Mondelez August 2019 Table of Contents • Executive Summary Slide 3 • Company Insight Slide 4 ‒ Company Overview • Strategy & Strategic Plan Slide 7 ‒ Business Strategy/Priorities Slide 7 ‒ Business Challenges Slide 23 • Marketing Insight Slide 26 ‒ Marketing Overview Slide 27 ‒ Marketing Priorities Slide 26 ‒ Marketing Spend Slide 35 ‒ Marketing Agency Slide 36 ‒ Marketing Technology StaCks Slide 37 • Executive Insight Slide 38 • Quotes Slide 45 | 2 Mondelez Executive Summary OVERVIEW BUSINESS STRATEGY BUSINESS CHALLENGES MARKETING PRIORITIES • Mondelez International • Mondelez is aCCelerating • Mondelez is faCing Challenge • Mondelez is transforming its manufaCtures and sells consumer CentriC growth to in North America as the marketing and digital snaCks, inCluding bisCuits, gain insights about snaCking company is still recovering capabilities to inCrease ROI ChoColates, gums & Candies behaviors and oCCasion from past Cyber attaCk • as well as various Cheese & Mondelez developed a more groCery and powdered • The Company is driving • The Company is struggling to loCally-oriented CommerCial products operational exCellenCe achieve omni-channel struCture to drive greater through sales exeCution, exCellenCe, deliver Consumer foCus, improve • The Company’s portfolio marketing and supply Chain consumer-centric digital speed and reduce Complexity inCludes iconic snack brands marketing and improve its • To aCCelerate growth, the • Mondelez is working to put suCh as Cadbury, Toblerone overall digital Capabilities and Oreo company is shifting towards purpose at the Center of a more agile, digital and loCal • Another disruptive forCe that Mondelez’s brand • Mondelez plans to transition first approach challenges Mondelez’s communication from being a Cost foCused business is its loCal Consumer company to a more growth– oriented Company Source: Business Brainz Analysis | 3 COMPANY INSIGHT Mondelez International Company Overview (1/2) Headquarters Employees Sales and Operation Deerfield, Illinois 80,000 (FY2018) • Operations in 80+ countries (Plans to move HQ to Chicago • Sales in 150+ Countries in April 2020) Revenue Net income Major competitors $25.9 billion (FY2018) $3.4 billion (FY2018) Campbell, CoCa-Cola, Colgate-Palmolive , Danone, General Mills, Hershey, Kellogg's, Kraft Heinz, Nestle Source: Company website and reports | 5 Mondelez International Company Overview (2/2) • Overview: ‒ Mondelez International is one of the largest snaCk companies with global net revenue of $25.9 billion and net earning of $3.4 billion in 2018 ‒ The company operates in more than 80 countries and sells its products in over 150 countries around the world ‒ Mondelez manufaCtures and sells snaCk, inCluding biscuits (cookies, crackers and salted snaCks), choColates, gums & candies as well as various cheese & groCery and powdered beverage products ‒ The company’s portfolio inCludes snaCk brands such as Cadbury, Milka and Toblerone choColate; Oreo, belBita and LU biscuits; Halls candy; Trident gum and Tang powdered beverages ‒ Mondelez was formed in 2012 after the spin-off of its North AmeriCan groCery business, Kraft Foods Group • Operating Segments ‒ Mondelez’s operation and management struCture are organized around four operating segments: Latin AmeriCa; Asia, Middle East, and AfriCa (“AMeA”); Europe and North AmeriCa. EaCh segment contributed net revenue of $3.2 billion, $5.7 billion, $10.1 billion and $6.8 billion respeCtively in 2018 ‒ Mondelez’s brands span five categories: BisCuits, ChoColate, Gum & Candy, Beverages and Cheese & GroCery. In 2018, eaCh category contributed 43.1%, 31.5%, 13.4%, 4.6% and 7.7% respeCtively to the company’s net revenue in 2018 Source: Company website and reports, industry reporting | 6 BUSINESS STRATEGY & PRIORITIES Mondelez International Business Strategy (1/15) Mission: To lead the future of snacking around the world by offering the right snack, for the right moment, made the right way • Modelez International is building itself as the best snaCking Company in the world by foCusing on three strategiC priorities ‒ Mondelez is accelerating consumer centric growth by taking a broader approaCh to snaCking, balanCing its investment aCross global and loCal brands, transforming its marketing and investing in key markets and adjaCenCies ‒ The Company is driving operational excellence in sales exeCution, marketing, supply Chain and generating Continuous Cost and quality improvement across the business ‒ Mondelez is building a winning growth culture that more effeCtively leverages loCal CommerCial expertise, investing in talent and key capabilities to move with greater speed and agility Mondelez Business Strategy Accelerate Consumer- Drive Operational Build a Winning Growth centric Growth Excellence Culture Source: Company