What changed in this filing

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Item 1. Business

2021-02-05 compared with 2020-02-07 · 183 added, 151 removed, 147 unchanged (69% of the section changed)

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We make and sell primarily snacks, including biscuits (cookies, crackers and salted snacks), chocolate, gum & candy, as well as various cheese & grocery and powdered beverage products.

We have operations in approximately 80 countries and sell our products in over 150 countries around the world.

Our portfolio includes iconic snack brands such as Cadbury, Milka and Toblerone chocolate;

Our portfolio includes snack brands such as Cadbury, Milka and Toblerone chocolate;

Oreo, belVita and LU biscuits ;

Trident gum and Tang powdered beverages.

We are proud members of the Dow Jones Sustainability Index, Standard and Poor’s 500 and Nasdaq 100.

Our Common Stock trades on The Nasdaq Global Select Market under the symbol “MDLZ.” Mondelēz International has been incorporated in the Commonwealth of Virginia since 2000.

Mondelēz International at a Glance

We aim to be the global leader in snacking by focusing on growth, execution and culture.

In 2019, we began to operate under a new strategic plan that builds on our strong foundations, including our unique portfolio of iconic global and local brands, our attractive global footprint, our market leadership in developed and emerging markets, our deep innovation, marketing and distribution capabilities, and our margin expansion in recent years that allows us to make ongoing investments in our product portfolio.

In 2020, while the COVID-19 pandemic significantly affected economies, marketplaces, communities and businesses around the world, including ours, we prioritized our employees, customers and communities and largely continued to execute against our strategic priorities and positioned ourselves to emerge stronger.

Please refer to our COVID-19 discussion in Management’s Discussion and Analysis of Financial Condition and Results of Operations .

Our strategic plan builds on our strong foundations, including our unique portfolio of iconic global and local brands, our attractive global footprint, our market leadership in developed and emerging markets, our deep innovation, marketing and distribution capabilities, and our margin expansion in recent years that allows us to make ongoing investments in our brands and capabilities.

Our plan to drive long-term growth includes three strategic priorities:

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Our operational excellence and continuous improvement plans include a special focus on the consumer-facing areas of our business and optimizing our sales, marketing and customer service efforts.

To drive productivity gains and cost improvements across our business, we also plan to continue leveraging our global shared services platform, driving greater efficiencies in our supply chain and continuing to utilize Zero-Based Budgeting across our operations.

To drive productivity gains and cost improvements across our business, we also plan to continue leveraging our global shared services platform, driving greater efficiencies in our supply

chain and continuing to utilize Zero-Based Budgeting across our operations.

We expect the improvements and efficiencies we drive will fuel our growth and continue to expand profit dollars.

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We run our business with a long-term perspective, and we believe the successful delivery of our strategic plan will drive top- and bottom-line growth and enable us to create long-term value for our shareholders.

Global Operations

We sell our products in over 150 countries and have operations in approximately 80 countries, including 133 manufacturing and processing facilities across 45 countries.

The portion of our net revenues generated outside the United States was 73.2% in 2020, 74.4% in 2019 and 75.3% in 2018.

For more information on our U.S.

operations, refer to Note 18, Segment Reporting;

on our manufacturing and other facilities, refer to Item 2, Properties ;

and risks related to our operations outside the United States, see Item 1A, Risk Factors .

We also monitor our revenue growth across emerging and developed markets—

• Our emerging markets include our Latin America region in its entirety;

the Asia, Middle East and Africa (“AMEA”) 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.

• Our 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 AMEA region.

Operating Segments

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• Latin America

Asia, Middle East and Africa (“AMEA”)

• North America

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For the Years Ended December 31,

2020 2019 2018

(in millions)

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Latin America $ 2,477 $ 3,018 $ 3,202

AMEA 5,740 5,770 5,729

Europe 10,207 9,972 10,122

North America 8,157 7,108 6,885

$ 26,581 $ 25,868 $ 25,938

Our segment operating income for each of the last three years was:

For the Years Ended December 31,

2020 2019 2018

(in millions, except percentages)

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Latin America $ 189 4.3 % $ 341 8.1 % $ 410 11.1 %

AMEA 821 18.8 % 691 16.4 % 702 19.0 %

Europe 1,775 40.6 % 1,732 41.1 % 1,734 46.9 %

North America 1,587 36.3 % 1,451 34.4 % 849 23.0 %

$ 4,372 100.0 % $ 4,215 100.0 % $ 3,695 100.0 %

Please see Management’s Discussion and Analysis of Financial Condition and Results of Operations for items affecting the comparability of results and a review of our operating results.

