What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-07-26 compared with 2022-04-26 · 544 added, 186 removed, 567 unchanged (56% of the section changed)

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We aim to be the global leader in snacking.

Our strategy is to drive long-term growth by focusing on three strategic priorities:

accelerating consumer-centric growth, driving operational excellence and creating a winning growth culture.

In May 2022, we announced the evolution of our strategy to drive long-term growth by focusing on four strategic pillars and priorities:

accelerating consumer-centric growth, driving operational excellence, creating a winning growth culture and scaling sustainable snacking.

We also announced our plans to reshape our portfolio, with a focus on extending our leadership positions in chocolate and biscuits as well as baked snacks.

We seek to further enable our growth by investing in our strong and inclusive talent, brand portfolio and digital technologies and skills, as well as our sales and marketing capabilities.

We believe the successful implementation of our strategic priorities and leveraging of our strong foundation of iconic global and local brands, an attractive global footprint, our market leadership in developed and emerging markets, our deep innovation, marketing and distribution capabilities, and our efficiency and sustainability efforts, will drive top- and bottom-line growth, enabling us to continue to create long-term value for our shareholders.

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In March 2022, our two Ukrainian manufacturing facilities in Trostyanets and Vyshhorod were significantly damaged.

In connection with the damage to these plants and impairment of other assets, primarily inventory, other plant, property and equipment, as well as increased allowances on our receivables, we recorded $143 million of total charges directly incurred as a result of the war in Ukraine, including an accrual for continued compensation for our employees in Ukraine (see Note 1, Basis of Presentation, to the condensed consolidated financial statements, and refer to Items Affecting Comparability of Financial Results for additional information.) We are increasing operations and providing resources in other primarily European manufacturing and distribution facilities to seek to continue supplying our Ukraine business's customers and consumers across Europe.

In connection with the damage to these plants and impairment of other assets, primarily inventory, other plant, property and equipment, as well as increased allowances on our receivables, during the first quarter of 2022, we recorded $143 million of charges directly incurred as a result of the war in Ukraine, including an accrual for continued compensation for our employees in Ukraine (see Note 1, Basis of Presentation, to the condensed consolidated financial statements, and refer to Items Affecting Comparability of Financial Results for additional information.) We have increased operations and continue to provide resources in other primarily European manufacturing and distribution facilities to seek to continue supplying our Ukraine business's customers and consumers across Europe.

During the second quarter of 2022, the war continued through parts of Ukraine.

Our Trostyanets plant continues to be significantly damaged.

In our Vyshhorod plant, we made and continue to make targeted repairs.

We relaunched our systems and implemented additional safety and security measures.

In late June, we decided to partially reopen the Vyshhorod plant and restart limited potato chip production.

During the second quarter of 2022, we reversed approximately $15 million of previously recorded charges as a result of higher than expected collection of trade receivables and inventory recoveries.

As a food company, we continue to work to support the continuity of food supply and provide packaged foods to consumers.

We have discontinued new capital investments and suspended our advertising spending in Russia, but as a food company with more than 2,500 employees in Russia, we have not ceased operations given we believe we play a role in the continuity of the food supply.

We are required to comply with applicable international sanctions and other measures that have been imposed on Russian entities and additional sanctions and measures are under consideration.

We are required to comply with applicable international sanctions and other measures that have been or may be imposed on Russian entities.

We continue to evaluate the situation in Ukraine and Russia and our ability to control our operating activities and businesses on an ongoing basis, and we continue to consolidate both our Ukrainian and Russian subsidiaries.

Prior to the onset of the war, Ukraine generated 0.5% and Russia generated 2.9% of 2021 consolidated net revenues.

We provide more information on risks related to the war in Ukraine in our Financial Outlook section and under Item 1A, Risk Factors .

The war has not had a material impact on our Russian entities during the first six months of 2022.

We provide more information on risks related to the war in Ukraine in our Financial Outlook and Commodity Trends section, Item 3.

Quantitative and Qualitative Disclosures about Market Risk and under Item 1A, Risk Factors .

In the third year of the COVID-19 global pandemic, our main priority remains the safety of our employees as well as continuing to help maintain the global food supply.

During the pandemic, particularly in 2020 and also in 2021, we experienced an overall increase in demand and revenue growth as consumers increased their food purchases for in-home consumption in many markets, while parts of our business were negatively affected by related lockdowns and restrictions.

During the pandemic, we experienced an overall increase in demand and revenue growth as consumers increased their food purchases for in-home consumption in many markets, while parts of our business were negatively affected by related lockdowns and restrictions.

In late 2021, global supply chain, transportation and labor issues escalated and we experienced significantly higher operating costs, including higher overall raw material, transportation, labor and energy costs that have continued to rise in 2022 as the pandemic continues to affect global markets and operations.

During the first quarter of 2022, our net revenues continued to grow with net revenue growth of 7.3% and Organic Net Revenue growth of 8.6%, compared to the first quarter of 2021.

In the first quarter of 2022, we continued to see increased demand primarily for our snack category products and revenue growth in both our emerging and

developed markets relative to the first quarter of 2021.

During the first six months of 2022, our net revenues continued to increase with growth of 8.3% and Organic Net Revenue growth of 10.7%, compared to the first six months of 2021.

In the first half of 2022, we continued to see increased demand primarily for our snack category products and revenue growth in both our emerging and developed markets relative to the first half of 2021.

We continued to also experience significantly higher operating costs.

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During the pandemic, we continued to closely monitor our cash position and cash flows and worked to increase our access to financing.

As of March 31, 2022, our liquidity remains strong.

As of June 30, 2022, our liquidity remains strong.

During the first quarter of 2022, we funded our acquisition of Chipita (see additional information below) and issued $2 billion of long-term debt, refinancing approximately $2 billion of tendered and redeemed debt (refer to Note 8, Debt and Borrowing Arrangements for details) ahead of a 2022 rising interest rate environment.

We generated $1.1 billion of cash from operations, ending the quarter with cash and cash equivalents of $1.9 billion as of March 31, 2022.

We also have $9 billion of unused credit facilities available as well as ongoing access to additional financing.

We generated $2.0 billion of cash from operations, ending the quarter with cash and cash equivalents of $1.9 billion as of June 30, 2022.

We also had $9 billion of unused credit facilities available as of June 30, 2022 as well as ongoing access to additional financing as evidenced by the incremental term loan facility we entered into and announced on July 11, 2022.

Our JDE Peet's and KDP equity method investments also give us additional financial flexibility.

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We continue to take steps to mitigate impacts to our supply chain, operations, technology and assets.

We intend to continue to execute on our strategic operating plans as the situation evolves.

We intend to continue to execute on our new strategic and operating plans as the situation evolves.

We seek to further our strategic priorities and position the Company to withstand the current uncertainties and emerge stronger.

Chipita Acquisition

On January 3, 2022, we closed on our acquisition of Chipita S.A., which is a strategic complement to our existing snacks portfolio and advances our strategy to become the global leader in broader snacking.

Acquisitions and Divestitures

During the second quarter of 2022, we announced the planned acquisitions of Clif Bar & Company ("Clif Bar") and Ricolino.

Refer to Financial Outlook below and Note 2, Acquisitions and Divestitures , for additional details.

In the second quarter, we also announced our intention to divest our developed market gum and global Halls candy businesses.

On January 3, 2022, we closed on our acquisition of Chipita Global S.A.

("Chipita"), which is a strategic complement to our existing snacks portfolio and advances our strategy to become the global leader in broader snacking.

We paid cash consideration of €1.2 billion ($1.4 billion), net of cash received, and we assumed and paid down €0.4 billion ($0.4 billion) of Chipita's debt in January for a total purchase price of approximately €1.7 billion ($1.8 billion).

Refer to our Discussion and Analysis of Historical Results for more information on the impact of the acquisition on our first quarter 2022 results and refer to Note 2, Acquisitions and Divestitures , for additional details on the acquisition.

Refer to our Discussion and Analysis of Historical Results for more information on the impact of the acquisition on our results and refer to Note 2, Acquisitions and Divestitures , for additional details on the acquisition.

JDE Peet's and KDP Equity Method Investment Transactions

On May 8, 2022, we sold approximately 18.6 million JDE Peet's shares directly back to JDE Peet's, which reduced our ownership interest to 19.8%.

We received €500 million ($529 million) of proceeds and recorded a loss of €8 million ($8 million) on this sale during the second quarter of 2022.

On June 7, 2021, we participated in a secondary offering of KDP shares and sold approximately 28 million shares, which reduced our ownership interest to 6.4% of the total outstanding shares.

We received $997 million of proceeds and recorded a pre-tax gain of $520 million (or $392 million after-tax) during the second quarter of 2021.

The cash taxes associated with the KDP share sales were paid in late 2021.

Summary of Results

• Net revenues increased 7.3% to $7.8 billion in the first three months of 2022 as compared to the same period in the prior year.

In the first quarter of 2022, our net revenue growth continued to reflect increased demand for most of our snack category products in both our emerging and developed markets relative to 2021.

Overall, our net revenue growth was driven by higher net pricing, favorable volume/mix and incremental net revenues from acquisitions, partially offset by unfavorable currency translation.

• Organic Net Revenue, a non-GAAP financial measure, increased 8.6% to $7.9 billion in the first three months of 2022 as compared to same period in the prior year.

During the first three months of 2022, Organic Net Revenue grew due to higher net pricing and favorable volume/mix.

• Net revenues increased 9.5% to $7.3 billion in the second quarter of 2022 and increased 8.3% to $15.0 billion in the first six months of 2022 as compared to the same period in the prior year.

In the second quarter and first six months of 2022, our net revenue growth continued to reflect increased demand for most of our snack category products in both our emerging and developed markets relative to 2021.

Overall, our net revenue growth in the second quarter and first six months of 2022 was driven by higher net pricing, favorable volume/mix and incremental net revenues from acquisitions, partially offset by unfavorable currency translation and the impact of a prior-year divestiture.

• Organic Net Revenue, a non-GAAP financial measure, increased 13.1% to $7.5 billion in the second quarter of 2022 and increased 10.7% to $15.4 billion in the first six months of 2022 as compared to same period in the prior year.

During the second quarter and first six months of 2022, Organic Net Revenue grew due to higher net pricing and favorable volume/mix.

Refer to our Discussion and Analysis of Historical Results below for additional information.

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We use Organic Net Revenue as it provides improved year-over-year comparability of our underlying operating results (see the definition of Organic Net Revenue and our reconciliation with net revenues within Non-GAAP Financial Measures appearing later in this section).

• Diluted EPS attributable to Mondelēz International decreased (10.3)% to $0.61 in the first three months of 2022 as compared to the same period in the prior year.

The decrease was primarily driven by incremental costs incurred due to the war in Ukraine, unfavorable year-over-year mark-to-market impacts from currency and commodity derivatives and intangible asset impairment charges incurred in 2022, partially offset by an increase in Adjusted EPS and lower Simplify to Grow program costs.

• Adjusted EPS, a non-GAAP financial measure, increased 6.3% to $0.84 in the first three months of 2022 as compared to the same period in the prior year.

On a constant currency basis, Adjusted EPS increased 13.9% to $0.90 in the first three months of 2022 as compared to the same periods in the prior year.

The increase in Adjusted EPS was driven by operating gains, lower interest expense and fewer shares outstanding, partially offset by unfavorable currency translation, higher taxes primarily due to lower net benefits from non-recurring discrete tax items and lower benefit plan non-service income.

• Diluted EPS attributable to Mondelēz International decreased 28.9% to $0.54 in the second quarter of 2022 and decreased 20.1% to $1.15 in the first six months of 2022 as compared to the same period in the prior year.

