GlobeNewswire Inc | Jul 28, 2020 04:05PM EDT

July 28, 2020

-- Net revenues decreased 2.5% primarily driven by unfavorable currency impacts, with Organic Net Revenue1 growth of 0.7% and incremental net revenues from acquisitions -- Diluted EPS was $0.38, down 30.9% primarily as a result of costs associated with the JDE Peet's initial public offering; Adjusted EPS1 was $0.63, up 16.1% on a constant-currency basis -- Year-to-date cash provided by operating activities was $1.6 billion, up $0.5 billion versus prior year; Free Cash Flow1 was $1.1 billion, an increase of $0.5 billion versus prior year -- Returned $410 million of capital to shareholders in the quarter through dividends -- Announcing 11% increase to quarterly dividend

CHICAGO, Ill., July 28, 2020 (GLOBE NEWSWIRE) -- Mondelz International, Inc. (NASDAQ: MDLZ) today reported its second quarter 2020 results.

"We remain focused on the safety and well-being of our colleagues and communities at this time, while continuing to serve our customers in the exceptional circumstances caused by COVID-19. I am proud of how our teams have demonstrated their commitment to our customers and consumers by safely and efficiently maintaining business continuity. I am pleased with our second quarter performance given the challenging environment, with top-line performance driven by Developed Markets and strong share gains in all key markets. Our Emerging Markets performance improved throughout the quarter as store closures eased and consumers in many markets were increasingly able to access our products. While we expect continued volatility and uncertainty from COVID-19, I am confident that our strategy, investments, category fundamentals and execution will enable us to successfully navigate this crisis and emerge stronger," said Dirk Van de Put, Chairman and Chief Executive Officer.

Net Revenue

$ in millions Reported OrganicNetRevenueGrowth NetRevenues Q2 2020 %Chg Q2 2020 Vol/Mix Pricing vs PYQuarter 2 Latin America $ 511 (30.7 )% (11.3 )% (18.8 ) 7.5 pp ppAsia, Middle East& 1,237 (8.5 ) (3.1 ) (4.6 ) 1.5 AfricaEurope 2,138 (4.9 ) (1.2 ) (0.4 ) (0.8 )North America 2,025 17.3 11.0 7.4 3.6 Mondel?z International $ 5,911 (2.5 )% 0.7 % (1.3 ) 2.0 pp pp Emerging Markets $ 1,917 (15.6 )% (5.1 )% (7.8 ) 2.7 pp ppDeveloped Markets $ 3,994 5.4 % 4.1 % 2.5 pp 1.6 pp Year-to-Date Latin America $ 1,237 (19.5 )% (1.8 )% (10.0 ) 8.2 pp ppAsia, Middle East& 2,739 (5.3 ) (0.3 ) (1.7 ) 1.4 AfricaEurope 4,722 (1.6 ) 1.8 2.0 (0.2 )North America 3,920 16.3 12.2 9.8 2.4 Mondel?z International $ 12,618 0.1 % 3.7 % 1.8 pp 1.9 pp Emerging Markets $ 4,334 (9.2 )% (0.1 )% (3.5 ) 3.4 pp ppDeveloped Markets $ 8,284 5.9 % 5.9 % 4.9 pp 1.0 pp

Operating Income and Diluted EPS

$ in millions,except per Reported Adjustedshare data Q2 2020 vs PY Q2 2020 vs PY vsPY (RptFx) (RptFx) (CstFx)Quarter 2 Gross Profit $ 2,331 (5.6 )% $ 2,347 (4.3 )% (0.4 )%Gross Profit 39.4 % (1.3 )pp 39.7 % (0.9 )pp Margin Operating $ 713 (30.4 )% $ 942 (6.5 )% (3.8 )%IncomeOperating 12.1 % (4.8 )pp 15.9 % (0.8 )pp Income Margin Net Earnings^2 $ 544 (32.3 )% $ 904 10.0 % 13.3 %Diluted EPS $ 0.38 (30.9 )% $ 0.63 12.5 % 16.1 % Year-to-Date Gross Profit $ 4,782 (5.5 )% $ 5,003 (0.8 )% 2.8 %Gross Profit 37.9 % (2.3 )pp 39.6 % (0.6 )pp Margin Operating $ 1,569 (23.9 )% $ 2,048 (2.4 )% 1.1 %IncomeOperating 12.4 % (4.0 )pp 16.2 % (0.5 )pp Income Margin Net Earnings^2 $ 1,280 (27.7 )% $ 1,875 2.9 % 6.8 %Diluted EPS $ 0.89 (26.4 )% $ 1.30 4.0 % 8.0 %

Second Quarter Commentary

-- Net revenues decreased 2.5percent driven by unfavorable currency and the impact of a prior-year divestiture, with underlying Organic Net Revenue growth of 0.7 percent and the positive impact of acquisitions. As a result of COVID-19, the Developed Markets Organic Net Revenue growth rate was elevated versus pre-COVID levels. Organic Net Revenue from Emerging Markets declined but showed sequential improvement during the quarter and returned to growth in June. -- Gross profit decreased $138 million and margin declined 130 basis points to 39.4 percent. Both were due to unfavorable currency, unfavorable year-over-year mark-to-market impacts from currency and commodity derivatives, and marginally lower Adjusted Gross Profit1. Adjusted Gross Profit decreased $9 million at constant currency while Adjusted Growth Profit margin decreased 90 basis points to 39.7 percent primarily due to incremental COVID-19 related costs, higher raw material costs in part due to unfavorable currency movements and unfavorable volume/mix, partially offset by higher net pricing and productivity, as well as cost containment measures. -- Operating income decreased $312 million and margin was 12.1 percent, down 480 basis points primarily due to intangible asset impairment charges, costs associated with the JDE Peet's transaction, lower Adjusted Operating Income1, lapping a prior-year gain on a divestiture, lapping the benefit from prior-year pension participation changes and the year-over-year unfavorable change in mark-to-market gains/(losses) from currency and commodity hedging activities. Adjusted Operating Income decreased $38 million at constant currency, and margin decreased 80 basis points to 15.9 percent driven primarily by the decline in Adjusted Gross Profit margin, the impact of acquisitions and unfavorable volume/mix, partially offset by lower advertising and promotion costs. -- Diluted EPS was $0.38, down 30.9%, primarily due to costs associated with the JDE Peet's transaction, intangible asset impairment charges, lapping a prior-year net gain on divestiture, lapping a prior-year impact from pension participation changes, unfavorable year-over-year mark-to-market impacts from currency and commodity derivatives, a decline from operating activities as a result of COVID-19 related disruption and unfavorable currency translation, partially offset by a gain on equity method investment transactions, lower taxes and an increase in equity method investment earnings. -- Adjusted EPS was $0.63, up 16.1% on a constant-currency basis driven by lower taxes, an increase in equity method investment earnings, an increase in benefit plan non-service income, lower interest and other expense, net, and lower shares outstanding, partially offset by a decline from operating activities. -- Capital Return: The company returned $410 million to shareholders in cash dividends. The company suspended its share repurchase program in March, providing flexibility while managing the COVID-19 situation and response. Today, the companys Board of Directors declared a quarterly cash dividend of $0.315 per share of ClassA common stock, an increase of 11percent. This dividend is payable on October14, 2020, to shareholders recorded as of September30, 2020.

