if the sales occurred at the beginning of all periods presented. See the section on gains/losses on equity method transactions below for more information.

Acquisitions, Acquisition-related costs and Acquisition integration costsOn May 26, 2021, the company announced an agreement to acquire Chipita S.A., a leading croissants and baked snacks company in the Central and Eastern European markets. The company expects the acquisition to close in the next nine months after all regulatory and acquisition-related reviews are completed. The company incurred acquisition-related costs of $6 million in the three months and six months ended June 30, 2021.

On April 1, 2021, the company acquired Gourmet Food Holdings Pty Ltd, a leading Australian food company in the premium biscuit and cracker category. The acquisition added incremental net revenues of $27 million and operating income of $3 million in the three and six months ended June 30, 2021. The company also incurred acquisition-related costs of $6 million in the three months and $7 million in the six months ended June 30, 2021.

On March 25, 2021, the company acquired a majority interest in Lion/Gemstone Topco Ltd ("Grenade"), a performance nutrition leader in the United Kingdom. The acquisition of Grenade expands the company's position into the premium nutrition market. The acquisition added incremental net revenues of $23 million and operating income of $2 million in the three and six months ended June 30, 2020. The company also incurred acquisition-related costs of $2 million in the six months ended June 30, 2021.

On January 4, 2021, the company acquired the remaining 93% of equity of Hu Master Holdings, a category leader in premium chocolate in the United States, which provides a strategic complement to the company's snacking portfolio in North America through growth opportunities in chocolate and other categories in the well-being segment. As a result of acquiring the remaining equity interest, the company consolidated the operation and recorded a pre-tax gain of $9 million ($7 million after-tax) related to stepping up the company's previously-held $8 million (7%) investment to fair value. The acquisition added incremental net revenues of $8million and an operating loss of $7 million in the three months and incremental net revenues of $16million and an operating loss of $13 million in the six months ended June 30, 2021. The company also incurred acquisition-related costs of $5 million in the three months and $9 million in the six months ended June 30, 2021.

On April 1, 2020, the company acquired a majority interest in Give & Go, a North American leader in fully-finished sweet baked goods and owner of the famous two-bite brand of brownies and the Create-A-Treat brand, known for cookie and gingerbread house decorating kits. The acquisition of Give & Go provides access to the in-store bakery channel and expands the company's position in broader snacking. The acquisition added incremental net revenues of $106million and operating income of $6 million in 2021. The company incurred acquisition-integrations costs of $2 million in the three months and $3 million in the six months ended June 30, 2021. The company also incurred acquisition-related costs of $10 million in the three months and $15 million in the six months ended June 30, 2020.

Simplify to Grow ProgramThe primary objective of the Simplify to Grow Program is to reduce the companys operating cost structure in both its supply chain and overhead costs. The program covers severance as well as asset disposals and other manufacturing and procurement-related one-time costs.

Restructuring costsThe company recorded restructuring charges of $100 million in the three months and $188 million in the six months ended June30, 2021 and $28 million in the three months and $43 million in the six months ended June 30, 2020 within asset impairment and exit costs and benefit plan non-service income. These charges were for severance and related costs, non-cash asset write-downs (including accelerated depreciation and asset impairments) and other adjustments, including any gains on sale of restructuring program assets.

Implementation costsImplementation costs primarily relate to reorganizing the companys operations and facilities in connection with its supply chain reinvention program and other identified productivity and cost saving initiatives. The costs include incremental expenses related to the closure of facilities, costs to terminate certain contracts and the simplification of the companys information systems. The company recorded implementation costs of $33 million in the three months and $67 million in the six monthsended June 30, 2021 and $52 million in the three months and $95 million in the six months ended June 30, 2020.

Intangible asset impairment chargesWith the ongoing COVID-19 global pandemic, the company continues to monitor intangible asset impairment risk. Impairment charges are recorded within asset impairment and exit costs.

During the second quarter of 2021, the company recorded a $32 million impairment charge in North America related to a small biscuit brand, primarily due to lower than original expected sales growth.

During the second quarter of 2020, the company identified a decline in demand for certain of its brands, primarily in the gum category, that prompted additional evaluation of its non-amortizable intangible assets. The company concluded that four gum brands, a small biscuit brand and a small candy brand were impaired as a result of lower than expected product growth. The company recorded approximately $90 million of impairment charges with $50 million in Europe, $36 million in North America and $5 million in AMEA.

Mark-to-market impacts from commodity and currency derivative contractsThe company excludes unrealized gains and losses (mark-to-market impacts) from outstanding commodity and forecasted currency transaction derivatives from its non-GAAP earnings measures until such time that the related exposures impact its operating results. The company recorded net unrealized gains on commodity and forecasted currency transaction derivatives of $17 million in the three months and $134 million in the six months ended June 30, 2021 and recorded net unrealized losses of $2 million in the three months and $186 million in the six months ended June 30, 2020.

Remeasurement of net monetary positionDuring the second quarter of 2018, primarily based on published estimates which indicated that Argentina's three-year cumulative inflation rate exceeded 100%, the company concluded that Argentina became a highly inflationary economy for accounting purposes. As of July 1, 2018, the company began to apply highly inflationary accounting for its Argentinean subsidiaries and changed their functional currency from the Argentinean peso to the U.S. dollar. On July 1, 2018, both monetary and non-monetary assets and liabilities denominated in Argentinian pesos were remeasured into U.S. dollars. As of each subsequent balance sheet date, Argentinean peso denominated monetary assets and liabilities were remeasured into U.S. dollars using the exchange rate as of the balance sheet date, with remeasurement and other transaction gains and losses recorded in net earnings. Within selling, general and administrative expenses, the company recorded remeasurement losses of $3 million in the three months and $8 million in the six months ended June 30, 2021 and $3 million in the three months and $5 million in the six months ended June 30, 2020 related to the revaluation of the Argentinean peso denominated net monetary position over these periods.