– Diluted EPS decreased in the second quarter of 2022, primarily driven by lapping a prior-year net gain on equity method transactions, an unfavorable year-over-year change in mark-to-market impacts from currency and commodity derivatives and higher acquisition integration costs, partially offset by lower Simplify to Grow program costs, lower negative impacts from enacted tax law changes, lapping a prior-year intangible asset impairment charge, lapping a prior-year unfavorable impact of pension participation changes and an increase in Adjusted EPS.

– Diluted EPS decreased during the first six months of 2022, primarily driven by lapping prior-year net gain on equity method transactions, unfavorable year-over-year mark-to-market impacts from currency and commodity derivatives, incremental costs incurred due to the war in Ukraine, higher intangible asset impairment charges, higher acquisition integration costs and contingent consideration adjustments and higher acquisition-related costs, partially offset by lower Simplify to Grow program costs, lower negative impacts from enacted tax law changes, lower equity method investee items and an increase in Adjusted EPS.

• Adjusted EPS, a non-GAAP financial measure, increased 1.5% to $0.67 in the second quarter of 2022 and increased 3.4% to $1.50 in the first six months of 2022 as compared to the same period in the prior year.

On a constant currency basis, Adjusted EPS increased 9.1% to $0.72 in the second quarter of 2022 and up 11.7% to $1.62 in the first six months of 2022 as compared to the same periods in the prior year.

– Adjusted EPS increased in the second quarter of 2022, primarily driven by operating gains, lower taxes and fewer shares outstanding, mostly offset by unfavorable currency translation, higher interest expense and lower equity method investment earnings.

– Adjusted EPS increased during the first six months of 2022, primarily driven by operating gains, fewer shares outstanding and lower interest expense, partially offset by unfavorable currency translation, lower benefit plan non-service income, higher taxes primarily due to lower net benefits from non-recurring discrete tax items and lower equity method investment earnings.

Adjusted EPS and Adjusted EPS on a constant currency basis are non-GAAP financial measures.

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• Market conditions.

Snack categories continued to grow in the first quarter of 2022.

Snack categories continued to grow in the first six months of 2022.

This is consistent with the latest findings in the third annual State of Snacking report, commissioned by Mondelēz International and issued in January 2022.

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We continue to monitor volatility across markets, including global consumer, energy and other commodity, transportation, labor, currency and capital markets.

We expect greater inflation, including input cost volatility and a higher aggregate cost environment in 2022, as the war in Ukraine, the pandemic, supply chain disruptions (affecting the availability of raw materials, packaging, transportation and other costs), rising energy costs, labor shortages, adverse weather events and conditions and other factors are expected to continue.

We expect greater inflation, including input cost volatility and a higher aggregate cost environment to continue in 2022, as the war in Ukraine, the pandemic, supply chain disruptions (affecting the availability of raw materials, packaging, transportation and other costs), rising energy costs, labor shortages, adverse weather events and conditions and other factors are expected to continue.

Refer also to Commodity Trends and Item 3, Quantitative and Qualitative Disclosures about Market Risk.

• War in Ukraine .

We expect to experience increased volatility and higher costs in international supply chains and global markets (including energy and other commodities, currencies and capital markets) in connection with the war in Ukraine with related negative impacts to our operating results that we cannot fully predict.

We expect to experience heightened volatility and higher costs in international supply chains and global markets (including energy and other commodities, currencies and capital markets) in connection with the war in Ukraine with related negative impacts to our operating results that we cannot fully predict with certainty.

We also expect increased inflationary pressures that will adversely impact our operating costs, particularly as the war continues.

Demand for our products may also be negatively impacted, particularly in those markets closest to Ukraine or other markets that are more vulnerable to consumer price increases.

We have also been expanding operations in other European facilities to continue supplying the majority of our Ukraine business's customers and consumers across Europe.

We have expanded operations in other European facilities and are adapting to continue supplying the majority of our Ukraine business's customers and consumers across Europe.

We continue to take action and evaluate additional ways to mitigate risks, including executing business continuity plans to cover products produced in Ukraine and taking actions to adjust product offerings, package sizes and pricing to help address rising costs.

While we are working to mitigate negative effects on our business, we may not be able to fully predict or respond to all impacts on a timely basis to prevent adverse impacts to our results.

In addition, we may experience negative impacts to our business in Russia due to the war in Ukraine, including challenges to supply products as a result of sanctions or other supply chain challenges, reductions in consumer demand or local government actions that negatively impact our business.

Our continued operating presence in Russia may result in negative publicity or consumer actions against our brands, which may have negative impacts on our business.

We may also experience increased cyber attacks from state sponsored threat actors with ransomware or other type of malware attacks due to a heightened level of malicious cyber activity as a result of the War in Ukraine.

While we are working to mitigate negative effects on our business, we may not be able to fully predict or respond to all of the direct or indirect impacts on our business on a timely basis to prevent adverse impacts to our results.

We also continue to monitor the situation in Russia and any risks to our employees, operations or assets.

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As described above, we continue to monitor and respond to the COVID-19 pandemic.

While its impact is not fully known, it has had a material negative effect on the global and local economies and could have a material negative effect on our business and results in the future, particularly if there are significant adverse changes to consumer demand, product mix or operating costs;

Since its inception, it has had a material negative effect on the global and local economies and could have a material negative effect on our business and results in the future, particularly if there are significant adverse changes

to consumer demand, product mix or operating costs;

significant disruptions to the supply, production or distribution of our products;

or deterioration of the credit or financial stability of our customers and other business partners.

While we have seen some improvements in many markets where we sell and operate, COVID-19 variants and spikes in infections continue across a number of markets.

Disruptions or our failure to effectively respond to them could further increase product or distribution costs and prices and negatively affect operations and results.

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Any of these and other developments could materially harm our business, results of operations and financial condition.

• Clif Bar acquisition .

On June 20, 2022, we announced an agreement to acquire Clif Bar for approximately $2.9 billion.

The acquisition of Clif Bar includes a contingent consideration arrangement that may require us to pay additional consideration to the sellers for achieving certain revenue and earnings targets in 2025 and 2026 that exceed our base financial projections for the business implied in the upfront purchase price.

The possible payments range from zero to a maximum total of $2.4 billion, with higher payouts requiring the achievement of targets that generate rates of returns in excess of the base financial projections.

In connection with this acquisition, we expect to generate a meaningful cash tax benefit over time from the amortization of acquisition-related intangibles.

The acquisition is subject to customary closing conditions and regulatory reviews and is expected to close in the third quarter of 2022.

Refer to Note 2, Acquisitions and Divestitures , and Liquidity and Capital Resources for additional details.

• Ricolino acquisition.

On April 24, 2022, we entered into an agreement with Grupo Bimbo to acquire Ricolino, its confectionery business located primarily in Mexico for a purchase price of approximately $1.3 billion, subject to closing purchase price adjustments.

The transaction, which will be funded through a combination of an issuance of debt and cash on hand, is subject to relevant antitrust approvals and closing conditions and is expected to close in late Q3 or early Q4 2022.

The transaction is subject to relevant antitrust approvals and closing conditions and is expected to close in the second half of 2022.

Refer to Note 2, Acquisitions and Divestitures , and Liquidity and Capital Resources for additional details.

• Planned Divestiture of our developed market gum and global Halls candy businesses.

In May 2022, we announced our intention to divest these businesses.

In the third quarter of 2022, we will formally begin to seek potential buyers for these businesses.

We continue to monitor existing and potential future tax reform around the world.

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As further discussed in Note 1, Basis of Presentation – Currency Translation and Highly Inflationary Accounting, during the first quarter of 2022, we concluded that Türkiye became a highly inflationary economy for accounting purposes.

As of April 1, 2022, we expect to apply highly inflationary accounting for our subsidiaries operating in Türkiye and change their functional currency from the Turkish lira to the U.S.

Our operations in Türkiye contributed $43 million, or 0.6% of our condensed consolidated net revenues in the three months ended March 31, 2022.

Based on a review of our Turkish lira-denominated monetary assets and liabilities, our operations in Türkiye had an immaterial net monetary liability position as of March 31, 2022.

As of April 1, 2022, we apply highly inflationary accounting for our subsidiaries operating in Türkiye and changed their functional currency from the Turkish lira to the U.S.

Our operations in Türkiye contributed $90 million or 0.6% of our condensed consolidated net revenues in the six months ended June 30, 2022.

Within selling, general and administrative expenses, we recorded a remeasurement loss of less than $1 million during the three months ended June 30, 2022 related to the revaluation of the Turkish lira denominated net monetary position during the quarter.

We also continue to apply highly inflationary accounting for our Argentinean subsidiaries.

During the three months ended March 31, 2022, we recorded a remeasurement loss of $5 million within selling, general and administrative expenses related to the revaluation of our Argentinean peso denominated net monetary position.

We recorded a remeasurement loss of $10 million during the three months and $15 million during the six months ended June 30, 2022 within selling, general and administrative expenses related to the revaluation of our Argentinean peso denominated net monetary position.

The mix of monetary assets and liabilities and the exchange rate to convert Turkish lira and Argentinean pesos to U.S.

dollars could change over time, so it is difficult to predict the overall impact of the Türkiye and Argentina highly inflationary accounting on future net earnings.

• Gum Portfolio Review.

During 2021, we began to conduct a strategic review of our developed market gum business.

We continue to conduct the review and expect to have more information to share in mid-2022.

dollars could change over time, so it is difficult to predict the overall impact of Türkiye and Argentina highly inflationary accounting on future net earnings.

advertising and promotion ban.

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results of operations in 2022 and thereafter.

In the three months ended March 31, 2022, we generated 9.3% of our consolidated net revenues in the U.K.

In the six months ended June 30, 2022, we generated 8.1% of our consolidated net revenues in the U.K.

• Cybersecurity Risks.

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For the Three Months Ended

June 30, For the Six Months Ended

See Note 2022 2021 2022 2021

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Intangible asset impairment charges Note 5 — (32) (78) (32)

Mark-to-market gains/(losses) from derivatives (1)

Mark-to-market (losses)/gains from derivatives (1)

Note 9 (128) 17 (100) 134

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contingent consideration adjustments (1)

(37) (2) (72) (3)

Acquisition-related costs (5) (17) (26) (24)

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Note 10 (2) (33) (5) (37)

Impact from resolution of tax matters (1)

Note 12 — 7 — 7

Loss on debt extinguishment and related expenses Note 8 — — (129) (137)

Initial impacts from enacted tax law changes Note 14 (9) (95) (9) (99)

Loss on equity method investment transactions (3)

(Loss)/gain on equity method investment

transactions (3)

(8) 502 (13) 495

Equity method investee items (4)

12 (5) 13 (62)

Effective tax rate Note 14 23.4 % 45.9 % 22.6 % 30.9 %

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Please see the Non-GAAP Financial Measures section at the end of this item and Note 1, Basis of Presentation – War in Ukraine , for additional information.

(3) Loss on equity method investment transactions is recorded outside pre-tax operating results on the condensed consolidated statement of earnings.

(3) (Loss)/gain on equity method investment transactions is recorded outside pre-tax operating results on the condensed consolidated statement of earnings.

See footnote (1) as mark-to-market gains/(losses) on our equity method-investment-related derivative contracts are presented in the table above within mark-to-market gains/(losses) from derivatives.

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Consolidated Results of Operations

Three Months Ended March 31:

Three Months Ended June 30:

For the Three Months Ended

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$ 0.54 $ 0.76 $ (0.22) (28.9) %

Net Revenues – Net revenues increased $526 million (7.3%) to $7,764 million in the first quarter of 2022, and Organic Net Revenue (1) increased $619 million (8.6%) to $7,857 million.