Product Categories

Our brands span five product categories:

• Biscuits (including cookies, crackers and salted snacks)

• Gum & candy

• Cheese & grocery

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Percentage of 2020 Net Revenues by Product Category

Cheese & Grocery

Segment Biscuits Chocolate Gum &

Candy Beverages Cheese & Grocery Total

Latin America 2.5 % 2.3 % 1.8 % 1.5 % 1.2 % 9.3 %

AMEA 7.7 % 7.6 % 2.6 % 2.0 % 1.7 % 21.6 %

Europe 11.4 % 19.9 % 2.3 % 0.4 % 4.4 % 38.4 %

North America 26.4 % 1.0 % 3.3 % — % — % 30.7 %

48.0 % 30.8 % 10.0 % 3.9 % 7.3 % 100.0 %

Within our product categories, classes of products that contributed 10% or more to consolidated net revenues were:

For the Years Ended December 31,

Biscuits - Cookies, crackers and other

2020 2019 2018

Biscuits - Cookies and crackers 39 % 37 % 36 %

Chocolate - Tablets, bars and other 31 % 32 % 32 %

Divestitures and Acquisitions

For information on divestitures and acquisitions that impacted our results, please refer to Note 2, Divestitures and Acquisitions .

Demand for our products is generally balanced over the second and third quarters of the year and increases in the first and fourth quarters primarily because of holidays and other seasonal events.

Depending on the timing of Easter, the holiday sales may shift between and affect net revenue in the first and second quarter.

We generally sell our products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets.

No single customer accounted for 10% or more of our net revenues from continuing operations in 2020.

Our five largest customers accounted for 17.5% and our ten largest customers accounted for 24.0% of net revenues from continuing operations in 2020.

Demand for our products is generally balanced over the second and third quarters of the year and increases in the first and fourth quarters primarily because of holidays and other seasonal events.

Depending on when Easter falls, Easter holiday sales may shift between the first and second quarter.

We build inventory based on expected demand and typically fill customer orders within a few days of receipt so the backlog of unfilled orders is not material.

Funding for working capital items, including inventory and receivables, is normally sourced from operating cash flows and short-term commercial paper borrowings.

For additional information on our liquidity, working capital management, cash flow and financing activities, see Liquidity and Capital Resources , Note 1, Summary of Significant Accounting Policies , and Note 9, Debt and Borrowing Arrangements , appearing later in this 10-K filing.

We face competition in all aspects of our business.

Competitors include large multinational as well as numerous local and regional companies.

Some competitors have different profit objectives and investment time horizons than we do and therefore approach pricing and promotional decisions differently.

We compete based on product quality, brand recognition and loyalty, service, product innovation, taste, convenience, nutritional value, the ability to identify and satisfy consumer preferences, effectiveness of digital and other sales and marketing, routes to market and distribution networks, promotional activity and price.

Improving our market position or introducing a new product requires substantial research, development, advertising and promotional expenditures.

We believe these investments lead to better products for the consumer and support our growth and market position.

For a discussion of long-term demographics, consumer trends and demand, refer to our Financial Outlook within Management’s Discussion and Analysis of Financial Condition and Results of Operations .

Distribution and Marketing

We distribute our products through direct store delivery, company-owned and satellite warehouses, distribution centers and other facilities.

We use the services of independent sales offices and agents in some of our international locations.

Through our global e-commerce organization and capabilities, we pursue online growth with partners in key markets around the world, including both pure e-tailers and brick-and-mortar retailers.

Through our global e-commerce organization and capabilities, we pursue online growth with partners in key markets around the world, including both pure e-tailers and omni-channel retailers.

We continue to invest in both talent and digital capabilities.

Our e-commerce channel strategies will play a critical role in our ambition to be the best snacking company in the world.

Our e-commerce channel strategies play a critical role in our ambition to be the global leader in snacking.

We conduct marketing efforts through three principal sets of activities:

(i) consumer marketing and advertising including on-air, print, outdoor, digital and social media and other product promotions;

(i) consumer marketing and advertising including digital and social media, on-air, print, outdoor and other product promotions;

(ii) consumer sales incentives such as coupons and rebates;

and (iii) trade promotions to support price features, displays and other merchandising of our products by our customers.

Research, Development and Innovation

Our innovation and new product development objectives include continuous improvement in food safety and quality, growth through new products, superior consumer satisfaction and reduced production costs.

Our innovation efforts focus on anticipating consumer demands and adapting quickly to changing market trends.