Impact from pension participation changesThe impact from pension participation changes represent the charges incurred when employee groups are withdrawn from multiemployer pension plans and other changes in employee group pension plan participation. The company excludes these charges from its non-GAAP results because those amounts do not reflect the companys ongoing pension obligations.

During the second quarter of 2021, the company made a decision to freeze its Defined Benefit Pension Scheme in the United Kingdom. As a result, the company recognized a curtailment credit of $14 million for the three and six months ended June 30, 2021 recorded within benefit plan non-service income. In addition, the company incurred incentive payment charges and other expenses related to this decision of $44 million in the three months and $45 million in the six months ended June 30, 2021 included in operating income.

On July 11, 2019, the company received an undiscounted withdrawal liability assessment related to the company's completewithdrawal from the Bakery and Confectionery Union and Industry International Pension Fund totaling $526 million and requiring pro-rata monthly payments over 20 years. The company began making monthly payments during the third quarter of 2019. The company recorded $3 million of accreted interest in the three months and $6 million in the six months ended June 30, 2021 and $3 million in the three months and $6 million in the six months ended June 30, 2020 on the long-term liability within interest and other expense, net. As of June 30, 2021, the remaining discounted withdrawal liability was $368 million, with $14 million recorded in other current liabilities and $354 million recorded in long-term other liabilities.

Loss on debt extinguishment and related expensesOn March 31, 2021, the company completed an early redemption of Euro (1,200 million) and U.S. dollar ($992 million) denominated notes. The company recorded $137 million of extinguishment loss and debt-related expenses within interest and other expense, net related to $110 million paid in excess of carrying value of the debt and recognizing unamortized discounts and deferred financing in earnings and $27 million foreign currency derivative loss related to the redemption payment at the time of the debt extinguishment.

Loss related to interest rate swapsWithin interest and other expense, net, the company recognized a pre-tax loss related to forward-starting interest rate swaps of $103 million ($79 million after-tax) in the first quarter of 2020 due to the changes in related forecasted debt.

Initial impacts from enacted tax law changesThe company excludes initial impacts from enacted tax law changes from its non-GAAP financial measures as they do not reflect its ongoing tax obligations under the enacted tax law changes. Initial impacts include items such as the remeasurement of deferred tax balances and the transition tax from the 2017 U.S. tax reform. Previously, the company only excluded the initial impacts from more material tax reforms, specifically the impacts of the 2019 Swiss tax reform and 2017 U.S. tax reform. To facilitate comparisons of its underlying operating results, the company has recast all historicalnon-GAAPearnings measures to exclude theinitial impacts from enacted tax law changes.

The company recorded net tax expense from the increase of its deferred tax liabilities resulting from enacted tax legislation (mainly in the United Kingdom) of $95 million in the three months and $99 million in the six months ended June 30, 2021.

Gains and losses on equity method investment transactionsKeurig Dr Pepper Transactions:On March 4, 2020, the company participated in a secondary offering of KDP shares and sold approximately 6.8 million shares, which reduced its ownership interest by 0.5% of total outstanding shares. The company received $185 million of proceeds and recorded a pre-tax gain of $71 million (or $54 million after-tax) during the three months ended March 31, 2020. On August 3, 2020, the company sold approximately 14.1 million shares of KDP, which reduced its ownership interest by 1.0% of the total outstanding shares. The company received $414 million of proceeds and recorded a pre-tax gain of $181 million (or $139 million after-tax) during the third quarter of 2020. On September 9, 2020, the company sold approximately 12.5 million shares of KDP, which reduced its ownership interest by 0.9% of the total outstanding shares. The company received $363 million of proceeds and recorded a pre-tax gain of $154 million (or $119 million after-tax) during the third quarter of 2020. On November 17, 2020, the company participated in a secondary offering of KDP shares and sold approximately 40.0 million shares, which reduced the company's ownership interest by 2.8% of the total outstanding shares. The company received $1,132 million of proceeds and recorded a pre-tax gain of $459 million (or $350 million after-tax) during the fourth quarter of 2020. The company considers these ownership reductions partial divestitures of its equity method investment in KDP. Therefore, the company has removed the equity method investment net earnings related to this divested portion from its non-GAAP financial results for Adjusted EPS for all historical periods presented to facilitate comparison of results. The company's U.S. GAAP results, which include its equity method investment net earnings from KDP, did not change from what was previously reported.

On June 7, 2021, the company participated in a secondary offering of KDP shares and sold approximately 28 million shares, which reduced its ownership interest by 2% to 6.4% of the total outstanding shares. The company received $997 million of proceeds and recorded a pre-tax gain of $520 million (or $392 million after-tax) during the second quarter of 2021. As the company records its share of KDP ongoing earnings on a one-quarter lag basis, any KDP ownership reductions are reflected as divestitures within non-GAAP results the following quarter. As such, the company will recast divestitures within its non-GAAP results to reflect the second quarter 2021 sales of KDP shares in the third quarter of 2021.