Net Revenues – Net revenues increased $632 million (9.5%) to $7,274 million in the second quarter of 2022, and Organic Net Revenue (1) increased $866 million (13.1%) to $7,494 million.

Developed markets net revenues increased 2.7% and developed markets Organic Net Revenue increased 8.1% (1) .

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Unfavorable currency 6.4 pp

Impact of divestiture 0.2 pp

Impact of acquisition (3.0) pp

Total change in Organic Net Revenue (1)

Higher net pricing 8.0 pp

Favorable volume/mix 5.1 pp

(1) Please see the Non-GAAP Financial Measures section at the end of this item.

Net revenue increase of 9.5% was driven by our underlying Organic Net Revenue growth of 13.1% and the impact of an acquisition, partially offset by unfavorable currency translation and the impact of a prior-year divestiture.

Overall, we continued to see increased demand for our snack category products.

Organic Net Revenue growth was driven by higher net pricing and favorable volume/mix.

Higher net pricing in all regions was due to the benefit of carryover pricing from 2021 as well as the effects of input cost-driven pricing actions taken during the first six months of 2022.

Favorable volume/mix was driven primarily by strong volume gains across our snack category products.

The January 3, 2022 acquisition of Chipita added incremental net revenues of $198 million (constant currency basis).

Unfavorable currency impacts decreased net revenues by $418 million, due primarily to the strength of the U.S.

dollar relative to most currencies, including the euro, British pound sterling, Turkish lira, Argentinean peso, Australian dollar, Polish zloty, Indian rupee and Swedish krona, partially offset by the strength of a few currencies relative to the U.S.

dollar, including the Russian ruble and Brazilian real.

The impact of the November 1, 2021 divestiture of the packaged seafood business, which was part of our April 1, 2021 acquisition of Gourmet Food, resulted in a year-over-year decline in net revenues of $14 million.

Refer to Note 2, Acquisitions and Divestitures, for additional information.

Operating Income – Operating income increased $55 million (6.3%) to $927 million in the second quarter of 2022.

Adjusted Operating Income (1) increased $25 million (2.3%) to $1,100 million and Adjusted Operating Income on a constant currency basis (1) increased $91 million (8.5%) to $1,166 million due to the following:

Income % Change

(in millions)

Operating Income for the Three Months Ended June 30, 2021

Simplify to Grow Program (2)

Intangible asset impairment charge (3)

Mark-to-market gains from derivatives (4)

Acquisition integration costs and contingent consideration adjustments (5)

Acquisition-related costs (5)

Operating income from divestiture (5)

Remeasurement of net monetary position (6)

Impact from pension participation changes (7)

Impact from resolution of a tax matter (8)

Adjusted Operating Income (1) for the

Three Months Ended June 30, 2021

Higher net pricing

Higher input costs

Favorable volume/mix 112

Higher selling, general and administrative expenses (127)

Lower amortization of intangible assets 1

Impact from acquisition (5)

Total change in Adjusted Operating Income (constant currency) (1)

Unfavorable currency translation (66)

Total change in Adjusted Operating Income (1)

Adjusted Operating Income (1) for the

Three Months Ended June 30, 2022

Simplify to Grow Program (2)

Mark-to-market losses from derivatives (4)

Acquisition integration costs and contingent consideration adjustments (5)

Acquisition-related costs (5)

Divestiture-related costs (5) (9)

Incremental costs due to war in Ukraine (6)

Remeasurement of net monetary position (6)

Operating Income for the Three Months Ended June 30, 2022

(1) Refer to the Non-GAAP Financial Measures section at the end of this item.

(2) Refer to Note 7, Restructuring Program, for more information.

(3) Refer to Note 5, Goodwill and Intangible Assets , for more information.

(4) Refer to Note 9, Financial Instruments , and the Non-GAAP Financial Measures section at the end of this item for more information on the unrealized gains/losses on commodity and forecasted currency transaction derivatives.

(5) Refer to Note 2, Acquisitions and Divestitures , for more information on the January 3, 2022 acquisition of Chipita, the November 1, 2021 sale of MaxFoods Pty Ltd, the April 1, 2021 acquisition of Gourmet Food Holdings Pty Ltd, the March 25, 2021 acquisition of a majority interest in Grenade and the January 4, 2021 acquisition of the remaining 93% of equity in Hu Master Holdings.

(6) Refer to Note 1, Basis of Presentation , for information on our accounting for the war in Ukraine and our application of highly inflationary accounting for Argentina and Türkiye.

(7) Refer to Note 10, Benefit Plans , for more information.

(8) Refer to Note 12, Commitments and Contingencies , for more information.

(9) Divestiture-related costs includes costs incurred associated with our publicly-announced processes to divest our Developed Markets gum and Global Halls businesses.

During the second quarter of 2022, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs.

Higher net pricing, which included the carryover impact of pricing actions taken in 2021 as well as the effects of input cost-driven pricing actions taken during the first six months of 2022, was reflected across all regions.

Favorable volume/mix was driven by Europe, AMEA and Latin America, partially offset by unfavorable volume/mix in North America.

Overall volume/mix benefited from strong volume growth due to continued increased demand for our snack category products.

The increase in input costs was driven by higher raw material costs as well as increased manufacturing costs.

Higher raw material costs were in part due to higher packaging, dairy, edible oils, energy, sugar, nuts and other ingredient costs as well as unfavorable year-over-year currency exchange transaction costs on imported materials, partially offset by lower cocoa and grain costs.

Total selling, general and administrative expenses increased $83 million from the second quarter of 2021, due to a number of factors noted in the table above, including in part, the impact of acquisitions, higher acquisition integration costs, higher remeasurement of net monetary position, lapping the prior-year favorable impact from the resolution of a tax matter and divestiture-related costs incurred in 2022, which were offset by a favorable currency impact related to expenses, lapping the prior-year unfavorable impact from pension participation changes, lower acquisition-related costs, a decrease of allowance and inventory reserves associated with incremental costs due to the war in Ukraine and lower implementation costs incurred for the Simplify to Grow Program.

Excluding these factors, selling, general and administrative expenses increased $127 million from the second quarter of 2021.

The increase was driven primarily by higher advertising and consumer promotion costs and higher overhead costs in part due to increased investments in route-to-market capabilities.

Unfavorable currency changes decreased operating income by $66 million due primarily to the strength of the U.S.

dollar relative to most currencies, including the euro, British pound sterling and Turkish lira, partially offset by the strength of a few currencies relative to the U.S.

dollar, including the Russian ruble and Brazilian real.

Operating income margin decreased from 13.1% in the second quarter of 2021 to 12.7% in the second quarter of 2022.

The decrease was driven primarily by unfavorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, lower Adjusted Operating Income margin, higher acquisition integration costs and higher remeasurement of net monetary position, partially offset by lower Simplify to Grow program costs, lapping of prior-year unfavorable impact of pension participation changes, lapping a prior-year intangible asset impairment charge and lower acquisition-related costs.

Adjusted Operating Income margin decreased from 16.2% for the second quarter of 2021 to 15.1% for the second quarter of 2022.

The decrease was driven primarily by higher raw material costs and unfavorable product mix, partially offset by higher net pricing and overhead cost leverage.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $747 million decreased by $331 million (30.7%) in the second quarter of 2022.

Diluted EPS attributable to Mondelēz International was $0.54 in the second quarter of 2022, down $0.22 (28.9%) from the second quarter of 2021.

Adjusted EPS (1) was $0.67 in the second quarter of 2022, up $0.01 (1.5%) from the second quarter of 2021.

Adjusted EPS on a constant currency basis (1) was $0.72 in the second quarter of 2022, up $0.06 (9.1%) from the second quarter of 2021.

Diluted EPS Attributable to Mondelēz International for the

Three Months Ended June 30, 2021

Simplify to Grow Program (2)

Intangible asset impairment charge (2)

Mark-to-market gains from derivatives (2)

Acquisition-related costs (2)

Impact from pension participation changes (2)

Initial impacts from enacted tax law changes (3)

Gain on equity method investment transactions (4)

Adjusted EPS (1) for the Three Months Ended June 30, 2021

Increase in operations 0.04

Decrease in equity method investment net earnings (0.01)

Impact from acquisition (2)

Changes in interest and other expense, net (5)

Changes in income taxes (3)

Changes in shares outstanding (6)

Adjusted EPS (constant currency) (1) for the Three Months Ended June 30, 2022

Unfavorable currency translation (0.05)

Adjusted EPS (1) for the Three Months Ended June 30, 2022

Simplify to Grow Program (2)

Mark-to-market losses from derivatives (2)

Acquisition integration costs and contingent consideration adjustments (2)

Remeasurement of net monetary position (2)

Incremental costs due to war in Ukraine (2)

Initial impacts from enacted tax law changes (3)

Loss on equity method investment transactions (4)

Equity method investee items (7)

Diluted EPS Attributable to Mondelēz International for the

Three Months Ended June 30, 2022

(1) Refer to the Non-GAAP Financial Measures section appearing later in this section.

(2) See the Operating Income table above and the related footnotes for more information.

(3) Refer to Note 14, Income Taxes , for more information on the items affecting income taxes.

(4) Refer to Note 6, Equity Method Investments , for more information on gain/loss on equity method investment transactions.

(5) Excludes the currency impact on interest expense related to non-U.S.

dollar-denominated debt, which is included in currency translation.

(6) Refer to Note 11, Stock Plans , for more information on our equity compensation programs and share repurchase program and Note 15, Earnings per Share , for earnings per share weighted-average share information.

(7) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's and KDP equity method investees, such as acquisition and divestiture-related costs and restructuring program costs.

Six Months Ended June 30:

For the Six Months Ended

2022 2021 $ change % change

(in millions, except per share data)

Net revenues $ 15,038 $ 13,880 $ 1,158 8.3 %

Operating income 2,021 2,155 (134) (6.2) %

Net earnings attributable to

Mondelēz International

$ 1,602 $ 2,039 $ (437) (21.4) %

Diluted earnings per share attributable to

Mondelēz International

$ 1.15 $ 1.44 $ (0.29) (20.1) %

Net Revenues – Net revenues increased $1,158 million (8.3%) to $15,038 million in the first six months of 2022, and Organic Net Revenue (1) increased $1,485 million (10.7%) to $15,351 million.

Developed markets net revenues increased (2.7%) and developed markets Organic Net Revenue increased (6.0%) (1) .

Emerging markets net revenues increased (18.8%) and emerging markets Organic Net Revenue increased (19.4%) (1) .

The underlying changes in net revenues and Organic Net Revenue are detailed below:

Change in net revenues (by percentage point)

Total change in net revenues 8.3 %

Add back the following items affecting comparability:

Unfavorable currency 5.1 pp

Impact of divestiture 0.2 pp

Impact of acquisitions (2.9) pp

3 unchanged sentences

(1) Please see the Non-GAAP Financial Measures section at the end of this item.

Net revenue increase of 7.3% was driven by our underlying Organic Net Revenue growth of 8.6% and the impact of acquisitions, partially offset by unfavorable currency translation.

Overall, we continued to see increased demand for our snack category products, though some markets are still challenged due to the pandemic.

Net revenue increase of 8.3% was driven by our underlying Organic Net Revenue growth of 10.7% and the impact of acquisitions, partially offset by unfavorable currency translation and the impact of a prior-year divestiture.

Overall, we continued to see increased demand for our snack category products.

Organic Net Revenue growth was driven by higher net pricing and favorable volume/mix.

Higher net pricing in all regions was due to the benefit of carryover pricing from 2021 as well as the effects of input cost-driven pricing actions taken during the first three months of 2022.

Favorable volume/mix across all regions was driven primarily by strong volume gains primarily across our snack category products.

Higher net pricing in all regions was due to the benefit of carryover pricing from 2021 as well as the effects of input cost-driven pricing actions taken during the first six months of 2022.