2020 OutlookAs previously disclosed, due to the COVID-19 pandemic, visibility is limited at this time in a number of markets. As a result, the company is not providing a full-year financial outlook. The company strategy and long-term algorithm remain unchanged.

The company estimates currency translation would decrease 2020 net revenue growth by approximately 3 percent3 with a negative $0.05 impact to Adjusted EPS3.

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. The company will be live tweeting the event at www.twitter.com/MDLZ.

About Mondelz InternationalMondelz International, Inc. (NASDAQ: MDLZ) empowers people to snack right in over 150 countries around the world. With 2019 net revenues of approximately $26 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.com or 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 22, 2020.

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 the outbreak of COVID-19 on the company; confidence in the company's strategy and ability to manage through the COVID-19 pandemic and emerge stronger; currency and the effect of currency translation on the companys results of operations;and the companys long-term algorithm. 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 outbreak. 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 outbreak; the current, and uncertain future, impact of the COVID-19 outbreak 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; continued volatility of commodity and other input costs; weakness in economic conditions; weakness in consumer spending; pricing actions; tax matters including changes in tax rates and laws, 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 company's reputation and brand image; the company's 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 suppliers or customers; 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; 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 and Quarterly Report on Form 10-Q. 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, 2020 2019 2020 2019 Net revenues $ 5,911 $ 6,062 $ 12,618 $ 12,600 Cost of sales 3,580 3,593 7,836 7,538 Gross profit 2,331 2,469 4,782 5,062 Gross profit margin 39.4 % 40.7 % 37.9 % 40.2 % Selling, general and 1,453 1,427 2,990 2,920 administrative expensesAsset impairment and exit costs 115 15 130 35 Net gain on divestiture - (41 ) - (41 )Amortization of intangibles 50 43 93 87 Operating income 713 1,025 1,569 2,061 Operating income margin 12.1 % 16.9 % 12.4 % 16.4 % Benefit plan non-service income (31 ) (12 ) (64 ) (29 )Interest and other expense, net 85 101 275 181 Earnings before income taxes 659 936 1,358 1,909 Provision for income taxes (341 ) (216 ) (489 ) (405 ) Effective tax rate 51.7 % 23.1 % 36.0 % 21.2 %Gain/(loss) on equity method 121 (25 ) 192 (2 )investment transactionsEquity method investment net 106 109 227 275 earnings Net earnings 545 804 1,288 1,777 Noncontrolling interest (1 ) (1 ) (8 ) (7 )earnings Net earnings attributable to $ 544 $ 803 $ 1,280 $ 1,770 Mondel?z International Per share data: Basic earnings per share attributable to Mondel?z $ 0.38 $ 0.56 $ 0.89 $ 1.22 International Diluted earnings per share attributable to Mondel?z $ 0.38 $ 0.55 $ 0.89 $ 1.21 International Average shares outstanding: Basic 1,431 1,445 1,432 1,447 Diluted 1,439 1,458 1,442 1,460