JDE Peets Transaction:In May 2020, JDE Peets B.V. (renamed JDE Peets N.V. immediately prior to Settlement (as defined below), JDE Peets) consummated the offering, listing and trading of its ordinary shares on Euronext Amsterdam, a regulated market operated by Euronext Amsterdam N.V. (the admission). In connection with this transaction, JDE Peets and the selling shareholders, including the company, agreed to sell at a price of 31.50 per ordinary share a total of approximately 82.1 million ordinary shares, including ordinary shares subject to an over-allotment option. The ordinary shares were listed and first traded on May29, 2020, and payment for, and delivery of, the ordinary shares sold in the offering (excluding ordinary shares subject to the over-allotment option) took place on June2, 2020 (Settlement).

Prior to Settlement, the company exchanged its 26.4% ownership interest in JDE for a 26.5% equity interest in JDE Peets. The company did not invest new capital in connection with the transaction and the exchange was accounted for as a change in interest transaction. Upon Settlement, the company sold approximately 9.7 million of its ordinary shares in JDE Peets in the offering for gross proceeds of 304 million ($343 million). The company subsequently sold approximately 1.4 million additional shares and received gross proceeds of 46 million ($51 million) upon exercise of the over-allotment option. Following Settlement and the exercise of the over-allotment option, the company held a 22.9% equity interest in JDE Peets. During the second quarter of 2020, the company recorded a preliminary gain of $121 million, net of $33 million released from accumulated other comprehensive losses, and incurred $48 million of transaction costs. The company also incurred a $261 million tax expense that is payable in 2020 and 2021. During the third quarter of 2020, the company increased its preliminary gain by $10 million to $131 million. During the fourth quarter of 2020, the company recorded a $7 million loss related to a minor dilution of its ownership percentage and reduced its tax expense by $11 million to $250 million.

In connection with this transaction, during the second quarter of 2020, the company changed its accounting principle to reflect its share of JDEs historical and JDE Peets ongoing earnings on a one-quarter lag basis, although the company continues to record dividends when cash is received. The company determined a lag was preferable as it enables the company to continue to report its quarterly and annual results on a timely basis, while recording its share of JDE Peets ongoing results after JDE Peets has publicly reported its results. This change in accounting principle was applied retrospectively to all periods. In addition, the company considers the 3.6% ownership reduction a partial divestiture of its equity method investment in JDE Peet's. Therefore, the company has removed the equity method investment net earnings related to this divested portion from its non-GAAP financial results for Adjusted EPS for all historical periods presented to facilitate comparison of results. The company's U.S. GAAP results, which include its equity method investment net earnings from JDE Peet's, did not change from what was previously reported.

Equity method investee itemsWithin Adjusted EPS, the companys equity method investment net earnings exclude its proportionate share of its equity method investees significant operating and non-operating items, such as acquisition and divestiture-related costs and restructuring program costs.

Constant currencyManagement evaluates the operating performance of the company and its international subsidiaries on a constant currency basis. The company determines its constant currency operating results by dividing or multiplying, as appropriate, the current period local currency operating results by the currency exchange rates used to translate the companys financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period.

OUTLOOKThe companys outlook for 2021 Organic Net Revenue growth, Adjusted EPS growth on a constant currency basis and Free Cash Flow are non-GAAP financial measures that exclude or otherwise adjust for items impacting comparability of financial results such as the impact of changes in currency exchange rates, restructuring activities, acquisitions and divestitures. The company is not able to reconcile its projected Organic Net Revenue growth to its projected reported net revenue growth for the full-year 2021 because the company is unable to predict during this period the impact from potential acquisitions or divestitures, as well as the impact of currency translation due to the unpredictability of future changes in currency exchange rates, which could be material as a significant portion of the companys operations are outside the U.S. The company is not able to reconcile its projected Adjusted EPS growth on a constant currency basis to its projected reported diluted EPS growth for the full-year 2021 because the company is unable to predict during this period the timing of its restructuring program costs, mark-to-market impacts from commodity and forecasted currency transaction derivative contracts and impacts from potential acquisitions or divestitures as well as the impact of currency translation due to the unpredictability of future changes in currency exchange rates, which could be material as a significant portion of the companys operations are outside the U.S. The company is not able to reconcile its projected Free Cash Flow to its projected net cash from operating activities for the full-year 2021 because the company is unable to predict during this period the timing and amount of capital expenditures impacting cash flow. Therefore, because of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, the company is unable to provide a reconciliation of these measures without unreasonable effort.

Schedule 4aMondel?z International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresNet Revenues(in millions of U.S. dollars)(Unaudited) Latin AMEA Europe North Mondel?z America America InternationalFor the ThreeMonths Ended June 30, 2021Reported (GAAP) $ 669 $ 1,452 $ 2,474 $ 2,047 $ 6,642 Acquisitions - (23 ) (21 ) (8 ) (52 )Currency 14 (106 ) (199 ) (20 ) (311 )Organic $ 683 $ 1,323 $ 2,254 $ 2,019 $ 6,279 (Non-GAAP) For the ThreeMonths Ended June 30, 2020Reported (GAAP) $ 511 $ 1,237 $ 2,138 $ 2,025 $ 5,911 Divestitures - - - - - Organic $ 511 $ 1,237 $ 2,138 $ 2,025 $ 5,911 (Non-GAAP) % Change Reported (GAAP) 30.9 % 17.4 % 15.7 % 1.1 % 12.4 %Divestitures - pp - pp - pp - pp - ppAcquisitions - (1.8 ) (1.0 ) (0.4 ) (0.9 )Currency 2.8 (8.6 ) (9.3 ) (1.0 ) (5.3 )Organic 33.7 % 7.0 % 5.4 % (0.3 ) 6.2 %(Non-GAAP) % Vol/Mix 18.8 pp 5.1 pp 4.2 pp (0.5)pp 4.0 ppPricing 14.9 1.9 1.2 0.2 2.2 Latin AMEA Europe North Mondel?z America America InternationalFor the SixMonths Ended June 30, 2021Reported (GAAP) $ 1,338 $ 3,197 $ 5,321 $ 4,024 $ 13,880 Acquisitions - (23 ) (21 ) (122 ) (166 )Currency 123 (187 ) (376 ) (31 ) (471 )Organic $ 1,461 $ 2,987 $ 4,924 $ 3,871 $ 13,243 (Non-GAAP) For the SixMonths Ended June 30, 2020Reported (GAAP) $ 1,237 $ 2,739 $ 4,722 $ 3,920 $ 12,618 Divestitures - - - - - Organic $ 1,237 $ 2,739 $ 4,722 $ 3,920 $ 12,618 (Non-GAAP) % Change Reported (GAAP) 8.2 % 16.7 % 12.7 % 2.7 % 10.0 %Divestitures - pp - pp - pp - pp - ppAcquisitions - (0.8 ) (0.4 ) (3.2 ) (1.3 )Currency 9.9 (6.8 ) (8.0 ) (0.8 ) (3.7 )Organic 18.1 % 9.1 % 4.3 % (1.3 ) 5.0 %(Non-GAAP) % Vol/Mix 6.0 pp 6.7 pp 3.2 pp (1.7)pp 2.8 ppPricing 12.1 2.4 1.1 0.4 2.2