Favorable volume/mix was driven primarily by strong volume gains primarily across our snack category products.

The January 3, 2022 acquisition of Chipita added incremental net revenues of $367 million (constant currency basis), the April 1, 2021 acquisition of Gourmet Food added incremental net revenues of $15 million (constant currency basis) and the March 25, 2021 acquisition of Grenade added incremental net revenues of $22 million (constant currency basis).

Refer to Note 2, Acquisitions and Divestitures, for additional information.

Unfavorable currency impacts decreased net revenues by $717 million, due primarily to the strength of the U.S.

dollar relative to several currencies, including the euro, Turkish lira, Russian ruble, Argentinean peso, British pound sterling and Australian dollar, partially offset by the strength of several currencies relative to the U.S.

dollar, including the Brazilian real and Chinese yuan.

Operating Income – Operating income decreased $189 million (14.7%) to $1,094 million in the first quarter of 2022.

dollar, including the Brazilian real.

Refer to Note 2, Acquisitions and Divestitures, for additional information.

Operating Income – Operating income decreased $134 million (6.2%) to $2,021 million in the first six months of 2022.

Adjusted Operating Income (1) increased $111 million (4.7%) to $2,478 million and Adjusted Operating Income on a constant currency basis (1) increased $266 million (11.2%) to $2,633 million due to the following:

1 unchanged sentence

(in millions)

Operating Income for the Three Months Ended March 31, 2021

Operating Income for the Six Months Ended June 30, 2021

Simplify to Grow Program (2)

Intangible asset impairment charge (3)

Mark-to-market gains from derivatives (4)

1 unchanged sentence

Acquisition-related costs (5)

Gain on acquisition (4)

Gain from acquisition (5)

Operating income from divestiture (5)

Remeasurement of net monetary position (6)

Impact from pension participation changes (7)

Impact from resolution of tax matters (8)

Adjusted Operating Income (1) for the

Three Months Ended March 31, 2021

Six Months Ended June 30, 2021

Higher net pricing

8 unchanged sentences

Adjusted Operating Income (1) for the

Three Months Ended March 31, 2022

Six Months Ended June 30, 2022

Simplify to Grow Program (2)

Intangible asset impairment charges (7)

Mark-to-market gains from derivatives (3)

Intangible asset impairment charge (3)

Mark-to-market losses from derivatives (4)

Acquisition integration costs and contingent consideration adjustments (5)

3 unchanged sentences

Remeasurement of net monetary position (6)

Operating Income for the Three Months Ended March 31, 2022

Operating Income for the Six Months Ended June 30, 2022

$ 2,021 (6.2) %

1 unchanged sentence

(2) Refer to Note 7, Restructuring Program, for more information.

(3) Refer to Note 9, Financial Instruments , and the Non-GAAP Financial Measures section at the end of this item for more information on the unrealized gains/losses on commodity and forecasted currency transaction derivatives.

(4) Refer to Note 2, Acquisitions and Divestitures , for more information on the January 3, 2022 acquisition of Chipita, the April 1, 2021 acquisition of Gourmet Food Holdings Pty Ltd, the March 25, 2021 acquisition of a majority interest in Grenade and the January 4, 2021 acquisition of the remaining 93% of equity in Hu Master Holdings.

(5) Refer to Note 1, Basis of Presentation , for information on our accounting for the war in Ukraine and our application of highly inflationary accounting for Argentina.

(6) Refer to Note 10, Benefit Plans , for more information.

(3) Refer to Note 5, Goodwill and Intangible Assets , for more information.

During the first quarter of 2022, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs.

Higher net pricing, which included the carryover impact of pricing actions taken in 2021 as well as the effects of input cost-driven pricing actions taken during the first three months of 2022, was reflected across all regions.

Favorable volume/mix was driven by Europe, Latin America and AMEA, partially offset by unfavorable volume/mix in North America.

(4) Refer to Note 9, Financial Instruments , Note 16, Segment Reporting , and Non-GAAP Financial Measures section at the end of this item for more information on the unrealized gains/losses on commodity and forecasted currency transaction derivatives.

(6) Refer to Note 1, Basis of Presentation , for information on our accounting for the war in Ukraine and our application of highly inflationary accounting for Argentina and Türkiye.

(7) Refer to Note 10, Benefit Plans , for more information.

(8) Refer to Note 12, Commitments and Contingencies , for more information.

(9) Divestiture-related costs includes costs incurred associated with our publicly-announced processes to divest our Developed Markets gum and Global Halls businesses.

During the first six months of 2022, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs.

Favorable volume/mix was driven by Europe, AMEA and Latin America, which was partially offset by unfavorable volume/mix in North America.

Overall volume/mix benefited from strong volume growth due to continued increased demand for our snack category products.

The increase in input costs was driven by higher raw material costs, partially offset by lower manufacturing costs driven by productivity.

Higher raw material costs were in part due to higher packaging, edible oils, dairy, energy, grains, sugar and other ingredient costs, partially offset by favorable year-over-year currency exchange transaction costs on imported materials and lower cocoa costs.

Total selling, general and administrative expenses increased $129 million from the first quarter of 2021, due to a number of factors noted in the table above, including in part, the impact of acquisitions, higher acquisition integration costs, incremental costs incurred due to the war in Ukraine and higher acquisition-related costs, which were partially offset by a favorable currency impact related to expenses and lower implementation costs incurred for the Simplify to Grow Program.

Excluding these factors, selling, general and administrative expenses increased $77 million from the first quarter of 2021.

The increase was driven primarily by higher advertising and consumer promotion costs and higher overhead costs reflecting increased investments in route-to-market capabilities.

The increase in input costs was driven by higher raw material costs as well as higher manufacturing costs.

Higher raw material costs were in part due to higher packaging, dairy, edible oils, energy, grains, sugar, nuts and other ingredient costs, partially offset by favorable year-over-year currency exchange transaction costs on imported materials and lower cocoa costs.

Total selling, general and administrative expenses increased $212 million from the first six months of 2021, due to a number of factors noted in the table above, including in part, the impact of acquisitions, higher acquisition integration costs, incremental costs due to the war in Ukraine, higher remeasurement of net monetary position, lapping the prior-year favorable impact from the resolution of a tax matter, divestiture-related costs incurred in 2022, and higher acquisition-related costs, which were partially offset by a favorable currency impact related to expenses, lapping the prior-year unfavorable impact from pension participation changes and lower implementation costs incurred for the Simplify to Grow Program.

Excluding these factors, selling, general and administrative expenses increased $203 million from the first six months of 2021.

The increase was driven primarily by higher advertising and consumer promotion costs and higher overheads in part due to increased investments in route-to-market capabilities.

Unfavorable currency changes decreased operating income by $155 million due primarily to the strength of the U.S.

dollar relative to most currencies, including the Russian ruble, euro, Argentinean peso, British pound sterling, Turkish lira and Australian dollar, partially offset by the strength of a few currencies relative to the U.S.

dollar, including the Brazilian real and Chinese yuan.

Operating income margin decreased from 17.7% in the first quarter of 2021 to 14.1% in the first quarter of 2022.

The decrease was driven primarily by incremental costs incurred due to the war in Ukraine, unfavorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, intangible asset impairment charges incurred in 2022, higher acquisition integration costs, lower Adjusted Operating Income margin, higher acquisition-related costs and lapping a prior-year gain on acquisition, partially offset by lower Simplify to Grow program costs.

Adjusted Operating Income margin decreased from 17.9% for the first quarter of 2021 to 17.7% for the first quarter of 2022.

dollar relative to most currencies, including the euro, Russian ruble, British pound sterling, Turkish lira, Argentinian peso, Australian dollar, Indian rupee and Swedish krona, partially offset by the strength of a few currencies relative to the U.S.

dollar, including the Brazilian real.

Operating income margin decreased from 15.5% in the first six months of 2021 to 13.4% in the first six months of 2022.

The decrease in operating income margin was driven primarily by the year-over-year unfavorable change in mark-to-market gains/(losses) from currency and commodity hedging activities, incremental costs due to the war in Ukraine, lower Adjusted Operating Income margin, higher intangible asset impairment charges, higher acquisition integration costs, divestiture-related costs incurred in 2022 and higher remeasurement of net monetary position, partially offset by lower costs for the Simplify to Grow Program and lapping the prior-year unfavorable impact from pension participation changes.

Adjusted Operating Income margin decreased from 17.1% for the first six months of 2021 to 16.5% for the first six months of 2022.

The decrease was driven primarily by higher raw material costs and unfavorable product mix, partially offset by higher net pricing and overhead cost leverage.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $855 million decreased by $106 million (11.0%) in the first quarter of 2022.

Diluted EPS attributable to Mondelēz International was $0.61 in the first quarter of 2022, down $0.07 (10.3%) from the first quarter of 2021.

Adjusted EPS (1) was $0.84 in the first quarter of 2022, up $0.05 (6.3%) from the first quarter of 2021.

Adjusted EPS on a constant currency basis (1) was $0.90 in the first quarter of 2022, up $0.11 (13.9%) from the first quarter of 2021.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $1,602 million decreased by $437 million (21.4%) in the first six months of 2022.

Diluted EPS attributable to Mondelēz International was $1.15 in the first six months of 2022, down $0.29 (20.1%) from the first six months of 2021.

Adjusted EPS (1) was $1.50 in the first six months of 2022, up $0.05 (3.4%) from the first six months of 2021.

Adjusted EPS on a constant currency basis (1) was $1.62 in the first six months of 2022, up $0.17 (11.7%) from the first six months of 2021.

Diluted EPS Attributable to Mondelēz International for the

Three Months Ended March 31, 2021

Six Months Ended June 30, 2021

Simplify to Grow Program (2)

Intangible asset impairment charge (2)

Mark-to-market gains from derivatives (2)

1 unchanged sentence

Net earnings from divestitures (2)

Impact from pension participation changes (2)

Loss on debt extinguishment and related expenses (3)

Initial impacts from enacted tax law changes (4)

Gain on equity method investment transaction (5)

Equity method investee items (6)

Adjusted EPS (1) for the Three Months Ended March 31, 2021

Adjusted EPS (1) for the Six Months Ended June 30, 2021

Increase in operations

Decrease in equity method investment net earnings

Impact from acquisition (2)

Changes in benefit plan non-service income

2 unchanged sentences

Changes in shares outstanding (8)

Adjusted EPS (constant currency) (1) for the Three Months Ended March 31, 2022

Adjusted EPS (constant currency) (1) for the Six Months Ended June 30, 2022

Unfavorable currency translation

Adjusted EPS (1) for the Three Months Ended March 31, 2022

Adjusted EPS (1) for the Six Months Ended June 30, 2022

Simplify to Grow Program (2)

Intangible asset impairment charges (2)

Mark-to-market gains from derivatives (2)

Intangible asset impairment charge (2)

Mark-to-market losses from derivatives (2)

Acquisition integration costs and contingent consideration adjustments (2)

1 unchanged sentence

Incremental costs due to war in Ukraine (2)

Remeasurement of net monetary position (2)

Loss on debt extinguishment and related expenses (3)

Initial impacts from enacted tax law changes (4)

Loss on equity method investment transactions (6)

Equity method investee items (6)

Diluted EPS Attributable to Mondelēz International for the

Three Months Ended March 31, 2022

Six Months Ended June 30, 2022

(1) Refer to the Non-GAAP Financial Measures section appearing later in this section.

(2) See the Operating Income table above and the related footnotes for more information.

(3) Includes the impact from 2021 partial sales of our equity method investment in KDP as if the sales occurred at the beginning of all periods presented.