website and reports | 8 Mondelez International Business Strategy (2/15) Source: Company website and reports, industry reporting | 9 Mondelez International Business Strategy (3/15) “Our new strategic plan built on these fundamental advantages and it's focused on executing on these three strategies to create a more consumer-centric organization. The first strategy is about accelerating our topline growth, the second, about driving operational excellence, and the third, about creating a winning consumer focused culture. The combination of these three leaves us well positioned to create sustainable long-term shareholder value” - Dirk Van de Put, CEO, Mondelez International (April 2019) Source: Company website and reports | 10 Mondelez International Business Strategy (4/15) • Mondelez’s strategy to accelerate consumer centric growth is driven by deep and proprietary insights about snaCking behaviors and ocCasions. The company aims to meet consumers’ need for what they eat, why they buy and where they buy. Source: Company website and reports | 11 Mondelez International Business Strategy (5/15) New Marketing Playbook Mondelez is transforming its marketing and digital Capabilities to inCrease ROI and achieve Consumer Centric growth • Mondelez is reinventing its marketing playbook through its new and proprietary Consumer insight whiCh allows the Company to refine its campaigns and capture growth as consumers Change how they engage with brands they care about ‒ In its new global Oreo campaign in China, the company leveraged insights to deliver highly localized effect. Through this, Mondelez was able to make its ‘Oreo’ brand culturally relevant in China, connect Oreo with traditional Chinese occasions and as an outcome increased Oreo sales by double digit in the country (Q1 2019) ‒ In Brazil, a new campaign for Trident called Chew2Relax made use of consumer insight to reposition the gum brand, driving a strong consumption recovery and helped the company to regain its share • Mondelez is accelerating its digital and analytics capability. Mondelez has developed a new approaCh, whiCh the Company Calls demand spaCes, to identify and address how Consumers snaCk aCross different emotional or funCtional needs and oCCasions ‒ In September 2018, Mondelez developed a proprietary snacking database based on interviews with an estimated 170,000 customers. The database allowed the company to evaluate how consumers snack across different emotional or functional needs and occasions ‒ In 2017, Mondelez initiated a pilot project ‘Sherlock’, that helped the company see which items are sold through online channels, who bought them and how much it cost to get items from the factory floor to a customer’s doorstep. It helped the company to gain better understanding of what drives revenue growth and to figure out the most efficient way to deliver products • Mondelez is raising its investment in advertising and commercial activities. Approximately 40% of Mondelez’s media budget will be spent on digital in 2019 ‒ In 2019, the company is increasing its investment by about $150 million that largely goes to advertising and commercial activities. Dividing advertising and commercial activities between local brands and global brands, the preference is given to its local brands over its global brands Source: Company website and reports, industry reporting | 12 Mondelez International Business Strategy (6/15) Leveraging partnerships and M&A • Mondelez International is leveraging partnership and mergers & aCquisitions as a strategiC tool to drive additional growth • The Company has laid out following Criteria for its merger and aCquisition: ‒ Build Scale: Build higher sCale in priority markets ‒ New segments & categories: AcCess higher growth snaCking adjaCencies ‒ New capabilities: Add new business Capabilities in Core Categories ‒ Portfolio optimization: Continue to shape snacking foCused portfolio • In June 2019, Mondelez announCed to acquire a majority interest in Perfect Snacks, a key player in the refrigerated nutrition bars segment. The acquisition helps Mondelez further expand its position in broader snacking space • In April 2019, Mondelez announCed a collaboration agreement with The Kitchen, Israel’s only FoodTeCh-foCused inCubator and one of the first FoodTeCh inCubators in the world. Through the Collaboration, Mondelez will have aCCess and visibility to world’s leading FoodTeCh ecosystem • In MarCh 2019, Mondelez collaborated with The Hatchery Chicago, a non-profit food business inCubator. Through the partnership, the company will be able to conneCt with the local food and beverage start-up Community and work together to aCCelerate and scale innovation • In June 2018, Mondelez acquired Tate’s Bake Shop for approximately $500 million. The aCquisition