Mindful snacking and sustainability are a significant focus of our current research and development initiatives.

Our initiatives aim to accelerate our growth and margin dollars by addressing consumer needs and market trends and leveraging scalable innovation platforms, sustainability programs and initiatives as well as breakthrough technologies.

We are focusing our technical research and development resources at 12 innovation technical centers around the globe to drive growth, creativity, greater effectiveness, improved efficiency and accelerated project delivery.

We face competition in all aspects of our business.

Competitors include large multinational as well as numerous local and regional companies.

Some competitors have different profit objectives and investment time horizons than we do and therefore may approach pricing and promotional decisions differently.

Growing our market share or introducing a new product requires substantial research, development, advertising and promotional expenditures.

We believe these investments lead to better products and stronger brands for the consumer and support our growth and market position.

Raw Materials and Packaging

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however, we may not be able to fully hedge against commodity cost changes, and our hedging strategies may not protect us from increases in specific raw material costs.

Due to factors noted above, the costs of our principal raw materials fluctuate.

Due to factors noted above, the costs of our principal raw materials can fluctuate.

At this time, we believe there will continue to be an adequate supply of the raw materials we use and that they will generally remain available from numerous sources.

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For additional information on our commodity costs, refer to the Commodity Trends section within Management’s Discussion and Analysis of Financial Condition and Results of Operations .

For information on our ongoing sustainability efforts and programs, refer to Sustainability and Well-Being below.

For information on our ongoing sustainability efforts and programs, refer to Sustainability and Mindful Snacking below.

Human Capital Resources

We believe the strength of our workforce is one of the significant contributors to our success as a global company that leads with purpose.

All our employees contribute to our success and are instrumental in driving strong financial performance.

Attracting, developing and retaining the best talent globally with the right skills to drive our success is central to our long-term growth strategy.

At the end of 2020, our workforce consisted of approximately 79,000, compared to approximately 80,000 at the end of 2019.

At December 31, 2020, we had approximately 12,000 U.S.

employees and approximately 67,000 employees outside the United States, with employees represented by labor unions or workers’ councils representing approximately 26% of our U.S.

employees and approximately 63% of our employees outside the United States.

COVID-19 Response :

We have been actively responding to the COVID-19 pandemic and its impact globally.

Our highest priorities continue to be the safety of our employees and working with our employees and network of suppliers and customers to help maintain the global food supply chain.

For more information on our COVID-19 workplace and community response, see our COVID-19 disclosures in Management’s Discussion and Analysis of Financial Condition and Results of Operations .

Workplace Safety :

The health, well-being and safety of our employees, customers and communities is our highest priority.

Every day we strive to make all our employees, contractors and visitors feel safe.

We foster safety leadership throughout the organization as part of our comprehensive health, safety and environment management.

Through ongoing communications, capability building, defined standards and safety measures, we strive to improve our safety performance each year.

Total Rewards :

We are committed to equal pay for equal work, regardless of gender, race, ethnicity or other personal characteristics.

To deliver on that commitment, we benchmark and set pay ranges based on market data and consider various factors such as an employee’s role and experience, job location and performance.

We also regularly review our compensation practices to promote fair and equitable pay.

With the support of an independent third-party expert in this field, we have conducted global total target cash (“TTC”) pay equity reviews for salaried employees comparing employees in the same pay grade within a country/area.

Our last global analysis was in 2019 and encompassed 65 countries and over 32,000 employees.

At the enterprise-wide level, our pay gap between male and female employees was less than 1% and decreasing through pay adjustments for employees identified during the review.

In the United States, we also review TTC for salaried employees in the same pay grade by race/ethnicity (Asian, Black and Hispanic).

The 2020 independent analysis found no systemic issues and no negative pay gap between non-white and white employees.

To foster a stronger sense of ownership and align the interests of employees with shareholders, we grant deferred stock units to eligible non-executive employees under our stock incentive program.

Furthermore, to promote overall employee health and well-being, we provide access to medical and welfare benefits and offer programs to employees that support work-life balance as well as financial, physical and mental health resources.

We also provide paid maternity and paternity time off for biological and adoptive parents.

We continue to evolve our programs to meet our employees’ health and wellness needs, which we believe is essential to attract and retain employees.

Diversity & Inclusion :

We seek to create and sustain an inclusive and safe workplace for all of our employees.

We want to reflect the diversity of our consumers and maximize the power and potential of our employees around the world to deliver stronger business performance.

At the end of 2020, women held 38% of global management roles (defined as Associate Director and above) and 34% of executive leadership roles (defined as the management leadership team plus one level below).