Schedule 2Mondel?z International, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(in millions of U.S. dollars)(Unaudited) June 30, December 31, 2020 2019 ASSETS Cash and cash equivalents $ 1,602 $ 1,291 Trade receivables 1,979 2,212 Other receivables 631 715 Inventories, net 2,710 2,546 Other current assets 1,073 866 Total current assets 7,995 7,630 Property, plant and equipment, net 8,365 8,733 Operating lease right of use assets 645 568 Goodwill 20,997 20,848 Intangible assets, net 17,877 17,957 Prepaid pension assets 586 516 Deferred income taxes 785 726 Equity method investments 6,659 7,178 Other assets 285 359 TOTAL ASSETS $ 64,194 $ 64,515 LIABILITIES Short-term borrowings $ 2,755 $ 2,638 Current portion of long-term debt 945 1,581 Accounts payable 5,466 5,853 Accrued marketing 1,804 1,836 Accrued employment costs 639 769 Other current liabilities 2,930 2,645 Total current liabilities 14,539 15,322 Long-term debt 16,004 14,207 Long-term operating lease liabilities 479 403 Deferred income taxes 3,383 3,338 Accrued pension costs 1,108 1,190 Accrued postretirement health care costs 371 387 Other liabilities 2,213 2,351 TOTAL LIABILITIES 38,097 37,198 EQUITY Common Stock - - Additional paid-in capital 32,022 32,019 Retained earnings 27,040 26,615 Accumulated other comprehensive losses (11,419 ) (10,254 ) Treasury stock (21,625 ) (21,139 ) Total Mondel?z International Shareholders' 26,018 27,241 EquityNoncontrolling interest 79 76 TOTAL EQUITY 26,097 27,317 TOTAL LIABILITIES AND EQUITY $ 64,194 $ 64,515 June 30, December 31, 2020 2019 Incr/ (Decr) Short-term borrowings $ 2,755 $ 2,638 $ 117 Current portion of long-term debt 945 1,581 (636 )Long-term debt 16,004 14,207 1,797 Total Debt 19,704 18,426 1,278 Cash and cash equivalents 1,602 1,291 311 Net Debt ^(1) $ 18,102 $ 17,135 $ 967 ^(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 3 Mondel?z International, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in millions of U.S. dollars) (Unaudited) For the Six Months Ended June 30, 2020 2019 CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES Net earnings $ 1,288 $ 1,777 Adjustments to reconcile net earnings to operating cash flows:Depreciation and amortization 528 517 Stock-based compensation expense 63 71 U.S. tax reform transition tax - 2 Deferred income tax (benefit)/provision (110 ) 36 Asset impairments and accelerated depreciation 99 4 Net gain on divestiture - (41 ) (Gain)/loss on equity method investment transactions (192 ) 2 Equity method investment net earnings (227 ) (275 ) Distributions from equity method investments 193 188 Other non-cash items, net 154 (46 ) Change in assets and liabilities, net of acquisitions and divestitures:Receivables, net 328 135 Inventories, net (233 ) (145 ) Accounts payable 75 (430 ) Other current assets (62 ) (20 ) Other current liabilities (224 ) (638 ) Change in pension and postretirement assets and (122 ) (91 ) liabilities, netNet cash provided by/(used in) operating activities 1,558 1,046 CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES Capital expenditures (445 ) (465 ) Acquisition, net of cash received (1,141 ) - Proceeds from divestitures including equity method 579 163 investmentsOther (30 ) 35 Net cash provided by/(used in) investing activities (1,037 ) (267 ) CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES Issuances of commercial paper, maturities greater 677 809 than 90 daysRepayments of commercial paper, maturities greater (654 ) (2,169 ) than 90 daysNet issuances/(repayments) of other short-term 109 1,958 borrowingsLong-term debt proceeds 2,533 597 Long-term debt repayments (1,430 ) (409 ) Repurchases of Common Stock (720 ) (940 ) Dividends paid (819 ) (756 ) Other 123 271 Net cash provided by/(used in) financing activities (181 ) (639 ) Effect of exchange rate changes on cash, cash (37 ) 8 equivalents and restricted cash Cash, Cash Equivalents and Restricted Cash Increase/(decrease) 303 148 Balance at beginning of period 1,328 1,100 Balance at end of period $ 1,631 $ 1,248

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 MEASURES

The 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. During the second quarter of 2020, we added to the non-GAAP definitions the exclusion of costs associated with the JDE Peet's transaction.

-- 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; Swiss tax reform impacts; 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; gains or losses on interest rate swaps no longer designated as accounting cash flow hedges due to changed financing and hedging plans; and U.S. and Swiss tax reform impacts. Similarly, within Adjusted EPS, the companys equity method investment net earnings exclude its proportionate share of its investees unusual or infrequent 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 and six months ended June 30, 2020 and June 30, 2019. See Items Impacting Comparability of Operating Results below for more information about the items referenced in these definitions that specifically impacted the companys results in the three and six months ended June 30, 2020 and June 30, 2019.

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) and exits of major product lines upon completion of a sale or licensing agreement.

-- On May 28, 2019, the company completed the sale of most of its cheese business in the Middle East and Africa to Arla Foods of Denmark. The company also recorded a pre-tax gain of $44 million on the sale, $41 million of which was recorded in the second quarter of 2019. The divestiture resulted in a year-over-year decline in net revenues of $22 million in the three months and $55 million in the six months ended June 30, 2020, and a year-over-year decline in operating income of $5 million in the three months and $9 million in the six months ended June 30, 2020. During the three and six months ended June 30, 2020, the company reversed $2 million of divestiture-related cost accruals that were no longer required. The company also incurred divestiture-related costs of $11 million in the three months and $10 million in the six months ended June 30, 2019.

Acquisitions, Acquisition-related costs and Acquisition integration costsOn 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 $91million and an operating loss of $8 million in the three and six months ended June 30, 2020. The company incurred acquisition-related costs of $10 million in the three months and $15 million in the six months ended June 30, 2020.

On July 16, 2019, the company acquired a majority interest in a U.S. refrigerated nutrition bar company, Perfect Snacks, within its North America segment. The acquisition added incremental net revenues of $23million in the three months and $55 million in the six months ended June 30, 2020 and an immaterial amount of incremental operating income during the three and six months ended June 30, 2020. The company also incurred acquisition-integration costs of $1 million in the three and six months ended June 30, 2020.

On June7, 2018, the company acquired a U.S. premium biscuit company, Tates Bake Shop, within its North America segment and extended its premium biscuit offerings. The company incurred acquisition-integration costs of $1 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 $28million in the three months and $43 million in the six months ended June 30, 2020 and $20million in the three months and $40 million in the six months ended June 30, 2019 within asset impairment and exit costs and benefit plan non-service income. These charges were for non-cash asset write-downs (including accelerated depreciation and asset impairments), severance and other related costs.

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 $52million in the three months and $95 million in the six months ended June 30, 2020 and $68million in the three months and $118 million in the six months ended June 30, 2019.

Intangible asset impairment chargesIn connection with the ongoing COVID-19 global pandemic, 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 indefinite-life (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 $90 million of impairment charges: $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 losses on commodity and forecasted currency transaction derivatives of $2 million in the three months and $186million in the six months ended June 30, 2020 and recorded net unrealized gains of $33million in the three months and $49 million in the six months ended June 30, 2019.

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 Argentinian subsidiaries and changed their functional currency from the Argentinian 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, Argentinian 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 a remeasurement loss of $3 million in the three months and $5 million in the six months ended June 30, 2020, as well as a remeasurement gain of $1 million and a remeasurement loss of $1 million in the six months ended June 30, 2019 related to the revaluation of the Argentinian 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.