Schedule 4bMondel?z International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresNet Revenues - Markets(in millions of U.S. dollars)(Unaudited) Emerging Developed Mondel?z Markets Markets InternationalFor the Three Months Ended June 30, 2021 Reported (GAAP) $ 2,293 $ 4,349 $ 6,642 Acquisitions - (52 ) (52 )Currency (60 ) (251 ) (311 )Organic (Non-GAAP) $ 2,233 $ 4,046 $ 6,279 For the Three Months Ended June 30, 2020 Reported (GAAP) $ 1,917 $ 3,994 $ 5,911 Divestitures - - - Organic (Non-GAAP) $ 1,917 $ 3,994 $ 5,911 % Change Reported (GAAP) 19.6 % 8.9 % 12.4 %Divestitures - pp - pp - ppAcquisitions - (1.3 ) (0.9 )Currency (3.1 ) (6.3 ) (5.3 )Organic (Non-GAAP) 16.5 % 1.3 % 6.2 % Vol/Mix 10.6 pp 0.9 pp 4.0 ppPricing 5.9 0.4 2.2 Emerging Developed Mondel?z Markets Markets InternationalFor the Six Months Ended June 30, 2021 Reported (GAAP) $ 4,856 $ 9,024 $ 13,880 Acquisitions - (166 ) (166 )Currency 34 (505 ) (471 )Organic (Non-GAAP) $ 4,890 $ 8,353 $ 13,243 For the Six Months Ended June 30, 2020 Reported (GAAP) $ 4,334 $ 8,284 $ 12,618 Divestitures - - - Organic (Non-GAAP) $ 4,334 $ 8,284 $ 12,618 % Change Reported (GAAP) 12.0 % 8.9 % 10.0 %Divestitures - pp - pp - ppAcquisitions - (2.0 ) (1.3 )Currency 0.8 (6.1 ) (3.7 )Organic (Non-GAAP) 12.8 % 0.8 % 5.0 % Vol/Mix 7.3 pp 0.3 pp 2.8 ppPricing 5.5 0.5 2.2

Schedule 5aMondel?z International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresGross Profit / Operating Income(in millions of U.S. dollars)(Unaudited) For the Three Months Ended June 30, 2021 Net Gross Gross Operating Operating Revenues Profit Profit Income Income Margin MarginReported (GAAP) $ 6,642 $ 2,631 39.6 % $ 872 13.1 %Simplify to Grow Program - 20 132 Intangible asset - - 32 impairment chargesMark-to-market (gains)/ - (21 ) (20 ) losses from derivativesAcquisition integration - 1 2 costsAcquisition-related costs - - 17 Remeasurement of net - - 3 monetary positionImpact from pension - 18 44 participation changesImpact from resolution of - - (5 ) tax mattersAdjusted (Non-GAAP) $ 6,642 $ 2,649 39.9 % $ 1,077 16.2 %Currency (134 ) (67 ) Adjusted @ Constant FX $ 2,515 $ 1,010 (Non-GAAP) For the Three Months Ended June 30, 2020 Net Gross Gross Operating Operating Revenues Profit Profit Income Income Margin MarginReported (GAAP) $ 5,911 $ 2,331 39.4 % $ 713 12.1 %Simplify to Grow Program - 15 76 Intangible asset - - 90 impairment chargesMark-to-market (gains)/ - 1 2 losses from derivativesAcquisition integration - - 2 costsAcquisition-related costs - - 10 Divestiture-related costs - (1 ) (2 ) Costs associated with JDE - - 48 Peet?s transactionRemeasurement of net - - 3 monetary positionRounding - 1 - Adjusted (Non-GAAP) $ 5,911 $ 2,347 39.7 % $ 942 15.9 % Gross Operating Profit Income$ Change - Reported $ 300 $ 159 (GAAP)$ Change - Adjusted 302 135 (Non-GAAP)$ Change - Adjusted @ 168 68 Constant FX (Non-GAAP) % Change - Reported 12.9 % 22.3 % (GAAP)% Change - Adjusted 12.9 % 14.3 % (Non-GAAP)% Change - Adjusted @ 7.2 % 7.2 % Constant FX (Non-GAAP)