In September 2020, we announced our goal to double Black representation in our U.S.

management team by 2024.

leadership, Black employees held 3.2% of management roles (defined as Associate Director and above) at the end of 2020.

As a global employer, we recognize and value differences and are championing diversity and inclusion (“D&I”) around the world.

We are creating local and global opportunities to further racial equity and economic empowerment by expanding our D&I initiatives across three key areas:

colleagues, culture and communities.

These opportunities include mobilizing our consumer-facing brands and leveraging our partnerships with agencies and advertising platforms to drive change, equity and inclusion.

To further reinforce our commitment to D&I, we have included specific D&I metrics as a part of our strategic scorecard within our annual incentive plan for the CEO and other senior leaders.

The scorecard is used consistently across the Company at both the corporate and region level and is linked directly to the three pillars of our strategy – growth, execution and culture.

Talent Management:

Maintaining a robust pipeline of talent is crucial to our ongoing success and is a key aspect of succession planning efforts across the organization.

Our leadership and people teams are responsible for attracting and retaining top talent by facilitating an environment where employees feel supported and encouraged in their professional and personal development.

Specifically, we promote employee development by reviewing strategic positions regularly and identifying potential internal candidates to fill those roles, evaluating job skill sets to identify competency gaps and creating developmental plans to facilitate employee professional growth.

We commit to investing in our employees through training and development programs, on the job experiences, coaching, as well as tuition reimbursement for a majority of our employees in the United States to promote continued professional growth.

Additionally, we understand the importance of maintaining competitive compensation, benefits and appropriate training that provides growth, developmental opportunities and multiple career paths within the Company.

Employee Engagement:

We conduct confidential engagement surveys of our global workforce that are administered and analyzed by an independent third-party.

Aggregate survey results are reviewed by executive officers and the Board of Directors.

We create action plans at global, business unit and functional levels as well as for individual managers with direct reports who participate in the survey.

By acting on results both at an aggregate enterprise level and a department/business/work group level, and by analyzing our scores compared to both global and internal benchmarks, we have been able to enhance our culture and improve our overall engagement levels.

High impact initiatives including flexible working and proactive support to our people throughout the pandemic have been and will continue to be important drivers of engagement.

We also have focused capability building initiatives on agile ways of working and streamlining decision making processes to drive engagement.

We are building a winning growth culture that more effectively leverages local commercial expertise and invests in talent and key capabilities.

This enables the Company to move with greater speed and agility.

For additional detail on D&I, our workplace safety practices and measurements and workplace wellness, please see our 2020 Snacking Made Right report, which will be published on our website in May 2021.

Sustainability and Mindful Snacking

By living our purpose to empower people to snack right, we believe we can continue to have a positive impact on the lives of our consumers and the world around us.

Our mindful snacking strategy aims to encourage consumers to snack with moderation through portion control offerings and labeling, and we continue to evolve our portfolio to meet consumers’ needs.

We have been focused on sustainability for many years and we continue to enhance our sustainability goals and reporting.

In May 2020, we issued our 2019 Snacking Made Right report, which includes expanded reporting on environmental, social and governance (“ESG”) topics and highlights our progress toward our sustainability and nutrition-related goals.

We also released an ESG disclosure data sheet that outlines our alignment with the

Sustainability Accounting Standards Board (“SASB”) and Task Force on Climate-related Financial Disclosures (“TCFD”) reporting frameworks.

We also participate in the CDP Climate and Water annual disclosure survey and continue to work to reduce our carbon and water footprints.

We are committed to continue this and other related work in the areas of sustainable resources and agriculture, mindful snacking, nutrition, community partnerships and safety of our products and people.

Our 2025 sustainability and mindful snacking goals include:

• Minimizing food waste, end-to-end CO 2 emissions and priority water usage by 2025

• Designing all packaging to be recyclable by 2025 to further reduce our environmental footprint

• Scaling our Cocoa Life sustainability program so that by 2025, Cocoa Life will produce 100% of the cocoa volume we require for our chocolate brands

• Growing portion control products to 20 percent of snacks net revenue by 2025

• Including portion amounts and mindful snacking information on all packages globally by 2025

The Governance, Membership and Public Affairs Committee of our Board of Directors is responsible for overseeing our sustainable snacking and mindful snacking strategies.

Our goals are part of our strategic planning process, and therefore, progress and key activities are regularly reported to the Board of Directors and the business leadership teams.

Climate change, CO 2 emissions, energy, well-being and other sustainability matters are key focus areas in our strategy.

We have been recognized for our ongoing economic, environmental and social contributions.