On July 11, 2019, the company received an undiscounted withdrawal liability assessment related to the company's complete withdrawal 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. Within selling, general and administrative expenses, the company recorded a $35 million ($26 million net of tax) adjustment in the three months ended June 30, 2019 related to the discounted withdrawal liability. The company recorded $3 million of accreted interest in the three months and $6 million in the six months ended June 30, 2020 and an immaterial amount for the three and six months ended June 30, 2019 on the long-term liability within interest and other expense, net. As of June 30, 2020, the remaining discounted withdrawal liability was $383 million, with $14 million recorded in other current liabilities and $369 million recorded in long-term other liabilities.

CEO transition remunerationOn November20, 2017, Dirk Van de Put succeeded Irene Rosenfeld as CEO of Mondelz International. In order to incent Mr.Van de Put to join the company, the company provided him compensation to make him whole for incentive awards he forfeited or grants that were not made to him when he left his former employer. In connection with Irene Rosenfelds retirement, the company made her outstanding grants of performance share units for the 2016-2018 and 2017-2019 performance cycles eligible for continued vesting and paid $0.5million salary for her service as Chairman from January through March 2018. The company refers to these elements of Mr.Van de Puts and Ms.Rosenfelds compensation arrangements together as CEO transition remuneration.

The company is excluding amounts it expenses as CEO transition remuneration from its non-GAAP results because those amounts are not part of the companys regular compensation program and are incremental to amounts the company would have incurred as ongoing CEO compensation. As a result, in 2017, the company excluded amounts expensed for the cash payment to Mr.Van de Put and partial vesting of his equity grants. In 2018, the company excluded amounts paid for Ms.Rosenfelds service as Chairman and partial vesting of Mr.Van de Puts and Ms.Rosenfelds equity grants. In 2019, the company excluded amounts related to the partial vesting of Mr.Van de Puts equity grants. During the first quarter of 2020, Mr. Van de Put's equity grants became fully vested.

Gains/losses related to interest rate swapsWithin interest and other expense, net, the company recognized an after-tax loss of $79 million ($103 million pre-tax) in the first quarter of 2020, related to certain forward-starting interest rate swaps for which the planned tenor of the timing of the related forecasted debt was changed.

Gains and losses on equity method investment transactionsJDE / Keurig Exchange:On March 7, 2016, the company exchanged a portion of its 43.5% JDE equity interest for a new equity interest in Keurig Green Mountain, Inc. ("Keurig"). Following the transaction, the company's JDE equity interest became 26.5% and its new Keurig equity interest was 24.2%. During the first quarter of 2016, the company recorded the difference between the $2.0 billion fair value of Keurig and its basis in the exchanged JDE shares as a gain of $43 million. In the second quarter of 2019, the company determined an adjustment to accumulated other comprehensive losses related to its JDE investment was required, which reduced its previously reported gain by $29 million. The company recorded the adjustment in the net loss on equity method transactions in the second quarter of 2019.

Keurig Dr Pepper Transactions:On July 9, 2018, Keurig closed on its definitive merger agreement with Dr Pepper Snapple Group, Inc., and formed Keurig Dr Pepper Inc. (NYSE: KDP), a publicly traded company. Following the close of the transaction, the companys 24.2% investment in Keurig together with its shareholder loan receivable became a 13.8% investment in KDP. During 2018, the company recorded a net pre-tax gain of $778 million (or $586 million after-tax gain).

In connection with this transaction, the company changed its accounting principle during the third quarter of 2018 to reflect its share of Keurigs historical and KDPs ongoing earnings on a one-quarter lag basis while 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 and to record its share of KDPs ongoing results once KDP has publicly reported its results. The change was retrospectively applied to all prior periods presented.

During the first quarter of 2019, the company recognized a pre-tax gain of $23 million (or $18 million after-tax) related to the impact of a KDP acquisition that decreased the companys ownership interest from 13.8% to 13.6%.

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% to 13.1% of the 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. The company considers the 0.5% ownership reduction a partial divestiture 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.

JDE Peets Transaction:On May19, 2020, JDE Peets B.V. (renamed JDE Peets N.V. immediately prior to Settlement (as defined below), JDE Peets) announced its intention to launch an offering of its ordinary shares (the offering) and to apply for admission to listing and trading of all of its ordinary shares on Euronext Amsterdam, a regulated market operated by Euronext Amsterdam N.V. (the admission). On May26, 2020, JDE Peets published a prospectus in connection with the offering and the admission. On May29, 2020, JDE Peets announced the final pricing terms of the offering, and 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 holds a 22.9% equity interest in JDE Peets. As a result of the Settlement and the subsequent sale of shares, the company recorded a preliminary gain of $121 million (net of $33 million released from accumulated other comprehensive losses) and $48 million of transaction costs.

In connection with this transaction, 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.

Equity method investee acquisition-related or other charges/benefits, netWithin Adjusted EPS, the companys equity method investment net earnings exclude its proportionate share of its equity method investees unusual or infrequent 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.