(3) Refer to Note 8, Debt and Borrowing Arrangements ), for more information on the loss on debt extinguishment and related expenses.

(4) Refer to Note 14, Income Taxes, on the items affecting income taxes.

(5) Refer to Note 6, Equity Method Investments, for more information on the gain/(loss) on equity method investment transactions.

(6) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's and KDP equity method investees, such as acquisition and divestiture-related costs and restructuring program costs.

(6) Excludes the currency impact on interest expense related to non-U.S.

(7) Excludes the currency impact on interest expense related to our non-U.S.

dollar-denominated debt, which is included in currency translation.

(7) Refer to Note 14, Income Taxes , for more information on the items affecting income taxes.

(8) Refer to Note 11, Stock Plans , for more information on our equity compensation programs and share repurchase program and Note 15, Earnings per Share , for earnings per share weighted-average share information.

10 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2022 2021 2022 2021

(in millions)

8 unchanged sentences

Latin America $ 90 $ 54 $ 193 $ 130

AMEA 211 213 483 575

Europe 380 413 757 970

North America 454 299 872 569

Unrealized gains/(losses) on hedging activities

Unrealized (losses)/gains on hedging activities

(mark-to-market impacts) (109) 20 (82) 138

13 unchanged sentences

Segment operating income 90 54 36 66.7 %

Three Months Ended March 31:

For the Six Months Ended

2022 2021 $ change % change

(in millions)

Net revenues $ 1,702 $ 1,338 $ 364 27.2 %

Segment operating income 193 130 63 48.5 %

Three Months Ended June 30:

Net revenues increased $207 million (30.9%), due to higher net pricing (20.6 pp) and favorable volume/mix (12.4 pp), partially offset by unfavorable currency (2.1 pp).

1 unchanged sentence

Favorable volume/mix reflected strong volume growth as the region continued to see increased demand for our snack category products.

Favorable volume/mix was driven by gains in chocolate, biscuits, gum and candy, partially offset by declines in refreshment beverages and cheese & grocery.

Favorable volume/mix was driven by gains in gum, biscuits, chocolate, candy and cheese & grocery, partially offset by a decline in refreshment beverages.

Unfavorable currency impacts were due primarily to the strength of the U.S.

2 unchanged sentences

Segment operating income increased $36 million (66.7%), primarily due to higher net pricing, favorable volume/mix, lower manufacturing costs due to productivity and lower costs incurred for the Simplify to Grow Program.

These favorable items were partially offset by higher raw material costs, higher advertising and consumer promotion costs, unfavorable currency and higher other selling, general and administrative expenses.

These favorable items were partially offset by higher raw material costs, higher advertising and consumer promotion costs, higher other selling, general and administrative expenses, higher remeasurement loss of net monetary position and lapping a prior-year favorable impact from the resolution of a tax matter.

Six Months Ended June 30:

Net revenues increased $364 million (27.2%), due to higher net pricing (18.8 pp) and favorable volume/mix (10.6 pp), partially offset by unfavorable currency (2.2 pp).

Higher net pricing was reflected across all categories, driven primarily by Argentina, Brazil and Mexico.

Favorable volume/mix reflected strong volume growth as the region continued to see increased demand for our snack category products.

Favorable volume/mix was driven by gains in gum, chocolate, biscuits, gum, candy and cheese & grocery, partially offset by a decline in refreshment beverages.

Unfavorable currency impacts were due primarily to the strength of the U.S.

dollar relative to most currencies in the region, primarily the Argentinean peso, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Brazilian real.

Segment operating income increased $63 million (48.5%), primarily due to higher net pricing, favorable volume/mix, lower manufacturing costs due to productivity and lower costs incurred for the Simplify to Grow Program.

These favorable items were partially offset by higher raw material costs, higher advertising and consumer promotion costs, higher other selling, general and administrative expenses, higher remeasurement loss on net monetary position and lapping a prior-year favorable impact from the resolution of a tax matter.

For the Three Months Ended

3 unchanged sentences

Segment operating income 211 213 (2) (0.9) %

Three Months Ended March 31:

Net revenues increased $122 million (7.0%), due to favorable volume/mix (6.4 pp), higher net pricing (2.5 pp) and the impact of an acquisition (0.9 pp), partially offset by unfavorable currency (2.8 pp).

Favorable volume/mix reflected overall volume gains from increased demand for our snack category products, though some markets were still challenged due to the pandemic.

Favorable volume/mix was driven by gains in chocolate, biscuits, refreshment beverages, gum and candy, partially offset by declines in cheese & grocery.

Higher net pricing was reflected across all categories except gum.

For the Six Months Ended

2022 2021 $ change % change

(in millions)

Net revenues $ 3,402 $ 3,197 $ 205 6.4 %

Segment operating income 483 575 (92) (16.0) %

Three Months Ended June 30:

Net revenues increased $83 million (5.7%), due to favorable volume/mix (8.7 pp) and higher net pricing (4.5 pp), partially offset by unfavorable currency (6.5 pp) and the impact of a divestiture (1.0 pp).

Favorable volume/mix reflected overall volume gains from increased demand for our snack category products.

Favorable volume/mix was driven by gains in chocolate, biscuits and candy, partially offset by declines in gum, cheese & grocery and refreshment beverages.

Higher net pricing was reflected across all categories.

Unfavorable currency impacts were due to the strength of the U.S.

dollar relative to most currencies in the region, including the Australian dollar, Indian rupee, South African rand, Philippine peso, Egyptian pound and Chinese yuan.

Segment operating income decreased $2 million (0.9%), primarily due to higher raw material costs, higher advertising and consumer promotion costs, higher other selling, general and administrative expenses and unfavorable currency.

These unfavorable items were mostly offset by higher net pricing, favorable volume/mix and lower manufacturing costs driven by productivity.

Six Months Ended June 30:

Net revenues increased $205 million (6.4%), due to favorable volume/mix (7.5 pp), higher net pricing (3.4 pp) and the impact of an acquisition (0.4 pp), partially offset by unfavorable currency (4.4 pp) and the impact of a divestiture (0.5 pp).

Favorable volume/mix reflected overall volume gains from increased demand for our snack category products.

Favorable volume/mix was driven by gains in chocolate, biscuits, refreshment beverages and candy, partially offset by declines in cheese & grocery and gum.

Higher net pricing was reflected across all categories.

The April 1, 2021 acquisition of Gourmet Food added incremental net revenues of $15 million (constant currency basis) in the first quarter of 2022.

Unfavorable currency impacts were due to the strength of the U.S.

dollar relative to most currencies in the region, including the Australian dollar, Indian rupee and Philippine peso, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Chinese yuan.

Segment operating income decreased $90 million (24.9%), primarily due to intangible asset impairment charges incurred in the first quarter of 2022, higher raw material costs, higher costs incurred for the Simplify to Grow Program, higher advertising and consumer promotion costs, unfavorable currency and higher other selling, general and administrative expenses.

dollar relative to most currencies in the region, including the Australian dollar, Indian rupee, Philippine peso, South African Rand, Japanese yen and Egyptian pound.

Segment operating income decreased $92 million (16.0%), primarily due to higher raw material costs, an intangible asset impairment charge incurred in the first quarter of 2022, higher advertising and consumer promotion costs, unfavorable currency, higher other selling, general and administrative expenses and higher costs incurred for the Simplify to Grow Program.

These unfavorable items were partially offset by higher net pricing, favorable volume/mix and lower manufacturing costs driven by productivity.

4 unchanged sentences

Segment operating income 380 413 (33) (8.0) %

Three Months Ended March 31:

For the Six Months Ended

2022 2021 $ change % change

(in millions)

Net revenues $ 5,561 $ 5,321 $ 240 4.5 %

Segment operating income 757 970 (213) (22.0) %

Three Months Ended June 30:

Net revenues increased $152 million (6.1%), due to the impact of an acquisition (7.6 pp), favorable volume/mix (5.9 pp) and higher net pricing (4.9 pp), partially offset by unfavorable currency (12.3 pp).

The January 3, 2022 acquisition of Chipita added incremental net revenues of $189 million (constant currency basis) in the second quarter of 2022.

Favorable volume/mix was driven by strong volume growth as we experienced increased demand for our snack category products and our world travel business grew as global travel continued to improve.

Favorable volume/mix was driven by gains in chocolate, biscuits, candy, cheese & grocery and gum, partially offset by a decline in refreshment beverages.

Higher net pricing was reflected across all categories.

Unfavorable currency impacts reflected the strength of the U.S.

dollar relative to most currencies across the region, including the euro, British pound sterling, Turkish lira, Polish zloty and Swedish krona, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Russian ruble.

Segment operating income decreased $33 million (8.0%), primarily due to higher raw material costs, unfavorable currency, acquisition integration costs incurred in the second quarter of 2022, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs and higher manufacturing costs.

These unfavorable items were partially offset by higher net pricing, favorable volume/mix, lapping the prior-year unfavorable impact of pension participation changes, a decrease in estimated allowances and reserves associated with incremental costs due to the war in Ukraine and the impact of an acquisition.

Six Months Ended June 30:

Net revenues increased $240 million (4.5%), due to the impact of acquisitions (7.0 pp), favorable volume/mix (4.5 pp) and higher net pricing (3.1 pp), partially offset by unfavorable currency (10.1 pp).

The January 3, 2022 acquisition of Chipita added incremental net revenues of $162 million (constant currency basis) and the March 25, 2021 acquisition of Grenade added incremental net revenues of $22 million (constant currency basis) in the first quarter of 2022.

Favorable volume/mix was driven by strong volume growth as we experienced increased demand for our snack category products and our world travel business grew as global travel continued to improve though still below pre-pandemic levels.

Favorable volume/mix was driven by gains in chocolate, biscuits, candy and gum, partially offset by declines in cheese & grocery and refreshment beverages.

The January 3, 2022 acquisition of Chipita added incremental net revenues of $351 million (constant currency basis) and the March 25, 2021 acquisition of Grenade added incremental net revenues of $22 million (constant currency basis) in the first six months of 2022.

Favorable volume/mix was driven by strong volume growth as we experienced increased demand for our snack category products and our world travel business grew as global travel continued to improve.

Favorable volume/mix was driven by gains in chocolate, biscuits, candy and gum, partially offset by declines in refreshment beverages and cheese & grocery.

Higher net pricing was reflected across all categories except refreshment beverages.

Unfavorable currency impacts reflected the strength of the U.S.

dollar relative to most currencies across the region, including the euro, Turkish lira, Russian ruble, British pound sterling, Polish zloty and Swedish krona.

Segment operating income decreased $180 million (32.3%), primarily due to incremental costs incurred due to the war in Ukraine, unfavorable currency, acquisition integration costs incurred in the first quarter of 2022, higher advertising and consumer promotion costs and higher other selling, general and administrative expenses.

These unfavorable items were partially offset by higher net pricing, favorable volume/mix, lower Simplify to Grow program costs, the impact of acquisitions and lower manufacturing costs due to productivity.

dollar relative to most currencies across the region, including the euro, British pound sterling, Turkish lira, Polish zloty, Swedish krona and Romanian leu.

Segment operating income decreased $213 million (22.0%), primarily due to higher raw material costs, unfavorable currency, incremental costs incurred due to the war in Ukraine, acquisition integration costs incurred in the first six months of 2022, higher other selling, general and administrative expenses and higher advertising and consumer promotion costs.

These unfavorable items were partially offset by higher net pricing, favorable volume/mix, lapping the prior-year unfavorable impact of pension participation changes, the impact of acquisitions and lower costs incurred for the Simplify to Grow Program.

North America

4 unchanged sentences

Segment operating income 454 299 155 51.8 %

Three Months Ended March 31:

Net revenues increased $159 million (8.0%), due to higher net pricing (7.5 pp), the impact of an acquisition (0.3 pp) and favorable volume/mix (0.2 pp).