Each year since we created Mondelēz International in 2012 we have been listed on the Dow Jones Sustainability Index (“DJSI”) – World and North American Indices.

The DJSI selects the top 10% of global companies and top 20% of North American companies based on an extensive review of financial and sustainability programs within each industry.

We are at the 97th percentile of our industry according to the latest DJSI report.

Intellectual Property

Our intellectual property rights (including trademarks, patents, copyrights, registered designs, proprietary trade secrets, technology and know-how) are material to our business.

Our intellectual property rights (including trademarks, patents, copyrights, registered designs, proprietary trade secrets, recipes, technology and know-how) are material to our business.

We own numerous trademarks and patents in many countries around the world.

Depending on the country, trademarks remain valid for as long as they are in use or their registration status is maintained.

Trademark registrations generally are for renewable, fixed terms.

Trademark registrations generally are renewable for fixed terms.

We also have patents for a number of current and potential products.

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(which is now part of The Kraft Heinz Company), we each granted the other party various licenses to use certain of our and their respective intellectual property rights in named jurisdictions following the spin-off of our North American grocery business.

Research and Development

We pursue four objectives in research and development:

food safety and quality, growth through new products, superior consumer satisfaction and reduced production costs.

Our innovation efforts focus on anticipating consumer demands and adapting quickly to changing market trends.

Well-being and sustainability are a significant focus of our current research and development initiatives.

These initiatives aim to accelerate our growth and margins by addressing consumer needs and market trends and leveraging scalable innovation platforms, sustainability programs and initiatives as well as breakthrough technologies.

In 2019, we completed a $65 million plan to build out and modernize our network of global research and development facilities.

We modernized our technical center facilities at Suzhou, China;

Jurong, Singapore and Thane, India in 2018.

In 2019, we also completed the modernization of technical centers in Curitiba, Brazil and Mexico City, Mexico.

In addition, we have invested in the Pasuruan Cocoa Technology Centre in Indonesia, which is scheduled to fully open in 2020.

We are focusing our technical resources at twelve key locations to drive growth and innovation.

Our network of technical centers enable greater effectiveness, improved efficiency and accelerated project delivery.

These locations are in Curitiba, Brazil;

Suzhou, China;

Thane, India;

Pasuruan, Indonesia;

Mexico City, Mexico;

East Hanover, New Jersey;

Wroclaw, Poland;

Jurong, Singapore;

Bournville, United Kingdom;

Reading, United Kingdom;

Saclay, France and Munich, Germany.

At December 31, 2019 , within our global research, development & quality services area, we had approximately 2,400 scientists, engineers and other personnel, of which 1,900 are primarily focused on research and development and the remainder are primarily focused on quality assurance and regulatory affairs.

Our research and development expense was $351 million in 2019 , $362 million in 2018 and $366 million in 2017 .

Our food products and ingredients are subject to local, national and multinational regulations related to labeling, health and nutrition claims, packaging, pricing, marketing and advertising, data privacy and related areas.

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Many of the food commodities we use in our operations are subject to government agricultural policy and intervention.

These policies have substantial effects on prices and supplies and are subject to periodic governmental and administrative review.

In addition, increased attention to environmental issues in industry supply chains has led to developing different types of regulation in many countries.

These policies have substantial effects on prices and supplies and

are subject to periodic governmental and administrative review.

In addition, increased attention to environmental and social issues in industry supply chains has led to developing different types of regulation in many countries.

The lack of a harmonized approach can lead to uneven scrutiny or enforcement, which can impact our operations.

Examples of laws and regulations that affect our business include selective food taxes, labeling requirements such as front-of-pack labeling and nutrient profiling, media and marketing restrictions such as restrictions on advertising products with specified nutrition profiles on certain channels or platforms or during certain hours of the day, potential withdrawal of trade concessions as dispute settlement retaliation, sanctions on sales or sourcing of raw materials, and extended producer responsibility fees and packaging taxes.

We will continue to monitor developments in laws and regulations.

At this time, we do not expect the cost of complying with existing laws and regulations will be material.

Also refer to Note 1, Summary of Significant Accounting Policies – Currency Translation and Highly Inflationary Accounting , for additional information on government regulations and currency-related impacts on our operations in the United Kingdom, Argentina and other countries.

Environmental Regulation

Examples of laws and regulations that affect our business include workplace safety regulations;

selective food taxes;

labeling requirements such as front-of-pack labeling based on nutrient profiles;

sales or media and marketing restrictions such as those on promotions or advertising products with specified nutrient profiles on certain channels or platforms or during certain hours of the day;

sanctions on sales or sourcing of raw materials;

potential withdrawal of cross-border trade concessions as retaliation or imposition of new border barriers for other reasons;

changes in the corporate tax policies of the United States and other countries;

and packaging taxes.