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, 2020Reported (GAAP) $ 511 $ 1,237 $ 2,138 $ 2,025 $ 5,911 Acquisitions - - - (114 ) (114 )Currency 143 52 83 5 283 Organic $ 654 $ 1,289 $ 2,221 $ 1,916 $ 6,080 (Non-GAAP) For the ThreeMonths Ended June 30, 2019Reported (GAAP) $ 737 $ 1,352 $ 2,247 $ 1,726 $ 6,062 Divestitures - (22 ) - - (22 )Organic $ 737 $ 1,330 $ 2,247 $ 1,726 $ 6,040 (Non-GAAP) % Change Reported (GAAP) (30.7 ) (8.5 ) (4.9 ) 17.3% (2.5 )% % % %Divestitures - pp 1.5 pp - pp - pp 0.4 ppAcquisitions - - - (6.6 ) (1.8 )Currency 19.4 3.9 3.7 0.3 4.6 Organic (11.3 ) (3.1 ) (1.2 ) 11.0 % 0.7 %(Non-GAAP) % % % Vol/Mix (18.8)pp (4.6)pp (0.4)pp 7.4 pp (1.3)ppPricing 7.5 1.5 (0.8 ) 3.6 2.0 Latin AMEA Europe North Mondel?z America America InternationalFor the SixMonths Ended June 30, 2020Reported (GAAP) $ 1,237 $ 2,739 $ 4,722 $ 3,920 $ 12,618 Acquisitions - - - (146 ) (146 )Currency 273 91 160 8 532 Organic $ 1,510 $ 2,830 $ 4,882 $ 3,782 $ 13,004 (Non-GAAP) For the SixMonths Ended June 30, 2019Reported (GAAP) $ 1,537 $ 2,893 $ 4,798 $ 3,372 $ 12,600 Divestitures - (55 ) - - (55 )Organic $ 1,537 $ 2,838 $ 4,798 $ 3,372 $ 12,545 (Non-GAAP) % Change Reported (GAAP) (19.5 ) (5.3 ) (1.6 ) 16.3 % 0.1 % % % %Divestitures - pp 1.8 pp - pp - pp 0.5 ppAcquisitions - - - (4.3 ) (1.1 )Currency 17.7 3.2 3.4 0.2 4.2 Organic (1.8 ) (0.3 ) 1.8 % 12.2 % 3.7 %(Non-GAAP) % % Vol/Mix (10.0)pp (1.7)pp 2.0 pp 9.8 pp 1.8 ppPricing 8.2 1.4 (0.2 ) 2.4 1.9

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, 2020Reported (GAAP) $ 1,917 $ 3,994 $ 5,911 Acquisitions - (114 ) (114 )Currency 218 65 283 Organic (Non-GAAP) $ 2,135 $ 3,945 $ 6,080 For the Three Months Ended June 30, 2019Reported (GAAP) $ 2,272 $ 3,790 $ 6,062 Divestitures (22 ) - (22 )Organic (Non-GAAP) $ 2,250 $ 3,790 $ 6,040 % Change Reported (GAAP) (15.6 )% 5.4 % (2.5 )%Divestitures 0.8 pp - pp 0.4 ppAcquisitions - (3.0 ) (1.8 )Currency 9.7 1.7 4.6 Organic (Non-GAAP) (5.1 )% 4.1 % 0.7 % Vol/Mix (7.8)pp 2.5 pp (1.3)ppPricing 2.7 1.6 2.0 Emerging Developed Mondel?z Markets Markets InternationalFor the Six Months Ended June 30, 2020Reported (GAAP) $ 4,334 $ 8,284 $ 12,618 Acquisitions - (146 ) (146 )Currency 382 150 532 Organic (Non-GAAP) $ 4,716 $ 8,288 $ 13,004 For the Six Months Ended June 30, 2019Reported (GAAP) $ 4,774 $ 7,826 $ 12,600 Divestitures (55 ) - (55 )Organic (Non-GAAP) $ 4,719 $ 7,826 $ 12,545 % Change Reported (GAAP) (9.2 )% 5.9 % 0.1 %Divestitures 1.0 pp - pp 0.5 ppAcquisitions - (1.9 ) (1.1 )Currency 8.1 1.9 4.2 Organic (Non-GAAP) (0.1 )% 5.9 % 3.7 % Vol/Mix (3.5)pp 4.9 pp 1.8 ppPricing 3.4 1.0 1.9

