Mondelez 2012 Annual Report Download - page 5

Table of Contents
Strategy
As a Global Snacks Powerhouse, we intend to leverage our core strengths, including market leadership positions across our
categories and a significant presence in every geography, to achieve two primary goals: deliver top-tier financial performance and
be a great place to work. We plan to achieve these goals by executing five strategies:
Reportable Segments
We manage our global business and report operating results through three geographic units: Developing Markets, Europe and
North America. In connection with the divestiture of Kraft Foods Group, we divested and no longer report on the following segments
within our results from continuing operations: U.S. Beverages, U.S. Cheese, U.S. Convenient Meals and U.S. Grocery. Our
remaining businesses within North America are predominantly snacks businesses. Our segment results in this Annual Report on
Form 10-K reflect these changes for all periods presented.
Beginning in 2013, our segment structure will change. In December 2012, we announced a reorganization of our business and
reporting structure following the Spin-Off. Effective January 1, 2013, our operations, management and segments will be
reorganized into five operating segments: Asia Pacific; Eastern Europe, Middle East & Africa (“EEMEA”); Europe; Latin America
and North America. Accordingly, we will begin to report on our new segment structure during the first quarter of 2013 and reflect the
change for all the historical periods we present.
We use segment operating income to evaluate segment performance and to allocate resources. We believe this measure is most
relevant to investors in order to analyze segment results and trends. As further discussed in Note 16, Segment Reporting, to the
consolidated financial statements, segment operating income excludes unrealized gains and losses on hedging activities (which are
a component of cost of sales), certain components of our U.S. pension plan cost (which are a component of cost of sales and
selling, general and administrative expenses), gains / (losses) on divestitures, acquisition-related costs (which are a component of
selling, general and administrative expenses), general corporate expenses (which are a component of selling, general and
administrative expenses) and amortization of intangibles.
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• Unleash the Power of Our People. We recognize the importance of our people living out our shared vision and delivering
on our shared goals with joy, commitment and unquestioned integrity. With our employees, we are creating collaborative,
creative, learning communities to share good ideas and execute plans more efficiently and effectively.
• Transform Snacking . Our global Power Brands are the heart of our competitive advantage. They enable us to fulfill
consumers’
needs with a full range of snacking choices that fuel the body, treat the spirit and boost the mind. By skewing
resources to these brands, we expect to drive substantial growth. In addition, our global innovation platforms, such as
those that help consumers “sustain energy” or “satisfy hunger,” allow us to quickly adapt successful products from one
market to many others. By meeting the needs of consumers and continually innovating our existing portfolio of products,
we expect to grow and maintain our market
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leading positions.
• Revolutionize Selling. Following our acquisitions of the LU biscuit business in 2007 and Cadbury Limited in 2010, we
significantly expanded our routes to market around the globe, particularly in emerging markets. We plan to expand and
further develop best-in-
class sales and distribution capabilities across our key markets in both developing and developed
markets.
• Drive Efficiency to Fuel Growth. We drive growth by managing our business through a virtuous cycle to deliver great
quality at advantaged costs. To drive sales and earnings growth, we focus on our Power Brands and Priority Markets ,
we work to expand margins through overhead discipline and by leveraging lean and simple cost management programs
within our integrated supply chain. We then reinvest savings to pursue additional targeted growth opportunities within our
portfolio.
• Protect the Well-being of Our Planet. We are committed to growing our business while protecting our planet and its
people. To accomplish this, we deliver safe, high-quality foods and ensure a safe work environment for our employees.
We also create foods that fit the way people eat today and provide balanced snacking choices by inventing new solutions
and improving our nutritional profile. We protect our resources, focusing on where we can have the greatest impact. We
empower farming communities to deliver innovative solutions throughout our ingredient supply chain. We drive resource
efficiency and design sustainability into our operations to minimize the toll we have on the planet.