Schedule 5bMondel?z International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresGross Profit / Operating Income(in millions of U.S. dollars)(Unaudited) For the Six Months Ended June 30, 2021 Net Gross Gross Operating Operating Revenues Profit Profit Income Income Margin MarginReported (GAAP) $ 13,880 $ 5,597 40.3 % $ 2,155 15.5 %Simplify to Grow Program - 35 254 Intangible asset - - 32 impairment chargesMark-to-market (gains)/ - (137 ) (138 ) losses from derivativesAcquisition integration - 1 3 costsAcquisition-related costs - - 24 Gain on acquisition - - (9 ) Remeasurement of net - - 8 monetary positionImpact from pension - 19 45 participation changesImpact from resolution of - - (5 ) tax mattersAdjusted (Non-GAAP) $ 13,880 $ 5,515 39.7 % $ 2,369 17.1 %Currency (210 ) (111 ) Adjusted @ Constant FX $ 5,305 $ 2,258 (Non-GAAP) For the Six Months Ended June 30, 2020 Net Gross Gross Operating Operating Revenues Profit Profit Income Income Margin MarginReported (GAAP) $ 12,618 $ 4,782 37.9 % $ 1,569 12.4 %Simplify to Grow Program - 34 134 Intangible asset - - 90 impairment chargesMark-to-market (gains)/ - 187 187 losses from derivativesAcquisition integration - - 2 costsAcquisition-related costs - - 15 Divestiture-related costs - (1 ) (2 ) Costs associated with JDE - - 48 Peet?s transactionRemeasurement of net - - 5 monetary positionRounding - 1 - Adjusted (Non-GAAP) $ 12,618 $ 5,003 39.6 % $ 2,048 16.2 % Gross Operating Profit Income$ Change - Reported $ 815 $ 586 (GAAP)$ Change - Adjusted 512 321 (Non-GAAP)$ Change - Adjusted @ 302 210 Constant FX (Non-GAAP) % Change - Reported 17.0 % 37.3 % (GAAP)% Change - Adjusted 10.2 % 15.7 % (Non-GAAP)% Change - Adjusted @ 6.0 % 10.3 % Constant FX (Non-GAAP)

Schedule 6aMondel?z International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresNet Earnings and Tax Rate(in millions of U.S. dollars and shares, except per share data)(Unaudited) For the Three Months Ended June 30, 2021 Benefit Interest Gain on Equity plan and Earnings Income equity method Non-controlling Net Earnings Diluted EPS Operating non-service other before taxes ^ Effective method investment interest attributable attributable Income expense / expense, income (1) tax rate investment net losses earnings to Mondel?z to Mondel?z (income) net taxes transactions / International International (earnings)Reported (GAAP) $ 872 $ (54 ) $ 58 $ 868 $ 398 45.9 % $ (502 ) $ (107 ) $ 1 $ 1,078 $ 0.76 Simplify to Grow Program 132 (1 ) - 133 35 - - - 98 0.07 Intangible asset impairment charges 32 - - 32 8 - - - 24 0.02 Mark-to-market (gains)/losses from (20 ) - (3 ) (17 ) 4 - - - (21 ) (0.02 )derivativesAcquisition integration costs 2 - - 2 1 - - - 1 - Acquisition-related costs 17 - - 17 3 - - - 14 0.01 Remeasurement of net monetary position 3 - - 3 - - - - 3 - Impact from pension participation 44 14 (3 ) 33 7 - - - 26 0.02 changesImpact from resolution of tax matters (5 ) - 2 (7 ) (1 ) - - - (6 ) - Initial impacts from enacted tax law - - - - (95 ) - - - 95 0.07 changesGain on equity method investment - - - - (125 ) 502 - - (377 ) (0.27 )transactionsEquity method investee items - - - - 3 - (8 ) - 5 - Adjusted (Non-GAAP) $ 1,077 $ (41 ) $ 54 $ 1,064 $ 238 22.4 % $ - $ (115 ) $ 1 $ 940 $ 0.66 Currency (60 ) (0.04 )Adjusted @ Constant FX (Non-GAAP) $ 880 $ 0.62 Diluted Average Shares Outstanding 1,416 For the Three Months Ended June 30, 2020 Benefit Interest Gain on Equity plan and Earnings Income equity method Non-controlling NetEarnings Diluted EPS Operating non-service other before taxes ^ Effective method investment interest attributable attributable Income expense / expense, income (1) tax rate investment net losses earnings to Mondel?z to Mondel?z (income) net taxes transactions / International International (earnings)Reported (GAAP) $ 713 $ (31 ) $ 85 $ 659 $ 341 51.7 % $ (121 ) $ (106 ) $ 1 $ 544 $ 0.38 Simplify to Grow Program 76 (4 ) - 80 20 - - - 60 0.04 Intangible asset impairment charges 90 - - 90 21 - - - 69 0.05 Mark-to-market (gains)/losses from 2 - - 2 - - - - 2 - derivativesAcquisition integration costs 2 - - 2 - - - - 2 - Acquisition-related costs 10 - - 10 2 - - - 8 0.01 Divestiture-related costs (2 ) - - (2 ) - - - - (2 ) - Net earnings from divestitures - - - - (1 ) - 16 - (15 ) (0.01 )Costs associated with JDE Peet?s 48 - - 48 (261 ) - - - 309 0.21 transactionRemeasurement of net monetary position 3 - - 3 - - - - 3 - Impact from pension participation - - (3 ) 3 - - - - 3 - changesGain on equity method investment - - - - - 121 - - (121 ) (0.08 )transactionsEquity method investee items - - - - 4 - (23 ) - 19 0.01 Adjusted (Non-GAAP) $ 942 $ (35 ) $ 82 $ 895 $ 126 14.1 % $ - $ (113 ) $ 1 $ 881 $ 0.61 Diluted Average Shares Outstanding 1,439 ^(1) Taxes were computed for each of the items excluded from the company?s GAAP results based on the facts and tax assumptions associated with each item.

