Mondelez 2012 Annual Report Download - page 15

Table of Contents
We are subject to risks generally associated with companies that operate globally.
We are a global company generating 82.9% of our 2012 net revenues, 83.7% of our 2011 net revenues and 82.6% of our 2010 net
revenues outside the United States. With operations in more than 80 countries, our operations are subject to risks inherent in
multinational operations. Those risks include:
In addition, political and economic changes or volatility, geopolitical regional conflicts, terrorist activity, political unrest, civil strife,
acts of war, public corruption and other economic or political uncertainties could interrupt and negatively affect our business
operations. All of these factors could result in increased costs or decreased revenues, and could materially and adversely affect our
product sales, financial condition and results of operations.
Our operations in certain emerging markets expose us to political, economic and regulatory risks.
Our growth strategy depends in part on our ability to expand our operations in emerging markets, including Brazil, China, India,
Mexico, Russia and Southeast Asia. However, some emerging markets have greater political and economic volatility and greater
vulnerability to infrastructure and labor disruptions than most established markets. In many countries outside of the United States,
particularly in those with emerging economies, it may be common for others to engage in business practices prohibited by laws and
regulations with extraterritorial reach, such as the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act or similar local anti-
bribery laws. These laws generally prohibit companies and their employees, contractors or agents from making improper payments
to government officials. Failure to comply with these laws could subject us to civil and criminal penalties that could materially and
adversely affect our financial condition and results of operations.
In addition, competition in emerging markets is increasing as our competitors grow their global operations and low cost local
manufacturers expand their production capacities. Our success in emerging markets, is critical to our growth strategy. If we cannot
successfully increase our business in emerging markets, our product sales, financial condition and results of operations could be
materially and adversely affected.
Unanticipated business disruptions could affect our ability to provide our products to our customers.
We manufacture and source products and materials on a global scale. We have a complex network of suppliers, owned
manufacturing locations, co-manufacturing locations, distribution networks and information systems that support our ability
consistently to provide our products to our customers. Factors that are hard to predict or beyond our control, like weather, natural
disasters, fire, terrorism, generalized labor unrest or health pandemics, could damage or disrupt our operations, or our suppliers’ or
co-manufacturers’ operations. If we cannot respond to disruptions in our operations, for example, by finding alternative suppliers or
replacing capacity at key manufacturing or distribution locations, or cannot quickly repair damage to our information, production or
supply systems, we may be late in delivering, or be unable to deliver, products to our customers. If that occurs, we may lose our
customers’ confidence and long-term demand for our products could decline. Any of these events could materially and adversely
affect our product sales, financial condition and results of operations.
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• compliance with U.S. laws affecting operations outside of the United States, such as the Foreign Corrupt Practices Act
(“FCPA”),
•
compliance with a varying local, national and multi
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national regulations and laws operating in multiple regimes,
•
changes in tax laws and the interpretation of those laws,
•
fluctuations in currency values,
•
sudden changes in currency exchange controls, such as the recent devaluation in Venezuela
•
discriminatory or conflicting fiscal policies,
•
increased risk on sovereign debt investments,
•
varying abilities to enforce intellectual property and contractual rights,
• greater risk of uncollectible accounts and longer collection cycles,
• effective and immediate implementation of control environment processes across our diverse operations and employee
base, and the
• imposition of more or new tariffs, quotas, trade barriers, and similar restrictions on our sales.