Higher net pricing was reflected across all categories driven by pricing actions taken in the first three months of 2022.

The January 3, 2022 acquisition of Chipita added incremental net revenues of $7 million in the first quarter of 2022.

Favorable volume/mix was driven by gains in candy, chocolate and gum, mostly offset by a decline in biscuits which primarily reflected the impact of supply chain constraints on volume.

Segment operating income increased $148 million (54.8%), primarily due to higher net pricing and lower Simplify to Grow Program costs.

These favorable items were partially offset by higher raw material costs, unfavorable volume/mix and higher manufacturing costs net of productivity.

For the Six Months Ended

2022 2021 $ change % change

(in millions)

Net revenues $ 4,373 $ 4,024 $ 349 8.7 %

Segment operating income 872 569 303 53.3 %

Three Months Ended June 30:

Net revenues increased $190 million (9.3%), due to higher net pricing (10.2 pp) and the impact of an acquisition (0.5 pp), partially offset by unfavorable volume/mix (1.0 pp) and unfavorable currency (0.4 pp).

Higher net pricing was reflected across all categories driven by pricing actions taken in the first six months of 2022.

The January 3, 2022 acquisition of Chipita added incremental net revenues of $9 million in the second quarter of 2022.

Unfavorable volume/mix was driven by a decline in biscuits which primarily reflected the impact of supply chain constraints on volume, partially offset by gains in candy, gum and chocolate.

Unfavorable currency impact was due to the strength of the U.S.

dollar relative to the Canadian dollar.

Segment operating income increased $155 million (51.8%), primarily due to higher net pricing, lower costs incurred for the Simplify to Grow Program and lapping prior-year intangible asset impairment charges.

These favorable items were partially offset by higher raw material costs, higher manufacturing costs, unfavorable volume/mix and higher advertising and consumer promotion costs.

Six Months Ended June 30:

Net revenues increased $349 million (8.7%), due to higher net pricing (8.9 pp) and the impact of an acquisition (0.4 pp), partially offset by unfavorable volume/mix (0.4 pp) and unfavorable currency (0.2 pp).

Higher net pricing was reflected across all categories driven by pricing actions taken in the first six months of 2022.

The January 3, 2022 acquisition of Chipita added incremental net revenues of $16 million in the first six months of 2022.

Unfavorable volume/mix was driven by by a decline in biscuits which primarily reflected the impact of supply chain constraints on volume, mostly offset by gains in candy, chocolate and gum.

Unfavorable currency impact was due to the strength of the U.S.

dollar relative to the Canadian dollar.

Segment operating income increased $303 million (53.3%), primarily due to higher net pricing, lower costs incurred for the Simplify to Grow Program and lapping a prior-year intangible asset impairment charge.

These favorable items were partially offset by higher raw material costs, higher manufacturing costs, unfavorable volume/mix and higher advertising and consumer promotion costs.

Liquidity and Capital Resources

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Our investments in JDE Peet's and KDP also provide us additional flexibility.

Overall, we do not expect negative effects to our funding sources that would have a material effect on our liquidity, and we continue to monitor our operations in Europe and effects from the war in Ukraine.

Overall, we do not expect negative effects to our funding sources that would have a material effect on our liquidity, and we continue to monitor our operations in Europe and related effects from the war in Ukraine.

To date, we have been successful in generating cash and raising financing as needed.

However, in connection with the COVID-19 pandemic, war in Ukraine or other circumstances, if a serious economic or credit market crisis ensues, it could have a material adverse effect on our liquidity, results of operations and financial condition.

However, if a serious economic or credit market crisis ensues or other adverse developments arise in connection with the COVID-19 pandemic, war in Ukraine or other circumstances, it could have a material adverse effect on our liquidity, results of operations and financial condition.

Our most significant ongoing short-term cash requirements relate primarily to funding operations (including expenditures for raw materials, labor, manufacturing and distribution, trade and promotions, advertising and marketing, tax liabilities, benefit plan obligations and lease expenses) as well as periodic expenditures for acquisitions, shareholder returns (such as dividend payments and share repurchases) and property, plant and equipment.

Clif Bar and Ricolino Acquisitions

On June 20, 2022, we announced an agreement to acquire Clif Bar for approximately $2.9 billion.

The transaction is expected to close in the third quarter of 2022.

On April 24, 2022, we also announced our planned acquisition of Ricolino, which we expect to close in the second half of 2022 for an estimated purchase price of approximately $1.3 billion.

We expect to fund both acquisitions through a combination of cash on hand, debt issuances, commercial paper borrowings and bank term loans.

Refer to Note 2, Acquisitions and Divestitures , for additional details.

Long-term cash requirements primarily relate to funding long-term debt repayments (refer to Note 8, Debt and Borrowing Arrangements ), our U.S.

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Our cash flow activity is noted below:

Three months ended March 31, 2022

Six months ended June 30, 2022

Net cash provided by operating activities $ 1,967 $ 1,792

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Net Cash Provided by Operating Activities:

The increase in net cash provided by operating activities was due primarily to lower year-over-year working capital requirements, higher cash earnings, lower tax payments and higher dividends received from our equity method investments, partially offset by higher acquisition integration-related costs.

The increase in net cash provided by operating activities was due primarily to lower year-over-year working capital requirements, higher dividends received from our equity method investments and lower payments to benefit plans than in the same prior-year period.

Net Cash Used in Investing Activities:

The increase in net cash used in investing activities was largely driven by higher cash payments for acquisitions, including $1.4 billion cash consideration paid for the Chipita acquisition during January 2022 relative to $490 million paid to acquire a majority interest in Grenade and the remaining equity of Hu Master Holdings during the first quarter of 2021 (refer to Note 2, Acquisitions and Divestitures ), partially offset by proceeds related to a sale of an acquired Chipita equity method investment and lower capital expenditures.

We continue to make capital expenditures primarily to modernize manufacturing facilities and support new product and productivity initiatives.

We expect 2022 capital expenditures to be approximately $1.2 billion, including capital expenditures in connection with our Simplify to Grow Program.

The increase in net cash used in investing activities was largely driven by higher cash payments for acquisitions, including $1.4 billion cash consideration paid for the Chipita acquisition during January 2022 relative to $833 million paid in the prior-year to acquire Gourmet Food, Grenade and Hu (refer to Note 2, Acquisitions and Divestitures ), as well as lower proceeds from sales of equity method investments than in the prior-year period (refer to Note 6, Equity Method Investments ), partially offset by proceeds from the settlement and replacement of net investment hedge derivative contracts and lower capital expenditures.

We continue to make capital expenditures primarily to modernize manufacturing facilities, support new product and productivity initiatives and fund strategic priorities.

We expect 2022 capital expenditures to be approximately $1.1 billion, including capital expenditures in connection with our Simplify to Grow Program and for funding our strategic priorities.

We expect to continue to fund these expenditures with cash from operations.

Net Cash Used in Financing Activities:

The decrease in cash used in financing activities was primarily due to lower share repurchases as well as lower net debt repayments as we largely refinanced debt during the first quarter of 2022 with lower interest rate debt (refer to Note 8, Debt and Borrowing Arrangements ) and we lapped higher amounts of net long-term debt repayments in the prior-year first quarter.

The decrease in cash used in financing activities was partially offset by higher dividends paid in the first three months of 2022 than in the same prior-year period.

The decrease in cash used in financing activities was primarily due to lower net debt repayments in 2022 to date as we largely refinanced debt during the first quarter of 2022 with lower interest rate debt and we lapped higher net long-term debt repayments in the prior-year, partially offset primarily by higher dividends paid in the first six months of 2022 than in the same prior-year period.

Supply Chain Financing

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Amounts due to our suppliers that elected to participate in the SCF program are included in accounts payable in our consolidated balance sheet.

We have been informed by the participating financial institutions that as of March 31, 2022, and March 31, 2021, $2.5 billion and $2.3 billion, respectively, of our accounts payable to suppliers that participate in the SCF programs are outstanding.

We have been informed by the participating financial institutions that as of June 30, 2022 and June 30, 2021, $2.1 billion and $2.5 billion, respectively, of our accounts payable to suppliers that participate in the SCF programs are outstanding.

As discussed in Note 12, Commitments and Contingencies , we enter into third-party guarantees primarily to cover the long-term obligations of our vendors.

As part of these transactions, we guarantee that third parties will make contractual payments or achieve performance measures.

At March 31, 2022, we had no material third-party guarantees recorded on our condensed consolidated balance sheet.

At June 30, 2022, we had no material third-party guarantees recorded on our condensed consolidated balance sheet.

Guarantees do not have, and we do not expect them to have, a material effect on our liquidity.

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As such, we may issue commercial paper or secure other forms of financing throughout the year to meet short-term working capital or other financing needs.

Refer to Note 8, Debt and Borrowing Arrangements , for details of our debt activity during the first three months of 2022.

Refer to Note 8, Debt and Borrowing Arrangements , for details of our debt activity during the first six months of 2022.

In the next 12 months, we expect to repay approximately $0.7 billion of maturing long-term debt including $0.2 billion in July 2022 and $0.5 billion in September 2022.

We fund ongoing debt maturities and other long-term obligations using cash on hand or we may refinance obligations with long-term debt or short-term financing (such as our commercial paper borrowings) depending on financing available, timing considerations, flexibility to raise funding and the cost of financing.

During December 2021, our Board of Directors approved a new $7.0 billion long-term financing authority to replace the prior $6.0 billion authority.

As of March 31, 2022, $5 billion of the long-term financing authorization remained available, with $2 billion of this amount allocated for any borrowings that we may make under the term loan facility we entered into in March 2022.

During December 2021, our Board of Directors approved a $7 billion long-term financing authority to replace the prior $6 billion authority.

As of June 30, 2022, $3 billion of the long-term financing authorization remained available.

On July 11, 2022 we entered into a new $2 billion term loan facility.

At its July 2022 meeting, the Board of Directors approved a new $2 billion long-term financing authorization that replaced the prior long-term financing authorization.

Refer to Note 8, Debt and Borrowing Arrangements.

Our total debt was $19.7 billion at March 31, 2022 and $19.5 billion at December 31, 2021.

Our debt-to-capitalization ratio was 0.41 at March 31, 2022 and 0.41 at December 31, 2021.

At March 31, 2022, the weighted-average term of our outstanding long-term debt was 9.4 years.

Our average daily commercial paper borrowings outstanding were $1.2 billion in the first three months of 2022 and $0.2 billion in the first three months of 2021.

We had commercial paper outstanding totaling $0.5 billion as of March 31, 2022 and $0.2 billion as of December 31, 2021.

Our total debt was $19.2 billion at June 30, 2022 and $19.5 billion at December 31, 2021.

Our debt-to-capitalization ratio was 0.41 at June 30, 2022 and 0.41 at December 31, 2021.

At June 30, 2022, the weighted-average term of our outstanding long-term debt was 9.1 years.

Our average daily commercial paper borrowings outstanding were $1.2 billion in the first six months of 2022 and $0.6 billion in the first six months of 2021.

We had commercial paper outstanding totaling $0.5 billion as of June 30, 2022 and $0.2 billion as of December 31, 2021.

We expect to continue to use cash or commercial paper to finance various short-term financing needs.

Through March 31, 2022, we continue to comply with our debt covenants.

Through June 30, 2022, we continue to comply with our debt covenants.

One of our subsidiaries, Mondelez International Holdings Netherlands B.V.

(“MIHN”), has outstanding debt.

The operations held by MIHN generated approximately 74.4% (or $5.8 billion) of the $7.8 billion of consolidated net revenue in the three months ended March 31, 2022.