Schedule 6bMondel?z International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresNet Earnings and Tax Rate(in millions of U.S. dollars and shares, except per share data)(Unaudited) For the Six Months Ended June 30, 2021 Benefit Interest Gain on Equity plan non- and Earnings Income equity method Non- NetEarnings Diluted EPS Operating service other before taxes ^ Effective method investment controlling attributable attributable Income expense / expense, income (1) tax rate investment net losses interest to Mondel?z to Mondel?z (income) net taxes transactions / earnings International International (earnings)Reported (GAAP) $ 2,155 $ (98 ) $ 276 $ 1,977 $ 610 30.9 % $ (495 ) $ (185 ) $ 8 $ 2,039 $ 1.44 Simplify to Grow Program 254 (1 ) - 255 66 - - - 189 0.13 Intangible asset impairment charges 32 - - 32 8 - - - 24 0.02 Mark-to-market (gains)/losses from (138 ) - (4 ) (134 ) (18 ) - - - (116 ) (0.08 )derivativesAcquisition integration costs 3 - - 3 1 - - - 2 - Acquisition-related costs 24 - - 24 4 - - - 20 0.01 Gain on acquisition (9 ) - - (9 ) (2 ) - - - (7 ) - Remeasurement of net monetary position 8 - - 8 - - - - 8 - Impact from pension participation changes 45 14 (6 ) 37 8 - - - 29 0.02 Impact from resolution of tax matters (5 ) - 2 (7 ) (1 ) - - - (6 ) - Loss on debt extinguishment and related - - (137 ) 137 34 - - - 103 0.07 expensesInitial impacts from enacted tax law - - - - (99 ) - - - 99 0.07 changesGain on equity method investment - - - - (125 ) 495 - - (370 ) (0.26 )transactionsEquity method investee items - - - - 4 - (67 ) - 63 0.04 Adjusted (Non-GAAP) $ 2,369 $ (85 ) $ 131 $ 2,323 $ 490 21.1 % $ - $ (252 ) $ 8 $ 2,077 $ 1.46 Currency (109 ) (0.07 )Adjusted @ Constant FX (Non-GAAP) $ 1,968 $ 1.39 Diluted Average Shares Outstanding 1,419 For the Six Months Ended June 30, 2020 Benefit Interest Gain on Equity plan and Earnings Income equity method Non- NetEarnings Diluted EPS Operating non-service other before taxes ^ Effective method investment controlling attributable attributable Income expense / expense, income (1) tax rate investment net losses interest to Mondel?z to Mondel?z (income) net taxes transactions / earnings International International (earnings)Reported (GAAP) $ 1,569 $ (64 ) $ 275 $ 1,358 $ 489 36.0 % $ (192 ) $ (227 ) $ 8 $ 1,280 $ 0.89 Simplify to Grow Program 134 (4 ) - 138 33 - - - 105 0.07 Intangible asset impairment charges 90 - - 90 21 - - - 69 0.05 Mark-to-market (gains)/losses from 187 - 1 186 32 - - - 154 0.11 derivativesAcquisition integration costs 2 - - 2 - - - - 2 - Acquisition-related costs 15 - - 15 3 - - - 12 0.01 Divestiture-related costs (2 ) - - (2 ) - - - - (2 ) - Net earnings from divestitures - - - - (6 ) - 44 - (38 ) (0.02 )Costs associated with JDE Peet?s 48 - - 48 (261 ) - - - 309 0.21 transactionRemeasurement of net monetary position 5 - - 5 - - - - 5 - Impact from pension participation changes - - (6 ) 6 1 - - - 5 - Loss related to interest rate swaps - - (103 ) 103 24 - - - 79 0.06 Gain on equity method investment - - - - (17 ) 192 - - (175 ) (0.12 )transactionsEquity method investee items - - - - 5 - (39 ) - 34 0.02 Adjusted (Non-GAAP) $ 2,048 $ (68 ) $ 167 $ 1,949 $ 324 16.6 % $ - $ (222 ) $ 8 $ 1,839 $ 1.28 Diluted Average Shares Outstanding 1,442 ^(1) Taxes were computed for each of the items excluded from the company?s GAAP results based on the facts and tax assumptions associated with each item.

Schedule 7aMondel?z International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresDiluted EPS(Unaudited) For the Three Months Ended June 30, 2021 2020 $ Change % ChangeDiluted EPS attributable to Mondel?z $ 0.76 $ 0.38 $ 0.38 100.0 %International (GAAP)Simplify to Grow Program 0.07 0.04 0.03 Intangible asset impairment charges 0.02 0.05 (0.03 ) Mark-to-market (gains)/losses from (0.02 ) - (0.02 ) derivativesAcquisition-related costs 0.01 0.01 - Net earnings from divestitures - (0.01 ) 0.01 Costs associated with JDE Peet?s - 0.21 (0.21 ) transactionImpact from pension participation 0.02 - 0.02 changesInitial impacts from enacted tax law 0.07 - 0.07 changesGain on equity method investment (0.27 ) (0.08 ) (0.19 ) transactionsEquity method investee items - 0.01 (0.01 ) Adjusted EPS (Non-GAAP) $ 0.66 $ 0.61 $ 0.05 8.2 %Impact of favorable currency (0.04 ) - (0.04 ) Adjusted EPS @ Constant FX (Non-GAAP) $ 0.62 $ 0.61 $ 0.01 1.6 % Adjusted EPS @ Constant FX - Key DriversIncrease in operations $ 0.04 Change in benefit plan non-service - incomeChange in interest and other expense, 0.01 netChange in equity method investment net - earningsChange in income taxes (0.05 ) Change in shares outstanding 0.01 $ 0.01