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, 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 - 15 76 ProgramIntangible asset - - 90 impairment chargesMark-to-market(gains)/losses from - 1 2 derivativesAcquisition - - 2 integration costsAcquisition-related - - 10 costsDivestiture-related - (1 ) (2 ) costsCosts associatedwith JDE Peet?s - - 48 transactionRemeasurement of net - - 3 monetary positionRounding - 1 - Adjusted (Non-GAAP) $ 5,911 $ 2,347 39.7 % $ 942 15.9 %Currency 96 28 Adjusted @ Constant $ 2,443 $ 970 FX (Non-GAAP) For the Three Months Ended June 30, 2019 Net Gross Gross Operating Operating Revenues Profit Profit Income Income Margin MarginReported (GAAP) $ 6,062 $ 2,469 40.7 % $ 1,025 16.9 %Simplify to Grow - 24 83 ProgramMark-to-market(gains)/losses from - (33 ) (33 ) derivativesAcquisition-related - - 1 costsDivestiture-related - - 11 costsOperating income (22 ) (8 ) (5 ) from divestituresNet gain on - - (41 ) divestitureRemeasurement of net - - (1 ) monetary positionImpact from pensionparticipation - - (35 ) changesCEO transition - - 3 remunerationAdjusted (Non-GAAP) $ 6,040 $ 2,452 40.6 % $ 1,008 16.7 % Gross Operating Profit Income$ Change - Reported $ (138 ) $ (312 ) (GAAP)$ Change - Adjusted (105 ) (66 ) (Non-GAAP)$ Change - Adjusted@ Constant FX (9 ) (38 ) (Non-GAAP) % Change - Reported (5.6 ) (30.4 ) (GAAP) % %% Change - Adjusted (4.3 ) (6.5 ) (Non-GAAP) % %% Change - Adjusted ) )@ Constant FX (0.4 % (3.8 % (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, 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 - 34 134 ProgramIntangible asset - - 90 impairment chargesMark-to-market(gains)/losses from - 187 187 derivativesAcquisition - - 2 integration costsAcquisition-related - - 15 costsDivestiture-related - (1 ) (2 ) costsCosts associatedwith JDE Peet?s - - 48 transactionRemeasurement of net - - 5 monetary positionRounding - 1 - Adjusted (Non-GAAP) $ 12,618 $ 5,003 39.6 % $ 2,048 16.2 %Currency 182 74 Adjusted @ Constant $ 5,185 $ 2,122 FX (Non-GAAP) For the Six Months Ended June 30, 2019 Net Gross Gross Operating Operating Revenues Profit Profit Income Income Margin MarginReported (GAAP) $ 12,600 $ 5,062 40.2% $ 2,061 16.4% Simplify to Grow - 45 153 ProgramMark-to-market(gains)/losses from - (50 ) (49 ) derivativesAcquisition-related - - 1 costsDivestiture-related - - 10 costsOperating income (55 ) (14 ) (9 ) from divestituresNet gain on - - (41 ) divestitureRemeasurement of net - - 1 monetary positionImpact from pensionparticipation - - (35 ) changesCEO transition - - 6 remunerationAdjusted (Non-GAAP) $ 12,545 $ 5,043 40.2% $ 2,098 16.7% Gross Operating Profit Income$ Change - Reported $ (280 ) $ (492 ) (GAAP)$ Change - Adjusted (40 ) (50 ) (Non-GAAP)$ Change - Adjusted@ Constant FX 142 24 (Non-GAAP) % Change - Reported (5.5 % (23.9 ) (GAAP) %% Change - Adjusted (0.8 % (2.4 ) (Non-GAAP) %% Change - Adjusted )@ Constant FX 2.8 % 1.1 % (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, 2020 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 transaction / International International (earnings)Reported (GAAP) $ 713 $ (31 ) $ 85 $ 659 $ 341 51.7 % $ (121 ) $ (106 ) $ 1 $ 544 $ 0.38 Simplify to Grow 76 (4 ) - 80 20 - - - 60 0.04 ProgramIntangible asset 90 - - 90 21 - - - 69 0.05 impairment chargesMark-to-market(gains)/losses from 2 - - 2 - - - - 2 - derivativesAcquisition 2 - - 2 - - - - 2 - integration costsAcquisition-related 10 - - 10 2 - - - 8 0.01 costsDivestiture-related (2 ) - - (2 ) - - - - (2 ) - costsCosts associatedwith JDE Peet?s 48 - - 48 (261 ) - - - 309 0.21 transactionRemeasurement ofnet monetary 3 - - 3 - - - - 3 - positionImpact from pensionparticipation - - (3 ) 3 - - - - 3 - changesGain on equitymethod investment - - - - - 121 - - (121 ) (0.08 )transactionEquity methodinvesteeacquisition-related - - - - 7 - (34 ) - 27 0.02 and otheradjustmentsAdjusted (Non-GAAP) $ 942 $ (35 ) $ 82 $ 895 $ 130 14.5 % $ - $ (140 ) $ 1 $ 904 $ 0.63 Currency 27 0.02 Adjusted @ Constant $ 931 $ 0.65 FX (Non-GAAP) Diluted Average 1,439 Shares Outstanding For the Three Months Ended June 30, 2019 Benefit Interest Loss 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 transaction / International International (earnings)Reported (GAAP) $ 1,025 $ (12 ) $ 101 $ 936 $ 216 23.1 % $ 25 $ (109 ) $ 1 $ 803 $ 0.55 Simplify to Grow 83 (5 ) - 88 19 - - - 69 0.05 ProgramMark-to-market(gains)/losses from (33 ) - - (33 ) (3 ) - - - (30 ) (0.02 )derivativesAcquisition-related 1 - - 1 - - - - 1 - costsDivestiture-related 11 - - 11 1 - - - 10 0.01 costsNet earnings from (5 ) - - (5 ) (1 ) - 2 - (6 ) (0.01 )divestituresNet gain on (41 ) - - (41 ) (3 ) - - - (38 ) (0.03 )divestitureRemeasurement ofnet monetary (1 ) - - (1 ) - - - - (1 ) - positionImpact from pensionparticipation (35 ) - - (35 ) (9 ) - - - (26 ) (0.02 )changesCEO transition 3 - - 3 - - - - 3 - remunerationU.S. tax reformdiscrete net tax - - - - (1 ) - - - 1 - expenseLoss on equitymethod investment - - - - (2 ) (25 ) - - 27 0.02 transactionEquity methodinvesteeacquisition-related - - - - 3 - (12 ) - 9 0.01 and otheradjustmentsAdjusted (Non-GAAP) $ 1,008 $ (17 ) $ 101 $ 924 $ 220 23.8 % $ - $ (119 ) $ 1 $ 822 $ 0.56 Diluted Average 1,458 Shares Outstanding ^(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, 2020 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 transaction / International International (earnings)Reported (GAAP) $ 1,569 $ (64 ) $ 275 $ 1,358 $ 489 36.0 % $ (192 ) $ (227 ) $ 8 $ 1,280 $ 0.89 Simplify to Grow 134 (4 ) - 138 33 - - - 105 0.07 ProgramIntangible asset 90 - - 90 21 - - - 69 0.05 impairment chargesMark-to-market(gains)/losses from 187 - 1 186 32 - - - 154 0.11 derivativesAcquisition 2 - - 2 - - - - 2 - integration costsAcquisition-related 15 - - 15 3 - - - 12 0.01 costsDivestiture-related (2 ) - - (2 ) - - - - (2 ) - costsNet earnings from - - - - - - 2 - (2 ) - divestituresCosts associatedwith JDE Peet?s 48 - - 48 (261 ) - - - 309 0.21 transactionRemeasurement ofnet monetary 5 - - 5 - - - - 5 - positionImpact from pensionparticipation - - (6 ) 6 1 - - - 5 - changesLoss related to - - (103 ) 103 24 - - - 79 0.06 interest rate swapsGain on equitymethod investment - - - - (17 ) 192 - - (175 ) (0.12 )transactionEquity methodinvesteeacquisition-related - - - - 8 - (42 ) - 34 0.02 and otheradjustmentsAdjusted (Non-GAAP) $ 2,048 $ (68 ) $ 167 $ 1,949 $ 333 17.1 % $ - $ (267 ) $ 8 $ 1,875 $ 1.30 Currency 70 0.05 Adjusted @ Constant $ 1,945 $ 1.35 FX (Non-GAAP) Diluted Average 1,442 Shares Outstanding For the Six Months Ended June 30, 2019 Benefit Interest Loss 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 transaction / International International (earnings)Reported (GAAP) $ 2,061 $ (29 ) $ 181 $ 1,909 $ 405 21.2 % $ 2 $ (275 ) $ 7 $ 1,770 $ 1.21 Simplify to Grow 153 (5 ) - 158 38 - - - 120 0.08 ProgramMark-to-market(gains)/losses from (49 ) - - (49 ) (6 ) - - - (43 ) (0.03 )derivativesAcquisition-related 1 - - 1 - - - - 1 - costsDivestiture-related 10 - - 10 1 - - - 9 0.01 costsNet earnings from (9 ) - - (9 ) (1 ) - 3 - (11 ) (0.01 )divestituresNet gain on (41 ) - - (41 ) (3 ) - - - (38 ) (0.03 )divestitureRemeasurement ofnet monetary 1 - - 1 - - - - 1 - positionImpact from pensionparticipation (35 ) - - (35 ) (9 ) - - - (26 ) (0.02 )changesCEO transition 6 - - 6 - - - - 6 0.01 remunerationU.S. tax reformdiscrete net tax - - - - (2 ) - - - 2 - expenseLoss on equitymethod investment - - - - (7 ) (2 ) - - 9 0.01 transactionEquity methodinvesteeacquisition-related - - - - 7 - (29 ) - 22 0.02 and otheradjustmentsAdjusted (Non-GAAP) $ 2,098 $ (34 ) $ 181 $ 1,951 $ 423 21.7 % $ - $ (301 ) $ 7 $ 1,822 $ 1.25 Diluted Average 1,460 Shares Outstanding ^(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, 2020 2019 $ Change % ChangeDiluted EPS attributable to $ 0.38 $ 0.55 $ (0.17 ) (30.9 )%Mondel?z International (GAAP)Simplify to Grow Program 0.04 0.05 (0.01 ) Intangible asset impairment 0.05 - 0.05 chargesMark-to-market (gains)/losses from - (0.02 ) 0.02 derivativesAcquisition-related costs 0.01 - 0.01 Divestiture-related costs - 0.01 (0.01 ) Net earnings from divestitures - (0.01 ) 0.01 Net gain on divestiture - (0.03 ) 0.03 Costs associated with JDE Peet?s 0.21 - 0.21 transactionImpact from pension participation - (0.02 ) 0.02 changes(Gain)/loss on equity method (0.08 ) 0.02 (0.10 ) investment transactionsEquity method investeeacquisition-related and other 0.02 0.01 0.01 adjustmentsAdjusted EPS (Non-GAAP) $ 0.63 $ 0.56 $ 0.07 12.5 %Impact of unfavorable currency 0.02 - 0.02 Adjusted EPS @ Constant FX $ 0.65 $ 0.56 $ 0.09 16.1 %(Non-GAAP) Adjusted EPS @ Constant FX - Key DriversDecrease in operations $ (0.02 ) Change in benefit plan non-service 0.01 incomeChange in interest and other 0.01 expense, netIncrease in equity method 0.02 investment net earningsChange in income taxes 0.06 Change in shares outstanding 0.01 $ 0.09