In addition, at least 25 countries in the European Union have implemented extended producer responsibility (“EPR”) policies as part of national packaging waste policies that make manufacturers responsible for the cost of recycling food and beverage packaging after consumers use it.

These range from mandatory regulations to voluntary agreements between government and industry to voluntary industry initiatives.

EPR policies are also being contemplated in other jurisdictions around the world, including certain states in the United States.

Throughout the countries in which we do business, we are subject to local, national and multinational environmental laws and regulations relating to the protection of the environment.

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In the United States, the laws and regulations include the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act and the Comprehensive Environmental Response, Compensation, and Liability Act.

We track regulatory developments in various jurisdictions relating to the use of plastic in packaging materials and taxes linked to the costs of waste so that we can comply with evolving requirements.

We believe that our compliance with existing environmental laws and regulations will not have a material effect on our financial results.

Sustainability and Well-Being

Our 2025 sustainable snacking strategy provides a clear roadmap, which we believe puts us at the forefront of sustainable ingredient sourcing and continuing to contribute to addressing climate change by reducing emissions.

We are focused on making our snacks with less energy, water and waste, with ingredients consumers know and trust.

We have specific goals to which we hold ourselves accountable, and we are continuing to make progress in our efforts to deliver meaningful change.

We are proud of the progress we achieved to date and excited about where we are going.

By living our purpose to empower people to snack right, we believe we can continue to have a positive impact on the lives of our consumers and the world around us.

We have been focused on sustainability for many years and we continue to enhance and evolve our sustainability goals and reporting.

We will issue our 2019 Snacking Made Right report, which will include our progress toward our sustainability goals, later this year.

Our 2025 sustainability and mindful snacking goals include:

Minimizing food waste, end-to-end CO 2 emissions and priority water usage by 2025

Making all packaging recyclable by 2025 to further reduce our environmental footprint

Scaling our Cocoa Life sustainability program even further so that by 2025, Cocoa Life will produce 100% of the cocoa volume we require for our chocolate brands

Growing portion control products to 20 percent of snacks net revenue by 2025

Including portion amounts and mindful snacking information on all packages globally by 2025

Our 2025 sustainability goals are designed to make a meaningful impact on how we address climate change and are based on an end-to-end, science-based approach to reducing our carbon footprint, including reducing our absolute CO 2 emissions from manufacturing and addressing deforestation in key raw material supply chains.

We are also working to cut our absolute water footprint in manufacturing, focusing on priority sites where water is most scarce.

We continue to work on reducing waste in manufacturing and packaging.

In ingredient sourcing, we continue to leverage our global operating scale to secure sustainable raw materials and work with suppliers to drive meaningful social and environmental changes, focusing where we can make the greatest impact.

For example, we launched our Cocoa Life program in 2012 and are investing up to $400 million through 2022 to build a sustainable cocoa supply.

We are also improving sustainability in our wheat supply by working with farmers in North America and through our Harmony program in Europe.

We are focused on consumer well-being.

Our mindful snacking strategy aligns with our purpose to empower people to snack right.

Continuing to evolve our portfolio so that we are offering a broad range of high-quality snacks to meet consumers' expanding needs is central to our strategy of accelerating our growth.

At the same time, we are working to empower and encourage consumers to snack mindfully with portion control offerings and labeling.

Expanding our portion control options – snacks that are 200 calories or less and are individually wrapped – enables people to enjoy the treats they love, become more mindful about what they eat and manage their daily calorie intake.

The Governance, Membership and Public Affairs Committee of our Board of Directors is responsible for overseeing our sustainable snacking and mindful snacking strategies.

Our goals are part of our strategic planning process, and therefore, progress and key activities are regularly reported to the Board of Directors and the business leadership teams.

Climate change, CO 2 emissions, energy, well-being and other sustainability matters are key focus areas in our strategy.

We have a robust Enterprise Risk Management ("ERM") process for identifying, measuring, monitoring and managing risks, with oversight by the Risk and Compliance Committee ("MRCC"), which reports annually to the Audit Committee of our Board of Directors.

The purpose of the MRCC is to oversee how we identify and assess the most significant inherent risks to our business so we may adequately mitigate them or monitor them across the Company.

All identified risks are vetted by the MRCC and remain under the MRCC’s governance.