The operations held by MIHN represented approximately 81.6% (or $23.0 billion) of the $28.2 billion of net assets as of March 31, 2022 and 79.2% (or $22.4 billion) of the $28.3 billion of net assets as of December 31, 2021.

The operations held by MIHN generated approximately 73.3% (or $11.0 billion) of the $15.0 billion of consolidated net revenue in the six months ended June 30, 2022.

The operations held by MIHN represented approximately 82.2% (or $22.7 billion) of the $27.6 billion of net assets as of June 30, 2022 and 79.2% (or $22.4 billion) of the $28.3 billion of net assets as of December 31, 2021.

Refer to Note 8, Debt and Borrowing Arrangements, for more information on our debt and debt covenants.

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We regularly monitor worldwide supply, commodity cost and currency trends so we can cost-effectively secure ingredients, packaging and fuel required for production.

During the first three months of 2022, the primary drivers of the increase in our aggregate commodity costs were higher packaging, edible oils, dairy, energy, grains, sugar and other ingredient costs, partially offset by favorable year-over-year currency exchange transaction costs on imported materials and lower cocoa costs.

During the first six months of 2022, the primary drivers of the increase in our aggregate commodity costs were higher packaging, dairy, edible oils, energy, grains, sugar, nuts and other ingredient costs, partially offset by favorable year-over-year currency exchange transaction costs on imported materials and lower cocoa costs.

A number of external factors such as the COVID-19 global pandemic, effects of the war in Ukraine, climate and weather conditions, commodity, transportation and labor market conditions, currency fluctuations and the effects of governmental agricultural or other programs affect the cost and availability of raw materials and agricultural materials used in our products.

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Due to competitive or market conditions, planned trade or promotional incentives, fluctuations in currency exchange rates or other factors, our pricing actions may also lag commodity cost changes temporarily.

As a result of international supply chain, transportation and labor market disruptions and generally higher commodity, transportation and labor costs in the first quarter of 2022, we expect price volatility and a higher aggregate cost environment to continue in the remainder of 2022.

As a result of international supply chain, transportation and labor market disruptions and generally higher commodity, transportation and labor costs in the first six months of 2022, we expect price volatility and a higher aggregate cost environment to continue in the remainder of 2022.

While the costs of our principal raw materials fluctuate, we believe there will continue to be an adequate supply of the raw materials we use and that they will generally remain available.

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Stock Plans and Share Repurchases:

See Note 11, Stock Plans , to our condensed consolidated financial statements and Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds , for more information on our stock plans, grant activity and share repurchase program for the three months ended March 31, 2022.

As of March 31, 2022, our Board of Directors has authorized share repurchases up to $23.7 billion through December 31, 2023.

Under this program, we have repurchased approximately $20.8 billion of shares through March 31, 2022 ($0.8 billion in the first three months of 2022, $2.1 billion in 2021, $1.4 billion in 2020, $1.5 billion in 2019, $2.0 billion in 2018, $2.2 billion in 2017, $2.6 billion in 2016, $3.6 billion in 2015, $1.9 billion in 2014 and $2.7 billion in 2013), at a weighted-average cost of $42.50 per share.

As of June 30, 2022, our Board of Directors has authorized share repurchases up to $23.7 billion through December 31, 2023.

Under this program, we have repurchased approximately $21.5 billion of shares through June 30, 2022 ($1.5 billion in the first six months of 2022, $2.1 billion in 2021, $1.4 billion in 2020, $1.5 billion in 2019, $2.0 billion in 2018, $2.2 billion in 2017, $2.6 billion in 2016, $3.6 billion in 2015, $1.9 billion in 2014 and $2.7 billion in 2013), at a weighted-average cost of $43.00 per share.

The number of shares that we ultimately repurchase under our share repurchase program may vary depending on numerous factors, including share price and other market conditions, our ongoing capital allocation planning, levels of cash and debt balances, other demands for cash, such as acquisition activity, general economic or business conditions and Board and management discretion.

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We may accelerate, suspend, delay or discontinue our share repurchase program at any time, without notice.

We paid dividends of $491 million in the first three months of 2022 and $453 million in the first three months of 2021.

The first quarter 2022 dividend of $0.35 per share, declared on February 3, 2022 for shareholders of record as of March 31, 2022, was paid on April 14, 2022.

We paid dividends of $977 million in the first six months of 2022 and $896 million in the first six months of 2021.

second quarter 2022 dividend of $0.35 per share, declared on May 18, 2022 for shareholders of record as of June

30, 2022, was paid on July 14, 2022.

On July 26, 2022, the Audit Committee, with authorization delegated from our Board of Directors, declared a quarterly cash dividend of $0.385 per share of Class A Common Stock, an increase of 10 percent.

This dividend is payable on October 14, 2022, to shareholders of record as of September 30, 2022.

The declaration of dividends is subject to the discretion of our Board of Directors and depends on various factors, including our net earnings, financial condition, cash requirements, future prospects and other factors that our Board of Directors deems relevant to its analysis and decision making.

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the impact of the COVID-19 pandemic and related disruptions on our business including consumer demand, costs, product mix, our strategic initiatives, our and our partners’ global supply chains, operations, technology and assets, and our financial performance;

price volatility, inflation and pricing actions;

our future performance, including our future revenue and earnings growth;

our strategy to accelerate consumer-centric growth, drive operational excellence and create a winning growth culture;

our strategy to accelerate consumer-centric growth, drive operational excellence, create a winning growth culture and scale sustainable snacking;

plans to reshape our portfolio and extend our leadership positions in chocolate and biscuits as well as baked snacks;

plans to further enable our growth by investing in our strong and inclusive talent, brand portfolio and digital technologies and skills, as well as our sales and marketing capabilities;

plans to divest our developed market gum and global Halls candy businesses;

anticipated closing of planned acquisitions of Clif Bar and Ricolino;

our leadership position in snacking;

volatility in global consumer, commodity, transportation, labor, currency and capital markets;

price volatility, inflation and pricing actions;

the cost environment, including higher labor, customer service, commodity, transportation, operating, and other costs, factors affecting costs and measures we are taking to address increased costs;

the cost environment, including higher labor, customer service, commodity, operating, transportation and other costs;

factors affecting costs and measures we are taking to address increased costs;

supply, transportation and labor disruptions and constraints;

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our capital structure, credit availability and our ability to raise capital, and the impact of market disruptions on us, our counterparties and our business partners;

the planned phase out of London Interbank Offered Rates and transition to any other interest rate benchmark;

the planned phase out of London Interbank Offered Rates and transition to other interest rate benchmarks;

our risk management program, including the use of financial instruments and the impacts and effectiveness of our hedging activities;

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capital expenditures and funding;

funding of debt maturities, acquisitions and other

funding of debt maturities, acquisitions and other obligations;

share repurchases;

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and our contractual and other obligations.

These forward-looking statements involve risks and uncertainties, many of which are beyond our control, and many of these risks and uncertainties are currently amplified by and may continue to be amplified by the COVID-19 pandemic, including the spread of new variants of COVID-19 such as Omicron.

Important factors that could cause our actual results to differ materially from those described in our forward-looking statements include, but are not limited to, the impact of ongoing or new developments in the war in Ukraine, related current and future sanctions imposed by governments and other authorities, and related impacts on our business, growth, reputation, prospects, financial condition, operating results (including components of our financial results), cash flows and liquidity;

Important factors that could cause our actual results to differ materially from those described in our forward-looking statements include, but are not limited to, the impact of ongoing or new developments in the war in Ukraine, related current and future sanctions imposed by governments and other authorities, and related impacts on our business, growth, employees, reputation, prospects, financial condition, operating results (including components of our financial results), cash flows and liquidity;

uncertainty about the effectiveness of efforts by health officials and governments to control the spread of COVID-19 and inoculate and treat populations impacted by COVID-19;

uncertainty about the reimposition or lessening of restrictions imposed by governments intended to mitigate the spread of COVID-19 and the magnitude, duration, geographic reach and impact on the global economy of COVID-19;

the ongoing, and uncertain future, impact of the COVID-19 pandemic on our business, growth, reputation, prospects, financial condition, operating results (including components of our financial results), cash flows and liquidity;

the ongoing, and uncertain future, impact of the COVID-19 pandemic on our business, growth, employees, reputation, prospects, financial condition, operating results (including components of our financial results), cash flows and liquidity;

risks from operating globally including in emerging markets;

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the impact of climate change on our supply chain and operations;

strategic transactions;

our ability to complete, manage and realize the full extent of the benefits, cost savings or synergies presented by strategic transactions, including our planned acquisitions of Clif Bar and Ricolino and our recently completed acquisitions of Chipita, Gourmet Food and Grenade;

our ability to access the debt capital markets to fund a portion of the consideration for the pending acquisitions of Clif Bar and Ricolino;

significant changes in valuation factors that may adversely affect our impairment testing of goodwill and intangible assets;

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the expected discontinuance of London Interbank Offered Rates and transition to any other interest rate benchmark;

and our ability to protect our intellectual property and intangible assets.

our ability to protect our intellectual property and intangible assets;

and the risks and uncertainties, as they may be amended from time to

time, set forth in our filings with the U.S.

Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the period ended March 31, 2022.

There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make.

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(1) When items no longer impact our current or future presentation of non-GAAP operating results, we remove these items from our non-GAAP definitions.

In the first quarter of 2022, we added to the non-GAAP definitions the exclusion of incremental costs due to the war in Ukraine (refer to footnote (8) below).

(2) Divestitures include completed sales of businesses (including the partial or full sale of an equity method investment) and exits of major product lines upon completion of a sale or licensing agreement.

In the first quarter of 2022, we added to the non-GAAP definitions the exclusion of incremental costs due to the war in Ukraine (refer to footnote (10) below), and in the second quarter of 2022, we added to the non-GAAP definitions the exclusion of costs incurred associated with our publicly-announced processes to sell businesses (refer to footnote (5) below).

(2) Divestitures include completed sales of businesses, exits of major product lines upon completion of a sale or licensing agreement and the partial or full sale of an equity method investment such as KDP or JDE Peet's.

As we record our share of KDP and JDE Peet’s ongoing earnings on a one-quarter lag basis, any KDP or JDE Peet’s ownership reductions are reflected as divestitures within our non-GAAP results the following quarter.

Related to acquisitions, we exclude the impact of adjustments made to our acquisition contingent consideration liabilities that were recorded at the date of acquisition.

We made this adjustment to better facilitate comparisons of our underlying operating performance across periods.

See Note 2, Acquisitions and Divestitures , and Note 6, Equity Method Investments , for information on acquisitions and divestitures impacting the comparability of our results.

(3) Constant currency operating results are calculated by dividing or multiplying, as appropriate, the current-period local currency operating results by the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S.

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Costs that do not meet the program objectives are not reflected in the non-GAAP adjustments.

(5) During the third quarter of 2018, as we began to apply highly inflationary accounting for Argentina (refer to Note 1, Basis of Presentation ), we excluded the remeasurement gains or losses related to remeasuring net monetary assets or liabilities in Argentina during the period to be consistent with our prior accounting for these remeasurement gains/losses for Venezuela when it was subject to highly inflationary accounting prior to deconsolidation in 2015.

(5) Divestiture-related costs, which includes costs incurred in relation to the preparation and completion of our divestitures as defined in footnote (2), also includes costs incurred associated with our publicly-announced processes to sell businesses.

We exclude these items to better facilitate comparisons of our underlying operating performance across periods.

(6) Acquisition integration costs and contingent consideration adjustments include one-time costs related to the integration of acquisitions as well as any adjustments made to the fair market value of contingent compensation liabilities that have been previously booked for earn-outs related to acquisitions that do not relate to employee compensation expense.