Schedule 7bMondel?z International, Inc. and SubsidiariesReconciliation of GAAP to Non-GAAP MeasuresDiluted EPS(Unaudited) For the Six Months Ended June 30, 2020 2019 $ Change % ChangeDiluted EPS attributable to $ 0.89 $ 1.21 $ (0.32 ) (26.4 )%Mondel?z International (GAAP)Simplify to Grow Program 0.07 0.08 (0.01 ) Intangible asset impairment 0.05 - 0.05 chargesMark-to-market (gains)/losses from 0.11 (0.03 ) 0.14 derivativesAcquisition-related costs 0.01 - 0.01 Divestiture-related costs - 0.01 (0.01 ) Net earnings from divestitures - (0.01 ) 0.01 Net gain on divestiture - (0.03 ) 0.03 Costs associated with JDE Peet?s 0.21 - 0.21 transactionImpact from pension participation - (0.02 ) 0.02 changesCEO transition remuneration - 0.01 (0.01 ) Loss related to interest rate 0.06 - 0.06 swaps(Gain)/loss on equity method (0.12 ) 0.01 (0.13 ) investment transactionsEquity method investeeacquisition-related and other 0.02 0.02 - adjustmentsAdjusted EPS (Non-GAAP) $ 1.30 $ 1.25 $ 0.05 4.0 %Impact of unfavorable currency 0.05 - 0.05 Adjusted EPS @ Constant FX $ 1.35 $ 1.25 $ 0.10 8.0 %(Non-GAAP) Adjusted EPS @ Constant FX - Key DriversIncrease in operations $ 0.01 Change in benefit plan non-service 0.02 incomeChange in interest and other - expense, netDecrease in equity method (0.02 ) investment net earningsChange in income taxes 0.07 Change in shares outstanding 0.02 $ 0.10