Ownership of specific risks is assigned at the Mondelēz Leadership Team ("MLT") level (MLT members report directly to the CEO).

As owners of each specific risk, MLT members are responsible for verifying that appropriate mitigation controls and monitoring systems are in place.

The risk universe considered during this process is wide and varied.

Climate change is included in this risk universe as well as other sustainability and well-being issues.

Our ERM methodology is governed by the MRCC and includes annual reviews with our four operating regions, considering Company-level risks by using information gathered at the asset level (regions, countries, individual facilities and separate business units).

The following key risk drivers for climate change, sustainability and well-being risks are captured in the ERM framework:

a sustainability mindset within the organization and suppliers, governance and monitoring of the sustainability agenda, monitoring climate change impact, assessing reputation and brand image, the well-being portfolio and marketing strategy, changes in regulations and changes in consumer preferences.

In addition, we work with internal and external experts to review the impact of major societal issues on our business and to shape our strategic responses to them.

Materials and processes that guide our assessment include our ERM process;

analysis of stakeholder and regulatory issues;

our total greenhouse gas, land and water footprint;

proprietary consumer insight data;

and publicly available data on societal issues, including statistics and reports from authorities, non-governmental organizations and peer companies.

We have been recognized for our ongoing economic, environmental and social contributions.

Each year since we created Mondelēz International in 2012 we have been listed on the Dow Jones Sustainability Index (“DJSI”) – World and North American Indices.

The DJSI selects the top 10% of global companies and top 20% of North American companies based on an extensive review of financial and sustainability programs within each industry.

We are at the 95th percentile of our industry and achieved perfect scores in the areas of health & nutrition and addressing water-related risks.

We also participate in CDP Climate and Water disclosures and continue to work to reduce our carbon and water footprints.

We are committed to continue this and other related work in the areas of sustainable resources and agriculture, well-being snacks, community partnerships and safety of our products and people.

In our consolidated subsidiaries worldwide, we employed approximately 80,000 people at December 31, 2019 and December 31, 2018 .

Employees represented by labor unions or workers’ councils represent approximately 63% of our 68,000 employees outside the United States and approximately 27% of our 12,000 U.S.

Our business units are subject to various local, national and multinational laws and regulations relating to their relationships with their employees.

In accordance with European Union requirements, we also have established a European Workers Council composed of management and elected members of our workforce.

We or our subsidiaries are a party to numerous collective bargaining agreements and we work to renegotiate these collective bargaining agreements on satisfactory terms when they expire.

International Operations

Based on where we sell our products, we generated 74.4% of our 2019 net revenues, 75.3% of our 2018 net revenues and 75.8% of our 2017 net revenues from continuing operations outside the United States.

We sell our products to consumers in over 150 countries.

At December 31, 2019 , we had operations in approximately 80 countries and made our products at approximately 126 manufacturing and processing facilities in 44 countries.

Refer to Note 18, Segment Reporting , for additional information on our U.S.

Refer to Item 2, Properties , for more information on our manufacturing and other facilities.

Also, for a discussion of risks related to our operations outside the United States, see Item 1A, Risk Factors .

We are also subject to legislation designed to reduce emissions from greenhouse gases, and many countries are considering introducing carbon taxes that could increase our production costs or those of our suppliers.

We continue to monitor developments in laws and regulations.

Information about our Executive Officers

The following are our executive officers as of February 5, 2021:

Dirk Van de Put

Chief Executive Officer

Luca Zaramella

Executive Vice President and Chief Financial Officer

Paulette Alviti

Executive Vice President and Chief People Officer

Maurizio Brusadelli

Executive Vice President and President, Asia Pacific, Middle East and Africa

Executive Vice President and President, Europe

Executive Vice President, Research, Development and Quality

Sandra MacQuillan

Executive Vice President and Chief Supply Chain Officer

Executive Vice President, Corporate & Legal Affairs and General Counsel

Executive Vice President and President, Latin America

Henry Glendon (Glen) Walter IV

Executive Vice President and President, North America

Name Age Title

Dirk Van de Put 60 Chief Executive Officer

Luca Zaramella 51 Executive Vice President and Chief Financial Officer

Paulette Alviti 50 Executive Vice President and Chief People Officer

Maurizio Brusadelli 52 Executive Vice President and President, Asia Pacific, Middle East and Africa

Gruber 55 Executive Vice President and President, Europe

Hargrove 55 Executive Vice President, Research, Development and Quality

Sandra MacQuillan 54 Executive Vice President and Chief Supply Chain Officer

64 Executive Vice President, Corporate & Legal Affairs and General Counsel (retiring April 2021)

Laura Stein 59 Executive Vice President, General Counsel, Corporate & Legal Affairs

Valle 56 Executive Vice President and President, Latin America

Henry Glendon (Glen) Walter IV 52 Executive Vice President and President, North America

Van de Put became Chief Executive Officer and a director in November 2017 and became Chairman of the Board of Directors in April 2018.