We exclude these items to better facilitate comparisons of our underlying operating performance across periods.

(7) In connection with our applying highly inflationary accounting (refer to Note 1, Basis of Presentation ) for Argentina (beginning in the third quarter of 2018) and Türkiye (beginning in the second quarter of 2022), we exclude the related remeasurement gains or losses related to remeasuring net monetary assets or liabilities denominated in the local currency to the U.S.

dollar during the periods presented to be consistent with our prior accounting for these remeasurement gains/losses for Venezuela when it was subject to highly inflationary accounting prior to deconsolidation in 2015.

(8) We exclude unrealized gains and losses (mark-to-market impacts) from outstanding commodity and forecasted currency and equity method investment transaction derivative contracts from our non-GAAP earnings measures.

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We began to incur incremental costs directly related to the war including asset impairments, such as property and inventory losses, higher expected allowances for uncollectible accounts receivable and committed compensation.

We have isolated and exclude these costs from our operating results to facilitate evaluation and comparisons of our ongoing results.

We have isolated and exclude these costs and related impacts from our operating results to facilitate evaluation and comparisons of our ongoing results.

Incremental costs related to increasing operations in other primarily European facilities are not included with these costs.

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Applying the definition of “Organic Net Revenue,” the adjustments made to “net revenues” (the most comparable U.S.

GAAP financial measure) were to exclude the impact of currency and acquisitions.

GAAP financial measure) were to exclude the impact of currency, acquisitions and divestitures.

We believe that Organic Net Revenue reflects the underlying growth from the ongoing activities of our business and provides improved comparability of results.

We also evaluate our Organic Net Revenue growth from emerging markets and developed markets, and these underlying measures are also reconciled to U.S.

For the Three Months Ended March 31, 2022 For the Three Months Ended March 31, 2021

For the Three Months Ended June 30, 2022 For the Three Months Ended June 30, 2021

Markets Developed

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Impact of acquisitions (135) (63) (198) — — —

Impact of divestiture — — — — (14) (14)

Organic Net Revenue $ 2,809 $ 4,685 $ 7,494 $ 2,293 $ 4,335 $ 6,628

Six Months Ended June 30, 2022

Six Months Ended June 30, 2021

Markets Developed

Markets Total Emerging

Markets Developed

Markets Total

(in millions) (in millions)

Net Revenues $ 5,770 $ 9,268 15,038 $ 4,856 $ 9,024 $ 13,880

Impact of currency 277 440 717 — — —

Impact of acquisitions (251) (153) (404) — — —

Impact of divestiture — — — — (14) (14)

Organic Net Revenue $ 5,796 $ 9,555 $ 15,351 $ 4,856 $ 9,010 $ 13,866

Adjusted Operating Income:

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divestiture-related costs;

gain on an acquisition;

operating income from divestitures, gain on an acquisition;

incremental costs due to the war in Ukraine;

the remeasurement of net monetary position;

and impact from pension participation changes.

impact from pension participation changes;

and impact from resolution of tax matters.

We also evaluate Adjusted Operating Income on a constant currency basis.

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Simplify to Grow Program (1)

Intangible asset impairment charge (2)

Mark-to-market losses/(gains) from derivatives (3)

Acquisition integration costs and

contingent consideration adjustments (4)

Acquisition-related costs (4)

Divestiture-related costs (4)

Operating income from divestiture (4)

Incremental costs due to war in Ukraine (5)

Remeasurement of net monetary position (5)

Impact from pension participation changes (6)

Impact from resolution of tax matters (7)

Adjusted Operating Income $ 1,100 $ 1,075 $ 25 2.3 %

Unfavorable currency translation 66 — 66

Adjusted Operating Income (constant currency) $ 1,166 $ 1,075 $ 91 8.5 %

For the Six Months Ended

2022 2021 $ Change % Change

(in millions)

Operating Income $ 2,021 $ 2,155 $ (134) (6.2) %

Simplify to Grow Program (1)

Intangible asset impairment charges (2)

Mark-to-market gains from derivatives (3)

(27) (118) 91

Mark-to-market losses/(gains) from derivatives (3)

Acquisition integration costs and

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Divestiture-related costs (4)

Operating income from divestiture (4)

Gain on acquisition (4)

Incremental costs due to war in Ukraine (5)

Remeasurement of net monetary position (5)

Incremental costs due to war in Ukraine (5)

Impact from pension participation changes (6)

Impact from resolution of tax matters (7)

Adjusted Operating Income $ 2,478 $ 2,367 $ 111 4.7 %

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(2) Refer to Note 5, Goodwill and Intangible Assets , for more information.

(3) Refer to Note 9, Financial Instruments , and the Non-GAAP Financial Measures section for more information on the unrealized gains/losses on commodity, forecasted currency and equity method investment transaction derivatives.

(5) Refer to Note 1, Basis of Presentation , for information on our accounting for the war in Ukraine and our application of highly inflationary accounting for Argentina.

(3) Refer to Note 9, Financial Instruments , Note 16, Segment Reporting , and the Non-GAAP Financial Measures section for more information on the unrealized gains/losses on commodity, forecasted currency and equity method investment transaction derivatives.

(4) Refer to Note 2, Acquisitions and Divestitures , for more information on the January 3, 2022 acquisition of Chipita, the November 1, 2021 sale of MaxFoods Pty Ltd, the April 1, 2021 acquisition of Gourmet Food Holdings Pty Ltd, the March 25, 2021 acquisition of a majority interest in Grenade and the January 4, 2021 acquisition of the remaining 93% of equity in Hu Master Holdings.

(5) Refer to Note 1, Basis of Presentation, for information on our accounting for the war in Ukraine and our application of highly inflationary accounting for Argentina and Türkiye.

(6) Refer to Note 10, Benefit Plans , for more information.

(7) Refer to Note 12, Commitments and Contingencies , for more information.

Adjusted EPS:

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initial impacts from enacted tax law changes;

losses on equity method investment transactions;

gains or losses on equity method investment transactions;

and our proportionate share of significant operating and non-operating items recorded by our JDE Peet's and KDP equity method investees.

6 unchanged sentences

0.01 0.07 (0.06)

Intangible asset impairment charges (2)

Mark-to-market gains from derivatives (2)

Intangible asset impairment charge (2)

— 0.02 (0.02)

Mark-to-market losses/(gains) from derivatives (2)

0.08 (0.02) 0.10

Acquisition integration costs and

contingent consideration adjustments (2)

Acquisition-related costs (2)

— 0.01 (0.01)

Remeasurement of net monetary position (2)

Impact from pension participation changes (2)

— 0.02 (0.02)

Incremental costs due to war in Ukraine (2)

(0.01) — (0.01)

Initial impacts from enacted tax law changes (3)

0.01 0.07 (0.06)

Loss/(gain) on equity method investment transactions (4)

0.01 (0.27) 0.28

Equity method investee items (5)

(0.01) — (0.01)

Adjusted EPS $ 0.67 $ 0.66 $ 0.01 1.5 %

Unfavorable currency translation 0.05 — 0.05

Adjusted EPS (constant currency) $ 0.72 $ 0.66 $ 0.06 9.1 %

For the Six Months Ended

2022 2021 $ Change % Change

Diluted EPS attributable to Mondelēz International $ 1.15 $ 1.44 $ (0.29) (20.1) %

Simplify to Grow Program (2)

0.03 0.13 (0.10)

Intangible asset impairment charges (2)

0.04 0.02 0.02

Mark-to-market losses/(gains) from derivatives (2)

0.06 (0.08) 0.14

Acquisition integration costs and

contingent consideration adjustments (2)

Acquisition-related costs (2)

0.02 0.01 0.01

Net earnings from divestitures (3)

Net earnings from divestiture (6)

— (0.01) 0.01

Remeasurement of net monetary position (2)

Incremental costs due to war in Ukraine (2)

Impact from pension participation changes (2)

— 0.02 (0.02)

Loss on debt extinguishment and related expenses (7)

Initial impacts from enacted tax law changes (3)

0.01 0.07 (0.06)

Loss/(gain) on equity method investment transactions (4)

0.01 (0.26) 0.27

Equity method investee items (5)

4 unchanged sentences

(1) The tax expense/(benefit) of each of the pre-tax items excluded from our 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.

• For the three months ended March 31, 2022, taxes for the:

Simplify to Grow Program were $(7) million, intangible asset impairment charges were $(19) million, mark-to-market gains from derivatives were $(5) million, acquisition integration costs and contingent consideration adjustments were $(50) million, acquisition-related costs were $(1) million, incremental costs due to the war in Ukraine were $2 million and loss on debt extinguishment and related expenses were $(31) million.

• For the three months ended March 31, 2021, taxes for the:

Simplify to Grow Program were $(31) million, mark-to-market gains from derivatives were $22 million, acquisition-related costs were $(1) million, net earnings from divestitures were $3 million, loss on debt extinguishment and related expenses were $(34) million and equity method investee items were $(2) million.

• For the three months ended June 30, 2022, taxes for the:

Simplify to Grow Program were $(6) million, mark-to-market losses from derivatives were $(14) million, acquisition integration costs and contingent consideration adjustments were $(1) million, remeasurement of net monetary position were zero, incremental costs due to the war in Ukraine were zero, initial impacts from enacted tax law changes were $9 million, loss on equity method transactions were zero and equity method investee items were $2 million.

• For the three months ended June 30, 2021, taxes for the:

Simplify to Grow Program were $(35) million, intangible asset impairment charge was $(8) million, mark-to-market gains from derivatives were $(4) million, acquisition-related costs were $(3) million, impact from pension participation changes were $(7) million, initial impacts from enacted tax law changes were $95 million and gain on equity method investment transactions were $125 million.

• For the six months ended June 30, 2022, taxes for the:

Simplify to Grow Program were $(13) million, intangible asset impairment charge was $(19) million, mark-to-market losses from derivatives were $(19) million, acquisition integration costs and contingent consideration adjustments were $(51) million, acquisition-related costs were $(3) million, remeasurement of net monetary position were zero, incremental costs due to the war in Ukraine were $2 million, loss on debt extinguishment and related expenses were $(31) million, initial impacts from enacted tax law changes were $9 million, loss on equity method investment transactions were zero and equity method investee items were $5 million.

• For the six months ended June 30, 2021, taxes for the:

Simplify to Grow Program were $(66) million, intangible asset impairment charge was $(8) million, mark-to-market gains from derivatives were $18 million, acquisition-related costs were $(4) million, net earnings from divestitures were $6 million, impact from pension participation changes were $(8) million, loss on debt extinguishment and related expenses were $(34) million, initial impacts from enacted tax changes were $99 million, gain on equity method investment transactions were $125 million and equity method investee items were $(3) million.

(2) See the Adjusted Operating Income table above and the related footnotes for more information.

(3) Includes the impact from 2021 partial sales of our equity method investment in KDP as if the sales occurred at the beginning of all periods presented.

(4) Refer to Note 8, Debt and Borrowing Arrangements , for more information on the loss on debt extinguishment and related expenses.

(3) Refer to Note 14, Income Taxes , and the Non-GAAP Financial Measures section for more information on the impact.

(4) Refer to Note 6, Equity Method Investments, for more information on the gains and losses on equity method investment transactions.

(5) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's and KDP equity method investees, such as acquisition and divestiture-related costs and restructuring program costs.

(6) Includes the impact from 2021 partial sales of our equity method investments in KDP as if the sales occurred at the beginning of all periods presented.

The second quarter 2022 sale of JDE Peet's shares will be reflected on a lag basis in the third quarter of 2022.

(7) Refer to Note 8, Debt and Borrowing Arrangements , for more information on the loss on debt extinguishment and related expenses.

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-Q

Item 2. Management’s Discussion and Analysis