Schedule 8a Mondel?z International, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Measures Segment Data (in millions of U.S. dollars) (Unaudited) 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 15 8 20 9 - 24 - - 76 ProgramIntangible asset - 5 50 36 - (1 ) - - 90 impairment chargesMark-to-market(gains)/losses from - - - - 2 - - - 2 derivativesAcquisition - - - 1 - 1 - - 2 integration costsAcquisition-related - - - - - - - 10 10 costsDivestiture-related - (2 ) - - - - - - (2 ) costsCosts associatedwith JDE Peet?s - - - - - 48 - - 48 transactionRemeasurement ofnet monetary 3 - - - - - - - 3 positionAdjusted (Non-GAAP) $ 12 $ 182 $ 367 $ 470 $ - $ (39 ) $ (50 ) $ - $ 942 Currency 7 10 19 1 - (8 ) (1 ) - 28 Adjusted @ Constant $ 19 $ 192 $ 386 $ 471 $ - $ (47 ) $ (51 ) $ - $ 970 FX (Non-GAAP) % Change - Reported (108.8 ) (10.5 ) (27.2 ) 4.2 % n/m (40.5 ) (16.3 )% n/m (30.4 )% (GAAP) % % % %% Change - Adjusted (86.2 ) (10.3 ) (15.8 ) 23.4 % n/m 30.4 % (16.3 )% n/m (6.5 )% (Non-GAAP) % % %% Change - Adjusted ) ) )@ Constant FX (78.2 % (5.4 % (11.5 % 23.6 % n/m 16.1 % (18.6 )% n/m (3.8 )% (Non-GAAP) Operating Income MarginReported % (1.2 ) 13.8 % 13.9 % 20.9 % 12.1 % %Reported pp change (10.4)pp (0.3)pp (4.3)pp (2.7)pp (4.8)pp Adjusted % 2.3 % 14.7 % 17.2 % 23.2 % 15.9 % Adjusted pp change (9.5)pp (0.6)pp (2.2)pp 1.1 pp (0.8)pp For the Three Months Ended June 30, 2019 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) $ 737 $ 1,352 $ 2,247 $ 1,726 $ - $ - $ - $ - $ 6,062 Divestitures - (22 ) - - - - - - (22 ) Adjusted (Non-GAAP) $ 737 $ 1,330 $ 2,247 $ 1,726 $ - $ - $ - $ - $ 6,040 Operating Income Reported (GAAP) $ 68 $ 191 $ 408 $ 407 $ 33 $ (79 ) $ (43 ) $ 40 $ 1,025 Simplify to Grow 20 9 28 9 - 17 - - 83 ProgramMark-to-market(gains)/losses from - - - - (33 ) - - - (33 ) derivativesAcquisition-related - - - - - - - 1 1 costsDivestiture-related - 8 - - - 3 - - 11 costsOperating income - (5 ) - - - - - - (5 ) from divestituresNet gain on - - - - - - - (41 ) (41 ) divestitureRemeasurement ofnet monetary (1 ) - - - - - - - (1 ) positionImpact from pensionparticipation - - - (35 ) - - - - (35 ) changesCEO transition - - - - - 3 - - 3 remunerationAdjusted (Non-GAAP) $ 87 $ 203 $ 436 $ 381 $ - $ (56 ) $ (43 ) $ - $ 1,008 Operating Income MarginReported % 9.2 % 14.1 % 18.2 % 23.6 % 16.9 % Adjusted % 11.8 % 15.3 % 19.4 % 22.1 % 16.7 %

Schedule 8b Mondel?z International, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Measures Segment Data (in millions of U.S. dollars) (Unaudited) 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 associatedwith JDE Peet?s - - - - - 48 - - 48 transactionRemeasurement ofnet monetary 5 - - - - - - - 5 positionAdjusted (Non-GAAP) $ 103 $ 418 $ 856 $ 864 $ - $ (100 ) $ (93 ) $ - $ 2,048 Currency 27 16 36 2 - (4 ) (3 ) - 74 Adjusted @ Constant $ 130 $ 434 $ 892 $ 866 $ - $ (104 ) $ (96 ) $ - $ 2,122 FX (Non-GAAP) % Change - Reported (56.6 ) (9.4 ) (15.3 ) 10.9 % n/m 0.5 % (6.9 )% n/m (23.9 )% (GAAP) % % %% Change - Adjusted (49.0 ) (10.5 ) (9.6 ) 21.7 % n/m 29.1 % (6.9 )% n/m (2.4 )% (Non-GAAP) % % %% Change - Adjusted ) ) )@ Constant FX (35.6 % (7.1 % (5.8 % 22.0 % n/m 26.2 % (10.3 )% n/m 1.1 % (Non-GAAP) Operating Income MarginReported % 5.8 % 14.8 % 16.3 % 20.5 % 12.4 % Reported pp change (5.0)pp (0.7)pp (2.6)pp (1.0)pp (4.0)pp Adjusted % 8.3 % 15.3 % 18.1 % 22.0 % 16.2 % Adjusted pp change (4.8)pp (1.2)pp (1.6)pp 0.9 pp (0.5)pp For the Six Months Ended June 30, 2019 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) $ 1,537 $ 2,893 $ 4,798 $ 3,372 $ - $ - $ - $ - $ 12,600 Divestitures - (55 ) - - - - - - (55 ) Adjusted (Non-GAAP) $ 1,537 $ 2,838 $ 4,798 $ 3,372 $ - $ - $ - $ - $ 12,545 Operating Income Reported (GAAP) $ 166 $ 447 $ 908 $ 726 $ 49 $ (188 ) $ (87 ) $ 40 $ 2,061 Simplify to Grow 35 22 39 19 - 38 - - 153 ProgramMark-to-market(gains)/losses from - - - - (49 ) - - - (49 ) derivativesAcquisition-related - - - - - - - 1 1 costsDivestiture-related - 7 - - - 3 - - 10 costsOperating income - (9 ) - - - - - - (9 ) from divestituresNet gain on - - - - - - - (41 ) (41 ) divestitureRemeasurement ofnet monetary 1 - - - - - - - 1 positionImpact from pensionparticipation - - - (35 ) - - - - (35 ) changesCEO transition - - - - - 6 - - 6 remunerationAdjusted (Non-GAAP) $ 202 $ 467 $ 947 $ 710 $ - $ (141 ) $ (87 ) $ - $ 2,098 Operating Income MarginReported % 10.8 % 15.5 % 18.9 % 21.5 % 16.4 % Adjusted % 13.1 % 16.5 % 19.7 % 21.1 % 16.7 %

Schedule 9Mondel?z International, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Measures Net Cash Provided by Operating Activities to Free Cash Flow (in millions of U.S. dollars) (Unaudited) For the Six Months Ended June 30, 2020 2019 $ Change Net Cash Provided by Operating $ 1,558 $ 1,046 $ 512 Activities (GAAP)Capital Expenditures (445 ) (465 ) 20 Free Cash Flow (Non-GAAP) $ 1,113 $ 581 $ 532

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