11 unchanged sentences

Prior to that, Ms.

Alviti spent 17 years at PepsiCo, Inc., a global snack and beverage company, in various leadership roles, including Senior Vice President and Chief Human Resources Officer Asia, Middle East, Africa from March 2010 to May 2013.

Alviti spent 17 years at PepsiCo, Inc., a global snack and beverage company, in various leadership roles, including Senior Vice President and Chief Human Resources Officer Asia, Middle East, Africa.

Brusadelli became Executive Vice President and President, Asia Pacific in January 2016 and Executive Vice President and President, Asia Pacific, Middle East and Africa in October 2016.

3 unchanged sentences

Brusadelli joined Mondelēz International in 1993.

Gruber became Executive Vice President and President, Europe on January 1, 2019.

Gruber became Executive Vice President and President, Europe in January 2019.

He previously served as President, Western Europe from October 2016 to December 2018 and President, Chocolate, Europe from August 2011 to September 2016.

1 unchanged sentence

Hargrove became Executive Vice President, Research, Development, Quality and Innovation in April 2015 and as of January 2019 serves as Executive Vice President, Research, Development and Quality.

Prior to that, he served as Senior Vice President, Research, Development & Quality for Mondelēz Europe from January 2013 to March 2015.

Prior to that, he served as Senior Vice President, Research, Development & Quality for Mondelēz Europe from January 2013 to

Before joining Mondelēz International, Mr.

Hargrove worked at PepsiCo, Inc., a global snack and

beverage company, for 19 years in a variety of leadership positions, most recently as Senior Vice President, Research and Development, Europe from December 2006 to December 2012.

Hargrove worked at PepsiCo, Inc., a global snack and beverage company, for 19 years in a variety of leadership positions, most recently as Senior Vice President, Research and Development, Europe from December 2006 to December 2012.

MacQuillan became Executive Vice President, Integrated Supply Chain (now Executive Vice President and Chief Supply Chain Officer) in June 2019.

8 unchanged sentences

Pleuhs has a law degree from the University of Kiel, Germany and is licensed to practice law in Germany and admitted as house counsel in Illinois.

Pleuhs will retire from Mondelēz International in April 2021.

Stein became Executive Vice President, General Counsel, Corporate & Legal Affairs on January 11, 2021.

Before joining Mondelēz International, Ms.

Stein spent 15 years at The Clorox Company, a multinational manufacturer and marketer of consumer and professional products, most recently as Executive Vice President – General Counsel and Corporate Affairs from February 2016 to December 2020.

She also served as Executive Vice President – General Counsel from February 2015 to February 2016 and as Senior Vice President – General Counsel from January 2005 to February 2015.

Valle became Executive Vice President and President, Latin America in February 2020.

9 unchanged sentences

Our code of ethics is available free of charge on our web site at www.mondelezinternational.com/investors/corporate-governance and will be provided free of charge to any shareholder submitting a written request to:

Corporate Secretary, Mondelēz International, Inc., Three Parkway North, Deerfield, IL 60015.

Corporate Secretary, Mondelēz International, Inc., 905 West Fulton Market, Suite 200, Chicago, IL 60607.

We will disclose any waiver we grant to an executive officer or director under our code of ethics, or certain amendments to the code of ethics, on our web site at www.mondelezinternational.com/investors/corporate-governance .

1 unchanged sentence

All of these materials are available on our web site at www.mondelezinternational.com/investors/corporate-governance and will be provided free of charge to any shareholder requesting a copy by writing to:

Corporate Secretary, Mondelēz International, Inc., Three Parkway North, Deerfield, IL 60015.

Corporate Secretary, Mondelēz International, Inc., 905 West Fulton Market, Suite 200, Chicago, IL 60607.

Available Information

2 unchanged sentences

Securities and Exchange Commission (the “SEC”).

You can access our filings with the SEC by visiting ir.mondelezinternational.com/sec-filings .

You can access our filings with the SEC by visiting www.sec.gov or our website:

ir.mondelezinternational.com/sec-filings .

The information on our web site is not, and shall not be deemed to be, a part of this Annual Report on Form 10-K or incorporated into any other filings we make with the SEC.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business