Schedule 7bMondel?z International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresDiluted EPS(Unaudited) For the Six Months Ended June 30, 2021 2020 $ Change % ChangeDiluted EPS attributable to Mondel?z $ 1.44 $ 0.89 $ 0.55 61.8 %International (GAAP)Simplify to Grow Program 0.13 0.07 0.06 Intangible asset impairment charges 0.02 0.05 (0.03 ) Mark-to-market (gains)/losses from (0.08 ) 0.11 (0.19 ) derivativesAcquisition-related costs 0.01 0.01 - Net earnings from divestitures - (0.02 ) 0.02 Costs associated with JDE Peet?s - 0.21 (0.21 ) transactionImpact from pension participation 0.02 - 0.02 changesLoss related to interest rate swaps - 0.06 (0.06 ) Loss on debt extinguishment and related 0.07 - 0.07 expensesInitial impacts from enacted tax law 0.07 - 0.07 changesGain on equity method investment (0.26 ) (0.12 ) (0.14 ) transactionsEquity method investee items 0.04 0.02 0.02 Adjusted EPS (Non-GAAP) $ 1.46 $ 1.28 $ 0.18 14.1 %Impact of favorable currency (0.07 ) - (0.07 ) Adjusted EPS @ Constant FX (Non-GAAP) $ 1.39 $ 1.28 $ 0.11 8.6 % Adjusted EPS @ Constant FX - Key DriversIncrease in operations $ 0.11 Change in benefit plan non-service 0.01 incomeChange in interest and other expense, 0.02 netChange in equity method investment net 0.01 earningsChange in income taxes (0.06 ) Change in shares outstanding 0.02 $ 0.11

Schedule 8aMondel?z International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresSegment Data(in millions of U.S. dollars)(Unaudited) For the Three Months Ended June 30, 2021 Unrealized General Amortization Latin AMEA Europe North G/(L) on Corporate of Other Mondel?z America America Hedging Expenses Intangibles Items International ActivitiesNet Revenue Reported (GAAP) $ 669 $ 1,452 $ 2,474 $ 2,047 $ - $ - $ - $ - $ 6,642 Divestitures - - - - - - - - - Adjusted (Non-GAAP) $ 669 $ 1,452 $ 2,474 $ 2,047 $ - $ - $ - $ - $ 6,642 Operating Income Reported (GAAP) $ 54 $ 213 $ 413 $ 299 $ 20 $ (78 ) $ (32 ) $ (17 ) $ 872 Simplify to Grow Program 4 5 10 109 - 4 - - 132 Intangible asset impairment charges - - - 32 - - - - 32 Mark-to-market (gains)/losses from - - - - (20 ) - - - (20 )derivativesAcquisition integration costs - - - 1 - 1 - - 2 Acquisition-related costs - - - - - - - 17 17 Remeasurement of net monetary 3 - - - - - - - 3 positionImpact from pension participation - - 44 - - - - - 44 changesImpact from resolution of tax (5 ) - - - - - - - (5 )mattersAdjusted (Non-GAAP) $ 56 $ 218 $ 467 $ 441 $ - $ (73 ) $ (32 ) $ - $ 1,077 Currency 1 (23 ) (45 ) (5 ) - 4 1 - (67 )Adjusted @ Constant FX (Non-GAAP) $ 57 $ 195 $ 422 $ 436 $ - $ (69 ) $ (31 ) $ - $ 1,010 % Change - Reported (GAAP) 1000.0 % 24.6 % 39.1 % (29.5 ) n/m 29.7 % 36.0 % n/m 22.3 % %% Change - Adjusted (Non-GAAP) 366.7 % 19.8 % 27.2 % (6.2 ) n/m (87.2 ) 36.0 % n/m 14.3 % % %% Change - Adjusted @ Constant FX 375.0 % 7.1 % 15.0 % (7.2 ) n/m (76.9 ) 38.0 % n/m 7.2 %(Non-GAAP) % % Operating Income Margin Reported % 8.1 % 14.7 % 16.7 % 14.6 % 13.1 %Reported pp change 9.3 pp 0.9 pp 2.8 pp (6.3)pp 1.0 ppAdjusted % 8.4 % 15.0 % 18.9 % 21.5 % 16.2 %Adjusted pp change 6.1 pp 0.3 pp 1.7 pp (1.7)pp 0.3 pp For the Three Months Ended June 30, 2020 Unrealized General Amortization Latin AMEA Europe North G/(L) on Corporate of Other Mondel?z America America Hedging Expenses Intangibles Items International ActivitiesNet Revenue Reported (GAAP) $ 511 $ 1,237 $ 2,138 $ 2,025 $ - $ - $ - $ - $ 5,911 Divestitures - - - - - - - - - Adjusted (Non-GAAP) $ 511 $ 1,237 $ 2,138 $ 2,025 $ - $ - $ - $ - $ 5,911 Operating Income Reported (GAAP) $ (6 ) $ 171 $ 297 $ 424 $ (2 ) $ (111 ) $ (50 ) $ (10 ) $ 713 Simplify to Grow Program 15 8 20 9 - 24 - - 76 Intangible asset impairment charges - 5 50 36 - (1 ) - - 90 Mark-to-market (gains)/losses from - - - - 2 - - - 2 derivativesAcquisition integration costs - - - 1 - 1 - - 2 Acquisition-related costs - - - - - - - 10 10 Divestiture-related costs - (2 ) - - - - - - (2 )Costs associated with JDE Peet?s - - - - - 48 - - 48 transactionRemeasurement of net monetary 3 - - - - - - - 3 positionAdjusted (Non-GAAP) $ 12 $ 182 $ 367 $ 470 $ - $ (39 ) $ (50 ) $ - $ 942 Operating Income Margin Reported % (1.2 ) 13.8 % 13.9 % 20.9 % 12.1 % %Adjusted % 2.3 % 14.7 % 17.2 % 23.2 % 15.9 %

Schedule 8bMondel?z International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresSegment Data(in millions of U.S. dollars)(Unaudited) For the Six Months Ended June 30, 2021 Unrealized General Amortization Latin AMEA Europe North G/(L) on Corporate of Other Mondel?z America America Hedging Expenses Intangibles Items International ActivitiesNet Revenue Reported (GAAP) $ 1,338 $ 3,197 $ 5,321 $ 4,024 $ - $ - $ - $ - $ 13,880 Divestitures - - - - - - - - - Adjusted (Non-GAAP) $ 1,338 $ 3,197 $ 5,321 $ 4,024 $ - $ - $ - $ - $ 13,880 Operating Income Reported (GAAP) $ 130 $ 575 $ 970 $ 569 $ 138 $ (142 ) $ (70 ) $ (15 ) $ 2,155 Simplify to Grow 10 (14 ) 26 220 - 12 - - 254 ProgramIntangible asset - - - 32 - - - - 32 impairment chargesMark-to-market (gains)/losses from - - - - (138 ) - - - (138 )derivativesAcquisition - - - 2 - 1 - - 3 integration costsAcquisition-related - - - - - - - 24 24 costsGain on acquisition - - - - - - - (9 ) (9 )Remeasurement of net 8 - - - - - - - 8 monetary positionImpact from pension - - 45 - - - - - 45 participation changesImpact from resolution (5 ) - - - - - - - (5 )of tax mattersAdjusted (Non-GAAP) $ 143 $ 561 $ 1,041 $ 823 $ - $ (129 ) $ (70 ) $ - $ 2,369 Currency 14 (43 ) (88 ) (7 ) - 10 3 - (111 )Adjusted @ Constant FX $ 157 $ 518 $ 953 $ 816 $ - $ (119 ) $ (67 ) $ - $ 2,258 (Non-GAAP) % Change - Reported 80.6 % 42.0 % 26.1 % (29.3 ) n/m 24.1 % 24.7 % n/m 37.3 %(GAAP) %% Change - Adjusted 38.8 % 34.2 % 21.6 % (4.7 ) n/m (29.0 ) 24.7 % n/m 15.7 %(Non-GAAP) % %% Change - Adjusted @ 52.4 % 23.9 % 11.3 % (5.6 ) n/m (19.0 ) 28.0 % n/m 10.3 %Constant FX (Non-GAAP) % % Operating Income MarginReported % 9.7 % 18.0 % 18.2 % 14.1 % 15.5 %Reported pp change 3.9 pp 3.2 pp 1.9 pp (6.4)pp 3.1 ppAdjusted % 10.7 % 17.5 % 19.6 % 20.5 % 17.1 %Adjusted pp change 2.4 pp 2.2 pp 1.5 pp (1.5)pp 0.9 pp For the Six Months Ended June 30, 2020 Unrealized General Amortization Latin AMEA Europe North G/(L) on Corporate of Other Mondel?z America America Hedging Expenses Intangibles Items International ActivitiesNet Revenue Reported (GAAP) $ 1,237 $ 2,739 $ 4,722 $ 3,920 $ - $ - $ - $ - $ 12,618 Divestitures - - - - - - - - - Adjusted (Non-GAAP) $ 1,237 $ 2,739 $ 4,722 $ 3,920 $ - $ - $ - $ - $ 12,618 Operating Income Reported (GAAP) $ 72 $ 405 $ 769 $ 805 $ (187 ) $ (187 ) $ (93 ) $ (15 ) $ 1,569 Simplify to Grow 26 10 37 21 - 40 - - 134 ProgramIntangible asset - 5 50 36 - (1 ) - - 90 impairment chargesMark-to-market (gains)/losses from - - - - 187 - - - 187 derivativesAcquisition - - - 2 - - - - 2 integration costsAcquisition-related - - - - - - - 15 15 costsDivestiture-related - (2 ) - - - - - - (2 )costsCosts associated with - - - - - 48 - - 48 JDE Peet?s transactionRemeasurement of net 5 - - - - - - - 5 monetary positionAdjusted (Non-GAAP) $ 103 $ 418 $ 856 $ 864 $ - $ (100 ) $ (93 ) $ - $ 2,048 Operating Income MarginReported % 5.8 % 14.8 % 16.3 % 20.5 % 12.4 %Adjusted % 8.3 % 15.3 % 18.1 % 22.0 % 16.2 %

Schedule 9Mondel?z International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresNet Cash Provided by Operating Activities to Free Cash Flow(in millions of U.S. dollars)(Unaudited) For the Six Months Ended June 30, 2021 2020 $ Change Net Cash Provided by Operating Activities $ 1,792 $ 1,558 $ 234(GAAP)Capital Expenditures (410 ) (445 ) 35Free Cash Flow (Non-GAAP) $ 1,382 $ 1,113 $ 269

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